Securing an education loan is crucial for numerous students who aspire to pursue higher education, particularly when confronted with substantial tuition and living expenses. India has a diverse selection of banks and financial institutions that provide education loans with various benefits and terms. This guide thoroughly examines the top education loans available in 2024, focusing on interest rates, loan amounts, and repayment terms. If you’re considering studying in India or abroad, it’s essential to understand your loan options well. This knowledge will enable you to make an informed decision and provide the necessary support for your academic journey.
10 Education Loan Providers for Students 2024
Axis Bank
Axis Bank is a preferred option for students pursuing their education in India or overseas. They provide education loans designed explicitly for career-focused technical or professional courses. Eligibility is contingent upon achieving a minimum of 50% in the Higher School Certificate. The loan can be utilised for various expenses, such as housing, tuition, and books. Being a parent or legal guardian, one must be considered a co-borrower and provide proof of a steady income. The education loans Axis Bank offers do not have any processing fees or payback costs. The loan amounts range from fifty thousand to twenty million rupees. The loan funds will be disbursed promptly to the school mentioned in the acceptance letter. The interest rates vary between 16.50% and 17.50%. Axis Bank is a popular student loan choice due to its strong reputation, competitive interest rates, and flexible repayment options.
HDFC Bank
HDFC Bank and its subsidiary HDFC Credila have notably contributed to the private education loan industry. Their history demonstrates a consistent track record of providing customised solutions for students in India and abroad. The bank offers loans for over 950 courses at prestigious universities in 36 countries worldwide. Applicants must meet the eligibility criteria, which states they must be Indian citizens between 16 and 35. Furthermore, the co-borrower is not required to live in the same city. The borrowing limit of Rs. 20 lakh with a repayment period of 15 years is quite generous. The loan application process typically takes around two to three days to complete, with a processing fee of 1.5% that needs to be paid. HDFC Credila provides a seamless application process, speedy loan disbursal, adaptable repayment options, and competitive interest rates.
Eduvanz
Eduvanz is a leading education loan provider that offers innovative and student-centric loan solutions in India. Eduvanz is dedicated to ensuring that education financing is within reach and affordable for all individuals. We offer various educational programs, such as school education, vocational courses, skill development programs, and higher education degrees. Eduvanz is renowned for its adept utilisation of cutting-edge technology and data-driven methodologies to evaluate loan applications, resulting in swift loan approvals and disbursals. The company provides competitive interest rates, versatile repayment options, and personalised loan amounts to meet the unique requirements of borrowers. Eduvanz is dedicated to fostering financial inclusivity by offering loan facilities to students from diverse economic backgrounds, irrespective of their credit histories.
Avanse Financial Services
Avanse Financial Services is a prominent education loan provider in India, serving numerous universities worldwide. Applicants must submit a range of documents as part of the application process. These include KYC documents, collateral security requirements, income documents, course fees, and other necessary documents. The loan covers many expenses, including tuition, travel, living expenses, book fees, and other related costs. The minimum loan amount for Indian education is Rs. 50,000, while for foreign education, it is Rs. 100,000. Avanse disburses the loan to the chosen institution before receiving the visa and admission letter. The repayment period can begin either six months after completing the course or three months after finding employment within one year, lasting for a maximum of 10 years.
ICICI Bank
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ICICI Bank offers education loans in India, with funding options of up to ₹1 crore for domestic studies and up to ₹2 crore for international studies. The eligibility criteria for this opportunity specify that applicants must be Indian nationals, meet a specific age requirement, have a solid academic record, and have completed either a 10+2 or a diploma. Additionally, applicants must submit their applications to recognised and accredited institutes in both India and overseas. Loan approval depends on factors such as pre-admission sanction, entrance exam scores, confirmed admission, and the presence of a co-borrower. Security options, such as property, fixed deposit, or an existing ICICI Bank home loan for cross-collateral, are available. The interest rates start at repo rate + 3.75% (spread), and there is no margin for premium institutes. You have the option to apply at your nearest branch or online.
State Bank of India (SBI)
SBI, India’s largest public sector bank, provides education loan schemes for professional and technical graduate and postgraduate courses at renowned universities. The loans cover a wide range of expenses, including tuition fees, course materials, travel expenses, library fees, laboratory fees, examination fees, and a caution deposit. Collateral security is necessary for loans exceeding Rs. 7.5 lakh. You can borrow a maximum of Rs. 30 lakh. Loans up to Rs. 20 lakh do not have any processing fees, and the loan margin rate is set at 15%. The repayment period for this course starts one year after completion and can extend for a maximum of 15 years. SBI offers unique benefits, including lower interest rates for female students and those studying at prestigious institutions.
