Turn your academic aspirations into reality with our education loan. With competitive student loan interest rates and flexible terms, make your distant dream a fulfilled reality. Apply for student loans from over 30 banks and NBFCs, and rejoice in the wealth of lending options at your fingertips.
Discover the perfect education loan scheme from our list of top banks. Comparing bank interest rates is a wise way to identify the most favorable instant education loan in India.
| S.No | Lenders | Interest Rates |
|---|---|---|
| 1. | HDFC Bank | 9.50% p.a. onwards |
| 2. | ICICI Bank | 9.85% p.a. onwards |
| 3. | IndusInd Bank | 9% p.a. onwards |
| 4. | Kotak Bank | Up to 16% p.a. |
| 5. | Standard Chartered Bank | 11% p.a. onwards |
| 6. | Central Bank of India | 8.55% p.a. onwards |
| 7. | Bandhan Bank | 10.25% p.a. onwards |
| 8. | State Bank of India | 8.50% p.a. onwards |
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Note: The above mentioned rates are subject to change with the finance market and differ marginally with the respect to the individual banksTake advantage of the finest interest rates by securing the best education loan option from NBFCs. With a range of options available, you can select the best student loans that aligns with your financial needs.
| S.No | Lenders | Interest Rates (p.a.) |
|---|---|---|
| 1. | Aditya Birla Education Loan | 10.99%p.a. onwards |
| 2. | Tata Capital | 10.99%p.a. onwards |
| 3. | Money View | 1.33% per month onwards |
| 4. | IIFL | 13.50%p.a. onwards |
| 5. | Bajaj Finserv Education Loan | 10.10% p.a. onwards |
Education loan interest rates play a crucial role in financing higher education. It's vital to compare education loan interest rates in India from multiple lenders to secure the best deal, as they typically range from 11.15% p.a. to 12.40% p.a. By carefully considering and understanding the factors that affect the interest rates, students can find affordable options that turn their educational aspirations into reality.
Creditworthiness: Your credit score and credit history significantly affects the interest rate. Higher credit scores tend to have lower interest rates and a low score will mean higher interest rate.
Loan Repayment Term: Loan duration can highly influence interest rates. Longer terms potentially result in higher rates.
Type of Loan: Different education loan types, subsidized and unsubsidized, have varying interest rates. Subsidized loans have lower rates, while unsubsidized loans have higher interest rates in a personal loan for higher education.
Market Conditions: Economic conditions and prevailing interest rates can influence education loan interest rates. It's worth noting that education loans by government may have different interest rate structures and terms.
Lender Policies: Interest rates for education loans are influenced by lenders' policies, pricing structures, and the specific education loan scheme. Lenders factor in costs of funds, operational expenses, and target market when deciding on interest rates.
The EMI calculator for education loan simplifies the process of calculating monthly installments for students.
Accurate EMI calculations allow students to assess loan affordability. The Student loan calculator is a valuable resource, empowering students to manage their education loans efficiently and make sound financial choices.
Education loan eligibility criteria like age, citizenship, academic qualifications, co-borrower/guarantor requirements, credit history, and income can impact loan approval. Students can also use an education loan eligibility calculator to assess their eligibility.
The table below will show the education loan eligibility india:
| Eligibility Criteria | Description |
|---|---|
| Nationality | Indian |
| Age | 18 years to 35 years |
| Academic record | Proven to be Good |
| Qualification | Must be pursuing a graduate/postgraduate degree or a PG diploma. |
| Income source | Parents/Guardians must have a stable income |
| University Applied | Recognized University in India or Abroad |
| Admission Status | Confirmed admission in the University |
| Security | Based on the loan amount and income source, tangible collateral or guarantor may be required |
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To complete your education loan application, you must submit the necessary education loan documents. Refer to the following list of documents required for education loan to ensure you have all the required paperwork.
Age proof:
Identity proof:
Residence proof:
Income proof:
When inquiring about the application for fee structure for education loan, it's crucial to consider the associated costs and other charges. Compare the processing fee for education loan offered by different lenders to make an informed decision.
| Loan Details | Charges |
|---|---|
| Processing Fee | A fee of 1% to 2% will be charged based on the loan amount. |
| Foreclosure/Prepayment Charges | Typically ranges from 0% to 5% of the outstanding loan amount. |
| EMI Bounce Charges | Typically ranges from Rs. 200 to Rs. 500 per instance. |
| Overdue Charges on EMI | Generally ranges from 1% to 3% per month on the overdue installment amount. |
| Legal Fee | Ranges from 0.1% to 1% of the loan amount. |
Instant Loan education loan without collateral provide students with swift financial aid based on creditworthiness and academic performance, thereby eliminating the need for collateral.
Without the need for collateral, these loans simplify the process and ensure timely access to funds, enabling students to pursue their educational goals and fulfill their aspirations.
A pre-approved education loan is offered to students based on their creditworthiness and academic qualifications. Lenders evaluate the borrower's profile and provide a predetermined loan amount and terms, eliminating the need for a formal application.
Pre-approval streamlines the loan process, granting students swift access to funds for their education. With a pre-approved education loan, students can confidently focus on their studies, knowing that their financial needs are secure.
The table below outlines recommended practices and avoidable mistakes that can enhance your chances of acquiring an education loan in India. It includes the consideration of parents' credit score for student loans.
| Do's | Don'ts |
|---|---|
| Maintain a good credit score | Default on previous loan repayments |
| Research and compare different lenders | Submit incomplete or inaccurate application documents |
| Consider parents' credit score as it affects student loans | Underestimate the impact of parents' credit history on loan eligibility |
| Demonstrate a clear academic and career plan | Provide false information about your educational background |
| Have a well-defined repayment strategy | Apply for an excessive loan amount |
| Provide all necessary supporting documents | Hide any existing financial obligations |
| Seek a co-applicant or guarantor, if required | Apply with multiple lenders simultaneously |
Reduced overall tax
liability.
