Which Bank Has Lowest Interest Rate on Education Loan?: Students who want to pursue higher studies in better educational institutions and search for financial support can take an education loan. Study loan is offered by most banks in India for interested students to achieve their goals easier. Before taking the education loan, we have to look at the multiple factors. One of that factors is the interest rate.
The lower interest rates are beneficial for students when they are paying the amount to the bank. So here we are providing an article about Which Bank Has the Lowest Interest Rate on Education Loan? This article includes the list of banks with less interest rates on study loans, eligibility, required documents, and so on.
Comparison of Interest Rates on Education Loan Offered by Different Banks
An education loan is the amount that students borrow to finance their higher studies. It can cover expenses of tuition fees, books, living expenses, and others. The repayment of the loan can be done after the grace period is completed. Mostly, students who want to study abroad take education loan as it has the highest expenses.
Here students can check the top public sector banks that are offering study loans at the lowest interest rates.
| Banks | Interest Rate (p.a.) |
| Bank of Baroda | 6.75% to 9.85% |
| State Bank of India | 6.85% to 8.65% |
| Central Bank of India | 6.85% to 8.75% |
| Bank of India | 6.85% to 9.35% |
| Punjab National Bank | 6.90% to 9.55% |
| Union Bank of India | 8.80% to 10.05% |
Which Bank has Lowest Interest Rate on Education Loan?
Below mentioned is the list of banks that offer the lowest interest rates on study loans in India and abroad.
Bank of Baroda
Out of all public sector banks, the Bank of Baroda offers less interest rates on education loans. The maximum loan amount can be depends on the type of loan chosen by the students. Here is the list of study loans currently available in BOB.
- Baroda Education to Students of Premier Institutions: 9.15% to 10.20% p.a
- Baroda Scholar: 10.40% p.a to 11.15% p.a
- Baroda Gyan: Up to 11.15% p.a
- Baroda Vidya: 12.50% p.a
State Bank of India
State Bank of India has several education loan schemes with lesser interest rates and flexible repayment tenures. The starting interest rate is 8.55% per annum. The bank offers loans to students to study in India as well as abroad for professional courses and vocational courses only. The different student loan schemes that are presently available are here:
- SBI Take Over of Education Loan: 8.55% p.a to 10.05% p.a
- SBI Scholar Loan: 8.55% p.a to 10.05% p.a
- SBI Global ED-VANTAGE: 11.15% p.a
- SBI Student Loan: 11.15% p.a
Central Bank of India
Even Central Bank provides education loans to students to study in abroad and India with a starting interest rate of 8.3% per annum. Get all other education loan schemes with their interest rates.
- Cent Vidyarthi IIMs and other reputed management institutes: 8.30% per annum
- Cent Vidyarthi: 8.30% to 11.50% per annum
- Cent Education Loan: 8.30% to 11.25% per annum
- Cent Vidyarthi for Executive MBA: 8.80% per annum
- Cent Skill Loan: 11.15% to 11.20% per annum
Bank of India
Bank of India offers only three kinds of education loans. Students can choose the best one with lower interest rates that fulfils their needs.
- Bank of India Star Vidya Loan: 9.20% per annum
- Bank of India Star Education Loan: 10.95% to 11.75% per annum
- Bank of India Education Loan Abroad: 10.95% to 11.75% per annum
Punjab National Bank
PNB offers different kinds of education loans to students with attractive interest rates and repayment tenure can be up to 15 years. Students can approach this bank to get a better loan amount with little interest amount.
- PNB Pratibha: 8.55% to 10.50%
- PNB Udaan: 10.00% to 10.75%
- PNB Saraswati: 10.00% to 10.75%
- PNB Kaushal: 10.25% to 10.75%
- PNB Pravasi Shiksha Loan: 10.95% to 11.75%
- PNB Honhaar: 11.25%
Union Bank of India
Union Bank of India provides study loan to students with low-interest rates. Some of the loan schemes and interest rates per annum are listed here:
- Union Education Loan for Indian School of Business (ISB) Students: 8.55% to 9.50%
- Union Education Special Education Loan Scheme: 9.30% to 10.55%
- Union Education Premier Abroad: 9.30% to 10.80%
- Union Education – SPECIAL SCHEME FOR PREMIER MEDICAL INSTITUTES: 10.30% to 10.80%
- Union Education Skill Development: 10.80% to 12.05%
- Union Education (Above 7.5 lakh): 10.90%
- Union Education (Up to 7.5 lakh): 11.50%
Education Loan Eligibility
Students have to check the following things for the eligibility of the student loan in India or abroad.
Nationality:
- Should be an Indian citizen
- Or Non-Indian Resident (NRI) or
- Overseas Citizens of India or Persons of Indian Origin
Courses:
Students can opt for the following courses
- Undergraduate courses
- Postgraduate courses
- Vocational training
- Professional certification courses
- Job-oriented courses
- PhDs and Doctorate courses
Institutions:
Banks provide education loans to following organisations.
- Government institutions
- Private colleges
- Recognised universities
- International colleges and universities
Documents Required To Obtain Study Loan for Abroad
Here is the list of documents that should be submitted at the bank while taking the education loan.
- Marksheets from previous school/college
- Admission letter from their educational institution
- Age-proof documents, i.e. Adhaar card, passport, PAN card etc.
- ID proof documents
- Address proof
- Recent bank account statements
- Passport size photographs
- Appropriate Visa
Final Words
Expecting that the information mentioned here about Which Bank Has the Lowest Interest Rate on Education Loans is helpful for you. Bank of Baroda offers lower interest rates for students to study abroad or in India. Get other details like How to Apply for Education Loan for Abroad Studies, How to Repay Education Loan and so on at our site.