Education Loan – A Quick Overview

SBI provides Education Loan under three categories

·         For studies in India and abroad

·         For studies in premier Indian institutions

·         For pursuing vocational education & training

Up to Rs. 7.5 lakhs: 8% 1 year MCLR with 2% spread

Effective Interest Rate – 10%

Reset Period – 1 year

Above Rs. 7.5 lakhs: 8% 1 year MCLR with 2.75% spread

Effective Interest Rate: 10.75%

Reset Period: 1 year

0.50% concession in interest for girl students.

1% concession for full tenure of the loan, if interest is serviced promptly as and when applied during the moratorium period, including course duration.

·         For studies abroad: Rs. 30 lakhs.

The repayment period can be up to 3 years for vocational education & training courses of up to 1 year.

The repayment period can extend up to 5 years for courses of more than 1 year.

Interest Rate: 9.95%

Axis Bank provides Education Loans to students who have secured admission to career-oriented courses like medicine, engineering and management at either graduate or post-graduate levels.

·         Up to Rs. 4 lakhs: Male students: Interest rate + 7%

Female students: Interest rate + 6.50%

·         Between Rs. 4 – Rs. 7.5 lakhs:

Male students: Interest rate + 8%

Female students: Interest rate + 7.50%

·         Above Rs. 7.5 lakhs:

Male students: Interest rate + 6%

Female students: Interest rate + 5.50%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

The minimum amount of Education Loan is fixed at Rs. 50,000 and maximum at Rs. 75 lakhs, which can be extended in special cases.

Interest Rate- 9.35%

PNB offers Education Loans under three categories:

PNB Saraswati
This loan is extended to applicants who wish to pursue higher education in India.

PNB Saraswati

Repayable in less than 3 years

·         Up to Rs. 4 lakhs: Interest rate + 3.00%

·         Between Rs. 4 – Rs. 7.5 lakhs: Interest rate + 4.00%

·         Above Rs. 7.5 lakhs: Interest rate + 2.00%

Repayable in more than 3 years

·         Up to Rs. 4 lakhs: Interest rate + 2.50% + term premium (TP)

·         Between Rs. 4 – Rs. 7.5 lakhs: Interest rate + 3.50% + TP

·         Above Rs. 7.5 lakhs: Interest rate + 2.00%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs: 5%

PNB Saraswati

·         Rs. 10 lakhs

·         For loans up to Rs. 7.50 lakhs: 10 years

·         For loans above Rs. 7.50 lakhs: 15 years

Applicants will be entitled to a repayment holiday period of either course duration + 1 year or 6 months after getting a job, whichever occurs earlier.

PNB Kaamgar

Repayable in less than 3 years

·         Up to Rs. 4 lakhs: Interest rate + 3.00%

·         Between Rs. 4 – Rs. 7.5 lakhs: Interest rate + 4.00%

·         Above Rs. 7.5 lakhs: Interest rate + 2.00%

Repayable in more than 3 years

·         Up to Rs. 4 lakhs: Interest rate + 2.50% + term premium (TP)

·         Between Rs. 4 – Rs. 7.5 lakhs: Interest rate + 3.50% + TP

·         Above Rs. 7.5 lakhs: Interest rate + 2.00%

Margin: Nil

PNB Kaamgar

·         Up to 3 months: Rs. 20,000
·         Above 3 months and up to 6 months: Rs. 50,000
·         Above 6 months and up to 1 year: Rs. 75,000
·         Above 1 year: Rs. 1.5 lakhs

For courses up to 1 year, loan must be repaid in 2 to 5 years and for courses over 1 year, loan must be repaid in 3 to 7 years.

Loan repayment holiday/ moratorium period for courses up to 1 year will be 6 months from completion of course, and for courses above 1 year, this period will be 12 months from completion of course.

PNB Pratibha

·         Less than 3 years: Interest rate + 1.50%

·         3 years & more: Interest rate + 1.50% + term premium

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs: 5%

PNB Pratibha

·         Between Rs. 7.50 lakhs and Rs 15 lakhs.

At the discretion of the bank.

Interest Rate- 11.50%

Calculated based on the applicant’s eligibility, the course being pursued, and other accompanying costs.

