Education Loan Interest Rates of Top 10 Government Banks in India
Last Updated : April 27, 2020, 3:37 p.m.
The base of an individual’s life is education, and if you haven’t reached the right source due to financial issues, you can borrow funds from the top Public Sector Banks (PSBs). The bank will help the students financially to support their educational needs. The loan can be given for foreign studies too. Secure your admission first to get the approval of a loan from the bank. For the best interest rate on your loan, you can apply for the education loan by comparing their rates.
Top Public Sector Banks Education Loan Interest Rates April 2024
| Public Sector Banks | Education Loan Interest Rates | Tenure |
|---|---|---|
| State Bank of India (SBI) | 6.90% - 9.30% | 15 Years |
| Punjab National Bank (PNB) | 6.90% - 9.55% | 15 Years |
| Bank of Baroda | 6.85% - 9.95% | 15 Years |
| Canara Bank | 7.40% - 9.40% | 15 Years |
| Central Bank of India | 6.85% - 9.00% | 15 years |
| Bank of Maharashtra | 7.05% - 8.90% | 15 Years |
| Bank of India | 9.05% - 9.85% | 15 Years |
| UCO Bank | 7.30% - 9.70% | 15 Years |
| Indian Overseas Bank | 7.25% - 10.05% | 15 Years |
| United Bank of India | 6.90% - 9.55% | 15 Years |
After knowing the interest rate of the Public Sector Banks, you need to know about the types of schemes the bank offers to the customer. But, before applying for the loan it is necessary you know about it. You can borrow an education loan jointly with your parents or guardian as a joint borrower. Students can be unemployed or non-earning applicants during the course period.
Types of Education Loan and their Interest Rates by Public Sector Banks
You can apply for the loan as per your educational needs, and it is the reason the bank offers you a variety of loans. Know about the features and benefits of the schemes and loan limit of your borrowed amount.
Loan for Study in India or Abroad
If the student has academically proved himself and secured admission in a reputed institution in India or abroad. Then to meet your financial needs at that time, you can apply for the loan. One of the benefits of an education loan is that it is disbursed quickly after the approval, you don’t have to wait for it. The loan limit is up to INR 1 crore for overseas studies and it would be approved if you have the necessary documents proving the fee structure during the course period.
The loan can be disbursed in stages or one-time to the institution or college directly so that the student may not face any problems later. And the payment for your education loan can be made in equated monthly installments.
| Public Sector Banks | Interest Rate (Per Annum) |
|---|---|
| SBI | 10.05% (9.55% for girl students) |
| PNB | 7.30%-8.55% |
| Bank of Baroda | 7.75%-10.00% |
| Canara Bank | 9.35%-9.85% |
| Central Bank of India | 9.10%-9.60% |
| Bank of Maharashtra | 9.85%-10.20% |
| Bank of India | 9.65%-10.45% |
| UCO Bank | 9.95%-10.35% |
| Indian Overseas Bank | 9.45%-10.45% |
| United Bank of India | 7.30%-8.55% |
Skill Loan
To get funding for specialized courses from select institutions for skill development, you can apply for the skill loan. The limit of the loan is not higher than overseas studies but sufficient enough to meet your needs. You can get the loan amount ranging from INR 5,000 to 1.5 lakh from these public sector banks. Your repayment period is also less for the skill development loan because it will reduce the burden of interest on your loan.
| Public Sector Banks | Interest Rate (Per Annum) |
|---|---|
| SBI | 9.55% |
| PNB | 7.30% - 8.55% |
| Bank of Baroda | 8.75% |
| Canara Bank | 9.35% |
| Central Bank of India | 9.10% |
| Bank of Maharashtra | 9.70% |
| Bank of India | 8.75% |
| UCO Bank | 9.45% |
| Indian Overseas Bank | 8.95% |
| United Bank of India | 7.30% - 8.55% |
EMI Calculator for Education Loan Payment
It is a useful tool for customers to manage their payments. Not only you know the EMI you will be paying but also the interest amount over the loan tenure. And you can do this with a single tool EMI calculator. Just provide your details of the education loan and mention the interest rate for an accurate result.
Suppose, your loan is INR 15 lakh for 15 years at an interest rate of 10.00% per annum your EMI would be INR 16,119. The total interest on your loan is of INR 14,01,434 and during the moratorium period, it is serviced in simple interest.
How to Apply for an Education Loan?
You can apply for the loan via Vidya Lakshmi online portal. For the convenience of the students, the online service is for the speedy processing of loan applications. Fill in your details and submit the form by choosing the desired bank from which you would like to borrow funds. The bank will check the documents and the details you enter in the portal and give the approval only upon successful verification.