Lowest Interest Rate on Education Loan

Bank of Baroda Education Loan Interest Rates

Bank of Baroda provides a wide range of education loans with a low rate of interest. The maximum amount offered depends on the type of loan chosen by the student. Here’s is the list of the education loan offered by the Bank of Baroda:

• Processing fee: Nil. 
• Security: Available. 
• Co-borrowers: Parents or guardians can be co-borrowers. 
• Margin: 5% for loan above INR 4 lakh. 
• Concession: Female applicants get up to 0.50% concession on their return on investment. 

SBI Education Loan Interest Rate Comparison

State Bank of India (SBI) provides a wide range of education loans with interest rates starting from 6.90% and flexible repayment tenures. Education loans can be availed by students both for studies in India and abroad. SBI also offers loans to students to pursue vocational training and other professional courses.

Let us have a look at the table given below to know the interest rates charged by SBI on different education loans:

SBI Features 

• Processing fee: For studies on foreign shores, up to Rs. 10,000. For all loans above Rs. 20 lakh, similar charges are applicable. Loan schemes for scholars, skill upgradation, and takeover of education loans from other banks will not be charged any processing fees. 
• Security: On loans above Rs. 7.5 lakh, tangible collateral security is required. 
• Co-borrower: Parents or guardians can be co-borrowers. 
• Collateral: This applies only to takeover of education loans. 
• Concession: Girl applicants get up to 0.50% concession on their return on investment. 

ICICI Bank Education Loan Interest Rate

Individuals aged between 18 and 35 are eligible for ICICI Bank's education loans, subject to their academic progress, GPA score, and confirmation of admission to recognized institutions in India or overseas.

A parent or guardian serves as the co-applicant and is required to provide tangible collateral as security, with specifics dependent on the course, loan amount, and source of income. These loans typically feature competitive and low-interest rates. 

ICICI Bank prices its education loan by course and security offered: loans for studies abroad start from 9.00% p.a. (secured) or 10.25% p.a. (unsecured), while select domestic institutes start from 8.50% p.a. (secured) or 9.25% p.a. (unsecured). 

ICICI Bank Features 

• Processing fee: Up to 2%. 
• Security: Fixed deposit, property value, and up on existing loans. 
• Co-borrowers: Parents or guardians can be co-borrowers  Margin: Nil for premier institutes, and up to INR 20 lakh for others. Accepted in the form of FD, and scholarship or initial fee paid to the institute. 
• Concession: I-smart education loans for studies in Canada come with lower rates. 

Bank of India Education Loan Interest Rate

Bank of India offers a wide range of education loan schemes to students who wish to pursue higher studies in India and abroad. The loans will be provided on the basis of the earning potential of students after completing the courses.

• Processing fee: Nil. 
• Security: NA 
• Co-borrowers: Parents or guardians. 
• Margin: Nil on loans to INR 4 lakh 
• Concession: Up to 1% concession on RoI to female borrowers, and all students pursuing professional courses.Bank of India 

PNB Education Loan Interest Rate

Punjab National Bank (PNB) provides several types of education loans to students with attractive interest rates and repayment tenures of up to 15 years. The students who are planning to pursue their higher education in India, abroad, or at premier institutions are eligible to apply for education loans from Punjab National Bank.

• Processing fee: For studies at foreign institutions, the processing fee will be up to 1%. 
• Security: In the case of loans applied for overseas studies, tangible collateral security is required. 
• Co-borrower: Parents or guardians can be co-borrowers. 
• Concession: Girl applicants get up to 0.50% concession on their return on investment. Students with disabilities are also eligible for concessions.  

Education Loan Eligibility

Students should have a look at the following eligibility criteria before applying for education loans:

Courses Covered Under Low‑Interest Education Loans

Students can apply for education loans for the following courses:

• Professional certification courses
• Vocational training
• Undergraduate courses
• Postgraduate courses
• PhDs and Doctorate courses
• Job-oriented courses

Nationality Criteria for Education Loan Eligibility

Students who are planning to apply for education loans should be

• Indian citizens
• Persons of Indian Origin (PIO)
• Non-Resident Indians (NRIs)
• Overseas Citizens of India (OCI)

Institutes Eligible for Low-Interest Education Loans

Banks provide education loans to the following:

• Government colleges
• Recognized Universities
• Private institutions
• International universities and colleges

Documents Required for Education Loan Application

Students have to submit scanned copies of the following documents to get education loans from banks:

• Admission letter from the college or university
• Marksheets of Std.10, Std.12, and graduation
• Permanent Account Number (PAN) card
• Aadhar card
• Passport
• Voter ID card
• Bank passbook
• Salary slips of the co-applicant
• Income Tax Returns for the last two years of the co-applicant
• Two passport size photographs

Points to Consider Before Applying for an Education Loan

• Government schemes like CGFSEL, Dr. Ambedkar Central Scheme, and Padho Pardesh Scheme provide interest subsidies 

• The Pradhan Mantri Vidyalaxmi Yojana is now offered alongside these schemes by several lenders, including SBI, Bank of Baroda, Central Bank of India and PNB (institute-specific rates from around 7.50% p.a. at PNB), and can lower the interest rate on an eligible education loan further 

• Reserve Bank of India rules require lenders to sanction an education loan of up to Rs.7.50 lakh without collateral or a third-party guarantee, as reflected in several banks' loan terms above 

• Tax exemptions available under Section 80E 

• Some banks charge additional 0.05% risk premium if borrower lacks credit life insurance 

Application Process: Students can apply online (filling form and uploading documents) or offline (visiting bank branch with physical form and documents). 

Summary

Bank of Baroda, SBI, ICICI Bank, Central Bank of India, Bank of India and PNB each price education loans differently by course, institute and security offered, so the lowest interest rate on an education loan varies by lender and applicant profile. Comparing the schemes above, along with any government interest subsidy you qualify for, is the most reliable way to find the lowest interest rate on an education loan. Confirm the current rate directly with the chosen bank before applying, since education loan pricing is revised periodically.