·         Maximum: No Limit

·         Maximum Repayment Tenure: 10 years

·         IIMs, ISBs, XLRI: Interest rate + 1.50%

·         IITs, BITS and other premier engineering, management & medical institutions: Interest rate + 2%

·         NITs, BITS and other reputed medical, management & engineering institutions: Interest rate + 2.50%

·         Other colleges and universities recognized by UGC, Govt., AICTE, AIBMS, ICMR etc: Interest rate + 3.00%

·         For students applying under the management quota: Interest rate + 3.00%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         IITs, BITS and other premier engineering, management & medical institutions: Rs. 15 lakhs

·         NITs, BITS and other reputed medical, management & engineering institutions: Rs. 10 lakhs

·         Other colleges and universities recognized by UGC, Govt., AICTE, AIBMS, ICMR etc: Rs. 10 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

Interest Rate  – 10.25%

The bank offers Education Loans for:

·         Educational Loans for higher studies in India and Abroad.

·         Educational Loans for pursuing vocational courses.

·         Up to Rs. 7.50 lakhs: Interest rate + 2.75%

·         Above Rs. 7.50 lakhs: Interest rate + 1.50%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

Vocational Courses

·         Above 1 year: Rs. 1.5 – Rs. 2 lakhs

·         For 6 months – 1 year: Rs. 75,000

·         For 3 – 6 months: Rs. 50,000

·         For up to 3 months: Rs. 20,000

Vocational Courses

·         Up to Rs. 50,000: 2 years
·         Loans between Rs. 50,000 and  Rs.1 lakh: 2 to 5 years
·         Loans above Rs.1 lakh: 3 to 7 years

Interest Rate: 9.60%

Baroda Gyan
This loan applies to students who are pursuing graduation, post-graduation and other professional courses in India. The Baroda Gyan loan is a feature rich package that is also immensely student friendly.

·         Up to Rs. 4 lakhs: Interest rate + 2.50%

·         Between Rs. 4 – Rs. 7.50 lakhs: Interest rate + 2.50%

·         Loan above Rs. 7.50 lakhs: Interest rate + 1.75%

·         Female students get 0.50% concession

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs: 5%

·         For loan amount above Rs.7.50 lakhs: Repayment must be made in maximum 180 instalments.

This loan is exclusively for students who wish to pursue their higher professional and/or technical studies at reputed educational institutions abroad.

·         Up to Rs. 4 lakhs: Interest rate + 2.50%

·         Between Rs. 4 – Rs. 7.50 lakhs: Interest rate + 2.50%

·         Loan above Rs. 7.50 lakhs: Interest rate + 1.75%

·         Female students get 0.50% concession

Margin: 15%

Baroda Education Loan for vocational education & training:

·         Interest rate + 2.00%

·         For loan amount above Rs.7.50 lakhs: Repayment must be made in maximum 180 instalments.

Interest Rate: 9.55%

BOI Star Education Loan
The Star Education Loan is extended to students who wish to pursue higher studies in India or abroad.

·         Loans up to Rs. 7.50 lakhs: Interest rate + 3.00%

·         Loans above Rs. 7.50 lakhs: Interest rate + 2.50%

·         Concession to women applicants of 0.5% per annum for loan amount up to Rs. 50,000 and 1% for loan amount over Rs. 50,000.

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

·         For students of IITs/IIMs: At the Interest rate

·         For students of premier institutes under A, B and C category: 0.50% over the Interest rate

·         Concession to women of 0.5% on the Interest rate.

Margin: Nil

·         List A: Rs. 20 lakhs
·         List B: 10 lakhs
·         List C: 7.5 lakhs

Interest Rate: 9.70%

·         Up to Rs. 4 lakhs: 12.75%

·         Between Rs. 4 – Rs. 7.50 lakhs: 12.25%

·         Loan above Rs. 7.50 lakhs: 11.50%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

Interest Rate: 9.65%

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs: India: 5%
Abroad: 15%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

Margin: Nil

·         Studies abroad: Rs. 20 lakhs

·         For 3 months courses: Rs. 20,000

·         For 3 to 6 months courses: Rs: 50,000

·         For 6 months to 1 year courses: Rs. 75,000

·         For courses of one year and above: Rs. 1.50 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

Once the course is completed, the settlement of loan will begin after a cessation period as given below:

·         For courses of up to one year: Six months from completion.

