SBI Student loan scheme
The interest rate under this scheme is 13.5 per cent for a sum under Rs 4 lakhs. For an amount above Rs 4 lakhs until 7.5 lakhs the interest rate increases to 13.75 per cent. For loans above Rs 7.5 lakhs the interest rate is 11.75 per cent.
ICICI Bank "SHIKSHA SARTHI" - EDUCATION LOAN SCHEME
ICICI Bank is presently charging an interest rate of 11 per cent under its Shiksha Sarthi Education loan Scheme, but reviews and changes the same with monthly rests. Interestingly, the bank does not charge processing fee, upfront fee, fore closure charges on education loan.
For education loans under Rs 4 lakhs, Punjab National Bank is charging an interest rate of BPLR - 0.5 per cent. The BPLR currently is 14 per cent, which means the interest rate would work out to 13.5 per cent. For loans above this amount the interest rate works to 14.25 per cent.
IDBI Bank Education Loan
Education Loans for students studying in Premier Education Institutes (including ISB) will attract an interest rate of 10.25 per cent. However, for Education Loan for other students who secured admission under Management Quota IDBI Bank is charging an interest rate of 13.25 per cent.
IOB Vidya Jyothi - loan for pursuing higher education
IOB offers education loans under its Vidhya Jyothi scheme. For loans up to Rs 4 lakhs the bank is charging an interest rate of 12.25 per cent per annum, while for loans between Rs 4 lakhs up to Rs 7.5 lakhs the interest rate is 13.5 per cent. For loans above Rs 7.5 lakhs the interest rates is reduced to 13.25 per cent.
Before taking a call on education loans its important to study other charges like processing fees, early closure charges and other miscellaneous costs. A bank may charges a lower interest rate, but, might also add all the above charges, so do not look at interest rates in isolation. Consider other costs as well.
Most of the banks offer a maximum loan of Rs 20 lakhs for students pursuing their studies in India.