Most Indian students looking to pursue their higher studies abroad due to the greater career choices and practical exposure. While thinking about studying a course from a university in the UK, US or Canada, the first thing that comes to our minds is the course fees, followed by eligibility criteria, accommodation and other related expenses. Only a few manage to get into a university of preference on scholarship, while others have to be content with a partial scholarship and bear the remaining expenses through an educational loan. A common issuer of an education loan is a bank, but sometimes, it could also be a Fintech company or a non-banking financial company (NBFC). However, most Indians rely on banks. Therefore, here is a list of top banks providing the best interest rates on an educational loan.
State Bank of India (SBI)
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An SBI education loan is the go-to for most students as it offers a low interest rate, easy repayment options, a moratorium period and income tax benefits. Moreover, it has an attractive interest rate concession for female students that goes up to Rs 20 lakh. If you opt for a loan of up to Rs 1.5 crore, the interest rate would vary from 6.85% to 8.65%. The bank also charges a processing fee of Rs 10,000. The loan tenure is up to 15 years and collateral up to Rs 7.5 lakh.
Bank of Baroda
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Bank of Baroda offers various educational loans at attractive interest rates with a repayment tenure of up to 15 years and collateral of 100% tangible security. You can apply for an educational loan of up to 80 lakhs with an interest rate of 6.75% to 9.85%. Interestingly, the processing fee of the bank varies from NIL to Rs 10,000. The educational loan is available for students of nursery school and upwards.
Punjab National Bank
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As the educational loan schemes of PNB aim at providing financial support to meritorious students for pursuing higher education in India and abroad, it offers a maximum educational loan of Rs 15 lakh with an annual interest of 6.90% to 9.55% and charges a processing fee of 1% of the loan amount. With a tenure of up to 15 years, the loan’s moratorium period fluctuates between 6 months and 1 year after the completion of the course.