IndusInd Bank is one the major private sector banks in India. It provides personal loans for education at affordable interest rates to students who want to study abroad or in India. IndusInd Bank’s education loan interest rate starts from 10.49% p.a, but depends upon various factors.
IndusInd Bank personal loan for education is provided to students or individuals flexibility to use the loan amount as per their own requirements. The bank will transfer the money directly to the student’s account. Let’s check and understand all about IndusInd Bank education loan interest rate and how it is determined by the bank.
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What is the IndusInd Bank Education Loan Interest Rate?
IndusInd Bank provides personal loans for education up to INR 50 lakh. You can get the loan at an interest rate starting from 10.49% per annum. The processing fee of the personal loan from IndusInd Bank is up to 3.5%. The interest rate depends upon a lot of factors like net loan amount, credit score, credit history, repayment period, income of the family etc.
| Loan Details | IndusInd Bank Education Loan |
|---|---|
| Maximum Loan Amount | Up to INR 50 lakh |
| Interest Rate | Starting from 10.49% p.a. |
| Processing Fee | Up to 3.5% |
| Collateral Requirement | No collateral required |
| Loan Tenure | Flexible tenure options |
| Interest Calculation Method | Reducing Balance Method |
Key points about the IndusInd Bank education loan interest rate:
- The interest rate is determined by the bank considering the RLLR (repo-linked lending rate) and the spread as per the bank’s internal policy.
- The bank may allow some negotiation on the interest rate subject to the terms and conditions of the bank.
- As there is no collateral required for the personal loan for education, you may get a high-interest rate compared to secured loans.
Also Read: Check here and understand all the details on Axis Bank Education Loan Processing Time
IndusInd Bank Personal Loan for Education: Interest Rate Calculation
IndusInd Bank personal loan for education interest rate is calculated using the reducing balance method. The reducing balance means that after each payment (monthly EMI or part payment), the interest is calculated on the net outstanding balance. Check more details below:
- In the Reducing Balance Method, the interest is calculated on the outstanding principal amount that is reduced with each EMI payment
- IndusInd Bank may calculate interest on a monthly basis also. This means that the outstanding principal amount is recalculated at the end of each month based on the EMI payment made
- The interest rate is applied to the outstanding principal amount to determine the interest portion of each EMI
- The tenure of the loan also affects the calculation. A longer tenure attracts more interest paid overall, while a shorter tenure means higher EMIs but less interest paid in total
- The Equated Monthly Installment (EMI) is calculated using a formula that takes into account the loan amount, interest rate, and tenure
- IndusInd Bank provides a loan amortisation schedule that shows the repayment of the loan over the tenure. This schedule shows how much amount from each EMI goes towards interest and how much towards principal repayment
Also Read: Looking for a safe money transfer? Check here all about IndusInd Bank International money transfer
Factors Affecting the Interest Rate of IndusInd Bank Education Loan
There are a lot of factors that affect IndusInd Bank’s education loan interest rate. The bank offers collateral-free personal loans for education to the students at affordable rates but sometimes it may get high or low depending upon certain factors. Understanding these factors can help you to know the loan application process more effectively and secure a better rate. Here are five key factors that affect the interest rate of an IndusInd Bank education loan:
Credit Score
The credit score of a borrower shows the creditworthiness and repayment behaviour. It reflects the ability to manage debt responsibly. A higher credit score shows the bank that the student is a low-risk borrower, and as a result, the student may be offered a lower interest rate. Similarly, if the credit score is lower, the bank may charge a higher interest rate.
Loan Amount
The loan amount affects the IndusInd Bank education loan interest rate. Larger loan amounts may attract lower interest rates, as banks earn more interest income from higher loan amounts and offer competitive rates to attract borrowers.
Loan Tenure
The loan tenure or repayment period impacts the IndusInd Bank education loan interest rate. A longer tenure typically results in a higher interest rate, as the bank assumes more risk over an extended period. Shorter tenures mean higher EMIs but lower total interest paid.
This was all about the IndusInd Bank education loan interest rate to study abroad. The bank provides collateral-free personal loans to students up to INR 50 lakh.
FAQs
The interest rate for IndusInd Bank education loan starts from 10.49% per year. This may vary depending on the loan amount, repayment period, income of the applicant etc.
The interest rate is determined based on factors like net loan amount, credit score, credit history, repayment period, and family income. The bank also considers its repo-linked lending rate (RLLR) and internal policies.
IndusInd Bank may allow some negotiation on the interest rate, subject to its terms and conditions.
Interest on education loans from IndusInd Bank is calculated using the reducing balance method. This means that after each payment, the interest is calculated on the remaining outstanding balance.
Factors like credit score, loan amount, loan tenure, and economic conditions can affect the interest rate of IndusInd Bank’s education loan. Generally, a higher credit score and larger loan amounts may qualify for lower interest rates.
IndusInd Bank may provide preferential interest rates for female students to encourage higher education. It is advisable to check with the bank for the latest offers.
IndusInd Bank may charge a prepayment penalty if the loan is repaid before the tenure ends. The exact charges depend on the bank’s policy and the timing of the prepayment.
Yes, having a financially strong co-applicant with a good credit score can help in securing a lower IndusInd Bank education loan interest rate.
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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