Education Loan: Interest Rate For Girls Are Lower: Check Benefits And Rates

Education loan at present is essential for ambitious parents and students who want to opt for higher studies in top-ranked Indian colleges/universities or want to go abroad. Education costs are getting costlier every year as education fees are increasing. However, a higher education loan should not bar a student from getting admitted to his/her dream institutes. Certainly, education loans make the way easier when for a girl child the road is even smoother. The interest rate in education loans for a girl child is 0.50% lower than others.

The union government has multiple scholarship schemes for girl students, and many investment schemes like Sukanya Samriddhi Yojana for girls, to offer them a better future, in terms of their academic careers, etc. This lower interest rate on education loans for girls will encourage them more to be ambitious in higher education.

Below, here some public banks' education loans have been mentioned along with their interest rates.

Bank	Interest rate (with concession)
SBI Student loan scheme	8.15%
Canara Bank Vidya Sagar Scheme - above Rs. 7.5 Lakh)	8.00%
Canara Bank Vidya Shakthi Scheme (Max 7.5 Lakh)	6.40%
Bank of India (BOI) Education loans (above Rs.7.50 lakh)	9.25%
PNB Saraswati, PNB Udaan (for outstanding up to Rs. 10.00 lakh)	9.75%
PNB Kaushal Loan up to Rs. 1.50 lakh	8.50%
Bank of Maharashtra model education loan scheme (above Rs.7.50 lakh)	7.95%

Rebate or concession of 0.50% in the interest rate is permitted to women beneficiaries.

Education loan is opted by many Indian families because these types of loans are easier to avail and have better and affordable interest rates than others. Gold loans and property loans are there, but availing of education loans became easier now, with net banking. Generally, any bank will have multiple education loan options, depending on the loan amount and the institution, if it is in India or in abroad.

The Bank of Maharashtra would not take any margin money and give up to 100% financing for some premier institutes in India. The bank will also offer the loan without any collateral in the case of the premier institutes.

Collateral against education loan

Collateral is referred to as an asset that a lender demands as to security against a loan. For education loans, the concept of collateral is simpler than other loans. In many cases banks, mostly public banks offer education loans without any collateral. However, it is not applicable for all education loans, and many loan applications get rejected for that. Public banks like the SBI, PNB, BOI, Bank Of Baroda will offer any collateral-free education loan for up to Rs. 7.5 lakhs. However, in some cases, students can also avail themselves up to Rs. 40 lakhs of unsecured education loans from SBI, for some top-tier institutes within the country. For private banks, they have only certain selected institutes, for which they approve unsecured student loans.

Additionally, the banks can also take insurance premiums against life insurance policies, to save the banks from the NPA amount. In case of the death of the student, it will save both the student's family and the bank.

To get an education loan, a student should also check the eligibility and benefits of the 'Pradhan Mantri Vidya Lakshmi Karyakram', which has been introduced to administer and monitor Scholarship as well Educational Loan Schemes, "with a view to enable all poor and middle-class students to pursue higher education."