Student loans are valuable resources that can assist students in covering the costs of continuing their education. Tuition, textbooks, and room and board may all be covered by student loans. Eligibility requirements, interest rates, costs, and features of student loans vary widely and are set at the discretion of the lender. The best student loans have low-interest rates, flexible repayment terms, and incentives such as autopay. If you want to go to college, you’ll almost certainly have to take out student loans to pay for it. Federal financial help may not be sufficient to pay the entire cost of attendance. Taking out private student loans might assist bridge the gap in this circumstance. Which lenders, on the other hand, provide the best rates and benefits? To assist you in finding the best private student loan lender for you, we’ve created a list of the finest private student loan lenders accessible today.
HDFC Bank Education Loan
HDFC Bank provides education loans to Indian and international students. In India, the highest loan amount for studying is Rs. 20 lakhs. In contrast, the loan for overseas education covers the entire cost of study, with no maximum limit. However, you must supply the bank with security in the form of a fixed deposit or immovable property. Loans for Indian education range from 9.25 percent to 13.68 percent. Loans for foreign education range from 9.25 percent to 13.68 percent. The loan is for a maximum of 15 years and is paid directly to the institution following the fee structure.
HDFC Bank does not provide a specialized education loan program for skill development courses. As a result, they advise taking out a personal loan to fund skill development courses. However, I believe that taking out a personal loan for educational purposes is a terrible choice due to the increased interest rate. In most cases, HDFC will complete your loan application and release the funds within two to three days.
Canara Bank Education Loan
Under the Skill Loan Scheme, Canara Bank provides need-based financing for vocational education and training. You can receive a maximum of Rs. 1.5 lakhs. Canara Bank uses the IBA education loan model for all other forms of education loans. The amount of loan you receive is determined by your financial requirement and might range from Rs. 40 lakhs for top schools like ISB-Hyderabad.
Under the Vidya Turant initiative, students who desire to study for professional degrees at certain top universities can get a maximum loan of Rs. 40 lakhs. Canara Bank does not offer any specific programs with a larger loan limit for abroad education. As a result, obtaining a larger loan (than the IBA model) is extremely difficult.
Education loan scheme
Rate of Interest
IBA based Scheme
up to 9.40%
Vocational Education and Training
8.90%
Vidya Turant
Pros:
Vocational courses have a low-interest rate.
Processing fees are low.
For female students, there is a 0.50 percent reduction in ROI.
Cons:
The loan amount is little.
For loan processing, arduous paper labor is required.
South Indian Bank Education Loan
For full-time UG/ PG/Ph.D. and diploma, skill development courses overseas with a duration of more than a year, you can receive a foreign education loan from South Indian Bank (SIB). Tuition, examinations, library and lab fees, travel expenses, accommodation, insurance, and book prices are all covered by the SIB Global education plan. The loan is available to students up to the age of 50, and SIB gives a 0.5 percent discount to female borrowers.
Education loan scheme
Rate of Interest
SIB Global Education Scheme
10.05% – 10.80%
Pros:
The loan amount might go as high as 1.5 crores.
Courses in diploma and skill development are covered.
Up to 50 years old is the maximum application age.
Cons:
A large 25% margin is necessary.
100% security equivalent to the loan amount plus interest is required. With evidence, SIB reimburses course costs and lodging within one year.
Axis Bank Education Loan
Axis Bank offers only one education loan option (starting from Rs. 50,000 to Rs. 75 Lakhs). Axis exclusively finances education loans for graduate or postgraduate studies for students who have received at least 50% in their HSC or graduation.
Education loan amount
Rate of Interest
Up to Rs. 4 Lakhs
15.20%
Above Rs. 4 Lakhs to Rs. 7.5 Lakhs
14.70%
Above Rs. 7.5 Lakhs
13.70%
The parent’s profile is given greater weight by Axis Bank. The bank has made it a requirement for parents to produce proof of a consistent source of income.
Union Bank of India Education Loan
Union Bank of India offers four different types of education loans:
Education loans are available for courses both in India and overseas.
Kisan Shiksha Suvidha has received a loan for education.
Education loan for top management and technical schools (India)
Tier II Management & Technical Institutions Education Loan (India)
For school loans, Union Bank does not charge any processing fees to Indian students, regardless of the loan amount. However, he requests life insurance in the amount of the debt. As a result, you’ll need to get life insurance to obtain your college loan.
Education loan scheme
Rate of Interest
Courses in India and abroad
up to 10.05% depending on the quantum of loan
For Kisan Shiksha Suvidha
up to 10.05% depending on the quantum of loan
For Premier Management & Technical institutions (India)Skill Development Courses
6.80%
For Tier II Management & Technical institutions (India)
8.55%
Pros:
There are no processing fees.
Female students have a lower interest rate of 0.50 percent concessional interest rate.
Cons:
Processing and documentation take a long time.
It’s a legal need to have life insurance.
