Education Loan Interest Rates

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Table of content

  1. Comparison Of Interest Rates
  2. SBI Bank Education Loan Interest Rate
  3. Bank of Baroda Education Loan Interest Rate
  4. Bank of India Education Loan Interest Rate
  5. Central Bank of India Education Loan Interest Rate
  6. UCO Bank Education Loan Interest Rate
  7. Punjab National Bank Education Loan Interest Rate
  8. Canara Bank Education Loan Interest Rate
  9. Union Bank of India Education Loan Interest Rate
  10. Axis Bank Education Loan Interest Rate
  11. ICICI Bank Education Loan Interest Rate
  12. IDFC First Bank Education Loan Interest Rate
  13. Federal Bank Education Loan Interest Rate
  14. South India Bank Education Loan Interest Rate
  15. Education Loan Interest Rate of other Private Banks
  16. Education Loan Interest Rate for NBFCs
  17. Interest rates for Different Types of Education Loans
  18. Important Terms
  19. FAQ's
  20. Need Help? Ask Here!

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Here we are going to look at the interest rates offered by different public banks, private banks, and NBFCs for education loans for secured, unsecured, and partially secured education loans.

Comparison Of Interest Rates

Bank Name  Maximum Loan Amount Interest Rate
State Bank Of India (SBI) 1.5 Crores (Secured) Starts from 8.15%
Bank Of Baroda (BOB) 1.5 Crores (Secured) Starts from 9.15%
Bank Of India (BOI) 1.5 Crores (Secured) Starts from 9.25%
Central Bank of India  20 Lakhs (Unsecured) Starts from 8.10%
UCO Bank  20 Lakhs (Unsecured) Starts from 9.70%
Punjab National Bank  Need-Based Financing Starts from 8.20%
Canara Bank  1 Crore (Secured)  Starts from 8.60%
Union Bank of India  40 Lakhs (Unsecured) Starts from 8.15%
Axis Bank  75 Lakhs (Unsecured) Starts from 11%
ICICI Bank  1 Crore (Unsecured) Starts from 10.85%
IDFC First Bank  50 Lakhs (Unsecured) Starts from 8.5%
Federal Bank 20 Lakhs (Secured) Starts from 12.55%
South Indian Bank  1.5 Crores (Secured) Starts from 10.55%
Karur Vysya Bank  1.5 Crores (Secured) Starts from 9.99%
Bandhan Bank  25 Lakhs (Unsecured) Starts from 9.47%
HSBC Bank  Need-Based Financing Starts from 9.99%
IDBI Bank Need-Based Financing  Starts from 8.50%
Kotak Mahindra Bank  20 Lakhs (Secured) Maximum 16%
Karnataka Bank  20 Lakhs (Secured) Starts from 10.52% to 12.20%
Tamilnad Mercantile Bank  20 Lakhs (Secured) Starts from 12.60% to 12.85%
IndusInd Bank Need-Based Financing Starts from 10.49%
Jammu and Kashmir Bank  30 Lakhs (Secured) Starts from 10.95%
Yes bank Need-Based Financing  Starts from 10.99%
Auxilo 60 Lakhs (Unsecured) Starts from 11.50%
Avanse  85 Lakhs (Unsecured) Starts from 10.50%
Incred  80 Lakhs (Unsecured) Starts from 11%
HDFC Credila  1 Crore (Unsecured) Starts from 9.75%  
Allahabad Bank 
(Merged with Indian Bank)
Need-Based Financing  Starts from 13.95%
Andhra Bank
(Merged with Union Bank)
40 Lakhs (Unsecured) Starts from 8.15%
Bajaj Finserv 31.50 Crores Starts from 8.00%
Citibank 30 Lakhs (Personal Loan) Starts from 10.75%
Standard Chartered Bank     Need-Based Financing  Starts from 11.49%
Syndicate Bank
(Merged with Canara Bank)
1 Crore (Secured)  Starts from 8.60%
Assam Gramin Vikash Bank Upto 15 Lakhs  Starts from 8.60%
Andhra Pradesh Grameena Vikas Bank Upto 60 Lakhs  Starts from 9.50%
Arunachal Pradesh Rural Bank Need-Based Financing (Personal Loan) Starts from 9.95%
Bangiya Gramin Vikash Bank Upto 20 Lakhs  Starts from 12.75%
Baroda Gujarat Gramin Bank Upto 10 Lakhs  Starts from 10.30%
Baroda UP Bank Need-Based Financing Starts from 11.05%
Dakshin Bihar Gramin Bank Need-Based Financing Starts from 11.05%
J&K Grameen Bank Upto 20 Lakhs Starts from 10.95%
Karnataka Gramin Bank Upto 1 Crore Starts from 10.25%
Kerala Gramin Bank Upto 20 Lakhs (unsecured) Starts from 13.60%
Madhya Pradesh Gramin Bank Upto 20 Lakhs Starts from 13.00%
Maharashtra Gramin Bank Upto 20 Lakhs Starts from 11.95%

