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Top Education Loans with Low Interest Rates : A Comprehensive Guide 


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Table of contents

List of Banks and NBFCs with Low Interest Rates   
Understanding Education Loans Schemes 
Important Considerations for Education Loan Schemes   
Methods to calculate EMI for Education Loan with Low Interest Rate   
Conclusion
List of Banks and NBFCs with Low Interest Rates
Understanding Education Loans Schemes
Important Considerations for Education Loan Schemes
Methods to calculate EMI for Education Loan with Low Interest Rate
Some students aspiring to pursue higher studies depend on education loans to meet their financial needs. Understanding the nuances of education loans, financial institutions, NBFCs and other criteria like interest rate, processing fee, loan amount, and collateral is important to narrow down on the best features in an education loan with low interest rate, providing special schemes and concessions. Taking careful decisions by looking for feasible education loan with low interest rates helps you secure your future financial health.

List of Banks and NBFCs with Low Interest Rates

Here is a concise list of financial institutions with low interest rate for education loan that you may explore while availing study loans for your higher studies.  Some banks release a list of courses in educational institutes they have a tie-up with, which you can explore and choose from.

Let us look at some bank loans that provide low interest rates or schemes according to the updated rates, with variables being processing fees or providing concessions in specific cases, based on financial institutions.

Bank Name 
Interest Rate Range (%) 
Processing Fee 
Concessions
Bank of Baroda 
Baroda Vidya- 12.50%,   Baroda Gyan-11.40% – 13.05%,   Baroda Scholar- 9.70% – 11.70%, Baroda Loan- 8.15% – 9.95% 
Nil
Female applicants: 0.50% concession 
State Bank of India 
Ranges from 8.5% – 11.75% 
Up to Rs. 10,000 (Foreign Studies), Nil (Others) 
Girl applicants: 0.50% concession 
ICICI Bank 
9.5% to 14.24%  
Up to 2% 
I-smart loans (Canada) have lower rates 
Central Bank of India 
Cent Vidyarthi 8.30% – 11.50%,   Cent Skill Loan- 11.15% – 11.20%,   Cent IIMs- 8.30%,   Cent Education Loan- 8.30% – 11.25% 
NA
NA
Bank of India 
Star Education Loan (India)- 8.35% – 11.05%, (Abroad) 9.95% – 11.60%, Star Vidya Loan- 9.25% onwards, Star Progressive Education Loan: 9.95% 
Nil 
Up to 1% concession (Female & Professional Courses) 
Punjab National Bank 
PNB- 
Saraswati Loan-11.00% – 12.75%, Kaushal Loan-10.25% – 12.25%, Pratibha 8.20% – 11.90%,   Udaan 9.25% – 12.75%,  Honhaar-11.25% – 12.75% 
Up to 1% (Foreign Studies) 
Girl applicants & Students with disabilities: Concession available 
Avanse 
8.25% – 11.50% 
Varies 
Merit scholarships, gender-based discounts 
IDFC First Bank 
8.35% – 11.25% 
Varies 
Merit scholarships, gender-based discounts 
Auxilo Finserve 
8.50% – 11.75% 
Varies 
Merit scholarships, gender-based discounts 
Incred Finance 
8.75% – 12.00% 
Varies 

Merit scholarships, gender-based discounts 

Feature 

Interest Rate Range (%) 

Processing Fee 

Concessions

Baroda

Baroda Vidya- 12.50%,   Baroda Gyan-11.40% - 13.05%,   Baroda Scholar- 9.70% - 11.70%, Baroda Loan- 8.15% - 9.95% 

Nil 

Female applicants: 0.50% concession 

State Bank of India 

Ranges from 8.5% - 11.75% 

Up to Rs. 10,000 (Foreign Studies), Nil (Others) 

Girl applicants: 0.50% concession 

ICICI Bank 

9.5% to 14.24%  

Up to 2% 

I-smart loans (Canada) have lower rates 

Central Bank of India 

Cent Vidyarthi 8.30% - 11.50%,   Cent Skill Loan- 11.15% - 11.20%,   Cent IIMs- 8.30%,   Cent Education Loan- 8.30% - 11.25% 

NA

NA

Bank of India 

Star Education Loan (India)- 8.35% - 11.05%, (Abroad) 9.95% - 11.60%, Star Vidya Loan- 9.25% onwards, Star Progressive Education Loan: 9.95% 

Nil 

Up to 1% concession (Female & Professional Courses) 

Punjab National Bank 

PNB- 
Saraswati Loan-11.00% - 12.75%, Kaushal Loan-10.25% - 12.25%, Pratibha 8.20% - 11.90%,   Udaan 9.25% - 12.75%,  Honhaar-11.25% - 12.75% 

Up to 1% (Foreign Studies) 

Girl applicants & Students with disabilities: Concession available 

Avanse 

8.25% - 11.50% 

Varies 

Merit scholarships, gender-based discounts 

IDFC First Bank 

8.35% - 11.25% 

Varies 

Merit scholarships, gender-based discounts 

Auxilo Finserve 

8.50% - 11.75% 

Varies 

Merit scholarships, gender-based discounts 

Incred Finance 

8.75% - 12.00% 

Varies 

Merit scholarships, gender-based discounts 

Understanding Education Loan Schemes

While looking for education loans with low interest rates, these are monetary aids provided by banks and other lenders like NBFCs to students aspiring to pursue higher studies. It is important to know other factors attached to it like tenure, amount, processing fee, eligibility criteria, collateral and more. These loans usually cover tuition fees, living expenses, books and laptops, and other necessities related to the course.

Important Considerations for Education Loan Schemes

  • The above-mentioned information is subject to change as per the individual institutions’ websites. While considering opting for education loan schemes, be mindful to research the details on their official websites.
  • Concessions may be subject to specifications and may be different for different lenders. The factors linked to concessions may be the course and institute chosen, merit of the student, and if it is a girl child, there may be an added benefit.
  • Other lesser-known financial institutions like National Bank for Agriculture and Rural Development (NABARD), National Housing Bank (NHB), and government-backed NBFCs also provide education loans for agriculture-related course programs.

Methods to calculate EMI for Education Loan with Low Interest Rate

Before leaning on a particular lender for your education loan with a low interest rate, understand how to calculate EMI for different loan amounts and institutions, and come up with approximate figures so that you are well prepared before availing a loan for studying.   While calculating EMI, you use the formula: EMI =  [P x R x (1+R) ^N]/[(1+R)^N-1] Where P is Principal Amount, or the loan disbursed, R is the rate of interest, and N is the Number of years or months of total repayment with interest. You can follow this method or use the EMI calculator to calculate your amount for an education loan with a low interest rate.  By knowing the details of EMI to be paid, you can research the lowest amount that you will have to pay by comparing the lenders who offer different education loan schemes.

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Conclusion

Going through a cumbersome loan application process for students can be avoided by choosing lenders who favor the convenience of the students. One such lender is Qck Loans, which helps you avail the best low-interest rate for education loans. We have collated the points for this blog so that you and your parents can make informed decisions balancing your dreams and financial responsibilities at the same time.

Whether you are looking for loans to support your preadmission exam funding, traveling expenses or the education loan itself, Qck Loans has got you covered.

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