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  • Category: Finance and Investments

    Where to get the education loan data of all the Banks and NBFCs in India scheme-wise

    Want to get some data of education loans provided by banks and NBFCs in India? Interested in getting information about such banks which provide loans for higher studies and for three or more years? Check out this page for suggestions from experts and resolve your query.

    I have a research study and would like to have the data of education loan of all the schemes of the Banks and NBFCs in India that are providing loans to students for their higher studies atleast for 3 years.
    I also want to know the market share of each of the players in the education loan industry along with Non-Performing Assets share?
  • Answers

    2 Answers found.
  • Education Loan for Courses in India. Any student who wants to pursue higher education in our country or abroad can apply for an Education Loan. The Repayment of this Education Loan will start after the completion of the course. The minimum amount of Loan will be Rs. 50,000. No guarantor or collateral will be asked for loans below Rs. 4 lakh. The loan rates may be less in some banks for girl students.
    A person who is not employed is eligible to apply until he attains 35 years of age and an employed individual can apply up to 45 years.
    The following expenses can be incurred from the loan amount.
    1. Admission fees including Monthly Fees and Examination Fees
    2. Books, Stationery and Types of equipment
    3. Airfare for joining the course abroad
    4. Boarding & lodging expenses of authorized hostel or boarding house
    5. Expenses required to complete the courses like those on study tours, project works and thesis.

    8.6% is the minimum rate of interest on loans for study within the country and 9.5% is the minimum rate of interest for students going abroad for studies.
    SBI is offering loans to students at 8.6% ROI for in the country education loan and 9.75% for foreign studies.
    IDBI is offering loans for within the country and foreign countries at the same rate of interest that is 9.5%

    The education loan is having some tax benefits which are mentioned below. These benefits are applicable to the interest part only but no exemption for repayment of loan principal amount.
    1. Interest paid on education loan can be claimed as a deduction from income of borrower as per Section 80E of the Income Tax Act, 1961
    2. Rebate can be claimed without any upper ceiling or cap
    3. Rebate is available for full-time courses, part-time courses and vocational courses pursued in India and abroad
    4. Rebate can be claimed within eight (8) years post-moratorium period subject to actual payment of interest
    5. Rebate is available for interest paid on loans for education of self, spouse, children or for the student of whom
    he/she is the legal guardian
    Among the banks, SBI is making a higher percentage of loans to students.

    always confident

  • 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.

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