Copyright news18
Education Loan Interest Rate Comparison: Getting a good education is becoming costlier nowadays. Watching your children crack an entrance examination of a renowned college brings cheers for parents, though it also triggers a spiral of expenditures for them, including tuition fees, hostel fees, and other miscellaneous expenses. Nowadays, the money required to have a good education goes into several lakhs and, in some colleges and fields, over 1 crore. The sudden requirement of a huge amount of money forces parents to resort to education loans to fulfill their child’s dream and provide a quality education. Several private and public lenders, along with non-banking financial companies, offer education loans to cater needs of money for educational purposes and their related purposes. Education loans also come with a certain moratorium period after completing the course, allowing students to repay loan amount once they settle into their jobs. PM Vidyalaxmi Scheme Indian government runs “Pradhan Mantri Vidyalaxmi” (PM-Vidyalaxmi), a Central Sector Scheme to financial support to meritorious students. The scheme helps those meritorious students who get admission in the top 860 quality Higher Educational Institutions (QHEIs) of the nation, to access collateral-free education loans, with interest subvention benefits linked to annual family income. The Scheme is applicable for all Scheduled Banks/Regional Rural Banks (RRBs)/Cooperative Banks. These lenders, however, charge interest rates on a half-yearly or yearly basis, with a buffer period. Checking interest rates before taking an education loan is important to get the best offer you can have. Education Loan Interest Rate Comparison: Interest Rate State Bank of India 7.15% – 10.15% p.a. 10.50% p.a. 9.00% – 10.25% p.a Punjab National Bank Bank of Baroda 7.10% – 9.95% p.a. Canara Bank 7.10 – 10.35% p.a. Tax Benefit On Education Loan Section 80E will let borrowers deduct the interest you pay on your student loan. This benefit is only accessible to individual borrowers and is only available for higher education.
