Education loan: THESE banks offering lowest interest rates, check details

Education loan terms & conditions of various banks

Most parents want the best education for their children. However, investing in high-quality education is usually expensive and necessitates careful budgeting. Education loans are now the most popular way to pay for courses and degrees, not just in colleges abroad but also in India. Education loans are frequently used to cover a range of course-related expenses, including tuition, lodging in dorms, uniforms, access to libraries and laboratories, course materials including textbooks and laptops, refundable deposits, transportation, and more. Here are the lists of banks that continue to provide student loans with extremely cheap interest rates.

Central Bank of India’s policy on education loans

According to online data, the Central Bank of India now offers the lowest interest rate of 6.95 per cent. The equivalent monthly payment for a loan of Rs 20 lakh with a seven-year period is Rs 30,136. 

Punjab National Bank's policy on education loans 

The government-owned Punjab National Bank (PNB), which charges an interest rate of 7.45%, is the second-cheapest lender. The total EMI is Rs 30,627. 

SBI's policy on education loans 

SBI charges a 7.5% interest rate on student loans, which is a little more than typical. The EMI would cost Rs 30,677. Two other government-owned banks, Union Bank of India and IDBI Bank, charge student borrowers the same rate of interest.

 Indian Bank’s policy on education loans

Indian Bank charges an interest rate of 7.9% on a Rs 20 lakh (7-year) education loan. The EMI due from the borrower is Rs 31,073. 

BoB's policy on education loans 

The Bank of Baroda levies an interest rate of 7.9% on a Rs 20 lakh education loan with a seven-year duration. The borrower is required to pay an EMI of Rs 31,073. 

BOI's education loan policy 

The state-owned bank has an 8.25 per cent interest rate. The EMI comes to Rs 31,422 in total. 

Canara Bank's education policy

An education loan from Canara Bank for Rs 20 lakh with a seven-year payback term offers an interest rate of 8.3%. The EMI is Rs 31,472 in total. 

Bank of Maharashtra education loan policy

The Bank of Maharashtra's interest rate for student loans is 8.35%. In this instance, the monthly payment is Rs 31,522.