Public Sector Banks Education Loan Products: A Detailed Comparison

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 - 

List of Public Sector Banks Providing Education Loans

Every public sector bank in India offers an education loan to study in India. However, 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 - 

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  State Bank of India: Being one of the top public sector banks in India, SBI provides a wide range of education loans to students who aspire to study abroad or even in India. SBI offers various loan schemes like the SBI Student Loan Scheme and the SBI Ed-vantage Scheme. Moreover, the loan disbursement process at SBI is smooth and hassle-free. The below table details the education loan from SBI.

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  Bank of Baroda: BOB is another prominent public sector bank that offers education loans to students willing to study abroad and in India. The bank provides various loan schemes which are designed to cover a range of expenses, from tuition fees to living expenses, and other related costs. You can also apply for these loans through the government portal, Vidya Lakshmi Education Loan. 

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  Canara Bank: Canara Bank is a renowned public sector bank that provides a variety of education loan schemes to help students who are willing to pursue higher education in India and abroad. The bank offers comprehensive loan products, including the IBA Model Education Loan Scheme, which covers tuition fees, living expenses, and other educational costs. Canara Bank does not ask the borrowers for collateral for education loans of up to INR 7.5 lakhs. 

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  Bank of India: The Bank of India offers competitive interest rates and provides education loans to help students fund their educational expenses. The Bank of India is known for its lower interest rates, flexible repayment terms, and user-friendly application process. Students can either apply online for an education loan at BOI or they can visit the nearest branch. 

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  Central Bank of India: The Central Bank of India is a well-known public sector bank that offers a range of education loan schemes to help students pursue their higher education both in India and abroad. The bank provides various schemes like the Cent Vidyarthi scheme, covering tuition fees, living expenses, and various educational expenses. The table given below will detail the loan product offered by the Central Bank of India. 

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  Karur Vysya Bank: Karur Vysya Bank is a leading private-sector bank that offers a variety of education loan schemes to help students cover their expenses for their higher education both in India and abroad. The Karur Vysya Bank does not charge any processing fee and margin money up to a loan amount of INR 4 lakhs. The bank offers flexible repayment options and transfers the amount of the loan directly to the university’s account where the student is enrolled. 

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  Indian Overseas Bank: Indian Overseas Bank is a notable public sector bank providing various education loan schemes to help students fund their higher education in India and abroad. The bank’s education loan products like the Vidya Jyoti Scheme, cover various education-related expenses, may it be tuition fees, living expenses, etc. The bank provides a hassle-free application process and flexible repayment options.

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  Punjab National Bank: Punjab National Bank is a renowned public sector bank that offers loan products like the PNB Udaan scheme, which covers various education-related expenses for abroad studies. PNB Pratibha and PNB Saraswati for the students willing to pursue higher education in India. PNB is known for its competitive interest rates and flexible repayment terms. It is required that the Vidya Laxmi portal must be filled out before the approval of the loan. 

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  Bank of Maharashtra: The Bank of Maharashtra also offers various education loan schemes to support students in pursuing their higher studies both in India and abroad. The bank’s education loan schemes are designed in such a way that cover various educational costs like tuition fees, accommodation charges, travel expenses, etc. 

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  Indian Bank: Indian Bank is a public-sector bank, known for its competitive interest rates, smooth application process, and flexible repayment options. The bank offers various education loan schemes to support students in funding their higher education both within India and abroad. Applicant must have a minimum CIBL score of 650 to get their loan approved by the bank. 

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. 
 

Benefits of Education Loans from Public Sector Banks

Choosing the right education loan, from the right lender can be overwhelming since the education loan provided by each lender comes with various pros and cons. However, choosing a public sector bank for an education loan can be highly advantageous for you. Public sector banks offer student-friendly loan terms which are designed to support student's higher education. Below are the b