Lending loans for educational purposes is a part of the priority sector lending activity for Indian banks. The interest rates offered by banks are:
- Fixed interest rate
- Floating interest rate
Banks will charge interest on a daily or monthly reducing balance. Usually, nationalised banks offer variable interest rates for student loans, while private and foreign banks offer fixed interest rates. Some banks also offer a choice between the two.
Current Education Loan Interest Rates
For several education loan applicants, the bank offers a holiday period on repayment while the student is doing the course either on the principal or on the interest or both. But the interest rate at which you borrow is certainly going to become very important as soon as your studies are over. The interest rate on an education loan depends on whether you are studying in India or abroad, the course that you are applying for, your loan amount and the tenure. Special concessions on interest rates are available if the student is a female.
We welcome you to use our Education Loan Comparison tool to find out the current education loan interest rates as also to find out which bank would offer the most competitive rates for your needs.