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Education Loan in India

Students desiring to pursue higher education have increased considerably. With the IT and outsourcing sector opening wider its doors to the foreign market, more and more students are seeking education loans in India for the purpose of studying in India and abroad.

To facilitate human resource development in the country through education the government of India is promoting measures to equip students with academic and professional competencies. Hence along with the technological growth the country's development is facilitated by better education infrastructure. By providing education loan in India, students are encouraged to pursue higher education diplomas and degrees towards gainful employment in the academic and commercial sectors of the country and abroad.

In India education loans are given to those students who are eligible for the same. E.g. the donor agency or government specifies the eligibility criteria for students with regard to education loans to students in India which have to be met such as admission in a recognized University is an essential criteria for education loans. Students in India can receive a maximum education loan of Rs. 15 lakhs for study overseas and Rs. 7.5 lakhs for study in India. An essential condition for granting loan is a third-party guarantee. Education loans include expenses covering course fees, hostel charges, cost of books and stationery etc. Moreover any other expense incurred in the course of education can be covered upto the maximum limit specified.

Bank Education Loan in India

Bank Education Loan in India is offered by several banks like South Indian Bank, Catholic Syrian Bank and more than thirty banks in India. Repayment of loan offered has to be made within five to seven years of its issue. An extra period of one year after course completion is given to repay the loan. The loan repayment has to be made in equal instalments every month, six months after securing employment or after 1 year of course completion. Students can obtain information online or visit the banks for further details. For schools in India as well as colleges, guardian/parents have to make the repayment within 36 months beginning immediately after the issue of education loan to students. Information is provided below on how to get the best rates on education loans by counselors in banks.

The cheapest rates are provided by some banks for the benefit of students who are financially deprived of higher education. Students have been able to get interest free loans provided they comply with some conditions. Information is provided by banks on the same. Some of the thirty and over Indian banks that offer education loans are appended below
  • Allahabad Bank
  • Andhra Bank
  • Bank of Baroda
  • Bank of Maharastra
  • IDBI Money Scholar
  • Indian Bank
  • Indian Overseas Bank
  • State Bank of Mysore
  • State Bank of Saurashtra
  • Syndicate Bank

Education loans rate of interest

On applying for education loan for the purpose of study abroad or in India a number of formalities and eligibility criteria have to be met. The rate of interest differs from bank to bank. One can compare the current education loan interest rate and student loan rate of interest from the banks available to them in their state/district in India. The Govt. of Indian is making a move to bring down interest rates on education loans. At present the rate of interest keeps varying from 10% to 12%. Interest rates of various banks can be compared by students. The rate of interest of various banks is mentioned on the display boards as well as the websites of each bank

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