Education Loan Interest Rate
Lowest Interest Rate Student Loan Options For Abroad Studies
Interest rate is the amount of money charged on the principal loan amount by a lender. If you borrow money from someone, you will have to pay some monthly amount over and above the principal amount. In simple terms, it is the cost of borrowing money from a bank or other financial institution. In abroad education loans, even a slight variation in interest rate per annum can make a significant difference in the total amount repaid!
S.No.  Lender  Interest Rate 

1.  State Bank of India  Starts @ 10.15 % p.a. 
2.  Bank of Baroda  Starts @ 9.7% p.a. 
3.  Axis  Starts @ 10.5% p.a. 
4.  ICICI  Starts @ 10.5% p.a. 
5.  HDFC Credila  Starts @ 9.75% p.a. 
6.  Avanse  Starts @ 11.0% p.a. 
7.  InCred  Starts @ 11.5% p.a. 
8.  Auxilo  Starts @ 10.5% p.a. 
Interest rate as in October 2022.
Rates can vary depending on borrower's profile.
Interest rate of secured loans is always lower than unsecured loans.
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Types of Interest Rates
What are the different types of interest rates?
Floating Interest Rate
 Can increase or decrease during the loan tenure.
 Change depends on the market conditions.
 Public sector banks offer less volatile interest rates.
Fixed Interest Rate
 Stays the same throughout the loan tenure.
 The EMIs remain the same as well.
 The certainty element makes it easy for a borrower to budget.
Education Loan EMI Calculator
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Interest Rate for Secured and Unsecured Loan
State Bank of India  8.65% per annum, with additional 0.50% concession for girl students, and additional 0.5% for Rinn Raksha credit life insurance or similar policyholders. 
Bank of Baroda  Listed Universities: 8.25% per annum for boys, 7.75% for girls, Unlisted Universities: 8.9% for boys, 8.4% for girls. Interest rates are linked to MCLR 
Axis Bank  Starts at around 11% per annum. The exact interest rate depends upon the applicant’s profile 
ICICI Bank  Starting at 10.50 % per annum. The exact interest rate depends upon the applicant’s profile 
HDFC Credila  Starts at around 11% per annum. The exact interest rate depends upon the applicant’s profile 
Avanse  Starts at around 12.65% per annum. The exact interest rate depends upon the applicant’s profile 
InCred  Starts at around 11.75% per annum. The exact interest rate depends upon the applicant’s profile 
Auxilo  Starts at around 12.70% per annum. The exact interest rate depends upon the applicant’s profile 
State Bank of India  Doesn’t provide unsecured loan above INR 7.5 Lakhs 
Bank of Baroda  Doesn’t provide unsecured loan above INR 7.5 Lakhs 
Axis Bank  Starts at around 11% per annum. The exact interest rate depends upon the applicant’s profile 
ICICI Bank  Starting at 10.75% per annum. The exact interest rate depends upon the applicant’s profile 
HDFC Credila  11% to 12.5%. 
Avanse  11.75% to 16% per annum. 
InCred  Up to Rs.10 lakh: 12.75%  16% p.a., Above Rs.10 lakh: 11.75%  16% p.a. 
Auxilo  12.70% p.a 18% p.a. 
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The exact rate is linked to a benchmark rate (US 3 month LIBOR) and depends on your profile. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the loan 
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EMI = Principal Amount + Interest Amount
There are two ways to calculate an interest rate –
 Simple Interest
 Simple Interest = Principal Amount x Rate of Interest x Time/100
For Example  you borrow INR 50,000 for 1 year at a 5% interest rate, then according to the formula, you owe INR 2500 as interest. When repaying the borrowed amount, you will have to make an extra payment of INR 2500 as a fee.
 Compound Interest
 A = P (1 + r/n) ^{ nt}
 A = Compound interest amount
 P = Principal amount
 r = Interest rate per annum
 n = number of times in a year the interest gets compounded
 t = number of years.
For example, you borrowed INR 10 lakhs at an interest rate of 10% for 5 years. The total interest on this amount is INR 4,97,916.
 Total interest to be paid  4,97,916
 Total Payment (Principal + Interest)  14,97,916
 EMI per month  24,965
 A = P (1 + r/n) ^{ nt}
In an education loan, the interest charged is a combination of both. During the study period, simple interest is charged, and after, compound interest is charged.
 Padho Pardesh  Interest subsidy on education loan schemes to pursue abroad education, provided to students belonging to minority communities. (Please note that this scheme has been discontinued by the Government of India.)
 Dr. Ambedkar Central Sector Scheme  It is an interest subsidy scheme for abroad educational loans provided to promote the foreign education of Other Backward Classes and Economically Weaker Classes.
 Central Sector Interest Subsidy  It is an interest subsidy scheme for economically weaker sections. If the family income is not more than INR 4.5 lakhs, the student can avail of the interest subsidy.
The two main abroad education loan products are offered by the State Bank of India and Bank of Baroda 
 SBI’s Global EdVantage Loan  7.65% for women, 8.80% for men
 BOB’s Baroda Scholar  7.85% for women, 8.35% for men
 Axis Bank  Starts at 11.25%
 ICICI Bank  Starts at 11.50%
Let’s take a glance at the interest rates offered by leading NBFCs 
 Auxilo  Starts at 12.70%
 Avanse  Starts at 12%
 HDFC Credila  Starts at 11%
 InCred  Starts at 12%