·         For courses that takes more than one year: One year from completion.

Interest Rate: 9.65%

·         Male Students: Interest rate + 2%

·         Female, SC, ST & students admitted to IIM/IIT: Interest rate + 1.50%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

Interest Rate: 9.75%

·         For loans up to Rs. 4 lakhs:

Male students: 13.75%

Female students: 13.25%

·         For loans above Rs. 4 lakhs:

Male students: 14.50%

Female students: 14.00%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

In case the students or their parents don’t choose this option, the payable interest amount will be added to the principal loan amount and repaid as monthly instalments.

At the beginning of the repayment process, the EMI amount will be fixed and the complete loan amount is to be paid in a span of 5 to 7 years.

Interest Rate: 9.65%

·         For loans up to Rs. 4 lakhs: 12.10%

·         For loans between Rs. 4 – Rs. 7.5 lakhs: 13.10%

·         For loans above Rs. 7.5 lakhs: 12.60%

·         Female students get a concession of 50 bps on the interest rate (which includes 25 bps for SC, ST and women students) for all Education Loans

·         Physically challenged students get a concession of 0.50% for all Education Loans

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

Interest Rate: 9.70%

·         11.80% p.a. for all loan amounts

·         The students get a concession of 1% on the interest rate when the payments for the interest charged are made on time, during the repayment holiday period.

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

Interest Rate: 9.63%

·         Ranges from Interest + 3.25% to Interest + 4.90%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

This loan can’t be availed for vocational training and skill development courses, whether in India or abroad.

Interest Rate: 9.00%

·         Charged at an average of 12.27%  in the past 1 year

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: No upper limit

·         Loans of up to Rs. 7.50 lakh: within a maximum period of 10 years.

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

For Studies Abroad

·         Borrowers can opt to pay just the simple interest during the course period and start regular repayments after the completion of the course. 

Interest Rate: 9.50%

For non-vocational courses

·         Priority sector lending (PSL): Interest rate + 1%

·         Not priority sector lending: Interest rate + 2%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs: 5%

·         Studies abroad: Rs. 20 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

·         Interest rate +1%

·         Up to 3 months: Rs. 20,000

·         3 to 6 months: Rs. 50,000
·         6 months to 1 year: Rs. 75,000
·         Above 1 year: Rs. 1.5 lakhs

For courses above 1 year duration, it is 12 months after the completion of the course.

After this period, the duration repayment tenure is:

·         Loans of up to Rs. 50,000: 2 years

·         Loans between Rs. 50,000 to Rs. 1 lakh: 2 to 5 years

·         Loans above 1 lakh: 3 to 7 years

Interest Rate: 9.45%

·         Indian Bank offers Education Loans at a floating interest rate of 12.50% p.a. with a concession of 0.50% under the IBA scheme for female students.

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 25 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

Interest Rate: 9.50%

·         Up to Rs. 4 lakhs: 12.25%

·         Between Rs. 4 – Rs. 7.5 lakhs: 13.50%
·         Above Rs. 7.50 lakhs: 13.25%
·         Vocational courses: 12.25%
·         Ward of staff: 12%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 40 lakhs

Interest Rate: 9.50%

For a tenure of 5 years

·         Up to Rs. 5 lakhs: 12.25%
·         Between Rs. 5 lakhs – Rs. 10 lakhs: 13.25%
·         Between Rs. 10 – Rs. 20 lakhs: 14.00%

Floating interest rate is charged on loans with tenure of more than 5 years as follows:

·         Up to Rs. 5 lakhs: Interest rate + 1.5% or prime lending rate – 3.00%
·         Between Rs. 5 – 10 lakhs: Interest rate + 2.5% or prime lending rate – 2.00%
·         Between Rs. 10 – 20 lakhs: Interest rate + 3.75% or prime lending rate – 0.75%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

Interest Rate: 10.25%

KBL Vidyanidhi

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

Interest Rate: 10.25%

·         Loans of up to Rs. 7.5 lakhs:

Male students:Interest rate + 3%

Female Students: Interest rate + 2.50%

·         Loan above Rs. 7.5 lakhs (priority sector):

Male students: Interest rate + 3.50%

Female students: Interest rate + 3%

·         Loan above Rs. 7.5 lakhs (non-priority sector):

