5 Best Banks For Education Loans: The Cheapest Education Loans In India

re are so many opportunities opening up for youngsters today across streams that weren't available even until a dece ago! However, it is often case that students need to travel abro for a college education, to ensure that ir hard work counts in job market. Every parent wants to support ir children's dreams, but even for those in a comfortable financial situation, tuition at foreign universities can be exorbitant. 

That's where education loans can come to your rescue! Re on to understand about various banks offering some of cheapest education loans in India. 

What are qualification criteria for education loans in India?

To qualify for education loans in India, re are some general criteria that must be met. While re may be small differences in every bank, this is largely what you can expect:

• You must be between ages of 18 and 35 and must have a co-application (spouse, sibling, parent, etc.).
• Loans are available for a period of up to 7 years for all professional, gruate and post-gruate courses like management, engineering, medicine, etc.
• A loan can include miscellaneous fees like lab, library, travel, books and study tours in dition to tuition fees. 
• Repayment can be through electronic monthly instalments or post-dated checks.
• best banks for education loans offer a moratorium period (about 6 months after completion of course), during which time no payments towards principal amount needs to be me. Interest payments will continue. 
• Banks do not require any security for loans of up to 4 lakhs, while third party guarantees or collateral may be required for loans of larger amounts. 

Let us take a look at some of cheapest education loans in India offered by top loan providers:  

1. State Bank of India

Via SBI Student Loan Schema, SBI offers some of cheapest education loans in India. 

• Loans are available for all professional, gruate and post-gruate courses like MBA, MS, etc. at approved universities that are reputed in ir home country.
• Loans can be availed up to a maximum amount of 30 lakhs with security deposits or collaterals required for loans above 7.5 lakhs.
• Repayment can be me over 10 to 12 years and can extend up to 15 years in few cases. 
• loan margin requirement is 15%, while ir interest rates are up to 2% over base interest rate offered by SBI. 
• entire interest payment can be me during moratorium period, so that only principal payments are me after loan tenure begins. 

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2. Axis Bank

• Anor bank that is considered among best banks for education loans is Axis Bank that offers vantages like: 
• Hassle free loans are available for all professional, and career-oriented courses like MBA, MS, etc. at approved universities that are reputed in ir home country.
• Education loans in India can be availed from a minimum of 50,000 up to 20 lakhs and can cover everything from tuition to hostel fees. It is mandatory to have a parent or guardian as a co-applicant (collateral is optional in most cases).
• loan margin requirement is 5% for loans above 4 lakhs, whereas loans below 4 lakhs are exempt. ir interest rates can start as low as 8.7%, with special provisions for women and girls. 
• With no processing fee, ir loan approval period can be as little as 15 days.

3. HDFC Bank 

When on topic of cheapest education loan in India, one of India's older banks – HDFC, has always been on forefront. Some of benefits it offers are: 

• Loans are available for all over 950 professional courses at approved universities across 36 countries.
• Loans can be availed up to a maximum of 20 lakhs with flexible arrangements being available for security deposits, co-applicants or collaterals.
• y make funds available for individuals between ages of 16 to 35 years. 
• One of reasons y are considered among best banks for education loans, is ir 0% loan margin requirement. HDFC will pay up to a 100% of your required amount. 
• While y do have a 1.5% processing fee, y allow several loan applications to be pre-approved even before mission process begins. 
• re are no penalties on pre-payment. 

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4. Punjab National Bank

Anor nationalized bank considered to be one of best banks for education loans is PNB, which offers education loans through its Udaan scheme. Here are some vantages attached with it:

• Loans are available for premier institutions offering professional, diploma, gruate and post-gruate courses. 
• y cover everything from tuition, exam and book fees to travel and or related expenses. 
• Repayment can be me over a period of 15 years. ir interest rate is fixed at bank's base rate. 
• loan margin requirement is 15% for loans above 4 lakhs. Any scholarship that you have availed can be ded to this loan margin. 
• entire interest payment can be me during moratorium period, which lasts up to a year. re are no prepayment charges. 

5. Bank of Baroda Bank

BOB offers education loans in India, under ir Baroda Scholar scheme:

• Loans are available for recognized institutions in various countries offering professional and technical courses. 
• Loans can be availed up to a maximum of 20 lakhs with third party guarantees or collaterals required for loans above 4 lakhs.
• Repayment can be me over 10 years for loans of up to 7.5 lakhs and 15 years for loans above specified amount. 
• loan margin requirement is 15%, with women enjoying a discount in interest rates. 
• entire interest payment can be me during moratorium period, so that only principal payments are me after loan tenure begins. 

While we have listed above some of major banks offering cheapest education loans in India, re are still many or financial institutions that could help you in your quest. 

So, if you haven’t found what you are looking for in this article, don't despair. Continue researching online and through or support groups until you find best bank for education loans that will fit within your parameters. 

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