An education loan plays a pivotal role in the academic lives of college or university students as it helps them to pursue their higher studies. Banks release a list of institutions and courses for which they provide education loans.
So, students have to go through the list to check if the courses or institutions are included in it. There are various banks that offer education loans with low interest rates. Students can compare these and finally choose the one which matches their needs.
Contents
Documents Required
Students have to submit scanned copies of the following documents to get education loans from banks:
- Admission letter from the college or university
- Marksheets of Std.10, Std.12, and graduation
- Permanent Account Number (PAN) card
- Aadhar card
- Passport
- Voter ID card
- Bank passbook
- Salary slips of the co-applicant
- Income Tax Returns for the last two years of the co-applicant
- Two passport size photographs
Best Education Loans with Lowest Interest Rates
The following are the banks which are currently providing education loans with the lowest rate of interest:
Bank of Baroda
Bank of Baroda provides a wide range of education loans with a low rate of interest. The maximum amount offered depends on the type of loan chosen by the student. Here’s is the list of the education loan offered by the Bank of Baroda:
| Education Loan Schemes | Interest Rates (p.a.) |
| Baroda Scholar | 9.70% to 11.15% |
| Baroda Education to Students of Premier Institutions | 9.15% to 10.20% |
| Baroda Gyan | 11.05% to 11.15% |
| Baroda Vidya | 12.50% |
State Bank of India
State Bank of India (SBI) provides a wide range of education loans with interest rates starting from 8.55% and flexible repayment tenures. Education loans can be availed by students both for studies in India and abroad.
SBI also offers loans to students to pursue vocational training and other professional courses. Let us have a look at the table given below to know the interest rates charged by SBI on different education loans:
| Education Loan Schemes | Interest Rates (p.a.) |
| SBI Take Over of Education Loan | 8.55% – 10.05% |
| SBI Global ED-VANTAGE | 11.15% |
| SBI Scholar Loan | 8.55% – 10.05% |
| SBI Student Loan | 8.15% to 11.15% |
Central Bank of India
Central Bank of India provides education loans to students to study in India and abroad with interest rates starting from 8.30%. The bank also offers concession rates for female students. Students can get generous loan amounts that help them cover all the expenses related to the courses.
| Education Loan Schemes | Interest Rates (p.a.) |
| Cent Vidyarthi | 8.30% to 11.50% |
| Cent Vidyarthi for Executive MBA | 8.80% |
| Cent Skill Loan | 11.15% to 11.20% |
| Cent Vidyarthi IIMs and other reputed management institutes | 8.30% |
| Cent Education Loan | 8.30% to 11.25% |
Bank of India
Bank of India offers a wide range of education loan schemes to students who wish to pursue higher studies in India and abroad. The loans will be provided on the basis of the earning potential of students after completing the courses.
| Education Loan Schemes | Interest Rates (p.a.) |
| Bank of India Star Vidya Loan | 9.25% |
| Bank of India Star Education Loan | 10.95% to 11.75% |
| Bank of India Education Loan Abroad | 10.95% to 11.75% |
Punjab National Bank
Punjab National Bank (PNB) provides several types of education loans to students with attractive interest rates and repayment tenures of up to 15 years. The students who are planning to pursue their higher education in India, abroad, or at premier institutions are eligible to apply for education loans from Punjab National Bank.
| Education Loan Schemes | Interest Rates (p.a.) |
| PNB Pravasi Shiksha Loan | 11.25% |
| PNB Honhaar | 11.25% |
| PNB Kaushal | 10.25% – 10.75% |
| PNB Udaan | 10% to 11.25% |
| PNB Pratibha | 8.20% – 10.50% |
| PNB Saraswati | 10.00% – 10.75% |
Union Bank of India
Union Bank of India provides education loans with low-interest rates, allowing students to pursue their higher studies. The bank also provides interest subsidy programs to students who belong to minority and economically weaker sections.
| Education Loan Schemes | Interest Rates (p.a.) |
| Union Education Skill Development | 10.80% to 12.05% |
| Union Education Special Education Loan Scheme | 9.30% to 10.55% |
| Union Education Loan for Indian School of Business (ISB) Students | 8.55% to 9.50% |
| Union Education (Up to 7.5 lakh) | 11.50% |
| Union Education (Above 7.5 lakh) | 10.90% |
| Union Education Premier Abroad | 9.30% – 10.80% |
| Union Education – SPECIAL SCHEME FOR PREMIER MEDICAL INSTITUTES | 10.30% – 10.80% |
Education Loan Eligibility
Students should have a look at the following eligibility criteria before applying for education loans:
Courses
Students can apply for education loans for the following courses:
- Professional certification courses
- Vocational training
- Undergraduate courses
- Postgraduate courses
- PhDs and Doctorate courses
- Job-oriented courses
Nationality
Students who are planning to apply for education loans should be
- Indian citizens
- Persons of Indian Origin (PIO)
- Non-Resident Indians (NRIs)
- Overseas Citizens of India (OCI)
Institutes
Banks provide education loans to the following:
- Government colleges
- Recognized Universities
- Private institutions
- International universities and colleges
Students can apply for education loans from banks either online or offline. In online mode, the applicants should fill out the online application form with all the necessary details and attach scanned copies of the required documents and submit it.
On the other hand, in the case of offline mode, the applicants have to visit the nearest branch of the bank and fill out the physical application form, enclose the required documents and submit it to the bank representative.