There are various banks and financial organizations all over India that provide Educational Loans. This type of loan draws a definite education loan rate of interest so that students can successfully achieve their educational goals by obtaining an opportunity to complete their higher studies from premier institutes in India and around the world.

1. The Features and Benefits of
Education Loan Interest Rates

2. There are various banks and financial organizations all over India that provide Educational Loans.
This type of loan draws a definite Education Loan Rate of Interest so that students can
successfully achieve their educational goals by obtaining an opportunity to complete their
higher studies from premier institutes in India and around the world.
An education or student loan is like a key to the door of a student’s dreams who wish to become
highly-educated and qualified regardless of his or her financial condition. One of the greatest
advantages of an education loan is that it offers pliability in terms of the repayment schedule for
the principal amount following their education.
Over the years, there has been a rapid growth in the number of students applying for education
or student loan since they provide financial assistance at a very crucial phase of life.

3. Why Education loan rate of interest is an essential factor to consider before opting for the
same?
The Education loan interest rates are generally less as compared to a personal loan. The rate of
interest varies for different banks and financial institutions. Some offer a fixed interest rate while
others provide the loan at fluctuating interest rates.
It is always a wise decision to opt for a bank or institution that provides the loan at fixed rates
because they have a brief refund period that normally ranges between five to seven years. It is
also important to make sure that you don’t take a loan from a bank that provides it only after
setting a reset clause.
The interest rates regulated by the Reserve Bank of India ranges between 9-10%. However, the
majority of the private financial institutions and banks all over India, offer interest rates ranging
between 12-16%.

4. The major factors influencing the interest rates offered by these institutions on education or
student loan are: -
1) The total loan amount granted.
2) The base credit rate and,
3) The refund or repayment term.
The Advantages: -
1) If you wish to pursue your higher studies in India, then banks and financial institutions can
offer you an education loan ranging between 10 lacs to 15 lacs.
2) Female applicants are provided with an added advantage of special discounts and reduced
rates of interest.
3) In case you are applying for a loan of Rs 4 lacs or less, then these institutions will not ask you
for a guarantor or surety.

5. 4) One of the best things about an education loan interest rate is that they have special subsidy
offers for economically weaker sections.
5) There is no hurry to pay off the loan promptly. The student can make the repayments once
his/her course is finished, as the repayment period generally varies between five to seven years.
6) The banks and financial institutions always take into consideration, the family income and the
kind, of course, you want to pursue your higher studies before sanctioning the loan amount.
7) If the principal amount of your loan is small, then you will not have to pledge any collateral.
Therefore, the education loan rate of interest is a significant factor for loan seekers to decide
whether the scheme is worthwhile of a monetary load or not.
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