Education loans can help you fulfill your plans of higher education without having to worry about finances. If you are searching for an education loan at 0 interest, read ahead.
Unfortunately, you cannot get an education loan without interest.
If you were searching for zero interest loans for students, you should note that student loans are just like any other credit product. Thus, banks or lenders will charge an interest as usual.
But education loans come with many benefits like a moratorium period until the completion of the studies.
During this time, only simple interest is chargeable on the loan amount.You will need to pay only the interest during this period.
In India, most banks and NBFCs offer a variety of education loan schemes.
You might be searching for an education loan at 0 interest, but no bank in India offers interest free education loans.
The top banks and NBFCs you can consider for taking an education loan are -
Loan amount - Up to Rs.1.50 Crore
Interest Rates - Range from 8.20% to 11.15%
Loan amount - Up to Rs.150 Lakh
Interest Rates - 9.50% onwards
Loan amount - Up to Rs.2 Crore
Interest Rates - 9.85% onwards
Loan amount - Up to Rs.50 Lakh
Interest Rates - Range from 13.70% to 15.20%
Loan amount - Up to Rs.75 Lakh
Interest Rates - Range from 9% to 15%
Loan amount - Rs.1 Lakh onwards
Interest Rates -14.24% onwards
Loan amount - Depends on your requirement
Interest Rates - Credila Benchmark Lending (12.30% current) Rate+Depends on your credit profile, collateral offered, the course undertaken, etc
Loan amount - Depends on your requirement
Interest Rates - 8% onwards
Please note that these numbers are subject to change at the lender’s discretion.
Even though it is not possible to get zero interest loans for students, there are many ways to reduce your interest amount. Here are some strategies to get education loans at affordable interest rates -
Consider opting for a secured education loan against your property or any other asset. This way you will be able to negotiate a higher loan amount, as well as a lower interest rate.
The government and banks run special subsidies as well as schemes from time to time. These may help you secure a loan at a lower interest rate or be able to get a subsidy on the interest amount.
A higher credit score will be very helpful if you are looking for an unsecured education loan. In general, lenders prefer people who have higher credit scores, but it will also give you power to negotiate on the interest rate.
Consider paying a higher margin which will help reduce the actual loan amount. That way, you will be able to get a loan which won’t become a burden for you in the future.
Lenders prefer applicants who have made it to affiliated, or prestigious institutions. If you have won a scholarship, or have made it to a top university, they may view you as a promising client, and reduce your rate of interest.
You might not be able to get an education loan at 0 interest in India, but there are many banks and NBFCs which offer loans at affordable interest rates.
You must plan beforehand if you want to take a big loan in the future, as building your credit score and researching for the right lender may take time. In case you don’t want to take an education loan for your studies, you can also opt for personal loans.
Unfortunately, it is not possible to get an education loan or pay it off without paying its interest component, as education loans are just like any other credit product.
Student loans are not zero interest but they come with a moratorium period until the completion of the studies. During this time, only simple interest is chargeable on the loan amount and the borrower needs to pay only the interest during this period.
The lowest interest rate that you can get for an education loan is 6.85% from the Canara Bank.
Yes, you can get a Rs.20 Lakh education loan without collateral. Most education loans are unsecured and can be taken without any collateral.
Yes, in some cases 100% of your educational expenses including accommodation, laptop, study tours can be covered by an education loan.
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