Education and Career Forum

Hello Sir,
I want to apply for Education Loan for
doing Abroad studies. I am in B.Tech and
want to pursue my MS in Abroad. Can you please
tell me about the interest rates taken by
Bank for applying for Education Loan for foreign studies?

The interest rate is fixed by the Reserve Bank of India and it is same for all the banks under Government of India certification. The interest rate fluctuates from time to time. However, the rate of interest of SBI is 1% lesser than other banks. The interest rate usually fluctuates between 13-14.5 percentage and the interest is computed as simple interest for the entire study period.

Education loan is granted to Indian National for pursuing higher education in India or Abroad were admission has been secured. State Bank of India were providing loan maximum of Rs. 30 Lakhs for studies in abroad. The interest rate is given below.

* For loan up to Rs. 4 Lakhs interest is 13.35% p.a.
* For loan above Rs. 4 and up to 7.5 lakhs interest is 13.60% p.a.
* For loan above Rs. 7.5 Lakhs interest rate is 11.60% p.a.

The education loan interest rates to study board varies from one bank to another bank. Generally Central government banks like SBI, SBH are offering education loan at interest rate of 11.60% per annum and it may increase up to 15% per annum in some banks like HDFC, etc. So, I suggest you to take education loan from any governmant banks like SBI, SBH, etc.