SBI Bank Education Loan Interest Rate

Here are the interest rate details of SBI Bank

Scheme Name

Interest rate

Final Interest Rate

Discounts

SBI Student Loan Scheme

EBR + 2%

11.15%

0.50% - for female students 

0.50% - Rinn Raksha

SBI Global Ed-Vantage Scheme

EBR + 2%

11.15%

0.50% - for female students 

0.50% - Rinn Raksha

SBI Skill Loan Scheme

EBR + 1.50%

10.65%

0.50% - for female students 

0.50% - Rinn Raksha 

Shaurya Education Loan (secured)

EBR+ 2.00%

11.15%

0.50% - for female students 

0.50% - Rinn Raksha

Shaurya Education Loan (unsecured)

EBR+ 2.60%

11.75%

0.50% - for female students 

0.50% - Rinn Raksha

 

SBI Scholar Loan Scheme

Category of Institution

Institution

Interest rate

Final Interest Rate

Discounts

AA 

All IITs

EBR+ 0.00%

8.15%

1% Business strategy discount 

0.50% - for female students 

0.50% - Rinn Raksha 

AA

Other institutions 

EBR + 0.05%

8.20%

1% Business strategy discount 

0.50% - for female students 

0.50% - Rinn Raksha 

A

All IITs

EBR + 0.00%

8.15%

1% Business strategy discount

0.50% - for female students 

0.50% - Rinn Raksha 

A

Other institutions 

EBR+0.50%

8.65%

1% Business strategy discount

0.50% - for female students 

0.50% - Rinn Raksha

B

All NITs 

EBR+0.50%

8.65%

1% Business strategy discount

0.50% - for female students 

0.50% - Rinn Raksha

B

Other institutions 

EBR+1.00%

9.15%

1% Business strategy discount

0.50% - for female students 

0.50% - Rinn Raksha

C

All NITs 

EBR+ 0.50%

8.65%

1% Business strategy discount

0.50% - for female students

0.50% - Rinn Raksha

C

Other institutions 

EBR+1.50%

9.65%

1% Business strategy discount

0.50% - for female students 

0.50% - Rinn Raksha

Updated EBR: 9.15% effective w.e.f 04-08-2023

Bank of Baroda Education Loan Interest Rate

Floating Interest Rates

Product  Condition  Repo Rate + Spread     Effective Rate of Interest Additional Information

Baroda Education Loan to Students of Premier Institutions

(For Studies in India)

List AA  BRLLR - 0.60% to BRLLR From 8.55% to 9.15% -

 

List A BRLLR - 0.60% to BRLLR From 8.55% to 9.15% -

 

List-AA/A* BRLLR - 0.60% to BRLLR From 8.55% to 9.15% -

 

List B BRLLR + 0.65% to BRLLR + 0.85% From 9.80% to 10.00%

If the borrower provides a minimum of 100% security, the ROI applicable would be BRLLR + 0.65

(concession of 0.20).

 

List B* BRLLR + 0.50% 9.65% -

 

List C BRLLR + 0.85% to BRLLR + 1.05% From 10.00% to 10.20%

If the borrower provides minimum 100% security, ROI applicable would be BRLLR + 0.85

(concession of 0.20)

 

List C* BRLLR + 0.75%     
9.90%

-

Baroda Executive Development Premier Institutions (For Studies in India)

List-AA/A  BRLLR - 0.60% to BRLLR From 8.55% to 9.15%

-

 

List-AA/A* BRLLR - 0.60% to BRLLR From 8.55% to 9.15%

-

 

List B BRLLR + 0.65% to BRLLR + 0.85% From 9.80% to 10.00%

-

 

List B* BRLLR + 0.50% 9.65%

-

 

