Towards higher education? Find out where to get student loans below 7%
If you have good academic qualifications and training, you can apply for financial aid to study in top institutes in India and abroad.
Higher education is one of the costliest affairs in India. It takes a lot of effort and money for students to get into any of the reputed educational institutions inside and outside the country. Banks offer education loans, also called student loans, to help students pay for college expenses. If you have good academic qualifications and training, you can apply for financial aid to study in top institutes in India and abroad.
Students who achieve outstanding results in their schools can easily avail education loans at a low interest rate even with flexible terms and conditions. Many banks offer loans to qualified students because they see potential in their career growth and ability to repay.
Often, the documentation process is kept to a minimum so that students can avail of student loans hassle-free. However, banks perform basic due diligence to ensure that they only provide loans to genuine students.
The approval process for student loans can vary depending on the criteria established by different banks. This is why it is crucial to keep all your education certificates, mark sheets and notes handy when applying for an education loan to avoid rejection. It is essential to get the necessary documents from your past and current educational institutions such as admission details, certificates, entrance examination results, etc.
You must be an Indian to qualify for a student loan from Indian banks, and your age must be between 18 and 35 years old. Your parents’ income must be stable, and the university you are applying to must be government-recognized here or abroad, depending on where you are studying. However, these terms and conditions may vary from bank to bank. It is therefore important to check the whole process before applying for a student loan, according to Bankbazaar.
Generally, you can avail an education loan of up to Rs 50 lakh while studying in India, while you are eligible to get an amount of up to Rs 1 crore for educational institutions in India. foreigner. However, your education, your parents’ income and a good credit score are crucial factors in deciding your eligibility and how much you can borrow from the bank.
Students should be aware that they must repay the loan and that repayment begins after the end of their course period. Thus, they have ample time to determine their repayment strategy. As for the benefits, student loans offer tax deductions. For a maximum of eight years, interest on the loan may be deducted from tax under Section 80E of the Income Tax Act. For this you will need a certificate from the bank declaring the amount of interest.
Also, it’s a good idea to check your eligibility in advance. You can also find out your eligibility online. In the table below, you can compare interest rates and EMIs for education loans of Rs 20 lakh for seven years.
Interest Rate and EMI on Education Loan of Rs 20 Lakh for 7 Year Term
Compiled by BankBazaar.com
Note: Student loan interest rates for all listed public and private banks (ESB) considered for data compilation; Banks whose data is not available on their website are not taken into account. Data collected from respective bank’s website as of February 23, 2022. Banks are listed in ascending order based on interest rate, i.e. the bank offering the lowest interest rate on the study loan (loan amount up to Rs 20 Lac) is placed at the top and the highest at the bottom. The lowest rate offered by banks on loan up to Rs 20 Lac is considered in the table. The EMI is calculated on the basis of the interest rate mentioned in the table for the loan Rs 20 Lac with a tenor of 7 years (processing fees and others are assumed to be zero for the calculation of the EMI); *Minimum APR rate during the period from October 21 to December 21