Public Bank Education Loan
Education Loan

Public Sector Banks Education Loan Products: A Detailed Comparison

Public Sector Banks Education Loan Products: A Detailed Comparison

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Applying for an education loan but unsure about the right product? Read this detailed comparison of Public bank education loan products.

GyanDhan
Gurbani Kaur Suri
Updated on:  11 Sep 2023  | Reviewed By: 
Aman 
| 8.69K | 9  min read

Financing higher education with an education loan is daunting. Not only do you have to search for a product that covers your expenses, but you also have to search for one that doesn’t blow a hole through your pocket. After all, an education loan is a financial responsibility for at least a decade and you should select a product that will help you finance your education while saving your money. 


We, at GyanDhan, will make this whole process easy for you. Below is a detailed comparison of education loans offered by various public sector banks. Refer to this before you settle on a lender. 

Let’s get into it - 

Check Your Education Loan Eligibility

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What are some of the top banks for an education loan in India? 

Every public sector bank in India offers an education loan to study in India. Though, not every bank has a loan product for education abroad. Some of the top banks that offer education loans to study in India and abroad are as follows - 

 

We will be comparing the education loan products of some of the top public banks from the above-mentioned list to find the best bank with the best loan product. 

 

 

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Which is the best bank for an education loan? 

To find the best bank, one must compare the features and aspects of an education loan. This table below would make the comparison easier - 

Name of the bank Loan amount limit Interest rate Processing Fees Loan tenure Moratorium period Margin Money

State Bank Of India

For India - Upto INR 20 Lakhs
For abroad - Upto INR 1.5 crore

For India - 9.55%
For abroad - 8.8% (Men); 8.3% (Women)

INR 10,000 + GST

Maximum 15 years

Course period + 6 months

10%

Bank of Baroda

For India - Upto INR 60 Lakhs
For abroad - Upto INR 80 lakhs

For India - 8.85% (Men); 8.35% (Women)
For abroad - 7.75% (Men); 8.25% (Women)

INR 10,000 + GST

Maximum 15 years

Course period + 12 months

Above INR 4 lakhs - 10%

Canara Bank

Upto INR 40 lakhs

6.90% - 8.90%

Nil

Maximum 15 years

Course period + 12 months

5% to 15%

Bank of India

For India - INR 10 lakhs
For abroad - INR 20 lakhs

8.85% - 9.85%

For India - NIL
For abroad - INR 5000

Maximum 15 years

Course period + 12 months

15%

Central Bank of India

No upper limit

9.0% (Men); 8.50% (Women)

 Loans upto INR 10 lakhs - INR 500
Loan above INR 10 lakhs - INR 1000

10 - 15 years

Course period + 6 or 12 months

15%

Indian Overseas Bank

For studies in India - INR 30 lakhs
For abroad studies - INR 40 lakhs

10.05%

Nil

15 years

Course period + 12 months

5% to 15%

IDBI Bank

INR 20 lakhs

8.65% - 9.15%

For India - NIL
For abroad - INR 5000 (refundable)

10 - 15 years

Course period + 6 months

upto 15%

Karur Vysya Bank

For India - INR 10 lakhs
For abroad - INR 20 lakhs

10.75% to 11.75%

Nil

Upto 7 years

Course period + 6 or 12 months

upto 15%

United Bank of India

For India - INR 10 lakhs
For abroad - INR 20 lakhs

10.65% - 11.40%

Nil

10 - 15 years

Course period + 6 or 12 months

upto 15%

Union Bank of India

No upper limit

Up to Rs.7.50 lakhs: 12.25%
Above Rs.7.50 lakhs: 12.00%

Nil

15 years

Course period + 12 months

15%

Indian Bank

For India - INR 15 lakhs
For abroad - INR 25 lakhs

12.50%

-

10 - 15 years

Course period

5% to 15%

UCO Bank

For India - INR 10 lakhs
For abroad - INR 20 lakhs

Up to Rs.7.50 lakhs: 11.20%
Above Rs.7.50 lakhs: 12.20%

Nil

Up to 15 Years

Course period + 1 year

For India - 5%
For abroad - 15%

Punjab National Bank

INR 40 lakhs to INR 60 lakhs

8.80% to 9.55%

1% of the loan amount

15 years

Course period + 12 months

15%

Oriental Bank of Commerce

For premium colleges - INR 20 lakhs
For others - INR 10 lakhs

7.30% - 9.30%

-

Up to 15 Years

Course period + 12 months

15%

Andhra Bank

INR 20 lakhs

11.15% to 11.45%

-

5-7 years

Course period + 12 months

upto 15%

 

