There are many banks which are providing educational loans to the students for higher studies.
The education especially the higher one is getting costlier day by day and many students have no option except to go for these loans. Different banks offer loans with different propositions and facilities like margin fee waiver, processing fee waiver, and education loan insurance and one should check these beforehand to avail the best loan.
There is good demand for these loans and many banks and financial agencies provide these loans. Some of the leading ones are - State Bank of India, Axis Bank, HDFC Bank, Punjab National Bank, Canara Bank, IDBI Bank, Bank of Baroda and Avanse Financial Services.
Education Loan from the banks for domestic education are generally provided in the range Rs 20,000 to 45 lakhs while for foreign education it is in the range Rs 1.5 lakh to 1.5 crore.
The Interest Rate for domestic loan varies from 8.35% to15.8% while for foreign it is from 9.7% to 16.2%.
Generally, the repayment of loan starts after the completion of the course and it is to be repaid in 5 to 7 years. For loan amounts below Rs 4 lakh, no guarantor or collateral is required. Some banks also offer discounts to female students on Education Loan.
As per the information available in the net, banks have funded to about 15 Crore students of our country with almost Rs 80000 Crore worth of education loans till the financial year 2017-18.
Every bank has its own features and before deciding, one has to compare the interest rate, maximum repayment tenure, interest subsidy if any and other considerations so that maximum benefit can be derived.
Knowledge is power.