What is the Maximum Education Loan Can I Get?
Last Updated : May 21, 2020, 11:53 a.m.
The bank may finance up to INR 10,00,000 for studies in India and INR 20,00,000 and above for overseas studies. The loan comes at an attractive rate of interest, which will be reflected in affordable Equated Monthly Installments (EMIs). Up to INR 7,50,000, there is no such requirement for collateral, and above the limit, you will need to submit tangible collateral. Read this post and know the maximum amount a student can borrow.
Banks that offer High Education Loan Amounts
Check out the table to know the quantum of loan offered by several lenders along with the interest rate they charge and the tenure they provide for the loan payment.
| Bank | Loan Quantum (INR) | Interest Rate (Per Annum) | Tenure (Years) |
|---|---|---|---|
| State Bank of India (SBI) | 1,50,00,000 | 6.90% - 9.30% | 15 |
| Bank of Baroda | 80,00,000 | 6.85% - 9.95% | 15 |
| Union Bank of India | 1,00,00,000 | 7.20% - 10.45% | 15 |
| Axis Bank | 75,00,000 | 13.70% - 15.20% | 15 |
| HDFC Bank | 35,00,000 | 9.25% - 13.68% | 15 |
How is the education loan secured?
To get a high loan amount, you need to provide collateral to the lender. With the collateral, the lender can be assured of getting the money back in case the loan default happens. And till the loan payment, you won’t have any right over the mortgaged collateral. Above the loan of INR 7.5 lakh, you are needed to offer security. But if you want to borrow a high unsecured loan, you can get it from the HDFC Bank or Axis Bank.
Save Tax on your Education Loan
You can save on your interest payment with the income tax act of section 80(E). It is to provide relief to the students from their annual EMI payment. The benefit is claimed by the parent as well as student, which means that the person who pays the education loan whether it is the parent or child can start claiming this deduction. You are eligible for the deduction if you apply for an education loan for a vocational course or higher studies in India or abroad.