Results are out for several boards and the time for new admissions near. However, in today’s time, education is one sphere wherein the fees and expenditure can definitely rattle your budget. Moreover, higher education, special courses and studies overseas need a big amount of funds. Education loans are one of the facilities that several public and private banks have come up with to facilitate the funding for one’s education. This ensures that the funds required for the desired course or institution meet the need. It also guarantees that the path is without hassles and it is systematic and streamlined. The banks provide their customers with attractive interest rates on various courses and university admission funding, taking away the burden of finance when it comes to finding the right place to pursue one’s dreams.
Here are some banks, the interest rate and other features they offer on education loans,
State Bank of India:
With SBI, one is eligible for an education loan for various courses in the house as well as overseas, as long as the student is an Indian National. SBI levies an interest rate of 8.55%. on education loans. The largest public sector bank offers its customers a maximum amount of Rs 10,00,000 for courses in India and a maximum of Rs 20,00,000 as education loan for studies overseas. The repayment period lasts for 15 years, post the completion of the said course, according to SBI. The bank charges no processing fee on the loan.
This private bank benefits its customers with education loans up to Rs 10,00,000 for courses in India. To be eligible for an education loan with HDFC bank, one needs to fall between the ages of 16 to 35 years and be a resident Indian. HDFC Bank charges its customers an interest rate of an average of 11.93%. The processing fee that one has to pay to avail the education loan from HDFC Bank is 1% of the loan amount + GST. The repayment period is maximum of 10 years for loans below Rs 7.50 lakhs and 15 years for loan amount above Rs 7.50 lakhs according to HDFC Bank.
ICICI Bank levies 11.5% interest rate on their education loans, wherein the maximum loan amount that ICICI offers to its customers is Rs 50,00,000, for domestic educational course whereas going up to Rs 1 crore for studies abroad. The bank has a loan repayment tenure between 5-8 years+ 6 months, subject to course duration. With collateral, however, the tenure stretches to maximum of 10 years.