- Axis Bank
- Bank of Baroda
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Federal Bank
- HDFC Bank
- ICICI Bank
- IDBI Bank
- Indian Overseas Bank
- Karur Vysya Bank
- Kotak Mahindra Bank
- Punjab National Bank
- RBL Bank
- State Bank of India
- UCO Bank
- Union Bank of India
- United Bank of India
- 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.
- 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.
- 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.
- 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.
- 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.
- 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!
- 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?
- Get in touch with us.
- Check your loan eligibility.
- We will discuss the requirements, ask you some questions, and suggest a lender.
- If the option is viable to you, we move ahead with the loan application.
- Simply apply on our online portal and complete the application from the comfort of your home.
- You will receive a customized document checklist from us so that you don’t miss out on any important document.
- Upload the documents on the portal.
- Keep a track of your loan application from the dashboard of your GyanDhan account.
- An assigned Education Loan Counselor will be in constant touch with you to help out at every step of the loan process.
Updated on: 11 Sep 2023
10 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.
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.
Table of Content 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 - 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. Fill the form to get free expert help 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 India - 9.55% INR 10,000 + GST Maximum 15 years Course period + 6 months 10% Bank of Baroda For India - Upto INR 60 Lakhs For India - 8.85% (Men); 8.35% (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 8.85% - 9.85% For India - NIL 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 10 - 15 years Course period + 6 or 12 months 15% Indian Overseas Bank For studies in India - INR 30 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 10 - 15 years Course period + 6 months upto 15% Karur Vysya Bank For India - INR 10 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 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% Nil 15 years Course period + 12 months 15% Indian Bank For India - INR 15 lakhs 12.50% - 10 - 15 years Course period 5% to 15% UCO Bank For India - INR 10 lakhs Up to Rs.7.50 lakhs: 11.20% Nil Up to 15 Years Course period + 1 year For India - 5% 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 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 Every aspect of an education loan should be considered while comparing different loan products. Each factor has its significance. 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. 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 - 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 Apply Here
What are some of the top banks for an education loan in India?
Looking For An Abroad Education Loan?
Which is the best bank for an education loan?
For abroad - Upto INR 1.5 crore
For abroad - 8.8% (Men); 8.3% (Women)
For abroad - Upto INR 80 lakhs
For abroad - 7.75% (Men); 8.25% (Women)
For abroad - INR 20 lakhs
For abroad - INR 5000
Loan above INR 10 lakhs - INR 1000
For abroad studies - INR 40 lakhs
For abroad - INR 5000 (refundable)
For abroad - INR 20 lakhs
For abroad - INR 20 lakhs
Above Rs.7.50 lakhs: 12.00%
For abroad - INR 25 lakhs
For abroad - INR 20 lakhs
Above Rs.7.50 lakhs: 12.20%
For abroad - 15%
For others - INR 10 lakhs
Check Your Education Loan Eligibility Apply Here
How to compare the loan products to find the best education loan?
How can GyanDhan help in getting the best education loan?
Written by
Gurbani Kaur Suri
A keen lover of reading and loves to explore new things. A strong believer of spirituality and goodness.
Reviewed by
Aman Jain
Aman Jain graduated from IIT Kanpur, and currently functions as the CMO at GyanDhan. He is deeply passionate about creating equality in higher education and has directly interacted with 2 Lakh students in his 8-year-long journey.
Specializes in:
Education loan ,
Study Abroad Admissions
GyanDhan is India's first education financing marketplace.
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