Factors Affecting Indian Bank Education Loan Interest Rate

The interest rate of any bank is affected by a lot of factors including RBI’s lending policy, economic scenario, type of loan, type of interest rate etc.

When benchmark rates change, it affects the interest amount you have to pay on your education loan.

1. Base Rate/External Benchmark Rate

If you borrow a huge amount, the bank might offer you a lower interest rate.

2. Loan Amount and Tenure

If you provide something valuable as collateral or basically as security, or your co-applicant has a stable financial income, you can get lower interest rate.

3. Collateral and Co-applicant

The interest rate calculations are based on the policy rate fixed by the RBI and the additional spread as decided by the bank.

Indian Bank Education Loan Interest Rate Calculation

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