IDBI Bank Education Loan
Up to Rs. 20 lakhs for Indian studies and Rs. 30 lakhs for international studies. If you want to acquire a loan for AICTE, UGC, ICMR, and government-approved courses, job-oriented courses, or technical diploma courses, IDBI Bank’s education loan is a good option.
IDBI Bank also offers education loans to students who have been admitted under the management quota system. The payback period is up to 15 years, however for an education loan of more than Rs. 7.5 lakhs, you must provide substantial collateral security.
Education loan scheme
Rate of Interest
Education loan for non-vocational courses
Up to Rs. 7.5 Lakhs – 8.40%
Above Rs. 7.5 Lakhs – 8.90%
Education loan for vocational / skill development courses
For all amounts – 8.80%
Education loan for premier education institutes (including ISB)
For all amounts – 6.90%
Pros:
Loans to top institutes have a lower interest rate.
In India, there are no processing costs.
Charges of foreclosure are nil.
Cons:
For a loan of more than 7.5 lakhs, 1.33 times physical collateral is required.
Loan processing takes a long time.
Avanse Student Loan
There is no upper limit because it is dependent on need. For study in India, a minimum of Rs. 50,000 is required. Avanse Financial Services is an RBI-regulated non-banking financial company that specializes in offering low-cost education loans to Indian students.
Avanse is 80 percent owned by Warburg Pincus, a global private equity firm.
At Avanse, you may apply for a variety of school loans, such as a loan for —
India is a great place to study.
International research
Vocational training
Financial aid for school tuition and even an education loan for e-learning
Avanse offers up to 100% finance, quick processing, and door-to-door service.
Education loan scheme
Rate of Interest
Education loan for domestic and international studies
Avanse base rate + spread.
Which can go up to 18%
Pros:
Amount of loan: up to 100%
Faster processing and less paperwork
E-learning education loans are also available.
Cons:
Processing costs of 1% – 2% at a high rate of interest
In the first six months, no prepayment is permitted.
State Bank of India Education Loan
Under the SBI Global Ed-Vantage initiative, SBI provides educational loans for abroad studies up to Rs. 1.50 crore. Professional and technical degrees, postgraduate and certificate courses such as MCA, MBA, and MS from a reputable university are among the courses available.
CIMA-London and CPA-US certification courses are also eligible for school loans. SBI also has one of the lowest education loan interest rates in India. The SBI Scholar Loan Scheme is available only to merit students who wish to study professional or technical degrees at top universities like IITs, IIMs, and NITs.
Education loan scheme
Rate of Interest
SBI Student loan Scheme
9.30%
SBI Scholar Loan scheme
6.90% to 8.20%
SBI Skill loan scheme
8.80%
SBI Global Ed vantage Scheme
9.30%
Pros:
Up to 9.30% low rate of interest
NIL processing fees up to 20 Lakhs
Different loan schemes
Cons:
High processing time
15% margin for studies abroad
Punjab National Bank Education Loan
PNB Udaan is a special loan program designed to help deserving students pursue higher education at reputable colleges overseas.
The loan is available for the degree (job-oriented), post-graduate (MCA, MS, MBA), CIMA, CPA, and diploma courses in aviation, pilot training, and shipping.
Punjab National Bank offers a variety of education financing programs for domestic study.
PNB Saraswathi is a traditional IBA-style education loan program for deserving students.
PNB Prathibha is a scholarship program for students who desire to pursue further education at prestigious institutions such as IIT, NIT, and other prestigious business schools. The PNB Kaushal loan plan is available for vocational and skill development courses.
PNB also offers area-specific loan programs, such as PNB Honhaar for Delhi students and PNB Bihar Student Credit Card for students in Bihar.
They provide a specific program for those with impairments that offers a reduced interest rate. Through the Padho Pardesh subsidy system, there is also a scheme to assist small communities with foreign education.
Education loan scheme
Rate of Interest
PNB Saraswati Scheme
up to 9.55%
PNB Udaan
9.55%
PNB Prathibha
6.90% to 7.55%
PNB Kaushal
8.30%
PNB Honhaar
8.95%
Pros:
Low ROI
NIL processing fees for study in India
Wide range of education loan schemes
Cons:
Tedious paper works & follow-up
ICICI Bank Education Loan
ICICI Bank offers education loans up to Rs. 50 Lakhs for studies in India and Rs. 1 Crore for studies aboard.
One of the key benefits is that- you do not need to keep any collateral for education loans up to Rs. 20 Lakhs (for UG courses) and Rs. 40 Lakhs (for PG Courses at selective premier institutions).
The main drawback of the ICICI education loan is that- the repayment holiday period is restricted to 6 months after the completion of the course, irrespective of the employment status.
Education loan scheme
Rate of Interest
Education loan for domestic and international studies
10.25% – 12.75%
Pros:
High loan amount
Less paperwork and quick processing
No margin up to Rs. 20 Lakhs
Cons:
High rate of interest
Hidden charges
The Indian government has introduced several programs to help students from low- and middle-income families pay education loans for study abroad. Take advantage of these opportunities and never give up on your dreams.
