Important steps related to Education Loan Interest Rates 2023 need to be known from this article. From here you can know the eligibility criteria etc.
Education is an important part of every person’s life. It plays an important role in personality building, job opportunities and achieving goals. If we talk about higher education, then it can be very difficult for many people, the main reason for this is the high cost. In such a situation, education loan only provides relief. Education loan helps the individual to complete his higher education. But there are certain aspects that need to be taken care of while taking an education loan. In this article, we will discuss the topics like Education Loan Interest rates and the factors that determine it.
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Introduction
There are many students who want to get higher education but are weak due to economic condition. There is an education loan as an option for them, but there are many banks and financial institutions whose interest rates on education loan are high. Due to which getting education proves to be an expensive affair. This happens because the students do not know about Education Loan Interest Rates. In this article, we will discuss every aspect regarding education loan interest rates.
Understanding Education Loan Interest Rates
Understanding how interest rates function is essential when submitting an application for a student loan. Both fixed and adjustable interest rates are available for student loans. While floating interest rates change according on the state of the market, fixed interest rates are stable throughout the payback term. The borrower’s credit rating, income, and collateral are some of the elements that lenders consider when determining the interest rate.
Complete Guide to Student Loans : Eligiblity, Interest Rates, Application etc
List of Education Loan Interest Rates of All Banks
| Bank Name | Interest Rates | Processing Fees |
| Punjab National Bank | 8.55% p.a. onwards | Rs. 250 plus GST |
| Canara Bank | 9.25% p.a. onwards | Go to bank website |
| State Bank of India | 8.55% p.a. onwards | No charged required |
| Bank of Baroda | 9.15% p.a. onwards | No processing charges up to Rs.7.50 lakh1% of loan amount up to Rs.10,000 |
| IDBI Bank | Contact the bank | Contact the bank |
| Bank of India | Contact the bank | Study in India: NilStudy in abroad: Rs.5,000 |
| HDFC | 9.50% p.a. onwards | As per the criteria of the bank |
| UCO Bank | Refer to the bank’s website | Go to the bank’s website |
| Karnataka Bank | 9.98% p.a. to 12.88% p.a. onwards | Contact the bank |
| Axis Bank | 13.70% p.a. to 15.20% p.a. | 2.00% of the loan plus GST |
| Kotak Mahindra Bank | Up to 16% p.a. | Nil |
Factors Affect the Education Loan Interest Rates
There are many factors that affect the interest rates while taking an education loan. There are some such factors whose details are given below.
- Lender’s Policies
- Borrower’s Credit History
- Loan Amount
- Loan Tenure
Interest Rates for Different Types of Student Loans
The interest rates on each education loan different. Education loan interest rates depend on the tenure, status and type of loan. Education loans in general include undergraduate loans, post graduate loans, business loans and international education loans etc.
Tips for getting Education Loan at low interest rate
Long-term savings on a school loan might be considerable if you can get a cheaper interest rate. Here are some suggestions to assist you reduce the interest rate on your student loan:
- Maintain a high credit rating.
- Select a lender with the lowest interest rate available.
- Select a shorter loan term.
- provide a cosigner or collateral
- Ask the lender to reduce the interest rate through negotiation.
EMI Calculate on Education Loans
If you are thinking of taking an education loan, then you should know that EMI (monthly installment) is fixed. The Equated Monthly Installment (EMI) of the education loan can be calculated by the following formula:
EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1]
P = Principal amount
R = Rate of Interest
N = Number of years for repayment (this is calculated in months)
FAQs about Education Loan Interest Rates
For students and their families, the interest on student loans may be a serious financial burden. Knowing what influences the interest rate and taking action to obtain a lower interest rate will assist cut the overall cost of schooling. We really hope that you have learned a lot about the interest rates for student loans from this article.
We’ve given you a thorough primer on interest rates for student loans, so let’s wrap things up. You may apply for an education loan in a well-informed manner by using the advice we’ve provided and comprehending the variables that impact interest rates.
I have horrible credit. Can I still receive a loan for school
With terrible credit, it could be feasible to obtain an education loan, but you might be given a higher interest rate and might require a co-signer in order to be approved.
How may my credit score be raised
On-time bill payment, a low credit utilisation rate, and routinely monitoring your credit report for inaccuracies are all ways to raise your credit score.