List C BRLLR + 0.85% to BRLLR + 1.05% From 10.00% to 10.20%

If the borrower provides a minimum of 100% security, the ROI applicable would be BRLLR + 0.85 (concession of 0.20)

 

List C* BRLLR + 0.75% 9.90%

-

EL for study in AWES Institute

  BRLLR+0.45% (Min Security 100% of the loan amount)
BRLLR + 0.90%(Unsecured Loan)
From 9.60% to 10.05%

-

Baroda Skill Loan Scheme

  BRLLR + 1.50% 10.65%

-

Baroda Vidya

Study in school in India BRLLR + SP+ 3.10% 12.50%

-

*Special rate of Interest for Children of defense personnel Under the Baroda Yodha Education Loan Scheme

Baroda Scholar 

Education loan to Premier Institution Abroad (specified in the list of Premier Institutions)

Condition  Repo Rate + Spread     Effective Rate of Interest
Abroad BRLLR + 0.55% 9.70%
Abroad (for CANADA) BRLLR + 0.55% 9.70%

Education loans to Non-Premier Institutions Abroad (which are not specified in the list of Premier Institutions)

Product  Condition  Repo Rate + Spread     Effective Rate of Interest
Abroad Upto Rs.7.50 Lakh BRLLR + 2.00% 11.15%
  Above Rs 7.50 lakh BRLLR + 1.05% 10.20%
  Special rate of Interest for Children of defense personnel Under Baroda Yodha Education Loan Scheme BRLLR + 1.05% 10.20%
Abroad (for Canada) Upto Rs.7.50 Lakh BRLLR + 2.00% 11.15%
  Above Rs 7.50 lakh BRLLR+2.55% 11.70%

Baroda Gyan

Condition Repo Rate + Spread     Effective Rate of Interest
Upto Rs.7.50 Lakh BRLLR + 2.00% 11.15%
Above Rs 7.50 lakh BRLLR + 1.90% 11.05%
(Special rate of Interest for Children of defense personnel Under Baroda Yodha Education Loan Scheme) BRLLR + 1.10% 10.25%

*A special concession of 0.50% for female students
*Additional 0.50% for studying Medical courses 

Fixed Interest Rates 

Product Conditions Repo Rate + Spread Effective Rate of Interest Additional Information
Baroda Education Loan to Students of Premier Institutions (For Studies in India) List-AA  BRLLR + 1.40% to BRLLR + 2% From 10.55% to 11.15% -
  List A BRLLR + 1.40% to BRLLR + 2% From 10.55% to 11.15% -
  List-AA/A* BRLLR + 1.40% to BRLLR + 2% From 10.55% to 11.15% -
  List B (Upto Rs.7.50 Lakh) Base Rate + 2.00% 11.40% -
  List B (Above Rs 7.50 lakh) BRLLR + 2.50% 11.65% -
  List C (Upto Rs.7.50 Lakh) Base Rate + 2.00% 11.40% -
  List C (Above Rs 7.50 lakh) BRLLR+2.85% to BRLLR + 3.05% From 12.00% to 12.20% If the borrower provides a minimum of 100% security. ROI applicable would be BRLLR+2.85% (Concession of 0.20%)
  List C* (Upto Rs.7.50 Lakh) Base Rate + 2.00% 11.40% -
  List C* (Above Rs 7.50 lakh) Base Rate + 2.75% 12.15% -
Baroda Executive Development Premier Institutions (For Studies abroad) Abroad (Upto Rs. 7.5 lakhs) Base Rate + 2.00% 11.40% -
 
Abroad (Above Rs. 7.5 lakhs)
BRLLR + 4.35% 13.50% -
  Special rate of Interest for Children of defense personnel Under Baroda Yodha Education loan Scheme (Upto Rs.7.50 Lakh) Base Rate + 2.00% 11.40% -
  Special rate of Interest for Children of defense personnel Under Baroda Yodha Education loan Scheme (Above Rs 7.50 Lakh) BRLLR + 3.10% 12.25% -
EL for study in AWES Institute Upto Rs.7.50 Lakh Base Rate + 2.00%     
11.40%
-
  Above Rs 7.50 lakh BRLLR+2.45% (Min Security 100% of the loan amount)
BRLLR + 2.90%(Unsecured Loan)
From 11.60% to 12.05% -
Baroda Skill Loan Scheme Upto Rs.7.50 Lakh Base Rate +1.50% 10.90% -
  Above Rs 7.50 lakh BRLLR +3.50% 12.65% -
Baroda Vidya Study in school in India BRLLR + SP+ 5.10% 14.50%

