It is becoming increasingly difficult to afford the cost of higher education, given how expensive it is and also rising consumer price index (CPI) inflation. Thus, the only option left with parents is to finance it via an education loan. Education loans are available from almost all banks for some institutions in India and abroad.
Education loan can either be taken by parents or students which can be repaid after the completion of course and achieving financial independence. The loan, interest rates, and equated monthly instalments (EMIs), and other terms and conditions, differ from bank to bank. It is, therefore, important to compare rates before taking an education loan because it affects EMIs.
For instance, taking an education loan of Rs10 lakh for eight years from the State Bank of India (SBI) will see an EMI of Rs13,559, while the same from HDFC Bank will cost Rs14,937. EMI varies because of the difference in their rates. For SBI, the interest rate is 6.85% and for HDFC Bank, the interest rate is 9.55%.
In today’s piece, we have listed 20 banks that are currently offering education loans. The cheapest starts at 6.75%. interest rate on education loan for all listed public and pvt banks. Banks for which data is not available on their website, are not considered. Data collected from respective bank’s website as of 16 Mar