Education Loan Interest Rates

Education Loan Interest Rates

Many factors determine the attractiveness and acceptability of any standard loan product, a competitive interest rate being one of the more important factors in this regard. In India, education loans usually command an interest rate from anywhere “Between” 12.00 % to 16.00 %, depending on the bank’s base lending rate and other factors. The base lending rate for banks in India, as directed by India’s apex bank, the RBI, is around 9.00- 10.00%. Some private education loan lenders/ financial institutions offer interest rates that are based on their own base lending rates (often very dynamic) and calculation of interest rates are accomplished on a case-to-case basis.

Education Loan Application Checklist:

No. Things to Do. Yes/No?

1. Confirm upon applicable educational course (University, location, costs, etc.)  

2. Compare all available educational loans on BankBazaar.  

3. Basic Documents to Keep Ready- Address, Age and Nationality Proof.  

4. Attested Marks Cards- Starting from SSLC/10th Std.  

5. Admission Letter as issued by the admitting School/College/Institute.  

6. All essential documents issued by the admitting School/College/Institute, including prospectus, breakup of fees, etc.  

7. Letter from admitting School/College/Institute that stipulates non-availability of hostel facility.  

8. Income Proof- Bank statements (6 months), Salary slips (3 months) & ITR of Parent/Guarantor.  

9. Passport sized photographs (2 nos. each) for applicant, guarantor and parent.  

10. Studying Abroad- Employment Contract.  

11. Studying Abroad- Entry Permit (Validity, issuing authority etc., must be noted).  

12. Studying Abroad- Admission letter & I-20 form from Foreign Institution.  

13. Studying Abroad- Passport & Visa.  

14. Documents confirming upon the security/collateral.  

15. Substantiating documents if immovable property is offered as security.  

16. Affidavit confirming that NO education loans have been availed or defaulted on with regards to other banks or financial institutions.  

17. If Employed- Resignation letter, Acceptance of Resignation letter or Sanction letter for study leave.  

How to calculate EMI interest rates for education Loans?

The generally tedious task of calculating Equated Monthly Installments (EMI) on your subscribed education loan is easily accomplished (minus the sweat) with the friendly Education Loan EMI Calculator on BankBazaar. This useful tool offers the following advantages,Saves Time- Calculate your applicable EMIs, for varying inputs, in mere seconds! Massive saving of time and patience.

Know it All- Unearth all the information you need about your education loan, including applicable EMI amount, amortization details, etc. Find your Sweet Spot- Calculate EMI for different interest rates and applicable tenures. Find the combination that works the best for you.

100% Free- Using this handy tool is completely free of cost.