Education and Career Forum

I want to study MS with education loan in Abroad. But I am confused 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?

Public sector banks in India offer education loans to eligible students who wish to study abroad. The interest rates for education loans vary across banks and depend on the loan amount, repayment period, and creditworthiness of the borrower. Typically, education loans for studying abroad have higher interest rates compared to those for studying in India.

As of February 2023, the interest rates for education loans to study abroad in some of the popular public sector banks in India are as follows:

1. State Bank of India (SBI) - 8.50% to 10.55%
2. Punjab National Bank (PNB) - 8.95% to 10.95%
3. Bank of Baroda (BOB) - 7.50% to 11.50%
4. Canara Bank - 7.40% to 10.40%
5. Union Bank of India - 8.10% to 10.60%
6. Bank of India (BOI) - 7.85% to 9.35%

To recover the loan amount, the borrower needs to repay the loan in Equated Monthly Installments (EMIs) after the moratorium period ends. The moratorium period is the period during which the borrower is not required to make any repayment and typically lasts until the course is completed or the student gets a job, whichever is earlier. The EMI consists of both principal and interest payments and is calculated based on the loan amount, interest rate, and repayment period. The borrower needs to repay the loan in full along with interest within the stipulated repayment period. Failure to repay the loan on time may result in penal charges and affect the credit score of the borrower.