Some public banks were further merged with the above-mentioned banks. For example - 

Name of the bank Merged with

 Oriental Bank of Commerce 

 Punjab National Bank 

Vijaya Bank

Bank of Baroda

Syndicate Bank

Canara Bank

Dena Bank

Bank of Baroda

Allahabad Bank

Indian Bank

Corporation Bank

Union Bank of India

Check Your Education Loan Eligibility

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How to compare the loan products to find the best education loan? 

Every aspect of an education loan should be considered while comparing different loan products. Each factor has its significance. 

  • list items Loan amount - the product should cover your loan requirement. Applying for a second loan, in case the first one doesn’t cover the expenses, would be another long and cumbersome process. 
  • list items Interest rate - goes without saying, one of the most important factors is the interest rate as it decides the total amount you will repay to the bank. A low interest rate would lead to low EMIs and a reduced financial burden. 
  • list items Collateral - Under the Indian Banks’ Association guidelines, banks ask for collateral equivalent to or more than the required loan amount, if the loan amount is above INR 7.5 lakhs. So, regardless of the loan product and lender, if the applied loan amount is more than INR 7.5 lakhs, students will have to pledge collateral to support the amount. 
  • list items Loan tenure - This factor decides the number of years your financial responsibility will continue. You can opt for a short loan tenure. However, that will increase your EMI amount. To manage EMIs and make them affordable, several students opt for a longer loan tenure. 
  • list items Processing fees - A charge you pay to the bank to process your loan application. This is a one-time charge. Most public banks even refund the fees on the first disbursement of the loan amount. 
  • list items Moratorium period - This is a period where the borrower is not required to make any repayment to the bank. In most cases, it is a course period plus 12 months or 6 months after securing a job. This period ensures that the student is not worried about the repayment during their education and can start repayment once they graduate. Though, students should remember that banks charge interest during this period as well, which is distributed in the EMIs. Students can also opt to serve this interest during their study if they are able. Read about pre-paying your education loan and its benefits here - Loan Repayment or Loan Prepayment: Clear Your Confusion & Save Big!
  • list items Margin Money - In simple terms, margin money is a contribution to the total expenses from the applicant’s side. Banks keep this provision as a sign of trust and to reduce their own risk. The margin money is usually 5% for loans to study in India and for abroad education loans, it is 15%. Read how margin money is calculated here - What is Margin Money in Education Loan?

Apart from this, enquire about the terms and conditions of the loan product before you apply.

Choosing the right loan product is imperative for students as it can help save money. Simply contact GyanDhan to get a fair opinion and review of the loan product. 

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How can GyanDhan help in getting the best education loan?

GyanDhan has streamlined the process of education loans and made it easier to apply and track the application. We have studied the products in detail and therefore, know the nitty-gritty of every loan scheme. Our executive will go through your needs and requirements to recommend the product that is right for you and helps you save money. 

The process to get an education loan through GyanDhan - 

  • list items Get in touch with us.
  • list items Check your loan eligibility.
  • list items We will discuss the requirements, ask you some questions, and suggest a lender. 
  • list items If the option is viable to you, we move ahead with the loan application. 
  • list items Simply apply on our online portal and complete the application from the comfort of your home. 
  • list items You will receive a customized document checklist from us so that you don’t miss out on any important document. 
  • list items Upload the documents on the portal. 
  • list items Keep a track of your loan application from the dashboard of your GyanDhan account. 
  • list items An assigned Education Loan Counselor will be in constant touch with you to help out at every step of the loan process. 

You might ask what we charge for our services? Nothing. It's free of cost. Though, we wouldn’t mind an honest google review as payment.

Sometimes, the middleman is what you need to get something done easily and quickly. GyanDhan is that middleman, who offers all the services free of cost. Get in touch with us today! 

Read Also:

Check Your Education Loan Eligibility


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