Looking for education funds? Here are the lowest interests on offer

Lowest interest rate on education loan: Are you looking for help financing your education? As the pursuit of higher education becomes increasingly costly, students are turning to financial institutions to fund their educational journeys. Fortunately, several banks offer competitive education loan options to support students in their academic endeavours.

Bank of Baroda

Bank of Baroda provides various education loan options with competitive interest rates. 

These include Baroda Vidya (12.45 per cent), Baroda Gyan (11 to 11.10 per cent), Baroda Scholar (10.35 to 11.10 per cent), and Baroda Loan for Premier Institutions (9.10 per cent to 10.15 per cent). 

The Baroda Loan for Premier Institutions typically offers the lowest interest rates, starting from 9.10 per cent. Additionally, the bank does not charge a processing fee for these loans, and security options are available. 

Co-borrowers, such as parents or guardians, are allowed, and a margin of 5 per cent is required for loans above Rs 4 lakh. Female applicants can avail a concession of up to 0.50 per cent on their return on investment.

State Bank of India

State Bank of India (SBI) offers a diverse range of education loans with interest rates starting from 8.30 per cent, catering to students pursuing studies in India and abroad. 

The available loan schemes include SBI Take Over of Education Loan (10.90 per cent), SBI Global ED-VANTAGE (10.90 - 11.50 per cent), SBI Scholar Loan (8.30 - 9.80 per cent), SBI Student Loan (10.09 per cent), and SBI Skill Loan (10.40 per cent). 

For loans taken for studies abroad, a processing fee of up to Rs 10,000 applies, while similar charges are applicable for loans above Rs 20 lakh. 

However, certain loan schemes such as those for scholars, skill upgradation, and takeover of education loans from other banks are exempt from processing fees. 

Security requirements mandate tangible collateral for loans above Rs 7.5 lakh, primarily applicable to takeover of education loans. 

Parents or guardians can serve as co-borrowers, and a concession of up to 0.50 per cent on the return on investment is available for female applicants.

ICICI Bank

ICICI Bank offers education loans for individuals aged 18 to 35, based on academic progress and admission confirmation to recognised institutions. 

Co-applicants, typically parents or guardians, must provide collateral, with specifics depending on the course and loan amount. Interest rates start from 9.50 per cent, with a processing fee of up to 2 per cent. 

Co-borrowers are allowed, and margin requirements vary. Additionally, ICICI Bank provides concessions, like lower rates for I-smart education loans for studies in Canada.

Central Bank of India

Central Bank of India provides education loans for students aiming to pursue studies both in India and abroad, with interest rates starting from 8.30 per cent. 

The bank also extends concession rates for female students, enhancing accessibility to education financing. Under various schemes like Cent Vidyarthi, Cent Vidyarthi for Executive MBA, Cent Skill Loan, Cent Vidyarthi for IIMs and other reputed management institutes, and Cent Education Loan, students can avail generous loan amounts covering all related expenses. 

Interest rates across these schemes vary from 8.30 per cent to 11.50 per cent, providing flexibility to students based on their specific educational pursuits and financial requirements.

Bank of India

Bank of India extends a diverse range of education loan schemes for students aspiring to pursue higher studies in both domestic and international institutions. 

These loans are structured considering the future earning potential of students post-course completion. 

The available schemes include Star Education Loan – India, interest rates ranging from (9.95 to 10.75 per cent), Star Education Loan – Abroad interest rates ranging from (9.95 to 11.60 per cent), Star Vidya Loan (8.25 per cent), and Star Progressive Education Loan (9.95 per cent). Notably, Bank of India does not levy any processing fee on these loans, and security requirements are not applicable. 

Parents or guardians can serve as co-borrowers, and there is no margin requirement for loans up to Rs 4 lakh. Moreover, female borrowers and students pursuing professional courses may avail concessions of up to 1 per cent on the rate of interest.

Punjab National Bank

Punjab National Bank (PNB) offers a variety of educational loan schemes with appealing interest rates and flexible repayment periods of up to 15 years. 

These loans cater to students intending to pursue higher education in India, overseas, or at premier institutions. PNB's education loan schemes include PNB Saraswati – for studies in India and abroad (11.25 to 12 per cent), PNB Kaushal (10.25 to 10.75 per cent), PNB Pratibha (8.55 to 10.50 per cent), PNB Udaan – for studies abroad (10.75 to 11.50 per cent), and PNB Honhaar (11.25 per cent). 

For loans intended for studies at foreign institutions, a processing fee of up to 1 per cent applies. 

Tangible collateral security is required for loans applied for overseas studies. 

Parents or guardians can act as co-borrowers, and female applicants are eligible for a concession of up to 0.50 per cent on their return on investment. 

Additionally, concessions are available for students with disabilities.