Education Loan Interest Rates

Most banks will give you an education loan for a graduate, post-graduate or master’s degree course. A few may even consider diploma, or professional courses provided you have enrolled from the top-tier universities abroad.

You can apply for an education loan any time during your journey of applying to universities and getting admitted.

Yes. According to the Income Tax Act of India, you can claim a deduction on education loan interest under Section 80E.

Yes. You may be able to transfer your education loan from one bank to another if you want to benefit from a lower interest rate.

Education loan interest is typically paid on a monthly basis once the repayment period begins. However, some loans offer a moratorium period during which you might not have to make any payments or only pay interest.

The interest rates on education loans can vary based on the lender, the borrower's creditworthiness, the course being funded, and other factors. Rates generally range from around 7% to 15% per annum, but it's advisable to check with specific lenders for the most current rates and terms.

Education loans are available for a wide array of courses, including:

• Undergraduate and postgraduate degrees.
• Professional degrees like MBA, engineering, medicine, and law.
• Vocational courses and skill development programs.
• Recognized courses from international universities.

The EMI for an education loan can be calculated using the formula [P*R*(1+R)^n]/[(1+R)^n-1]. Alternatively, online EMI calculators offered by banks and financial institutions can simplify this process.

Typically, lenders do not offer interest-free education loans. However, certain government schemes or non-profit organizations may provide interest subsidies or interest-free loans to students from economically weaker sections. It's worth exploring specific government programs or scholarship opportunities that might reduce the interest burden.

Yes, there are tax benefits available on education loans under Section 80E of the Income Tax Act in India. You can claim a deduction for the interest paid on an education loan under Section 80E.