Education loans are sanctioned as a floating-rate retail loan, which are linked to an external benchmark. For most banks, this external benchmark is the repo rate, which means that education loans have become costlier since the Reserve Bank of India (RBI) increased the repo rates in the past few months. Cumulatively so far, the central bank has hiked the key policy rate by 140 basis points.
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Some public sector banks are still offering lower interest rates on education loans.
Here are the top 8 banks that are offering the lowest interest rates on education loans:
The Central Bank of India offers various schemes for student loans that start from 6.85 percent interest rate to 9.0 percent interest rate depending on the loan amount and nature of course/institute.
The Bank of Baroda offers student loans under various schemes with interest rates ranging from 7.40 percent to 10.50 percent depending on the loan amount and nature of course/institute.
The State Bank of India offers student loans under various schemes with interest rates ranging from 7.50 percent to 10.05 percent depending on the loan amount and nature of course/institute.
4. Bank of Maharashtra
The Bank of Maharashtra offers education loans under various schemes with interest rates ranging from 7.70 percent to 8.80 percent depending on the loan amount and nature of course/institute.
The Indian Bank offers education loans under various schemes with interest rates ranging from 8.20 percent to 10.20 percent depending on the loan amount and nature of course/institute.
The Punjab and Sind Bank offers education loans under various schemes with interest rates ranging from 8.40 percent to 10.50 percent depending on the loan amount and nature of course/institute.
Punjab National Bank offers student loans under various schemes with interest rates ranging from 8.40 percent to 9.90 percent depending on the loan amount and nature of course/institute.
8. Bank of India
The Bank of India offers student loans of up to 7.5 lakhs at an interest rate of 1 year MCLR + 1.70 percent which comes out to be 9.05 percent and for loan above 7.5 lakhs the interest rate is 1 year MCLR + 2.50 percent which is 9.85 percent.
