For many, the hefty tuition, living expenses, and other related expenditures make education an unaffordable choice. For many students, student loans remain a lifeline for meeting expenses. Analysing the top 10 education loans in India in 2024 using various criteria, including interest rates, loan kinds, and general advantages, will help readers. Our 2024 guide covers everything you need to know about securing the best education loans in India, including how to lower interest rates, eligibility requirements, and current loan options.
Let’s Explore 8 Education Loans in India
SBI Student Loan Scheme
Introduction: Popular among students, SBI is one of India’s biggest banks. It offers low interest rates and a variety of repayment plans.
Why We Chose It: Many students choose SBI because of its reliable financial services.
Interest Rate Range: The interest rate typically falls between 7.30% and 9.30% per annum, varying based on factors such as the loan amount and tenure.
Purpose: With the SBI Student Loan Scheme, which covers tuition, tests, lodging, books, equipment, and higher education, either domestically or internationally, it might be reasonably priced.
Loan Type: Available for both undergraduate and postgraduate courses.
Pros & Cons:
Pros: Loan amounts up to Rs. 7.5 lakhs are available with competitive interest rates, flexible repayment choices, and no prepayment penalty. Collateral is not needed.
Cons: Stringent documentation requirements and the approval process can be time-consuming.
Reviews and Ratings:
User Reviews: Positive feedback regarding competitive interest rates and helpful customer service.
Ratings: 4.5/5
HDFC Credila Education Loan
Introduction: As a specialised education loan provider, HDFC Credila stands out for its tailored loan solutions and efficient approval process. The institution caters to diverse student needs, offering customised loan options and excellent customer service.
Why We Picked It: HDFC Credila excels at understanding each applicant’s unique requirements, providing loan options designed to meet the specific needs of students pursuing higher education in India and abroad. This personalised approach and efficient customer service make them popular among those seeking education loans.
Interest Rate Range: The interest rates for HDFC Credila Education Loans vary between 9.5% and 12.5% per annum, with several factors influencing the final rate. These include the course of study, the institute attended, and the applicant’s profile.
Purpose: HDFC Credila Education Loan covers a wide range of expenses associated with higher education, such as tuition fees, living expenses, travel costs, examination fees, and other related expenditures. This comprehensive coverage makes it an attractive option for students seeking financial support for their academic pursuits.
Loan Type: The loan is available for various undergraduate, postgraduate, and professional programs. This makes it a versatile solution for students of all backgrounds and career aspirations.
Pros & Cons:
Pros: Some advantages of opting for an HDFC Credila Education Loan include flexible repayment options, a quick and streamlined approval process, no upper limit on the loan amount, and coverage for a wide range of expenses.
Cons: On the downside, HDFC Credila’s interest rates may be higher than some other lenders in the market. In addition, collateral may be required for high loan amounts, which could deter some applicants.
Reviews and Ratings:
User Reviews: Customers have had positive experiences with HDFC Credila Education Loans, praising the quick and hassle-free loan approval process.
Ratings: 4.3/5
Axis Bank Education Loan
Introduction: Axis Bank’s attractive features and affordable interest rates make it a popular choice among students seeking financial aid for higher education in India and abroad.
Why We Picked It: The bank provides a seamless application process and a wide range of repayment options, catering to students’ diverse needs. It also offers quick approval and disbursal of loans, which can be a massive relief for many.
Interest Rate Range: The annual percentage rate (APR) is determined by a borrower’s credit score, the loan amount, and the principal amount.
Purpose: Axis Bank offers education loans that may assist with higher education costs in India or abroad. These loans cover tuition, fees, accommodation, books, supplies, and travel expenses.
Loan Type: Axis Bank’s education loan program is available for various undergraduate, postgraduate, professional, and vocational courses.
Pros & Cons:
Pros: An Axis Bank student loan offers several advantages, such as low interest rates, many repayment plans, no maximum loan amount, and an easy application procedure.
Cons: One potential drawback is the demand for security and processing costs for considerable loan amounts. Interest rates on student loans may vary widely based on factors, including the applicant’s credit history, so it pays to search for the best deal.
Reviews and Ratings:
User Reviews: Customers have generally shared positive feedback about Axis Bank’s education loan program, praising the responsive customer service and transparent terms and conditions associated with the loans.
Rating: 4.4/5
Punjab National Bank (PNB) Education Loan Scheme
Introduction: Deserving students may get reasonable financial aid via the PNB Education Loan Scheme, allowing them to pursue higher education without financial restraints.
Why We Picked It: Being a well-established public sector bank, PNB offers student-friendly loan terms and competitive interest rates, making it a popular choice among aspiring students.
Interest Rate Range: The interest rates typically vary from 7.25% to 9.75% per annum, depending on factors such as the loan amount and the repayment tenure.
Purpose: The PNB Education Loan Scheme provides financial aid to help with the expenditures of higher education in India and abroad, including tuition, housing, exam fees, books, and equipment.
Loan Type: The loan scheme is available for various courses, including undergraduate, postgraduate, and professional programs.