-

Baroda Scholar

Education loan to Premier Institutions Abroad (specified in the list of Premier Institutions):

Condition Additional Condition Repo Rate + Spread Effective Rate of Interest Additional Information
Abroad Upto Rs.7.50 Lakh Base Rate + 2.00% 11.40% -
  Above Rs 7.50 lakh BRLLR + 2.55% 11.70% -
Special rate of Interest for Children of defense personnel Under Baroda Yodha Education Loan Scheme) Upto Rs.7.50 Lakh     
Base Rate + 2.00%
11.40% -
  Above Rs 7.50 lakh BRLLR + 2.55% 11.70% -
Abroad (for CANADA) Upto Rs.7.50 Lakh     
Base Rate + 2.00%
11.40% -
  Above Rs 7.50 lakh BRLLR + 2.55% 11.70% -

Education loan to Non-Premier Institutions Abroad (which are not specified in the list of Premier Institutions):

Additional Information Additional Condition Repo Rate + Spread Effective Rate of Interest Additional Information
Abroad Upto Rs.7.50 Lakh Base Rate + 2.00% 11.40% -
  Above Rs 7.50 lakh BRLLR + 3.05% 12.20% -
Special rate of Interest for Children of defense personnel Under the Baroda Yodha Education Loan Scheme Upto Rs.7.50 Lakh Base Rate + 2.00%     
11.40%
-
  Above Rs 7.50 lakh BRLLR + 2.55%     
11.70%
-
Abroad (for CANADA) Upto Rs.7.50 Lakh     
Base Rate + 2.00%
11.40% -
  Above Rs 7.50 lakh BRLLR+4.55% 13.70% -

Baroda Gyan

Additional Information Additional Condition Repo Rate + Spread Effective Rate of Interest Additional Information
Study in India Upto Rs.7.50 Lakh Base Rate + 2.00% 11.40% -
  Above Rs 7.50 lakh BRLLR + 3.90%  13.05% -
Special rate of Interest for Children of defense personnel Under Baroda Yodha Education Loan Scheme Upto Rs.7.50 Lakh Base Rate + 2.00% 11.40% -
  Above Rs 7.50 lakh BRLLR + 3.10%     
12.25%
-

Bank of India Education Loan Interest Rate

Scheme Name

Interest rate

Final Interest Rate

Discounts

Star Education Loan 

RBLR +2.50%

11.75%

0.50% for female students 

0.50% pursuing higher studies in STEM courses

Star Vidya Loan

RBLR

9.25%

0.50% for female students 

0.50% pursuing higher studies in STEM courses

Updated RBLR: 9.25% effective w.e.f 01-02-2024

Central Bank of India Education Loan Interest Rate

 

Institution

Interest rate 

Final Interest Rate 

Discounts

AAA category

Repo + 1.60%

8.10%

0.5% for Female/ SC/ ST students 

AA category

Repo + 1.70%

8.20%

0.5% for Female/ SC/ ST students 

A category with collateral Security

RBLR - 0.35%

9.00%

0.5% for Female/ SC/ ST students

B category with Collateral Security

RBLR+1.25%

10.60%

0.5% for Female/ SC/ ST students 

C category with Collateral Security

RBLR+2.15%

11.50%

0.5% for Female/ SC/ ST students 

D category with Collateral Security (Abroad)

RBLR+1.25%

10.60%

0.5% for Female/ SC/ ST students 

 

Scheme Name

Interest rate

Final Interest Rate

Discounts

Education Loan To Executives For Pursuing MBA from Iims & Other Premier Management Institutes

REPO RATE (6.50%) + 1.60 (Credit Risk Premium) = 8.10% presently [For AAA Category]


REPO RATE (6.50%) + 1.70 (Credit Risk Premium) = 8.20% presently [For AA Category]

