Education Loan: Cheapest Interest Rates Loan provided by Union Bank, SBI and Others
An Education Loan is an amount of money borrowed to finance higher education or post-secondary education expenses. Education Loans are meant to cover living expenses, tuition fees, books and other related costs during the time of a borrower’s degree pursuit.
Education loans’s goal is to enable borrowers to get an academic degree by enrolling in an authorized college or university. The borrowers can get education loans from private or government sector lending sources.
The New Academic Year for higher studies will start in India and abroad from June onwards. Hence, to shortlist the banks that provide education loans at the cheapest interest rate, April is a great month.
As per the data available, here are list of banks that provide education loans up to Rs.20 lakh with a seven-year tenure at interest rates less than 13.7%.
Union Bank of India
Union Bank of India and Central Bank of India are offering education loans with interest rates of 8.1%. For a seven-year education loan worth Rs.20 lakh, the monthly installment equals Rs.31,272.
Punjab National Bank
On education loans, Punjab National Bank charges interest beginning at 8.2%. During a seven-year period, the interest paid on a Rs.20 lakh education loan will be Rs.31,372.
Canara Bank
Canara Bank charges interest rates starting at 8.6% on education loans. An education loan of Rs.20 lakh with a seven-year term will have an interest rate of Rs.31,774.
State Bank of India
State Bank of India is charging a marginally higher interest rate on education loans at 8.15%. An education loan of Rs.20 lakh with a seven-year term will have an EMI of Rs.31,322. The same rate of interest is also charged by the Bank of Baroda to its student customers.
HDFC Bank
Education loans offered by HDFC Bank have an interest rate beginning at 9.5%. An education loan of Rs.20 lakh with a seven-year term will have an interest rate of Rs.32,688 per month.
Indian Bank
Starting 8.8% interest rate, the Indian Bank provides education loans. For a Rs 20 lakh education loan with a seven-year term, the interest paid monthly will be Rs.31,976.
