When looking for an education loan for higher studies, the education loan interest rates are one of the most important factors to consider. The education loan interest rates can differ between public banks, private banks, and non-banking financial companies (NBFCs). Factors like the loan amount, your credit score, repayment period, and the co-applicant’s income all affect the interest rate. Understanding these rates is crucial for making the right choice.<\/p>\n\n\n\n
In this guide, we\u2019ll delve into everything you need to know about education loan interest rates, including a comparison of different lenders, types of interest rates, and helpful tools like interest rate calculators.<\/p>\n\n\n\n
Education loan interest rates refer to the interest charged by the borrower on the amount of loan availed by the students. It is calculated by considering RLLR (repo-rate linked lending rate) and the spread determined by the lending institution. Various factors affect the interest rate calculation on education loans, thus different banks have different effective interest rates for the borrowers.<\/p>\n\n\n\n
Major public and private sector banks like State Bank of India (SBI), Bank of India, ICICI Bank, HDFC Bank, Union Bank of India etc provide the lowest education loan interest rates. They offer competitive rates of interest ranging from 8.50% to 11.45% p.a. The table below shows the interest rates on education loans from different lenders.<\/p>\n\n\n\n
The table below lists the bank names along with their Education Loan Interest Rates and processing fees.<\/p>\n\n\n\n