Lowest Interest Rate on Education Loan - 2024

If you want to know ‘which bank has lowest rate on education loan’, or are searching for ‘cheapest education loan in India’, you are at the right place. 

Read More About: How to Get Personal Loan for Professional Courses?

Which Bank Gives Education Loan with Lowest Interest Rate?

To answer our most important question, let’s take a look at the top banks offering education loans.

1. State Bank of India

2. Bank of Baroda

3. Union Bank of India

4. Punjab National Bank

5. Bank of India

6. Central Bank of India

7. Canara Bank

8. Indian Overseas Bank

9. HDFC Bank

10. ICICI Bank

11. Axis Bank

Lowest Interest Rate Student Loans - Eligibility Criteria

Education loans or student loans are a sum of money borrowed for the purpose of funding one’s higher education. There are certain defining factors of an education loan - 

• It is available for anyone looking for funds for higher studies between the ages of 18 and 35
• As the primary applicant of the loan may not be earning, a co-applicant (either a parent, sibling, or any close relative) is needed for the sanction of the loan
• The credit score of the co-applicant is taken into consideration 
• An education loan covers expenses like tuition fees, cost of books, food and accommodation, lab and library fee, travel expenses, expenses for a study tour, etc.

Education loans come with a moratorium period until the completion of the studies. During this time, only simple interest is chargeable on the loan amount

How to Get the Cheapest Education Loan in India?

The interest rates and eligibility criteria vary from one bank to another. But there are some ways for you to get the cheapest education loan. They are listed below - 

• Consider all options
  Before you zero on a specific loan provider, research well. Discuss your case with a few shortlisted banks to know which bank will be able to give you the best interest rate. 
• Consider taking a secured education loan
  You might see the options of taking an education loan against your property. This way your loan would be a secured loan, and you might be able to get lower interest rates.
• Make sure you meet all eligibility criteria
  Go through your loan provider’s list of eligibility criteria and make sure you meet them. In that way you will not have to negotiate on that front, and you might be able to bargain for a lower interest rate.
• Look for special loans or subsidies
  State governments or the central government have various schemes for higher education. Often schemes would be specific to your field of study. Be informed about them, and if you can avail one, you would get a bigger loan at subsidized rates.

Conclusion

Money should not be a hindrance when you are thinking about your or your child's future. Education loans are a great way to fund dreams, and work towards a preferred career. But remember to do your due research to find out which bank will give you the lowest interest rates.

As any other loan, your credit score, debt to income ratio, and other such factors will always be determinants of the interest rate being offered to you. 

If you want to calculate your EMI before you apply for a loan, this education loan calculator can help you out. And in case you want to take a personal loan to fund your education, or for some extra expenses, moneyview’s instant personal loans are there for you!