Education Loan at 0 Interest: An education loan is one of the best financial sources to fund your study abroad journey. However, the most important factor which should be considered at the time of applying for an education loan is the effective interest rate on an education loan. The interest rate varies depending on various factors such as the scheme of the loan, bank or financial institution, amount of loan, type of loan (secured or unsecured) etc. But is it possible that you can get an education loan at a 0% rate? Let’s find out and know if is it a myth or a fact.
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Education Loan without Interest Rate
So the answer to the question of whether you can get an education loan at 0% interest rate is NO! You cannot get an education loan without an interest rate from any bank or financial institution in the country. Higher or less, you have to pay an interest rate on an education loan. In some states there are schemes launched by the government under which you can get an education loan at a lower interest rate compared to the existing market but no way you can avoid paying interest on the loan.
Also Read: Check here all about KBL Vidyanidhi Education Loan
Is There Any Exception?
So if you are trying to know if is there any exception under which you can get interest-free loans, then here is the answer. Yes, in one case it is available. An organisation named Shri Mahavir Jaina Vidyalaya (SMJV) offers interest-free education loans to outstanding students belonging to the Jain community who wish to pursue higher education either in India or abroad. If you are a member of the Jain community and are seeking financial support to study abroad, you can apply for the SMJV interest-free education loan. Check more details below:
- To qualify for an interest-free education loan from Shree Mahavir Jaina Vidyalaya, the student must be a Jain by birth.
- Education loans at 0% interest are available under higher education loan scholarships and foreign education loan scholarships.
- Female students who are Jains by birth and are pursuing a Chartered Accountancy course are also eligible.
How to Get Cheaper Education Loans?
To get cheaper education loans, start by researching banks or lenders that offer low interest rates and terms. Look for scholarships and grants that can reduce the loan amount needed. You can also consider applying for interest-free education loans provided by organizations like Shree Mahavir Jaina Vidyalaya if you belong to the Jain community. If you have a good credit score or a creditworthy co-signer then you may get lower interest rates.
Also Read: Check here all about Rajasthan Education Loan Schemes for Minorities
FAQs on Education Loan at 0 Interest
No, you cannot get an education loan at a 0% interest rate from any bank or financial institution in the country. All education loans come with some interest, although some government schemes offer lower rates.
Yes, there is an exception. Shri Mahavir Jaina Vidyalaya (SMJV) offers interest-free education loans to outstanding students who are Jain by birth and wish to pursue higher education in India or abroad.
To qualify for an interest-free education loan from SMJV, the student must be a Jain by birth. Female Jain students pursuing a Chartered Accountancy course are also eligible.
To get cheaper education loans, research lenders offering low interest rates, look for scholarships and grants to reduce the loan amount needed, and consider applying for interest-free loans from organisations like SMJV if you are eligible.
While no bank or financial institution offers a 0% interest rate, some government schemes in certain states provide education loans at reduced interest rates.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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