Which Educational Loan Is Best For Students & Why? List Of Best BankSeptember 2, 2021
Pursuing higher education with a good college definitely has its edge. But, unfortunately, everyone does not have the luxury that those colleges demand. Therefore, students opt for educational loans to cope up with their higher studies. The question is which education loan is best for students?
But, these loans can later turn up to huge piles of burdens that you don’t want to have on your shoulders.
Further, loans help you to build confidence and act as a safety guard for all your expenses. They help you to attain higher studies and give you an advantage in gaining knowledge.
Welcome readers to our today’s blog on which student loan is best. We will discuss different types of loans that students can take.
And, which loan should you prefer according to your background? Moreover, you will understand the best loan repayment options available to you. So, let us start exploring the topics.
- 1 Which student loan repayment plan is best for student?
- 2 1. HDFC Educational loan for Indian Education:
- 3 2. Karnataka Bank education loan:
- 4 3. PNB Saraswati scheme for higher education in India:
- 5 Which bank is best for a student loan?
- 6 i. IDBI Bank-
- 7 ii. HDFC Bank-
- 8 iii. Punjab National Bank (PNB)-
- 9 iv. State Bank Of India (SBI)-
- 10 FAQ:
Which student loan repayment plan is best for student?
Tons of job opportunities after an MBA wait for you. And you are stuck for money. Here comes an education loan to rescue your career. We all agree that the moment we receive loans in our pockets. Our emotions became heightened and we couldn’t think clearly.
Because at that time our mind is on a different kind of verge. But, realizing that the money that you just received has a deadline waiting on the calendar to be paid.
So, Banks offer you with simple repayment option and standard instruction(SI) option. They also offer pocket-friendly EMI options to pay your dues in time.
Choosing the right repayment plan for your loan can save you from a lot of trouble. I will explain below some plans and schemes that you can take note of. Moreover, these plans are best to avail with repayment options best suitable for you. No more confusion on which education loan is best for students? Let’s read.
1. HDFC Educational loan for Indian Education:
Here, you get a tenure of up to 15 years to return the loan amount from the due date. The moratorium or holiday period is of course + six months or 1 year.
And, another is as stated by the bank in your loan scheme. However, you can also choose the EMI repayment option as per your needs.
You can start prepayment anytime in this duration and keep monthly installments. So, it can benefit you in interest rates and keeping a healthy profile. You also get tax benefits with a rebate of interest that you pay.
2. Karnataka Bank education loan:
Karnataka Bank also offers surprising tenure for repayment of loans sanctioned. Here, you get 15 years to complete your loan payment with benefits.
You also have the option to increase the moratorium period. So, if by any chance you cannot complete the course in due time. You will still enjoy 2 years of the holiday period in your loan amount.
But, still, your interest will be added to your loan amount till you start paying your dues. You have an EMI option available for fixed monthly charges from your bank account.
Stop stressing about which education loan is best for students? Choose according to your convinience.
3. PNB Saraswati scheme for higher education in India:
PNB bank is considered by many students while applying for loans. It is known to give you various benefits under their schemes and has no hidden charges.
You get 15 years to repay your loan amount with ease. Moreover, the repayment Holiday is allowed with a course period + 1 year.
You have an EMI option to pay your monthly dues. And, there are no prepayment charges for the applicant in this scheme.
Which bank is best for a student loan?
When searching for loans there are various bank names at the table. So, which one should you consider best for yourself?
Depending on your background and destination for your further studies. Banks can offer loans from a minimum of 1 lakh that can go above 10 lakhs.
Students asking for loans above 7 lakhs have to provide collateral. Further, banks offer some benefits in the loan that you can enjoy.
So, how to choose your education loan wisely, and which bank can fulfill your needs? Therefore, I have explained below some popular bank names with their process. You can compare and find yourself the best plan for shaping your future.
i. IDBI Bank-
IDBI Bank offers Standing Instructions (SI) repayment options for periodic installments instructed by customers. The date is fixed and the bank charges every time at that particular date.
Moreover, it offers you as low as a 6.80% interest rate that goes up to 10% beyond. So, it depends on your need and how much expenses are on the college.
It offers loans for non-vocational courses, specialized courses, and management quotas. However, you also get a skill loan scheme with a loan amount of 5,000 minimum to 1,50,000 maximum.
The repayment period ranges from 1 year in small loans to 15 years in big loans. It also offers loans for students going abroad.
ii. HDFC Bank-
HDFC bank is considered by many students for taking loan applications. Because it can offer you loan up to 7.5 lakhs without collateral and above 25 lakhs with collateral.
It offers loans for foreign which can be applied to 2100 universities across 34+ countries. Moreover, it has the moveable collateral option for fixed deposits with HDFC bank. The rate of interest for loans depends on your need and amount.
Further, interest rates start from 9.30% including taxes. And, your loan repayment period can go up to 15 years excluding the repayment holiday period. It gives you 30 days and notices to change your services if you are not happy.
You have an EMI option for periodic installments of the loan. Moreover, you also get tax benefits after a successful repayment period under the 80-E of the income tax act. Customer support is also good in terms of others.
iii. Punjab National Bank (PNB)-
Punjab National Bank is another popular government bank that offers you various schemes. And, it also holds the title for best loan bank that you can consider.
It offers you 13+ schemes to consider for your future education. The rate of interest starts from 6.80% plus spread interest. The loan amount of 7.5 lakhs comes with collateral as well as without collateral.
You can sanction a loan of amount up to 30 lakhs given collateral. It also has attractive benefits in tax and a 1% rebate after a successful repayment period.
You can enjoy repayment holiday of course period + 1 year. So, below I have mentioned some schemes you can consider.
- PNB Vidya Lakshmi
- Dr. Ambedkar Central Sector Scheme for interest subsidy on educational loan.
- PNB Pravasi Shiksha loan
- PNB Saraswati
- PNB Uddan
- PNB Pratibha
- PNB Honhaar for higher studies in Delhi
iv. State Bank Of India (SBI)-
SBI is another best option for taking educational loans. It offers loans for part-time courses in its top 15 selected institutions.
Further, you can receive a loan amount of 4-10 lakhs and can go above 30 lakhs depending on your need and background. The interest rate offered by SBI is 9.30% with tax applied. So, the loan of 4 lacks amount does not need any collateral. Still, in a dilemma which education loan is best for students? Let me know your confusion in the comment box.
But, the loan amount of above 7.5 lacks the need to provide tangible security. Moreover, you have to margin of 5% in India, 15% in abroad loan scheme of the amount above than 7.5 lacks.
You get the EMI option to repay your loans in the principal amount. Below are some schemes offered by SBI-
- Pardho Pradesh scheme
- SBI student loan scheme for India as well as abroad.
- SBI abroad scheme
- SBI scholar loans(IIT’s, IIMs, NIT’s, etc.)
These banks are best for loan consideration-
i. HDFC Bank loans
ii. IDBI bank servicer
iii. Karnataka Bank
iv. SBI servicer
v. PNB Bank
When choosing for student loan low-interest rate loans are best that offers you a long period to pay your dues. You can also increase your repayment holiday for 1-2 years in those schemes.
IDBI Bank and Karnataka Bank offer you as low as a 6.80 % interest rate and Karnataka bank offer you 9.80% that can go up to 12-13% interest. Depending on your need and education you can choose the best plan and have a rebate if you can pay all loans on time. They have a margin of 5% on loans above 4 lakhs and 7.50 lakhs.
After that, you can choose SBI or HDFC bank if you are not satisfied their interest rates can surprise you.