Punjab National Bank (PNB)
PNB is a prominent education loan provider in India, providing financial assistance for various academic programs, including diplomas, job-oriented courses, and prestigious programs like CIMA, CBA, and MBA courses. The loans are created to help cover various expenses, including travel, tuition, examination fees, library fees, and course materials. PNB provides approved education loans based on the applicant’s ability to repay and the loan margin, with no set maximum limit. For loans below Rs. 4 lakh, there is no need to worry about a loan margin requirement. However, for loans above Rs. 4 lakh, a 15% margin is necessary. The repayment options offer great flexibility, allowing borrowers to begin repayment after one year and extend it for up to 15 years, all without any prepayment charges. PNB applies an interest rate determined by the base rate for students enrolled in the top 200 universities worldwide.
Canara Bank
Canara Bank, a nationalised bank, offers a diverse range of education loans for a variety of courses both in India and abroad. The bank provides loans based on individual needs, with a maximum loan amount of Rs. 40 lakh for premier institutions and up to Rs. 20 lakh for other institutions, following the education loan model of the Indian Bank Association. These loans cover essential expenses like university, travel, library, and book fees. The loan requirements can differ based on the borrowed amount. No collateral security is required for loans below Rs. 4 lakh. A third-party guarantee is necessary for loans ranging from Rs. 4 lakh to Rs. 7.5 lakh. For loans that exceed Rs. 7.5 lakh, it is necessary to have a co-borrower and tangible collateral security. The loan repayment periods can be extended for up to 10 years for loans up to Rs. 7.5 lakh, and up to 15 years for higher amounts.
IDBI Bank
IDBI Bank provides education loans for students pursuing higher education in India and abroad. Our product stands out with its competitive interest rates, flexible repayment tenure, and various loan enhancement and reimbursement options. Several loan schemes are available for different educational purposes, such as studying abroad, in premier institutions, skill development, and more. These schemes include the Education Loan for Studies Abroad, Education Loan for Studies in Premier Institutions, Skill Loan Scheme, Central Interest Subsidy Scheme on Education Loan, Padho Pardesh Scheme on Education Loan, and Dr Ambedkar Central Sector Scheme of Interest Subsidy. Admission eligibility criteria state that individuals must be under the age of 50. Admission can be obtained through the management quota, with a 15% margin. In addition, please note that a 2% prepayment charge will be applied if the payment is made before 6 months. It is recommended that students double-check specific details with IDBI Bank to ensure accurate information.
The Bank of Baroda (BOB)
For students seeking higher education in India, the Bank of Baroda provides a range of education loans, such as the Baroda Gyan, Baroda Scholar, Baroda Education Loan, Baroda Vidya, and Skill Loan Scheme. Baroda Gyan offers loans with a maximum term of ten to fifteen years, up to ₹1.25 crores. Baroda Scholar provides various payback periods ranging from 10 to 15 years for loans up to ₹1.50 crores. Explicitly designed for Indian citizens accepted into prestigious universities, the Education Loan’s loan amounts are based on the category of the school. Baroda Vidya offers parents of Indian kids enrolled in accredited schools financial assistance for additional expenses such as books and laptop/computer purchases. The National Skill Qualification Framework or Industrial Training Institutes provide technical courses eligible for funding under the Skill Loan Scheme.
Conclusion
It is essential to carefully select the appropriate education loan to pursue your higher education aspirations for students successfully. When considering various options from top banks and financial institutions in India, it is crucial to carefully compare interest rates, repayment terms, and loan amounts to identify the most suitable choice. This guide provides a comprehensive overview of the leading education loan providers for students in 2024, equipping you with the necessary information to choose the perfect loan for your specific requirements. Begin your educational journey confidently, and be assured that you have the required financial support to pursue your aspirations.
FAQs
Q. What are the best education loan providers for students in India for 2024?
The leading providers are the State Bank of India, Punjab National Bank, Bank of Baroda, ICICI Bank, and Canara Bank. They provide attractive interest rates and flexible repayment options.
Q. Can I get an education loan without collateral in India?
Several banks and NBFCs provide unsecured education loans, which may have higher interest rates than secured loans.
Q. How do I compare education loan options in India?
Essential factors to consider include interest rates, repayment terms, processing fees, loan amounts, and whether the loan is secured or unsecured. Platforms such as FundRight can streamline this process by offering comparative offers from multiple lenders.
