Education Loan Interest Rates of Top 10 Private Banks
Last Updated : June 2, 2020, 12:36 p.m.
Education loans are increasingly offered by both public and private lenders to ensure students achieve their aspirations of higher studies. Public lenders may impose a condition for borrowers to have a savings account with them so that the education loan gets sanctioned. Whereas, private lenders don’t normally impose such a condition and can process the loan quickly. Plus, a few of them can give a greater loan amount without collateral and at attractive interest rates.
Private Banks Whose Education Loan Interest Rates are Lowest in the Market
With so many options available, you might be confused about choosing the best one. So, have a look at the table below, compare the education loan interest rates of private lenders and find the right one for you.
| Bank | Interest Rate |
|---|---|
| HDFC Bank | 9.25% - 13.68% |
| Axis Bank | 13.70% - 15.20% |
| Kotak Mahindra Bank | 12.33% - 16.00% |
| RBL Bank | 14.15% - 16.15% |
| Federal Bank | 10.05% |
| ICICI Bank | 11.25% - 11.75% |
| Karnataka Bank | 9.49% - 12.39% |
| YES BANK | 12.00% - 14.00% |
| Karur Vysya Bank | 10.75% - 11.75% |
| IDBI Bank | 7.15% - 9.15% |
How Can You Calculate the Education Loan Interest?
You can calculate the interest using the education loan EMI calculator. The calculator takes into account the basic details such as the loan amount, interest rate and tenure to compute the EMI that also includes a portion of interest besides principal. You can also get to see total interest by the time the loan will wrap up. Below is an example for reference purposes.
Table Showing EMI, Interest Outgo, and Total Repayment Amount
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
| Year | Principal | Interest | Balance Amount |
|---|---|---|---|
| 1 | ₹ 1,03,475 | ₹ 2,51,030 | ₹ 28,96,524 |
| 2 | ₹ 1,12,622 | ₹ 2,41,884 | ₹ 27,83,901 |
| 3 | ₹ 1,22,576 | ₹ 2,31,929 | ₹ 26,61,325 |
| 4 | ₹ 1,33,411 | ₹ 2,21,095 | ₹ 25,27,913 |
| 5 | ₹ 1,45,204 | ₹ 2,09,302 | ₹ 23,82,709 |
| 6 | ₹ 1,58,038 | ₹ 1,96,468 | ₹ 22,24,670 |
| 7 | ₹ 1,72,007 | ₹ 1,82,498 | ₹ 20,52,662 |
| 8 | ₹ 1,87,211 | ₹ 1,67,294 | ₹ 18,65,450 |
| 9 | ₹ 2,03,759 | ₹ 1,50,747 | ₹ 16,61,691 |
| 10 | ₹ 2,21,770 | ₹ 1,32,736 | ₹ 14,39,921 |
| 11 | ₹ 2,41,372 | ₹ 1,13,134 | ₹ 11,98,548 |
| 12 | ₹ 2,62,707 | ₹ 91,798 | ₹ 9,35,840 |
| 13 | ₹ 2,85,928 | ₹ 68,577 | ₹ 6,49,911 |
| 14 | ₹ 3,11,202 | ₹ 43,304 | ₹ 3,38,709 |
| 15 | ₹ 3,38,917 | ₹ 15,797 | ₹ 0 |