The best bank for education loans in India 2021 (up to 75 lakhs)
# 1 HDFC Bank education loan
Maximum loan limit: Rs 20 lakh and above.
HDFC Bank provides education loans for study in India and abroad. The maximum loan amount for study in India is Rs 20 lakh.
Whereas, all the cost of education is covered by the loan for foreign education, which has no upper limit. But you have to provide security as a fixed deposit or immovable property in the bank.
• Scheme Interest Rate Education Loan for Indian Education 9.25% to 13.68%,
Education loan for foreign education 9.25% to 13.68%
Loans are disbursed directly to the company for a maximum of 15 years and are based on the fee structure.
You will see that HDFC Bank does not have a dedicated education loan scheme for skill development courses. This is why they recommend personal loans for skills development courses.
Advantages:
Low-interest rates
Fast processing
Difficulty:
1% loan processing fee
Prepayment charge up to 4% (during suspension period)
Fewer loans for studying in India
Generally, HDFC takes two to three days to process your loan application and distribute the loan amount.
# 2 Axis Bank education loan:
Maximum limit: Rs75 lakh
Axis Bank has only one scheme for education loans (starting from Rs 50,000 to Rs 75 lakh). Axis only provides education loans to HSC or undergraduate students who have obtained a minimum of 50% marks for undergraduate or postgraduate courses.
Amount of education loan Interest rate –
15.20% up to 4 lakhs
4 lakhs to 7.5 lakhs 14.70%
13.70% above Rs. 7.5 lakhs
Axis Bank prioritizes parental profiles. The bank has made it mandatory for parents to show regular sources of income.
Advantages:
Speedy processing of loan applications.
Debt amounts up to Rs 75 lakh.
NIL processing fee for loans below Rs 10 lakh.
Difficulty:
High-interest rates.
Margin up to 15% for loans above Rs 4 lakh.
24% punitive interest for late payments each year.
# 3 Education loan of Union Bank of India:
Maximum education loan: Need-based financing
There are 4 different categories of the Union Bank of India Education Loan Scheme:
* Education loans for courses in India and abroad
* Education loan for Kisan education facility
* Education Loan for Premier Management and Technical Institutions (India)
* Education loan for second-tier management and technical institutes (India)
Union Bank does not charge any processing fee from Indian students for education loans irrespective of the amount of loan.
But the amount of the loan takes more than life insurance. So to get your education loan you need to buy life insurance.
* Education loan scheme interest rate up to 10.05% depending on the amount of course loan in India and abroad
* Kisan education facility up to 10.05% depending on the loan amount
* 6.80% for Skill Development Course in Premier Management and Technical Institutions (India)
* Institute for Second Level Management and Technology (India) 8.55%
Advantages:
There is no processing charge.
Interest rates are low.
0.50% discount interest rate for female students.
Difficulty:
Slow processing and documentation process.
Life insurance is mandatory.
# 4 IDBI Bank education loan:
Amount of riner offered: Rs 20 lakh for study in India and Rs 30 lakh for study abroad.
If you are planning to take an education loan for AICTE, UGC, ICMR and government-approved courses, job-based courses and technical diploma courses then you should check the education loan of IDBI Bank.
IDBI Bank provides education loans for students for admission through management quota.
The loan repayment terms are extended to 15 years but you will have to pay real security of Rs 7.5 lakh for the amount of the education loan.
Education loan scheme interest rate for non-vocational courses
Education loan up to 7.5 lakhs – 8.40%
Above 7.5 lakhs – 8.90%
Education loans for vocational / skills development courses in all amounts – 8.80% Education loans for major educational institutions (including ISB) for all amounts – 6.90%
Advantages:
Low-interest rates for loans to Premier Institute.
NIL processing fee for study in India.
NIL foreclosure charge
Difficulty:
For loans above Rs 7.5 lakh, 1.33 times real security is required.
Slow loan processing.
# 5 Avanse’s education loan:
Maximum loan amount: Need-based without any high cap. Minimum – 50,000 for study in India.
Avanse Financial Services is an RBI-regulated NBFC that focuses on providing affordable education loans to students in India.
Global PE firm Warburg holds 80% equity in Pincus Avans. You can apply for all types of education loans at Avanse such as-
Study in India
International research
Vocational courses
School fees are financial, even
Education loan for e-learning
Avanse provides up to 100% financing, fast processing and door-to-door service.
Education Loan Scheme Interest Rate Education Loan Advance Base Rate + Spread for Domestic and International Studies. Which can go up to 18%
Advantages:
Loan amount up to 100%.
Less paperwork and faster processing.
Education loan for e-learning.
Difficulty:
High-interest rates.
1% – 2% processing charge.
No pre-payment is allowed in the first month.
# 6 SBI education loan:
Maximum loan amount: Rs 1.5 crore
SBI provides education loans up to Rs 1.5 crore under the SBI Global Ad-Vantage Scheme for overseas studies.
Courses include professional and technical degrees, PG and diploma courses such as MCA, MBA and MS from a reputed university. Certification courses conducted by CIMA-London and CPA-US are also eligible for education loans.
SBI also offers the lowest interest rates for education loans in India.
SBI Scholar Loan Scheme is only for meritorious students who want to pursue professional/technical courses in major institutes like IITs, IIMs and NITs.
Education Loan Scheme Interest Rate –
SBI Student Loan Scheme 9.30%
SBI Scholar Loan Scheme 6.90% to 8.20%
SBI Skill Loan Scheme 8.80%
SBI Global Aid Vintage Scheme 9.30%
Advantages:
Low-interest rate up to 9.30%.
NIL processing fee up to Rs 20 lakh.
Different loan schemes.
Difficulty:
High processing time.
15% margin for study abroad.
# 7 PNB’s education loan:
Maximum loan limit: No upper limit, depending on repayment capacity and margin
PNB Udaan is an exclusive loan scheme through which meritorious students are assisted to pursue higher studies at reputed universities abroad. Degree (job-based), PG (MCA, MS and MBA), CIMA, CPA and diploma courses in aviator, pilot training and shipping are eligible for a loan.
For domestic studies, Punjab National Bank offers a lot of education loan schemes. PNB Saraswati is a general IBA model education loan scheme for meritorious students. The PNB Talent Scheme is for students who want to pursue higher education in Premier Colleges like IITs, NITs and other top business schools.
Even Patho is a scheme to help minors to study abroad through a foreign subsidy scheme.
Education Loan Scheme Interest Rate-
PNB Saraswati Scheme 9.55%
PNB Udaan 9.55%
PNB Pratibha 6.90% to 7.55%
PNB Kaushal 8.30%
PNB Honhaar 8.95%
Advantages:
Low ROI.
NIL processing fee for study in India.
Wide range of education loan projects.
Difficulty:
Tired paperwork and follow-up.