Pros & Cons:
Pros: A PNB Education Loan Scheme enrollee may enjoy competitive interest rates, various repayment options, administrative fees, and the lack of prepayment penalties, among other advantages.
Cons: For high loan amounts, collateral may be required, and the documentation process might vary.
Reviews and Ratings:
User Reviews: Borrowers rave about PNB’s excellent customer service and the ease of getting a loan.
Ratings: 4.3/5
Canara Bank Education Loan
Introduction: To ensure that deserving students may follow their passions without financial restraint, Canara Bank offers an education loan to assist in defraying the expenses of higher education.
Why We Picked It: Canara Bank may be an intriguing choice for students looking for inexpensive school loans due to its flexible repayment options and reasonable interest rates.
Interest Rate Range: The interest rates offered by Canara Bank Education Loan typically fall between 7.30% and 9.30% per annum, depending on factors such as loan amount, repayment period, and applicant’s creditworthiness.
Purpose: Tuition, housing, fees for exams, books, and equipment are all part of what the Canara Bank Education Loan may help with, whether you’re going to school in India or overseas.
Loan Type: Available for various undergraduate, postgraduate, and professional courses.
Pros & Cons:
Pros: Loan amounts up to Rs. 7.5 lakhs are available with competitive interest rates, flexible repayment choices, and no prepayment penalty. Collateral is not needed.
Cons: The documentation requirements can be stringent, and the approval process may be time-consuming.
Reviews and Ratings:
User Reviews: Positive feedback about competitive interest rates and efficient loan processing has been received.
Ratings: 4.4/5
Bank of Baroda Education Loan
Introduction: To assist defray the expenses of bachelor’s, master’s, and professional degree programs in India and abroad, eligible students may apply for an education loan from the Bank of Baroda.
Why We Picked It: Interest rates, payback terms, and customer service at the Bank of Baroda are all competitive. In addition to not charging prepayment fees, the loan does not need security for sums up to Rs. 7.5 lakhs.
Interest Rate Range: Annual percentage rates (APRs) may vary from 7.20% to 9.20% depending on loan amounts, repayment periods, and applicants’ credit scores.
Purpose: The Bank of Baroda Education Loan can cover tuition fees, hostel charges, examination fees, the purchase of books and equipment, and other necessary expenses related to higher education in India and abroad.
Loan Type: Available for various undergraduate, postgraduate, and professional courses.
Pros & Cons:
Pros: Competitive interest rates, flexible repayment options, no collateral required for loans up to Rs. 7.5 lakhs, and no prepayment charges.
Cons: The documentation requirements may be extensive, and the approval process can be time-consuming.
Reviews and Ratings:
User Reviews: Positive feedback regarding competitive interest rates and transparent loan terms.
Ratings: 4.3/5
Union Bank of India Education Loan
Introduction: The Union Bank of India Education Loan aims to help defray higher education costs for deserving students.
Why We Picked It: This education loan offers competitive interest rates, flexible repayment options, and efficient customer service.
Interest Rate Range: The loan amount, payback duration, and applicant’s creditworthiness determine the interest rates, which usually vary from 7.20% to 9.20% per year.
Purpose: The Union Bank of India Education Loan covers tuition fees, hostel charges, examination fees, the purchase of books and equipment, and other necessary expenses for higher education in India and abroad.
Loan Type: This education loan is available for various undergraduate, postgraduate, and professional programs.
Pros & Cons:
Pros: This loan allows for loan amounts up to Rs. 7.5 lakhs, no prepayment penalties, flexible repayment alternatives, or reasonable interest rates exist.
Cons: The documentation requirements might be strict, and the approval process can be time-consuming.
Reviews and Ratings:
User Reviews: Positive feedback regarding competitive interest rates and efficient loan processing.
Ratings: 4.4/5
Indian Overseas Bank Education Loan
Introduction: Students who demonstrate financial need are eligible for the Indian Overseas Bank Education Loan, which allows them to attend college in India or elsewhere.
Why We Picked It: Indian Overseas Bank offers competitive interest rates and flexible repayment options, making it an ideal choice for students seeking affordable education loans.
Interest Rate Range: The interest rates typically range from 7.35% to 9.35% per annum, depending on the loan amount, repayment term, and applicant’s creditworthiness.
Purpose: If you want to go to college in India or anywhere else, you may get a loan from the Indian Overseas Bank to pay for all of your expenditures, including tuition, housing, fees, books, and supplies.
Loan Type: Available for various undergraduate, postgraduate, and professional courses.
Pros & Cons:
Pros: The pros are competitive interest rates, customisable repayment options, and no collateral required for loans up to Rs. 7.5 lakhs, and no prepayment charges.
Cons: The documentation requirements can be stringent, and the loan approval process may be time-consuming.
Reviews and Ratings:
User Reviews: Positive feedback regarding competitive interest rates and efficient loan processing.
Ratings: 4.3/5
Conclusion
In conclusion, the top 10 best education loans in India for 2024 provide a broad selection of options tailored to the financial needs of students pursuing higher education. Each loan has advantages and disadvantages, making it imperative that students carefully assess their requirements and select a lender offering the most suitable terms and conditions.
Explore top education loans in India for 2024!