Increases chances of
Approval
No need for collateral or
guarantor.
Customized plans based
on financial capabilities
Streamlined and hassle-
free application process
Lower overall interest
payments
Education loans for abroad studies without collateral offer students the opportunity to pursue their dreams without the need for substantial security. Interest rates range from 8% to 15% per annum, varying based on the lender and borrower's profile. Comparing options is crucial to find the best loan for international education expenses.
Education loans for abroad studies offer access to premier educational institutions globally, financial flexibility for various expenses, competitive interest rates, and equal opportunities for students from diverse backgrounds.
Regardless of the course of study, education loans can be categorized into two broad categories based on location. Below is a table that provides a comprehensive overview of the two broad categories:
| Loan Type | Description |
|---|---|
| Domestic Education Loan | These loans are designed for students pursuing education within India, covering expenses like tuition fees, books, and living expenses for undergraduate, postgraduate, and professional courses. |
| Study Abroad Education Loan | This loan covers tuition fees, living expenses, travel costs, etc., for students pursuing education abroad, including undergraduate, postgraduate, doctoral, and vocational courses. |
Aside from these, education loans are further categorized based on several other factors. The table below presents the various types of education loans categorized based on courses:
| Loan Type | Description |
|---|---|
| Graduate Education Loans | These loans are designed for postgraduate or master's degree students, covering expenses like tuition fees, accommodation, study materials, and related costs. |
| Undergraduate Education Loans | These loans fund bachelor's degree education in arts, science, commerce, engineering, medicine, etc. They cover tuition fees, accommodation, books, equipment, and expenses incurred during the undergraduate course. |
| Location-based Education Loans | This loan is tailored to students studying in specific regions, offering benefits, interest rates, and financial support based on location. Terms and conditions vary by region. |
Aside from these, education loans are further categorized based on several other factors. The table below presents the various types of education loans categorized based on courses:
The following is a comprehensive list of expenses typically covered by an education loan in India.
Tuition fees: The loan covers the tuition charged by the educational institution for the chosen course.
Accommodation expenses: These include the cost of staying in a hostel or renting accommodation during the course of study.
Books/ study materials: The loan covers expenses related to textbooks, reference books, study guides, and other required study materials.
Examination fees: These include fees for exams, assessments, and other evaluation processes during the course.
Equipment and supplies: The loan may cover the cost of purchasing or renting necessary equipment, such as laptops, scientific instruments, or tools, required for the educational program.
Insurance: Some education loans include insurance coverage for the student, offering financial protection in case of unforeseen events or emergencies.
Education loans offer both monetary aid to students and tax advantages to borrowers, including education loan tax exemption. These tax benefits effectively minimize the total expenses of education, enhancing its affordability for students and their families. Here are several significant tax benefits linked to education loans in India:
Section 80E Deduction: The interest paid on education loans is eligible for a tax deduction under Section 80E of the Income Tax Act.
Duration of Deduction: The tax deduction can be claimed for a maximum of 8 consecutive years or until the interest on the loan is fully repaid, whichever occurs earlier.
Interest deduction Only: The tax deduction applies only to the interest portion of the repayment of the education loan, not the principal amount.
No Cap on Courses or Streams: The tax benefit is available for all courses and streams of study, including both professional and non-professional courses.
Documentation Requirement: Maintaining proper documentation of the education loan and interest payments is important to claim the tax deduction accurately.
No Maximum Limit: Unlike many other tax deductions, there is no upper limit on the amount that can be claimed as a deduction for education loan interest.
Here are the steps you can follow to apply for an education loan on Buddy Loan, outlining the education loan process:
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Education loan repayment involves fulfilling the financial obligation of repaying the borrowed amount and interest. Borrowers have options for regular monthly installments as well as pre-payment and part-payment to expedite loan clearance.
Pre-payment refers to repaying the loan in full before the scheduled tenure ends. It allows borrowers to save on interest costs and close the loan early. Part-payment involves making a lump sum payment towards the outstanding loan amount, reducing the principal balance and overall interest burden.
Borrowers have access to different methods of loan repayment, which include:
Electronic Clearing Service (ECS): Automatic deduction of monthly installments from the borrower's bank account.
Post-Dated Checks (PDCs): Providing post-dated checks to the lender for monthly repayments.
Online Fund Transfer: Initiating online transfers from the borrower's bank account to the lender's account.
Mobile Banking: Utilizing mobile banking applications to make loan repayments.
NEFT/RTGS: Transferring funds electronically using National Electronic Funds Transfer (NEFT) or Real-Time Gross Settlement (RTGS) systems.
To apply for an education loan online, follow these steps: research and compare lenders, gather required documents, visit the lender's website, fill out the online application form, and submit it with supporting documents. Await approval, review the loan offer, and accept it after reading the terms and conditions.
Yes, some banks and financial institutions offer education loans for students without requiring a co-applicant.
The repayment period for education loans typically ranges from 5 to 15 years, depending on the loan amount and terms.
Calculating the Equated Monthly Installment (EMI) for an education loan online is easy using online EMI calculators. Enter the loan amount, interest rate, and tenure to get an instant calculation of the EMI.
Buddy Loan has no prepayment charges, hidden fees, or third-party involvement in the student loan process.
Buddy Loan provides a favorable option to finance your studies with low interest and a straightforward process. It caters to individuals serious about education, regardless of their credit history
To obtain approval for an education loan online, research and select a reputable lender, gather required documents, complete the online application with accurate details, submit supporting documents, await processing and verification, review and accept the loan offer, and await the disbursement of funds as per the agreed terms.
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