8.10% to 8.20%

Not applicable 

Cent Skill Loan

RBLR+CRP

11.15% to 11.20%

Not applicable

Updated RBLR:  9.35% effective w.e.f 10-12-2023

UCO Bank Education Loan Interest Rate

Scheme Name

Interest rate

Final Interest Rate

Discounts

Education Loan

UCO float rate + 2.80%

12.10%

Not applicable

UCO Premier Educational Loan Scheme

UCO float rate + 1.55%

10.85%

Not applicable 

UCO Super Premier Educational Loan Scheme

UCO float rate + 0.40%

9.70% 

Not applicable 

UCO Aspire

UCO float rate + CRP 2.40%

11.70%

0.50% concession for female students and children of staff

UCO Skill Loan

UCO float rate + CRP 1.90%

11.20%

Not applicable 

Updated UCO Float rate:  9.30% effective w.e.f: 15-03-2023

Punjab National Bank Education Loan Interest Rate

Scheme Name

Interest rate

Final Interest Rate 

Discounts 

PNB Saraswati (Secured)

 RLLR+BSP+ 1.25%

10.75%

0.5% for female students 

PNB Saraswati (Unsecured)

RLLR+BSP+ 2.00% 

11.75%

0.5% for female students  

PNB Udaan (Secured)

RLLR+BSP+1.25%

10.50%

0.5% for female students

PNB Udaan (Unsecured)

RLLR+BSP+2.00%

11.75%

0.5% for female students

PNB Pravasi Shiksha Loan

RLLR+BSP+2.15%

11.25%

Not applicable 

PNB Honhaar

RLLR+BSP+2.00% 

11.25%

Not applicable

 

PNB Pratibha

Institute

Interest rate

Final interest rate 

IIMs, IITs, ISB Hyderabad, ISB Mohali, MDI Gurgaon & XLRI Jamshedpur

RLLR + BSP - 1.05%

8.20%

Other 

RLLR + BSP - 0.25%

9.00%

Updated RLLR: 9.00% effective w.e.f 01-01-2024

BSP: 0.25% effective w.e.f 01-01-2024

Canara Bank Education Loan Interest Rate

Scheme Name

Interest rate 

Final Interest Rate 

Discounts 

Vidya Sagar Scheme 

RLLR + CRP (1.60%)

10.85%

0.50% for female students

0.50% for quick repayment of interest on student loans during the term

IBA Skill Loan

RLLR + CRP (1.50%)

10.75%

0.50% for female students

0.50% for quick repayment of interest on student loans during the term

Vidya Turant Scheme

RLLR + CRP (-0.65% to 0.60%)

8.60% to 9.25%

0.50% for female students

0.50% for quick repayment of interest on student loans during the term

0.65% discount for select top 58 premium university

New Education Loan Scheme For Pursuing Master’s Degree Abroad From Select Top Ranking Universities Of the World

RLLR + CRP
CRP: 
100% collateral - 1.60%
>=75% collateral - 1.85% 
>=50% collateral - 2.10%

10.85% to 11.35%

0.50% for female students

0.50% for quick repayment of interest on student loans during the term

Vidya Sahay Scheme

RLLR + CRP (2.00%)

11.25%

0.50% for female students

0.50% for quick repayment of interest on student loans during the term

Vidya Shakthi

RLLR + CRP (0%)

9.25%

0.50% for female students

0.50% for quick repayment of interest on student loans during the term

Updated RLLR: 9.25% effective w.e.f 12-12-2023

Union Bank of India Education Loan Interest Rate

Scheme Name

Interest rate 

Final Interest Rate

Discounts 

Special Scheme for students of Premier Management & Technical Institutes Inland- TIER I

EBLR - 0.70% to EBLR

8.55% to 9.25%

-

Special Scheme for students of Premier Management & Technical Institutes (Tier-II)

EBLR + 1.75%

11.00%

0.50% discount for female/SC/ST students 

Union Education India /Abroad/ NRI Student

EBLR + 2.10% 

11.30%

0.50% discount for female students

Union Education – Skill Development Loan

Without deviation - EBLR + 1.50%

With deviation - EBLR + 3.25%

10.75% to 12.50%

0.5% discount for female students 

Union Kisan Siksha Suvidha (UKSS)

(On going with WeMakeScholars)

10.9% to 11.5%

0.5% for female students

1% if the SI is paid in full

Premium medical schools scheme 

-

Up to 40 lacs 

  • Without collateral- 10.25%

Above 40 lacs

  • With 100% collateral- 9.25% to 10.00%

-

Special Union Education Scheme for ISB

Course Name  Interest Rate Final Interest Rate
Post Graduate Programme in Management (PGPM) EBLR - 1.10% 8.15%
Post Graduate Programme in Management for Working Professionals (PGP-PRO)  EBLR - 0.80% 8.45%
Post Graduate Programme in Management for Senior Executives (PGP-MAX) EBLR - 0.80% 8.45%

