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Top 5 Best Banks for Students Education Loan in India 2023

Top 5 Best Banks for Students Education Loan in India 2023

Top 5 Best offering education loans to deserving students to pursue their dream education in India or abroad banks in India 2023.

5 Best students education loan banks in India 2022

Here is a list of the top 10 banks in India that provide education loans to worthy individuals who want to pursue their dreams of higher education in India or abroad.

In India, education is getting more expensive than it is in other countries. Students and parents are suffering from the economic consequences of education while battling for the greatest grades and employment opportunities. Scholarships and Education Loans are the only two choices available to students who want to further their education. Finding the finest bank for an education loan in India, however, is a difficult task in and of itself. Additional services offered by the best school loan banks include margin charge waivers, processing fee waivers, education loan insurance, and so on. Students must be aware of the complete range of education loan services in order to choose the best option for them.

Characteristics of the Best Bank for Education Loans

  • No/low additional charges

Margin payments, prepayments, processing fees, paperwork fees, and so on.

  • Increased maximum loan amount

For domestic education, at least INR 10,00,000 (10 lakhs) is required, and for overseas education, at least INR 20,00,000 (20 lakhs).

  • Longer loan terms (repayment period)

For domestic education loans, at least 10 years are required, and for overseas education loans, 15 years are required.

  • Subsidies for Interest Rates

Not just government programs, but also Bank institutional subsidies such as special education concessions for girls, subsidies for disabled people, and subsidies for economically disadvantaged people

Adjustment of Scholarships and Education Loans

Ability to alter margin payments or EMIs with meritorious applicants` scholarships

Several education loan banks provide special measures that assist students in various ways to finance as much of their educational costs as possible. Students who have opted to take out an education loan to cover their educational expenditures should be familiar with the basics of education loans, as well as essential words and terminologies.

Best education loan banks in India

1. State Bank of India

Benefits of SBI education loans

  • Education loans are available for part-time programs.
  • There is no time constraint on how long a course must last.
  • The cost of the equipment, car and insurance is included in the loan amount.
  • The maximum borrowing amount is - INR 40,00,000 (40 Lakhs) in domestic loans and INR 15000000 in study abroad loans (1.5 crores)
  • Subsidy on interest if you choose the Education Loan Insurance scheme.

The State Bank of India`s SBI Student Loan Scheme provides education loans to students who want to pursue their dreams of higher education. Students can use the loan to study technical and professional courses in Indian and international institutions. SBI Education Loans are available up to a maximum of INR 30 lakhs, with collateral security (required only for loans above INR 7.5 lakhs). Depending on the loan amount, the repayment time ranges from 10 to 12 years. In terms of low interest rates, this is possibly the best bank for school loans.

SBI Education Loan Interest Rates

SBI Education Loan Scheme Interest Rate Range
SBI Student Loan Scheme 10.45% to 10.75%
SBI Scholar Loan Scheme 8.65% to 9.95%
SBI Skill Loan Scheme 9.95% (fixed)
SBI Global Ed-Vantage Scheme 10.70%
SBI Education Loan Interest Rate (Average ROI) 10.14%

2. Axis Bank

Benefits of Axis Bank Education Loan

  • The highest amount of a domestic education loan is INR 7500000. (75 Lakhs)
  • Subsidy for female students with a special interest: 50 basis points
  • There is no need to pay a margin.
  • Outward Remittances at Axis Bank: Cover international Indian students` in-flight and out-of-pocket expenses.
  • International risk coverage is included in student insurance.

Axis Bank, in comparison to other education loan institutions, offers education loans at low-interest rates to students who wish to pursue higher education. The bank offers a loan sum of up to INR 50,000 as a minimum. Axis Bank education loans have interest rates ranging from 8.5 percent to 16 percent, including preferential rates for women applicants. In terms of loan amount availability and affordable interest rates, this is the best bank for college loans.

