Education loans are one of the growing credit sectors of India that is directly connected to the building of human resource in India and, at an individual level, the long-term prosperity of an individual. Education loans are supposed to be one of the fastest growing segments because of the rising demand of higher education among Indians. According to a report by Crisil Ratings, the AUM (assets under management) of education loans is expected to rise 40-45% in FY25.
What do education loans depend on? Which loan is best for education? Who is eligible for an education loan? Questions like these play on the mind of every student and his/her parents/guardian when they approach school leaving years. Let’s have a look at the interest rate on education loans charged by some of the top banks of India.
Interest on SBI education loan
The interest rate charged on education loans by the biggest lender in India, State Bank of India, or SBI, starts from 11.15% for loans. SBI offers a concession of 50 basis points for girl students. However, if SBI takes over an education loan from some other bank, it charges 8.10% for courses in IITs and 8.65% for other institutes.
Education loan interest rate of HDFC Bank
The interest rates charged by India’s biggest private sector lender, HDFC Bank, is considerably lower than that charged by SBI. Rates of HDFC Bank education loans start from 9.50%.
ICICI Bank education loans
ICICI Bank offers a maximum of Rs 3 crore as education loans (for international studies). For courses in India, the maximum loan disbursed is Rs 1 crore. The formula for minimum interest rate charge by ICICI Bank is Repo Rate + 3.75 percentage point, which is now equal to 10.25%. Only those between 16 and 35 years are eligible to apply.
PNB education loans
Punjab National Bank, or PNB, offers 3 types of education loans – Saraswati, Pratibha and Udaan. The rate of interest charged under Saraswati begins from 11.25%. The rate of interest for Pratibha begins from 8.10 % (admissions to professional institutes such as admission in IIMs, IITs, ISB Hyderabad, ISB Mohali, MDI Gurgaon & XLRI Jamshedpur) and the rate of interest for Udaan loans begins from 9.25%.
An education loan can be a big enabler for an individual helping him/her to attain prosperity in life. But one should be careful in picking one since a young person has to repay it. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
