Education and Career Forum

Hello Everyone,

I want to know that the rate of interest which all banks takes after providing an Education Loan is same? I have heard that it is same but couldn't find the suitable answer. Please tell me. I just need this information now to proceed further.

Thanks!

Yes, the rate of interest is same for almost all the banks. This is because it is fixed by the Reserve Bank of India to which every bank must adhere. However, the rate of interest fluctuates from time to time on the basis of orders from Reserve Bank of India which usually depends on the market conditions and the orders from the Central government. The rate of interest fluctuates in the range of 13-14.5 percent. However, State Bank of India offers one percent lesser interest than other banks but has stricter terms and conditions of education loan.

The general rate of interest at which most of the banks lend education loan is 13.5% per annum. This rate of interest may vary a little bit from bank to bank like 0.5% more or less.

There is no need to pay interest while pursuing course. Once your course is over, you can pay loan and interest with one year gap given for you without interest. Interest subsidy is given in case of Education loan.

No, the interest rates for educational loan for different banks are different. It’s totally depends upon bank to bank.

>>Interest to be charged at rates linked to the Base rate as decided by individual banks. It is not fixed for each bank.

>> If you take educational loan from a government bank then you have to pay more interest as the interest rate for private banks such as HDFC, Axis bank are more than government banks such as SBI, Central bank of India etc

>>If you take educational loan greater than 4 lakh then you have to pay one percent more in any bank.

>>A relaxation of 0.5% in interest will be given to girl candidates.

Yes, all banks doesn't have same interest rates towards educational loan.

The rate of interest depends on various factors which are based on:

a) Educational institute

b) Loan amount

c) Period of time

The interest rates are frequently changed by the banks. However, it is advisable to check the official website of each and every bank to get a clear idea on interest rates.

For SBI the rate of interest is 11.15 - 11.65%

For Bank of Baroda the rate of interest is 9.65 - 12.15%

For Canara bank of India the rate of interest is 11.15 - 11.65%

What will be the interest rate if I take education loan to study LLB after clearing CLAT?