5 Best Banks for Education Loan in India 2023
An education loan, also known as a student loan, is a type of financial aid specifically designed to help students and their families cover the costs of higher education. It is a loan that enables students to pay for tuition fees, books, supplies, living expenses, and other educational expenses.
Education loans are usually provided by financial institutions such as banks, credit unions, or government programs. The terms and conditions, interest rates, repayment options, and eligibility criteria for education loans vary depending on the country, the lender, and the specific loan program.
1) HDFC Bank Education Loan
- Loan Limit: up to Rs. 150 Lakhs
HDFC Bank offers education loans for both domestic and international studies. For studies within India, the maximum loan amount provided is up to Rs. 50 Lakhs. This loan amount covers various educational expenses such as tuition fees, books, accommodation, and other related costs. The disbursal of the loan is directly made to the educational institution based on the fee structure.
On the other hand, for students planning to pursue their education abroad, HDFC Bank provides loans that cover the entire cost of education, without any upper limit. However, in such cases, the borrower is required to provide collateral in the form of a fixed deposit or immovable property to secure the loan.
The maximum repayment period for both types of loans, including a moratorium period, is 14 years. During the moratorium period, which is typically the course duration plus an additional grace period, the borrower is not required to make any principal or interest payments. The repayment begins after the completion of the moratorium period.
Overall, HDFC Bank offers flexible education loan options to meet the financial needs of students pursuing education in India and abroad, ensuring a smooth disbursal of funds directly to the educational institution based on the fee structure.
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2) Axis Bank Education Loan
- Maximum Loan Limit: up to 100% of total cost of education
Axis Bank offers education loans to support students in financing their higher education expenses. Here are the key features of Axis Bank Education Loan:
– Maximum Loan Limit: Axis Bank provides loans for up to 100% of the total cost of education. The loan amount starts from Rs. 50,000 and can go higher based on the applicant’s need and eligibility.
– Eligibility Criteria: Education loans from Axis Bank are available for graduate or postgraduate courses. Applicants must have secured a minimum of 50% marks in HSC (Higher Secondary Certificate) or Graduation.
– Parent’s Profile and Income: Axis Bank gives preference to the parent’s profile when considering an education loan application. It is mandatory for parents to demonstrate a regular source of income.
– Documentation: The proof documents required for the loan application include the last three years’ income tax returns, a copy of the Chartered Accountant certificate, sale deed of immovable properties, fixed deposit receipts, National Savings Certificate receipts, bonds, or Demat statements.
Axis Bank aims to support students in their educational pursuits by offering education loans with flexible repayment options and competitive interest rates. It is advisable to contact Axis Bank directly or visit their official website for the most up-to-date and detailed information regarding their education loan offerings and eligibility criteria.
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3) Union Bank of India Education Loan
- Maximum Education Loan granted: Need-based finance (max 150 Lacs)
Union Bank of India offers education loans to support students in financing their higher education expenses. Here are the key features of Union Bank of India Education Loan:
– Maximum Loan Limit: The maximum education loan granted by Union Bank of India is based on the need of the student, with a maximum limit of 150 Lacs (1.5 Crores).
– Loan Categories: Union Bank of India has four different broad categories of education loan schemes:
1. Education loan for courses in India
2. Education loan for courses abroad
3. Education loan for Premier Management & Technical institutions in India
4. Education loan for Tier II Management & Technical institutions in India
– No Processing Fee: Union Bank of India does not charge any processing fee from Indian students for education loans, regardless of the loan amount. This helps reduce the financial burden for students seeking funding for their education.
Union Bank of India aims to provide financial assistance to students pursuing education in India and abroad, including premier and tier II management and technical institutions. It is advisable to contact Union Bank of India directly or visit their official website for the most accurate and detailed information regarding their education loan schemes, eligibility criteria, and application process.
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4) State Bank of India Education Loan
- Maximum Loan Amount: up to Rs. 1.5 Crores
State Bank of India (SBI) provides education loans to support students in pursuing higher education. Here are the key features of SBI Education Loan:
– Maximum Loan Amount: SBI offers educational loans of up to Rs. 1.5 Crores. Under the SBI Global Ed-Vantage scheme, students planning to study abroad can avail of this maximum loan amount for their foreign education expenses.
– Eligible Courses: SBI provides loans for various courses, including professional and technical degrees, postgraduate programs, and diploma courses such as MCA, MBA, and MS from reputed universities. Additionally, certification courses conducted by institutions like CIMA-London and CPA-US are also eligible for education loans.
– Competitive Interest Rates: SBI offers one of the lowest interest rates for education loans in India. This helps students manage their loan repayments effectively and reduce the overall financial burden.
– SBI Scholar Loan Scheme: SBI’s Scholar Loan Scheme is specifically designed for meritorious students who wish to pursue professional or technical courses in premier institutions like IITs (Indian Institutes of Technology), IIMs (Indian Institutes of Management), and NITs (National Institutes of Technology).
SBI strives to support students in their educational aspirations by providing flexible loan options and favorable interest rates. It is recommended to directly contact SBI or visit their official website for the most up-to-date and detailed information regarding their education loan schemes, eligibility criteria, and application process.
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5) South Indian Bank Education Loan
- Maximum Loan amount – up to Rs. 1.5 Crores for global education
South Indian Bank (SIB) offers education loans to support students pursuing higher education abroad. Here are the key features of SIB Education Loan:
– Maximum Loan Amount: SIB provides education loans of up to Rs. 1.5 Crores for global education. This loan amount is available for full-time undergraduate, postgraduate, Ph.D., and diploma courses abroad with a duration of more than one year.
– Eligible Courses: The SIB Global Education scheme covers a wide range of courses, including UG, PG, Ph.D., and skill development programs. It enables students to pursue their educational aspirations in various fields.
– Coverage of Expenses: The education loan from SIB covers various expenses such as tuition fees, examination fees, library and laboratory fees, travel expenses, hostel charges, health insurance, and costs associated with books and study materials.
– Eligibility and Concessions: Professionals up to 50 years of age are eligible for the education loan from SIB. Additionally, SIB provides a 0.5% concession in interest rates for women borrowers, encouraging equal opportunities for education.
SIB aims to support students in fulfilling their educational goals by offering competitive education loan options for studying abroad. For the most accurate and detailed information regarding their education loan schemes, eligibility criteria, and application process, it is recommended to directly contact South Indian Bank or visit their official website.
