State Bank of India, Punjab National Bank offer education loans at 6.9%
Union Bank’s interest rate on education loans even lower at 6.8 percent
January 27, 2021 / 11:14 AM IST
COVID-19 pandemic hit students preparing to study abroad hard, with many overseas universities suspending on-campus classes and shifting to the online mode instead. While some chose to defer their enrolment to the next academic year, others accepted hybrid classes and some decided to go ahead with their plans to study at their university campuses. In India, too, remote learning continues to be the order of the day so far.
While participating in lectures and sessions might have been difficult during COVID times, the process of funding education has certainly become easier. Thanks to the benign interest rates in the country currently, education loans are hovering around 6.8-7.15 percent, as per data from Bankbazaar.com. As is evident from the list, all top ten banks that offer cheapest education loan rates are public sector banks.
The cheapest loans
Union Bank of India offers the cheapest loans, starting at 6.8 percent, closely followed by Central Bank of India. The latter charges 6.85 percent for education loans of Rs 20 lakh with a repayment tenure of seven years. India’s largest lender State Bank of India’s education loan rates are a tad higher at 6.9 percent.
Interest rate on education loans for all listed (BSE) public and private sector banks have been considered for data compilation. Banks for which data is not available on their websites have not been considered. Data collected from respective banks’ websites as on January 21, 2021. Banks are listed in ascending order on the basis of interest rate, that is, bank offering lowest interest rate on education loan (amount up to Rs 20 lakh) is placed at top and highest at the bottom. Lowest rate offered by the banks on loan up to Rs 20 lakh is considered in the table. EMI is calculated on the basis of interest rate mentioned in the table for Rs 20 lakh loan with tenure of seven years (processing and other charges are assumed to be zero for EMI calculation).