Education and Career Forum

Respected Sir,
I am a Medical student, studying in 12th standard with PCB. I have also applied for various MBBS entrance exams and willing to do MBBS for further studies. But I want to take an Education Loan for doing MBBS. I would like to know that is there a range on the rate of interest charged on Bank Education Loan? Please tell me asap!

Yes, the Interest rate is charged differently for loans upto 7.5 lakhs and for loans above 7.5 lakhs. For girl candidates, most of the banks offer 0.50% concession on Rate of Interest of Education Loan. The Rate of Interest on Education loan varies from Bank to Bank. The rate of interest of Education loan in one of the top banks SBI is mentioned below :-

--> For loans upto Rs.7.5 lacs :- 2% above MCLR, currently 11.15% per annum
--> For loans above Rs.7.50 lacs :- 1.70% above MCLR, currently 10.85% per annum

You are studying in 12th standard and willing to do MBBS course for further studies. You want to take the education loan for MBBS degree.

**Basically the interest rates charged for education loan varies bank to bank. Each bank has different interest rate for education loan. Normally each bank has interest rate in the range of 10-15%.

**So in my opinion you have to apply for education loan from nationalized bank such as SBI, PNB etc. as these banks have lower rate of interest in comparison to private banks such as HDFC, Axis bank etc.

Yes, there is a range between which the rate of interest of education loan fluctuates. The rate of interest varies from time to time as per orders from Reserve Bank of India and Central Government. Usually the rate of interest fluctuates in the range of 13-14.5%. However, if you get subsidies, the rate of interest will be decreased for your education loan. You need to comply with the fluctuating rate of interest till the time EMI is fixed for repayment.The interest is computed as simple interest for the entire study period.