Student loan interest rates differ from one lender to the next.
Let’s take a closer look.
We’ve chalked down a list of some popular banks and institutions offering varying student loan interest rates for your easy reference.
All leading banks and financial institutions offer different rates of interest depending on the type of course being pursued, the location of the institute and whether it’s in India or abroad, and the loan amount borrowed.
Normally, these banks give a floating rate of interest on these types of loans. This means that the student loan interest rates on your EMI are calculated as per the “base lending rate” plus the standard premium rate, credit spread, markup etc.
And this base rate keeps changing depending on the repo rate set by the RBI, which is reviewed bi-monthly and basis changes on the rate; the floating interest rate fluctuates accordingly.
Having a rate set by the bank is crucial while taking out the loan as it affects the possibility of paying back the amount. Though you’re not required to pay EMI during the studying period or moratorium period, it’s advised that you pay at least the interest amount, as this will reduce your EMI burden, and you may get a concession on the principal amount depending on the bank.
To get a student loan with good interest rates, the candidate should
While you may have every boxed checked on the above list, it’s good to have these points at the back of your mind before you apply for the loan
Getting an education loan today is not arduous. Given the paradox of choice offered by banks and financial institutions, getting into the nitty-gritty of the loan details and selecting the right type of loan will be beneficial. Also, ensure that you do not take a loan amount which is beyond your means and may end up struggling to repay in the future.
No. Student loans attract interest but vary among banks and financial institutions. What you do get is tax benefit under section 80E which has no upper limit on the EMI you’re paying.
This depends on your financial background conducted and the credit score that banks and financial institutions consider at the time of application. Depending on these factors, banks will take a call on whether you can pay off the loan or not.
No. In India, student loans need to be repaid in full irrespective of the time taken.