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Going for higher education? Check out where to get education loans below 7%

If you have good academic qualifications and background, you can apply for financial assistance to study in prominent institutes of India and abroad.

Typically, you can avail an educational loan up to Rs 50 lakh while studying in India, whereas you are eligible to get an amount up to Rs 1 crore for educational institutions abroad.

Higher education is one of the costly affairs in India. It requires a lot of effort and money from students to get into one of the reputed education institutions both within and outside the country. Banks offer educational loans, also known as student loans, to help students pay for their higher education expenditures. If you have good academic qualifications and background, you can apply for financial assistance to study in prominent institutes of India and abroad.

Students who perform remarkably in their schools can easily avail education loans at a low-interest rate with even flexible terms and conditions. Many banks offer loans to qualified students as they see potential in their career growth and repayment capacity.

Often the documentation process is kept to a minimum so that students can avail education loans hassle-free. However, banks perform basic due diligence to ensure they sanction loans only to genuine students.

The process to approve education loans might vary depending on the criteria set by various banks. That is why it is crucial to keep all your education certificates, mark sheets and grades handy when applying for an educational loan to avoid rejection. It is essential to procure necessary documents from your past and current education institutions such as admission details, certificates, entrance examination scores etc.

You must be an Indian to avail an education loan from Indian banks, and your age should be between 18 and 35 years. Your parents’ income has to be stable, and the university you are applying to should be recognised by the government here or abroad, depending upon where you are studying. However, these terms and conditions may vary from bank to bank. So, it is important to check the entire process before you apply for an educational loan, according to Bankbazaar.

Typically, you can avail an educational loan up to Rs 50 lakh while studying in India, whereas you are eligible to get an amount up to Rs 1 crore for educational institutions abroad. However, your educational background, parents’ income, and good credit score are crucial factors in deciding your eligibility and the amount you can borrow from the bank.

Students should know that they have to repay the loan, and the repayment starts after their course period ends. So, they have ample time to figure out their repayment strategy. When it comes to benefits, education loans offer tax deductions. For up to eight years, the loan’s interest can be claimed as tax deductions under Section 80E of the Income Tax Act. For this, you will need a certificate from the bank declaring the interest amount.

Also, it is a good idea to check your eligibility in advance. You can know your eligibility online as well. In the table below, you can compare the interest rates and EMIs for educational loans of Rs 20 lakh for seven years.

Interest Rates & EMIs on Education Loan of Rs 20 Lakh for 7 Year Tenure

Compiled by BankBazaar.com

Note: Interest rate on Education Loan for all listed (BSE) Public & Pvt Banks considered for data compilation; Banks for which data is not available on their website, are not considered. Data collected from respective bank’s website as on 23 Feb 2022. Banks are listed in ascending order on the basis of interest rate i.e. bank offering lowest interest rate on education loan (Loan amount up to Rs 20 Lac) is placed at top and highest at the bottom. Lowest rate offered by the banks on loan up to Rs 20 Lac is considered in the table. EMI is calculated on the basis of Interest rate mentioned in the table for Rs 20 Lac Loan with tenure of 7 years (processing and other charges are assumed to be zero for EMI calculation); *Min APR rate during period of Oct 21 to Dec 21

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