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Top Education Loans with Low Interest Rates : A Comprehensive Guide  

Post Date:- October 25, 2024
Author:- Shiva Krishna HR

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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

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

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%

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%

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.

Get Education Loan

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