# Public Sector Banks Education Loan Products: A Detailed Comparison
Author: Nikhil Jain
Author URL: https://blog.foreignadmits.com/author/nikhil-jain
Published: 2022-06-03
Category: Loans & finance
Category URL: https://blog.foreignadmits.com/category/loans-and-finance
URL: https://blog.foreignadmits.com/public-sector-banks-education-loan-products-a-detailed-comparison

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Studying abroad is a dream for every student. In the same way, getting an **education loan** is a little tricky. Not only do you have to search for a product that covers your expenses, but you also have to search for one that doesn’t blow a hole through your pocket. ForeignAdmits helps you in finding the best **Public Sector Banks** **Education Loan** Products. **[Click here to signup](https://foreignadmits.app/ancillary-services)**.

We are now running the offers on our website for our students:-

- Do you GIC with us and win ₹5,000 off on your flight tickets (for the first 100 users).
- Avail our US bank account through us and get yourself a US-based credit card and SIM card.
- If you already have an approved loan, then we’ll be able to get a 0.25% lower interest rate.
- Refer your friend for GIC issuance and get CAD 25, while your friend also receives CAD 25.

After all, an **[education loan](https://blog.foreignadmits.com/education-loan-all-you-need-to-know/)** has been a financial responsibility for at least a decade, and you should select a product that will help you finance your education while saving your money.

Every public sector bank in India offers an **education loan in India**. However, not every bank offers a **loan product** for [education abroad.](https://blog.foreignadmits.com/14-benefits-of-studying-abroad-in-college/) Here are a few banks listed below.

[Finding Overseas Education Loan Vs Self Funding](https://blog.foreignadmits.com/financing-overseas-education-education-loans-vs-self-funding/)

## **Top banks for education loan in India**

- Axis Bank
- HDFC Bank
- Bank of Baroda
- ICICI Bank
- Canara Bank
- Central Bank of India
- Bank of Maharashtra
- Federal Bank
- IDBI Bank
- Kotak Mahendra Bank
- Indian Overseas bank
- Punjab National Bank
- State Bank of India
- Union Bank of India
- UCO Bank
- United Bank of India

## **Best Banks for Education Loan**

**Name of the bank****Loan amount limit****Interest rate****Processing Fees****Loan tenure****Moratorium period****Margin Money****State Bank Of India**For India – Up to INR 20 Lakhs

For abroad – Up to INR 1.5 croreFor India – 9.55%

For abroad – 8.8% (Men); 8.3% (Women)INR 10,000 + GSTMaximum 15 yearsCourse period + 6 months10%**Bank of Baroda**For India – Up to INR 60 Lakhs

For abroad – Up to INR 80 lakhsFor India – 8.85% (Men); 8.35% (Women)

For abroad – 7.75% (Men); 8.25% (Women)INR 10,000 + GSTMaximum 15 yearsCourse period + 12 monthsAbove INR 4 lakhs – 10%**Canara Bank**Up to INR 40 lakhs6.90% – 8.90%NilMaximum 15 yearsCourse period + 12 months5% to 15%**Bank of India**For India – INR 10 lakhs

For abroad – INR 20 lakhs8.85% – 9.85%For India – NIL

For abroad – INR 5000Maximum 15 yearsCourse period + 12 months15%**Central Bank of India**No upper limit9.0% (Men); 8.50% (Women) Loans upto INR 10 lakhs – INR 500

Loan above INR 10 lakhs – INR 100010 – 15 yearsCourse period + 6 or 12 months15%**Indian Overseas Bank**For studies in India – INR 30 lakhs

For abroad studies – INR 40 lakhs10.05%Nil15 yearsCourse period + 12 months5% to 15%**IDBI Bank**INR 20 lakhs8.65% – 9.15%For India – NIL

For abroad – INR 5000 (refundable)10 – 15 yearsCourse period + 6 monthsUp to 15%**Karur Vysya Bank**For India – INR 10 lakhs