Axis Bank Education Loan Interest Rates

Education Loan Amount limits Axis Bank Interest Rates
Upto INR 400000 (4 Lakhs)
Between INR 400000 (4 Lakhs) and INR 750000 (7.5 Lakhs) 14.7%
Above INR 750000 (7.5 lakhs) 13.7%

3. HDFC Bank

Benefits of HDFC education loan

  • There are no partial loans available; 100% financing is available.
  • Prior to admission, a loan for education is approved.
  • Education loans are accepted for 9600 institutions and 950 courses.
  • There are no hidden fees.
  • Education loans are available through HDFC`s `Doorstep Service.`
  • Disbursement of regional education loans at `HDFC Asset Centers`

HDFC education loan interest rates

Loan amount limit HDFC interest rates
Education loan up to ?400,000 (4 Lakhs) Min: 10.25% to Max: 12.25%
Education loan above ?400,000 (4 Lakhs)
Min: 10.25% to Max: 15.00%
HDFC education loan interest rate (average) 11.88%

HDFC Education Loan applicants can have education funding services delivered to their doorstep for over 950 courses in 36 countries. HDFC Bank offers a maximum loan amount of INR 20 lakhs. Processing fees for school loans range from 1% to 1.5 percent of the loan amount, with no fees charged for early repayment. HDFC is one of the few education loan lenders that has totally removed pre-payment penalties. This is the top bank for education loans in terms of loans and other financial services in the field of foreign education support.

4. Punjab National Bank

Benefits of PNB education loan

  • For domestic education loans, there are no processing fees.
  • Processing fees for international education loans are refundable.
  • For vocational studies, education loans of up to INR 150000 are available.
  • Disabled students can get a loan with a lower interest rate.
  • State-based education loan schemes: based on state-specific education costs

PNB Education Loan Interest Rates

Education loan limit PNB Education Loan Interest Rate
Upto INR 750000 (7.5 Lakhs) Max. 10.00%
Above INR 750000 (7.5 Lakhs) Max. 11.10%
PNB Education Loan Interest Rate (Average ROI) 10.01%

Punjab National Bank`s `PNB Saraswati` and `PNB Udaan` education loan schemes are available to students seeking to pursue higher education. The bank provides loans at basic interest rates to students pursuing education at the world`s top 200 universities. Borrowers must pay a one-percentage-point upfront processing charge for PNB Education Loans. Borrowers of student loans have up to 15 years to repay their loans. For education loans under INR 4 lakhs, no loan margin is required. This is the greatest bank for college loans because of the loan services flexibility; students may choose what they want and leave the rest to them.

5. Canara Bank

Benefits of Canara Bank Education Loan

  • There is no minimum education loan amount: an education loan of INR 20000 (20 Thousand) is available.
  • Fees for counseling and education loans for freshmen
  • INR 3600000 is a large loan sum for both local and international education loans (36 Lakhs)
  • Minorities, socially backward classes (OBCs and EBCs), and economically poorer sectors are eligible for education loan subsidies under three separate government initiatives.
  • 1-day education loan with a quick turnaround (for certain cases)
  • For an education loan of INR 1.5 lakhs, the loan term is 7 years.

Canara Bank education loan interest rates

Education loan amount limits Canara Bank Education Loan Interest Rates
Upto INR 750000 (7.5 Lakhs)
Above INR 750000 (7.5 Lakhs) 10.50%
Minimum Canara Education Loan interest rate 8.90%

Canara Bank provides education loans to students who want to study professional and technical courses, as well as graduate and post-graduate programmes that will lead to work prospects. For loans up to INR 400000, no margin payment is required (4 Lakhs). In the case of students from IITs/IIMs/ISBs, etc., a margin of 5% for domestic and 15% for international education is required; however, this is not required in the case of students from IITs/IIMs/ISBs, etc. Depending on the loan amount, the repayment period ranges from 10 to 15 years. In terms of interest subsidies and low loan obstacles, this is the finest bank for college loans.