Special Union Education Loan Schemes for Premier Institute Abroad Studies

Quantum of Loan  Interest Rate  Final Interest Rate Collateral security  Interest Rate  Final Interest Rate 
Up to Rs. 40 Lakh EBLR + 0.50% (without Collateral) 9.75%  50% Up to <100%  EBLR+0.25%  9.50% 
Above Rs. 40 Lakh  EBLR + 0.75%(50% Up to <100% Collateral) 10.00% 100% and above EBLR+1.50%  9.25%

Updated EBLR: 9.25% effective w.e.f  01-01-2024

Axis Bank Education Loan Interest Rate

Institute

Interest rate

Prime A 

11% to 11.5%

Prime B 

11.75% to 12% 

 

ICICI Bank Education Loan Interest Rate

Institute

Interest rate

A1 

10.85%

A2

10.85%

A3

12%

A4

12%

IDFC First Bank Education Loan Interest Rate

Institute 

Interest rate 

Platinum/ Titanium 

8.5% to 10%

Gold 

8.5% to 11%

Bronze 

10% to 12%

Federal Bank Education Loan Interest Rate

Scheme Name 

Interest rate

Final interest rate

Special Vidya Loan

Repo Rate + 6.05 Onwards

12.55% Onwards

Fed Scholars

Repo Rate + 6.05 Onwards

12.55% Onwards

Federal Career Solutions Loan

Repo Rate + 6.05 Onwards

12.55% Onwards

Updated EBR: 6.50% effective w.e.f 16-12-2023

South India Bank Education Loan Interest Rate

Scheme Name

Interest rate 

Final interest rate 

Discounts

SIB Vitjnan Pradhanscheme (VPS)

1 Year MCLR (9.35%)+ 1.50% to
1 Year MCLR (9.35%) + 3.05%

10.85% to 12.40%

-1% if interest is paid while the moratorium is in effect.

-1% for early EMI payments if interest is paid during the moratorium.

SIB Excellence Scheme

Repo Rate (6.50%) + 4.05% to Repo Rate (6.50%) + 4.65%

10.55% to 11.15%

Not applicable 

SIB Edusum

Repo Rate (6.50%)  + 10.20% to Repo Rate (6.50%)  + 10.95%

16.70% to 17.45%

Not applicable 

SIB Global Education Scheme

Repo Rate (6.50%)  + 6.40% to Repo Rate (6.50%)  + 7.15%

12.90% to 13.65%

0.5% for female students 

Education Loan Interest Rate of other Private Banks

Bank Name

Scheme Name

Interest rate

Karur Vysya Bank

Education Loan

9.99%

City Union Bank

VIDYAVANI

15.75% *

Bandhan Bank 

Personal loan 

Starts from 9.47%

HSBC Bank 

Personal loan 

9.99% to 16%

IDBI Bank

Education Loan 

Starts from 8.50%

Kotak Mahindra Bank 

Education Loan 

Maximum 16% 

Karnataka Bank 

KBL Vidyanidhi

10.52% to 12.20%

Tamilnad Mercantile Bank 

TMB Education Loan 

12.15% to 12.40% 

IndusInd Bank 

Personal Loan 

Starts from 10.49%

Jammu and Kashmir Bank 

Education Loan

Starts from 10.95%

Yes bank 

Personal Loan 

Starts at 10.99%

*0.50% concession for female students

Education Loan Interest Rate for NBFCs

Bank Name

  Interest rate

Final interest rate

Auxilo

14.85%.

11% to 13.5% 

Avanse 

Base rate: 14.25%

11% to 13.5%

Incred 

-

11 to 13.5%

HDFC Credila 

CBLR (13.80%) + spread%

9.75% to 10%

Interest rates for Different Types of Education Loans

Public banks generally offer a grace period of 6 to 12 months where you don’t have to pay anything. After the grace period, the interest is compounded in government banks and EMI is calculated. In private banks, compound interest is paid during the moratorium period and the interest is compounded after the moratorium period. In NBFCs, direct EMI is to be paid during the moratorium period immediately after the disbursement.

Important Terms

Base Rate

The base rate is the minimum interest rate that is set by RBI for lending a loan.

Repo Rate

The repo rate is the rate of interest at which the Reserve Bank of India (RBI) lends money to other public banks, private banks, and NBFCs in India against government security. 

