Best Education Loans 2020| North Loop Official Blog
North Loop Logo
North Loop
09 Sep 2020

Best Education Loans 2020

thumbnail for Best Education Loans 2020
Credit: North Loop

Education Loans: Introduction-

Intense nerve-wracking basketball games, electrifying sorority parties, cafeteria gossips sure do ring a few bells. American pop culture has been portraying this side of university life since time immemorial, through its entertainment facets. The vast cultural differences portrayed in these shows and movies and the vivid portrayal of the magnanimity of university life has driven young teenagers across India to aspire to study across the Atlantic.

But one of the main roadblocks encountered is the financial constraints pertaining to the expensive fees and other costs. The high fees can be attributed to a lot of reasons: unparalleled quality of education, best in class facilities, and an incomparable exposure to the outside world that gets you ready to hit the ground running.

Enrolling at a foreign university makes you a global citizen as you meet various students across the globe, exposing one to a huge amount of diversity, new languages, and cultures, boosting one’s self-confidence on a global scale that helps get you out of your comfort zone.

Why Education loans-

Education loans have an edge over lump-sum payment of fees due to a variety of reasons-

  • The interest paid on an education loan, which forms a component of your EMI on the education loan, in this instance is allowed as a deduction under Section 80E of the Income Tax Act, 1961. These deductions are available for a maximum of 8 years or till the interest is repaid (earlier of the two).
  • Enrolling for an education loan and timely repayment of loan help improve an individual’s credit score (CIBIL score in India). A healthy credit score implies that an individual is financially responsible and that they can be trusted by institutions for future sanction of financial instruments.
  • An education loan also offers the flexibility of a repayment-free moratorium period spanning over the duration of the course plus an additional year, which reduces the burden of repayment for students.

Get a zero-balance, no-fee NRE/NRO account with North Loop in 5 minutes

Education Loan Scenario in India-

In India, thousands of students travel to various countries around the world for the purpose of education. Education loan businesses have hit new peaks across a span of several decades and there are nearly a million students pursuing their education abroad. The highly promising lifestyle often goes hand in hand with students aspirations and there seems to be no stopping this trend.
Loans offer flexibility and freedom to students who opt to pay university fees in workable installments. Various major Indian banks offer education loans to students aspiring to study abroad and we’ve compiled a list of banks offering education loans at very competitive interest rates.
Given below is the list containing the best banks to opt for a student loan from-

Best banks to opt for an education loan from-

Best banks to opt for an education loan from:
BanksInterest RatesAmount offered
SBI( State Bank Of India)7.30% to 9.30% P.ALoans offered up to Rs.1.5 crores
HDFC Bank9.55% to 13.25% P.ALoans offered up to Rs. 20 Lakhs
ICICI Bank11.25% to 14.60% P.ALoans offered up to Rs. 1 crore
Axis Bank13.70% to 15.20% P.ALoans offered up to Rs. 75 Lakhs
Bank Of Baroda8.15% to 12.45%P.ALoans offered up to Rs. 80 Lakhs
Kotak Mahindra BankUp to 16% P.ALoans offered up to Rs. 20 Lakhs
Punjab National Bank9.20% to 11.05% P.ALoans offered above Rs. 7.5 Lakhs

The inference that can be drawn from the above list is that State Bank Of India and Bank of Baroda are among the top education loan providers, charging some of the lowest interest rates on loans taken and offering relatively high flexibility in terms of repayment.

On the other hand, North Loop provides very accessible education loans without any processing fees, prepayment charges, or any other extra charges, and with absolutely no collateral required! Sign up online for an easy and hassle-free experience, with up to 100% of expenses covered, and relatively low-interest rates.
Click here to learn more about our products and services.

Save money with

No-fee banking, investments, remittances & insurance for the global Indian

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.