BEST BANKS FOR EDUCATION LOAN 2024
Higher education is always demands high commitments in terms of finances. Education loans help to smooth out some of the burdens from these commitments, allowing a student to finance their studies both within and abroad. Here is a comprehensive guide to some of the best banks that offer education loans in 2024 and the things you should consider before applying.
| S.NO. | BANK | INTEREST RATE |
| 1 | State Bank of India | 8.05% p.a. onwards |
| 2 | Punjab National Bank | 8.10% p.a. onwards |
| 3 | ICICI Bank | 9.50% p.a. onwards |
| 4 | Bank of Baroda | 8.15% p.a. onwards |
| 5 | Bank of India | 8.25% p.a. onwards |
| 6 | HDFC Bank | 8.64% p.a. onwards |
(Note: Interest rates are subject to change. One is advised to find out the up-to-date interest rate by seeking information about it at the time of application.)
KEY FACTORS TO CONSIDER
- Government Subsidy Schemes
Some of the Central Government schemes include Credit Guarantee Fund Scheme for Education Loans (CGFSEL), Dr. Ambedkar Central Scheme, and Padho Pardesh Scheme. Interest rate subsidy is provided to such students who are eligible for the same. - Tax Benefits
You are eligible to claim a tax exemption on the interest paid on your education loan. - Concessions for Existing Customers
The majority of banks offer interest concessions to their existing customers with good credit scores. This helps decrease the overall cost associated with the loan. - Interest Payment During Study Period
Interest concession to the tune of up to 1% in interest rate is offered by some banks if the interest amount is paid during the study period. - Risk Premium Charges
Banks can also charge an additional rate of interest of up to 0.05% on a loan in case the applicant does not have credit life insurance that would settle any outstanding amount in case of the death of the borrower. - Lower Interest Rates for Girls
Most of the banks are providing a lower percentage of interest for girls so that female education increases.
LIST OF EXPENSES COVERED UNDER EDUCATION LOAN
Following expenses are covered under education loan in India:
- Tuition Fees: Charges by the institution for the course.
- Examination Fees: Fees for exams, projects, or assignments.
- Library Fees: Costs associated with library usage or access to digital resources.
- Hostel Fees: Accommodation expenses at hostels or dormitories.
- Laboratory Fees: Fees for specialized equipment or lab access.
- Travel Expenses: Costs for commuting or traveling to the study destination.
- Books and Study Materials: Expenses for purchasing textbooks and other learning materials.
- Insurance Premiums: Health or accident insurance required by the institution.
- Miscellaneous Expenses: All the other added costs, which might include printing, equipment rental, etc.
CONCLUSION
While choosing the best bank for your education loan, one needs to compare the interest rate, understand the repayment terms, and check if there are any special concessions or government schemes. When such a candidate has all this information, it will be an informed decision that would help support his or her education.
