Education Loan Interest Rates
Know about the latest student loan interest rates offered by India’s largest banks so that you can compare them and choose the one that best suits your needs. Many factors affect the interest rates of these loans.
To improve your money management, find out what they are and how to calculate your student loan EMIs. Learn all about the eligibility requirements and the documents required to submit your application to increase the chances that it will be accepted.
Compare Education Loan Interest Rates 2024
Banks | Interest Rates | Processing Fees |
Union Bank of India | 8.15% p.a. to 12.55% p.a. | Nil |
State Bank of India | 8.15% to 11.15% p.a. |
|
Punjab National Bank | 4% p.a. to 11.25% p.a. | Nil |
IDFC FIRST Bank | 10% p.a. to 15% p.a. | Up to 1.5% of the loan amount |
Bank of Baroda | 8.55% p.a. to 12.50% p.a. |
|
Canara Bank | 8.60% p.a. to 11.35% p.a. | 0.50% of sanctioned limit (Max. Rs.20,000) |
HDFC | 9.50% p.a. onwards | As per the criteria of the bank |
Indian Overseas Bank | 6.90% p.a. onwards | Contact the bank |
ICICI Bank | 9.50% p.a. onwards | Up to 2% plus GST |
Karnataka Bank | 10.75% p.a. onwards | Contact the bank |
Tamilnad Mercantile Bank | 12.60% p.a. to 12.85% p.a. |
|
Axis Bank | 13.70% p.a. to 15.20% p.a. | 2% of the loan amount plus GST |
IDBI Bank | 8.50% p.a. to 11.10% p.a. | Contact the bank |
Bank of India | 10.95% p.a. to 11.75% p.a. |
|
UCO Bank | 9.7% p.a. to 13.10% p.a. | Refer to the bank’s website |
Federal Bank | 12.55% p.a. onwards | Contact the bank |
Kotak Mahindra Bank | Up to 16% p.a. | Nil |
* Most of the banks offer zero processing Fee for courses in India. Please contact the bank for details
NBFC Education Loan Interest Rates
Non-Banking Financial Corporations (NBFCs) provide education loans to students to help them achieve their dreams of pursuing higher education. Education loan interest rates for major NBFCs in India are listed below:
Name of NBFC | Interest Rates (p.a.) | Processing Fees |
Bajaj Finance | 11% p.a. to 38% p.a. | Up to 3.93% of the loan amount |
HDFC Credila | HDFC Credila’s Benchmark Lending Rate (CBLR)-based interest rates | Contact the NBFC |
Types of Interest Rates in Education Loan
Fixed Interest Rate:
- With a fixed interest rate, the rate remains constant throughout the loan tenure.
- Borrowers have the advantage of knowing exactly how much they need to pay each month, making it easier to budget.
- However, if market interest rates decrease, borrowers with fixed-rate loans will not benefit from the lower rates.
Floating Interest Rate (Variable Interest Rate):
- A floating interest rate fluctuates according to market conditions.
- If market interest rates decrease, borrowers with floating-rate loans will see a decrease in their monthly payments.
- Conversely, if market interest rates rise, borrowers will see an increase in their monthly payments.
- Borrowers may have the option to convert their floating-rate loans to fixed-rate loans, usually for a fee.
How to Calculate Educational Loan EMI
Understand the Components:
- Principal Loan Amount (P): The total amount borrowed as an education loan.
- Annual Interest Rate (R): The interest rate charged by the lender per annum.
- Loan Tenure (N): The number of months or years over which the loan will be repaid.
Convert Annual Interest Rate to Monthly Rate:
- Convert the annual interest rate to the monthly interest rate by dividing the annual rate by 12 (number of months in a year) and then by 100 to convert it to a decimal.
Calculate Monthly Interest Rate (r):
- Monthly Interest Rate (r) = Annual Interest Rate (R) / (12 * 100)
Calculate EMI Using Formula:
- EMI = [P * r * (1 + r)^N] / [(1 + r)^N – 1]
Plug in Values and Solve:
- Substitute the values of Principal Loan Amount (P), Monthly Interest Rate (r), and Loan Tenure (N) into the EMI formula.
- Use the appropriate units for Principal Loan Amount (P) and Loan Tenure (N) to maintain consistency (e.g., if the loan tenure is in years, convert it to months for the formula).
- After plugging in the values, solve the equation to find the EMI.
Example:
- Let’s say you borrow an education loan of ₹5,00,000 at an annual interest rate of 10% for a tenure of 5 years (60 months).
- Convert the annual interest rate to a monthly rate: 10% / 12 = 0.0083333 (approximately).
- Monthly Interest Rate (r) = 0.0083333
- Loan Tenure (N) = 60 months
- Using the formula, calculate the EMI: EMI = [500000 * 0.0083333 * (1 + 0.0083333)^60] / [(1 + 0.0083333)^60 – 1]
- Solve the equation to find the monthly EMI amount.
Check Results:
- Verify the calculated EMI amount and ensure it aligns with the expected monthly repayment amount.
Use Online Calculators:
- Alternatively, you can use online EMI calculators available on financial websites or provided by lenders to quickly calculate the EMI for an education loan by inputting the loan amount, interest rate, and tenure.
Courses Covered Under an Educational Loan
Undergraduate Programs:
- Bachelor’s degrees in various disciplines such as Engineering, Medicine, Business Administration, Humanities, Sciences, etc.
Postgraduate Programs:
- Master’s degrees including M.Tech, MBA, M.Sc, MA, etc.
- Professional courses such as MS, MD, M.Pharm, MCA, etc.
- Specialized programs like PG diplomas, PG certificates, and research programs (e.g., PhD).
Vocational and Skill Development Courses:
- Diploma courses in technical and vocational fields such as ITI, polytechnic courses, nursing, paramedical courses, etc.
- Certification courses in fields like computer programming, graphic design, digital marketing, etc.
Study Abroad Programs:
- Courses pursued overseas including undergraduate and postgraduate programs offered by reputed universities and institutions.
Other Courses:
- Distance education courses from recognized universities.
- Preparatory courses for competitive exams such as UPSC, GRE, GMAT, IELTS, TOEFL, etc.
- Skill enhancement and certification programs offered by recognized institutions.
EMI Calculator
Loan Details
Education Loans by Bank
Education Loan Articles
To apply for admission online, visit the college’s official website and navigate to the admissions section. Follow the instructions provided to fill out the online application form and submit the required documents.
The documents required for online admission may vary depending on the college and the course you are applying for. Typically, you will need to submit scanned copies of your academic transcripts, identification proof, passport-sized photographs, and any other specific documents requested by the college.
Most colleges offer various online payment options, including credit/debit card payments, net banking, and mobile wallets. Once you have filled out the online application form, you will be directed to the payment gateway to complete the transaction securely.
Yes, many colleges provide an online portal or dashboard where applicants can track the status of their admission application. You may receive email notifications or login to the admission portal using your credentials to check the status of your application.
If you encounter any issues or have queries regarding the online admission process, you can reach out to the college’s admission helpline or contact the admission office via email or phone. Many colleges also provide live chat support on their website for immediate assistance.
Yes, colleges often provide a dedicated helpline number or email address for technical support related to the online admission process. You can reach out to this helpline for assistance with technical issues such as website navigation, form submission, or payment gateway problems.
In some cases, colleges allow applicants to edit or modify their online admission applications within a specified period after submission. However, it is essential to check the college’s admission policy regarding application modifications and follow the prescribed guidelines.
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