How to Save INR 2 Lakhs (or More) With the Right Education Loan?

    Updated on: 11 Sep 2023 9 min read

    What if we told you that the rate of interest on an education loan might change post-sanction, would you be surprised? 8 out of 10 loan applicants would say an unequivocal yes. 
    Few, if any, are aware of the complex formula that defines the interest rate of a student loan. Most Indian bank and NBFC loans come with a floating interest rate. 

    What’s a Floating Rate? We explain it here. In this article, we keep the spotlight on how a fixed interest rate, like the one provided by SBI, significantly impacts the total savings of an applicant. This post also explores other factors of an education loan that help save more.

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    3. NBFCs

    We recommend the lowest-interest NBFCs to those applicants who are not eligible for an education loan from banks or come with poor academic records or CIBIL history. These education loans have higher ROI and processing fee, plus they offer no tax aids. So, we filter out the lenders as per their interest rates and negotiate with them on the applicant’s behalf. Check your loan eligibility for NBFCs if you have been denied an education loan by any banks.

    Read more about: Education Loans From NBFCs

    4. International Lenders

    These are the last resort and preferred for applicants who come to us with excellent academic records to study in the USA or Canada without collateral and co-applicant. They offer exorbitant ROI and steep processing fee with no tax claim benefits. But, they offer loans on the basis of an applicant’s calibre and not their financial history or capabilities.

    The Takeaway

    A fixed interest rate, a low processing fee, tax benefits, and all the other facets explained above influence how much you can save on an education loan. But, these are concrete, analytical factors. There are other, more abstract elements that can help you save even more. 

    A simple example is planning your education loan repayment well in advance using our EMI calculator. When you are aware of how much money you have to shell out each month, you prepare for it by making sensible lifestyle choices. By that we mean, instead of splurging away your part-time work earning while studying, you save it to repay the loan. Every penny saved now is a buck paid in the future.

    Still, a little lost? We, at GyanDhan, can help you compare different options of the best education loans for students who wish to go abroad for higher studies. Let our loan counsellors take away the uncertainty of the process by minutely evaluating your profile and helping you search for the most cost-effective loan option that guarantees maximum savings in the future.



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Written by Madhuwrita Nandi

Reader, writer, music lover!


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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


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GyanDhan is India's first education financing marketplace.



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