EBLR 

EBLR is known as the external benchmark lending rate. It is the repo rate set by RBI + spread (different for each bank)

MCLR

MCLR stands for Marginal Cost of Funds Based Lending Rate. It is the internal base rate given for each bank/ financial institution lending loans in India considering its cost of funds. It is different for each bank and is decided by the RBI. 

EBR

EBR is also called External Benchmark- Linked Rate. It is the SBI MCLR at which SBI gives out loans. It is the RBI repo rate + SBI spread% 

BRLLR

BRLLR is also called Baroda Repo Linked Lending Rate. It is the MCLR at which the Bank of Baroda lends out loans. It is RBI repo rate + BoB spread% 

RBLR  

RBLR stands for Repo Linked Benchmark Lending Rate. The difference between RBLR and MCLR is that MCLR is based on the cost of funds of a bank. Whereas, RBLR depends on the repo rate which is set by the RBI. 

Education Loan FAQs

  • Can I get a student loan at a 0% interest rate?

    No, you cannot avail of a student loan at a 0% interest rate.

  • which bank has the lowest interest rate on education loan?

    Generally, the lowest rates are provided by public banks such as SBI and BOB. They also offer a reduction of 0.5% on the interest rate for female students pursuing higher education overseas or in India.

  • What is India's current interest rate on student loans?

    The average interest rate for an education loan offered by banks/ financial institutions in India is around 10 to 11%.

  • Is the interest on student loans yearly or monthly?

    The method used by each bank to determine interest during the moratorium period varies. Some banks compound the interest component by adding the accumulated interest to the principal each month, while others compound it annually.

  • Are student loan interest rates of 11% too high?

    No, 11% is the average interest rate offered by banks in India. Generally, the interest rate for an education loan ranges from 8.5% to 13.5%.

NEWS

MCLR Increase by Up to 10 Basis Points Led by Bank of Baroda, Canara Bank, and Bank of Maharashtra

Several public sector banks, including Bank of Baroda and Canara Bank, have raised their marginal cost of funds based lending rates (MCLR) by up to 10 basis points. This move follows the Reserve Bank of India's (RBI) decision to maintain the policy rate.

The MCLR hike will impact Equated Monthly Installments (EMIs) linked to this lending rate. The one-year MCLR, vital for most consumer loans, will be revised. Bank of Baroda's one-year MCLR will rise from 8.65% to 8.70% starting August 12.

Similarly, Canara Bank has increased its MCLR by 5 basis points to 8.70%, effective August 12. Bank of Maharashtra (BoM) has taken a more substantial step, raising its MCLR by 10 basis points. Consequently, BoM's one-year MCLR will be 8.60%, up from the earlier 8.50%, starting August 10, 2023.

The Monetary Policy Committee (MPC) of RBI has chosen to keep the policy repo rate steady at 6.50%. RBI Governor Shaktikanta Das explained that as inflation remains above the targeted 4%, the MPC's focus is on gradually withdrawing accommodation to align inflation with the target while supporting economic growth.

MCLR Increase by Up to 10 Basis Points Led by Bank of Baroda, Canara Bank, and Bank of Maharashtra

Several public sector banks, including Bank of Baroda and Canara Bank, have raised their marginal cost of funds based lending rates (MCLR) by up to 10 basis points. This move follows the Reserve Bank of India's (RBI) decision to maintain the policy rate.

The MCLR hike will impact Equated Monthly Installments (EMIs) linked to this lending rate. The one-year MCLR, vital for most consumer loans, will be revised. Bank of Baroda's one-year MCLR will rise from 8.65% to 8.70% starting August 12.

Similarly, Canara Bank has increased its MCLR by 5 basis points to 8.70%, effective August 12. Bank of Maharashtra (BoM) has taken a more substantial step, raising its MCLR by 10 basis points. Consequently, BoM's one-year MCLR will be 8.60%, up from the earlier 8.50%, starting August 10, 2023.

The Monetary Policy Committee (MPC) of RBI has chosen to keep the policy repo rate steady at 6.50%. RBI Governor Shaktikanta Das explained that as inflation remains above the targeted 4%, the MPC's focus is on gradually withdrawing accommodation to align inflation with the target while supporting economic growth.

Last Updated - 14/08/2023

 

Our Education Loan team will help you with any questions

Naresh Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.
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