Education and Career Forum

I want to study MDS with education loans. But I am confuse about the interest rates. I want to know that what are the interest rates of public sector banks for education loan. Also let me know the the recovery process?

The interest rate that public banks charge ranges from 8.5% to 10.5%.*
SBI Bank - 9.5% - 10%
Punjab National Bank - 9.45%
Bank of Baroda - 9.75% - 11%
Canara Bank - 9.95% - 10.45%.

The repayment period for most of the banks is 10 to 15 years.Different schemes are available for different banks to repay the loan amount. You can choose them as per your convenience.

Interest rates are different in every public sector banks but ROI of education loan is almost around or same in all the banks if there is a difference then the difference will be in points so you do not have to worry because I have listed the ROI of education loan of various public sector banks :

State Bank of India : 9.15% as per MCLR
Punjab National Bank : Base Rate + 3% upto 3 lakhs and Base rate + 4% upto 7.50 lakhs
Bank of Baroda : 11.10% upto 4 lakhs course in India
Bank of India : Base rate + 3 % upto 7.50 lakhs
Canara Bank : Base rate + 3 % for both courses in India and Abroad
Dena Bank : 10.10% for loan amt. upto 7.50 lakhs

You can also find the current position of the interest rates of various banks for education loan and compare then select a good and apply for the loan as per procedure asked by the bank.

Disbursement and Recovery Process of Education Loan : A candidate will be paid the loan amount through either DD or NEFT/RTGS transfer to the name of the account of the institute in which he/she is studying and candidate have to present original fee receipt then the DD on the name will be issued by the bank of the same amount given in the receipt.

Banks have also the right to transfer the fee amount to the bank account of the institute so there are both ways of disbursement.

If we come to recovery then you must know that interest will be calculating regularly in your loan but when your degree/course/diploma will be completed you will have to start the EMI - Equated Monthly Instalment which you have to pay every single month on regular basis.

After your degree whether you get the job or not but you have to pay EMI and clear the loan because this loan is for education so you will be relaxed while study but not after completion of the study.