For abroad – INR 20 lakhs10.75% to 11.75%NilUp to 7 yearsCourse period + 6 or 12 monthsUp to 15%**United Bank of India**For India – INR 10 lakhs

For abroad – INR 20 lakhs10.65% – 11.40%Nil10 – 15 yearsCourse period + 6 or 12 monthsUp to 15%**Union Bank of India**No upper limitUp to Rs.7.50 lakhs: 12.25%

Above Rs.7.50 lakhs: 12.00%Nil15 yearsCourse period + 12 months15%**Indian Bank**For India – INR 15 lakhs

For abroad – INR 25 lakhs12.50%–10 – 15 yearsCourse period5% to 15%**UCO Bank**For India – INR 10 lakhs

For abroad – INR 20 lakhsUp to Rs.7.50 lakhs: 11.20%

Above Rs.7.50 lakhs: 12.20%NilUp to 15 YearsCourse period + 1 yearFor India – 5%

For abroad – 15%**Punjab National Bank**INR 40 lakhs to INR 60 lakhs8.80% to 9.55%1% of the loan amount15 yearsCourse period + 12 months15%**Oriental Bank of Commerce**For premium colleges – INR 20 lakhs

For others – INR 10 lakhs7.30% – 9.30%–Up to 15 YearsCourse period + 12 months15%**Andhra Bank**INR 20 lakhs11.15% to 11.45%–5-7 yearsCourse period + 12 monthsUp to 15%

## **How to compare the loan products to find the best education loan?**

Every aspect of an **education loan** in India should be considered while comparing different **loan products**. Each factor has its significance.

1. **Loan amount** – The product should cover your loan requirement. Applying for a second loan, if the first one doesn’t cover the expenses, would be another long and cumbersome process.
2. **Interest rate –** It goes without saying, one of the most important factors is the interest rate as it decides the total amount you will repay to the bank. A low-interest rate would lead to low EMIs and a reduced financial burden.
3. **Collateral –** Under the Indian Banks’ Association guidelines, banks ask for collateral equivalent to or more than the [required loan](https://blog.foreignadmits.com/international-loan-vs-indian-loans/) amount if the loan amount is above INR 7.5 lakhs. So, regardless of the **loan product** and lender, students will have to pledge collateral to support the applied loan amount of more than INR 7.5 lakhs.
4. **Loan tenure –** This factor decides the number of years your financial responsibility will continue. You can opt for a short loan tenure. However, that will increase your EMI amount. To manage EMIs and make them affordable, several students opt for a longer loan tenure.
5. **Processing fees –** A charge you pay to the bank to process your education loan application. This is a one-time charge. Most public banks even refund the fees on the first disbursement of the loan amount.

[International Loans Vs Indian Loans](https://blog.foreignadmits.com/international-loan-vs-indian-loans/)

## **Moratorium Period**

This is when the borrower is not required to make any repayment to the bank. In most cases, it is a course period plus 12 months or six months after securing a job. This period ensures that the student is not worried about the repayment during their education and can start repayment once they graduate. However, students should remember that banks charge interest during this period, which is distributed in the EMIs. Students can also opt to serve this interest during their studies if they are able.

## Margin Money

In simple terms, margin money contributes to the total expenses from the applicant’s side. Banks keep this provision as a sign of trust and reduce their own risk. The margin money is usually 5% for loans to study in India, and for **abroad education loan** s, it is 15%.

_Do your own research before applying for the loan._ For better consultations and information, book your call with us. Sign up at [ForeignAdmits](https://foreignadmits.app/ancillary-services) to initiate your **education loan** **in India** application now.

At ForeignAdmits, we understand how important this decision is. We are here to help you every step of the way, from finding the right school to getting admitted and securing scholarships.

ForeignAdmits have a team of experienced counselors who can provide you with customized guidance based on your individual needs contact us today to get started. We look forward to helping you achieve your educational and career goals!

[Learn More](https://foreignadmits.app/KZ5HGZEY?utm_source=foreignadmits&utm_medium=blogs)


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