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State Bank of India, Punjab National Bank offer education loans at 6.9%

Started by NiveRoshni, Jan 27, 2021, 06:25 PM

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NiveRoshni

State Bank of India, Punjab National Bank offer education loans at 6.9%



COVID-19 pandemic hit students preparing to study abroad hard, with many overseas universities suspending on-campus classes and shifting to the online mode instead. While some chose to defer their enrolment to the next academic year, others accepted hybrid classes and some decided to go ahead with their plans to study at their university campuses. In India, too, remote learning continues to be the order of the day so far.

While participating in lectures and sessions might have been difficult during COVID times, the process of funding education has certainly become easier. Thanks to the benign interest rates in the country currently, education loans are hovering around 6.8-7.15 percent, as per data from Bankbazaar.com. As is evident from the list, all top ten banks that offer cheapest education loan rates are public sector banks.

The cheapest loans

Union Bank of India offers the cheapest loans, starting at 6.8 percent, closely followed by Central Bank of India. The latter charges 6.85 percent for education loans of Rs 20 lakh with a repayment tenure of seven years. India's largest lender State Bank of India's education loan rates are a tad higher at 6.9 percent.

Interest rate on education loans for all listed (BSE) public and private sector banks have been considered for data compilation. Banks for which data is not available on their websites have not been considered.  Data collected from respective banks' websites as on January 21, 2021. Banks are listed in ascending order on the basis of interest rate, that is, bank offering lowest interest rate on education loan (amount up to Rs 20 lakh) is placed at top and highest at the bottom. Lowest rate offered by the banks on loan up to Rs 20 lakh is considered in the table. EMI is calculated on the basis of interest rate mentioned in the table for Rs 20 lakh loan with tenure of seven years (processing and other charges are assumed to be zero for EMI calculation).


Source : https://www.moneycontrol.com/news/business/personal-finance/state-bank-of-india-punjab-national-bank-offer-education-loans-at-6-9-6400961.html/amp

TerriSkarda

Educational loans with state support help you get a quality higher education and a good job. Do you agree with that?

TerriSkarda

Educational loans with state support help you get a quality higher education and a good job. Do you agree with that? Because I believe that in the case of an educational loan, there is state support, which provides low-interest rates. And what's particularly convenient is that all the time the student is studying, they don't pay the body of the loan, only the interest. Also, thanks to the preferential conditions, the amount of monthly payments on an educational loan is absolutely acceptable to most students. In my opinion, an educational loan should be a maximum of 4%. For me, 6.9% is a bit much. But it is good that I know a Mortgage Broker Luton, who was able to explain how to do the right thing so that I would not overpay.

federica25

I'm so glad there are some opportunities for students to help them with cheap loans! Unfortunately, not every parent can afford to pay for their child's studies, even abroad. My friend, Alice, last year, with the help of Mortgage Advice Leicester, sent her daughter to study abroad. Her daughter always dreamed of being a designer and studying in France. Now she is learning there, living her dream! And, of course, we wish to offer our children the best. That's amazing that there are different places where we can go to ask for help!