Quality education usually comes at a high cost. Fortunately, meritorious students don’t have to give up on their dreams due to the lack of finances as long as we have excellent student loan schemes in India.
The following are the top 4 education loan schemes that you can check out:
- United Bank of India Student Loan
United Bank of Indian offers student loans for those who want to pursue higher studies in India or abroad. The requirements for education loan are that you must have Indian nationality and must have passed the qualifying exam for the institute you wish to enroll in.
You can get an education loan up to Rs. 10 lakh for Indian institutes and Rs. 20 lakhs for institutes located abroad. The interest rates are as follows:
- MCLR-Y+2.20% i.e. 10.95% for loans up to. 7.5 lakhs
- MCLR-Y+2.15% i.e. 10.90% for loans above Rs. 7.5 lakhs
You can also enjoy a 1% concession during the moratorium period contingent on you servicing the interest monthly and regularly during that period.
- Punjab National Bank i.e. PNB’s Saraswati
PNB offers student loan in the form of PNB Saraswati product for approved courses like CA, CFA, etc. Just like other loans, to apply for Saraswati you must be Indian national and have cleared the qualification examination to a higher education course you are interested in. The maximum loan tenure allowed is 15 years.
The following are the interest rates for the PNB Saraswati education loan:
- MCLR-Y+1.10% i.e. 9.25% for loans irrespective of the amount where 100% tangible collateral security is provided
- MCLR-Y+0.60% i.e. 8.75% for loans for education from premium foreign universities or the ones covered under the PNB Udaan Loan (up to Rs. 7.50 lakh)
- MCLR-Y+0.10% i.e. 8.25% for other types of education loans
- State Bank of India’s Student Loan
SBI offers a variety of education loans at attractive interest rates. You can, in fact, get even better rates if your free CIBIL score rating turns out to be excellent.
SBI offers education loans up to Rs. 10 lakhs for higher education in Indian institutes and up to Rs. 30 lakhs for institutes located overseas.
One of the benefits of SBI student loan over others is that you don’t have to pay a processing fee.
The following are the current interest rates:
- 00% for loans up to Rs. 7.5 lakhs
- 75% for loans above Rs. 7.5 lakhs
Note: Girl students get 0.50% concession on the interest rate
- Cent Vidyarthi
If you have already secured a seat in a good college and have an attractive free CIBIL score rating, then the Cent Vidyarthi student loan could be the right product for you.
Cent Vidyarthi scheme is offered by the Central Bank of India under which you can get an education loan up to Rs. 10 lakhs for studying in India and up to Rs. 20 lakhs for studying overseas. However, if you secure the loan with 100% collateral then you can get an even bigger loan.
Cent Vidyarthi Loan repayment begins after 12 months post the completion of your studies or 6 months after getting a job.
The following are the interest rates for the Cent Vidyarthi scheme:
- MCLR+2% if you are a male student
- MCLR+1.50% if you are a female student
You can get a 1% interest concession during your study period if you service the interest on time.
How to get good Interest Rates?
Student loans can often be challenging when it comes to repayment. Thus, it helps to get the best interest rate possible.
The following are some of the best tips that can help you in securing the most attractive interest rates:
- Check your credit report. If your CIBIL score is average, then you can improve it to get a better interest rate.
- If your academic performance has been quite good, then also you can try to negotiate with your bank to get a better rate.
- Most banks offer interest rate concession to those students who are punctual with their interest service during their study period. So, you can enjoy a better rate in this way as well.
Always remember to check your credit report before applying for any type of loan. If your report is not satisfactory then not only you won’t get a good interest rate, it’s possible to lose the very chance of getting the loan itself.