Male students: Interest rate + 4%

Female students: Interest rate + 3.50%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

Interest Rate: 10.50%

·         Loans of up to Rs. 4 lakhs:

Male students: Interest rate + 3.25%

Female Students: Interest rate + 2.75%

·         Loan above Rs. 4 lakhs:

Male students: Interest rate + 4.25%

Female students: Interest rate + 3.75%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

Interest Rate: 9.65%

·         Loan of up to Rs. 4 lakhs

Male students: Interest rate + 2.50

Female Students: Concession of 0.50%

·         Loan between Rs. 4 – 7.5 lakhs (with third party guarantee):

Male students:

Interest rate + 3.00

Female students: Concession of 0.50%

·         Loan between Rs. 4-7.5 lakhs (with immovable property or tangible assets as collateral):

Male students: Interest rate + 1.75%

Female students: Concession of 0.50%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

Interest Rate: 9.50%

Base Prime Lending Rate: 13.85%

·         Loans up to Rs. 4 lakhs, the interest rate is prime lending rate – 1.50%.

·         Loans above Rs. 4 lakhs, the interest rate is PLR – 1%

·         Female students and students belonging to SC/ST group are entitled for a deduction of 0.50 percent on the aforementioned rates.

·         Female students under SC/ST group are qualified for an additional rebate of 0.25 percent on the said rates and together they get a concession of 0.75%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

Interest Rate: 9.70%

·         Loan of up to Rs. 7.50 lakhs: Interest rate + 2.50%

·         Loan of above Rs. 7.50 lakhs: Interest rate + 2.25%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

Interest Rate: 9.30%

·         Loan of up to Rs. 7.50 lakhs:

Male students: 12.25%

Female Students: 11.75%

·         Loan of above Rs. 7.50 lakhs:

Male students: 12.00%

Female Students: 11.50%

·         Vocational education & training

Male students: 11.75%

Female students: 11.25%

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

Interest Rate: 9.65%

UBI Education Loan

·         Loans of up to Rs. 4 lakhs: Interest rate + 2%

·         Loans of between Rs. 4 – 7.5 lakhs: Interest rate + 2.75%

·         Loans above Rs. 7.5 lakhs: Interest rate + 2%

·         Borrowers can enjoy a 1% concession on the regular interest rates, during the moratorium period, if the interest is serviced monthly and regularly during this period.

·         Parents with an income of up to Rs. 4.5 lakhs p.a enjoy an interest subsidy by the government, during the moratorium period.

Margin

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

·         Studies abroad: Rs. 20 lakhs

·         Loans above Rs. 7.50 lakh: within a maximum period of 15 years

The repayment holiday includes the course period + 1 year or 6 months after getting the job, whichever comes first.

·         A List: Interest Rate

·         B List

Male students: Interest rate + 0.50%

Female students: Interest rate + 0.25%

Interest Rate: 9.65%

For students under the Indian Banks’ Association (IBA) Scheme

·         For loans of up to Rs. 4 lakhs: Interest rate + 1.80%

·         Loans of above Rs. 4 lakhs: Interest rate + 2.25%

·         For other loans, the rate of interest is fixed irrespective of the loan amount.

·         Management quota (non IBA): Interest rate + 2.55%

·         ISB: 11.75%

·         Premier Institutions such as IIMs, IITs, etc: 11.75%

Margin

IBA scheme

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

India: 5%

Abroad: 15%

Premier Institutions, IIMs, IITs, etc.

·         Up to Rs. 4 lakhs: Nil

·         Above Rs. 4 lakhs:

15%

Management quota (non IBA): 15%

ISB: 5%

·         Studies abroad: Rs. 20 lakhs

• For students of Indian School of Business (ISB), and other Premier Institutions like IITs and IIMs: Rs.20 lakhs

·         For the students of ISB, the repayment holiday is the duration of the course plus 18 months or soon after employment, whichever is earlier.

·         Management quota (non IBA): Up to 10 years

·         Premier Institutions, IIMs, IITs etc: Up to 7 years

·         ISB: Up to 7 years

IBA Scheme:

·         Up to Rs. 7.5 lakhs: 10 years

·         More than Rs. 7.5  lakhs: 15 years