This public sector bank offers the cheapest student loan in the country at 6.75%. The EMI for an Rs 20 lakh student loan with a repayment period of seven years will be Rs 29,942.
After the Reserve Bank of India (RBI) raised the policy rate by 40 basis points on May 4, interest rates on floating-rate retail loans linked to the repo rate rose. In addition, when the RBI releases its June monetary policy review on Wednesday, it is expected to raise the rate further – up to 50 basis points, according to some forecasts. And this is only the beginning of the country’s interest rate cycle tightening.
This couldn’t have come at a worse time for students preparing for higher education, especially those planning to study abroad in August/September. However, some banks – all of which are government-owned – currently offer interest rates below 7.3%.
The public sector bank offers the cheapest student loan in the country at 6.75%. The EMI for an Rs 20 lakh student loan with a repayment period of seven years will be Rs 29,942.
For a Rs 20 lakh study loan, the Central Bank of India would charge 6.85% interest. The EMI for a seven-year loan of this form will be Rs 30,039.
This government-owned bank is third – and last – on the list of banks that charge interest rates below 7% among the top 10 lenders offering the cheapest student loans. Your EMI would be Rs 30,088 at a rate of 6.9%.
On student loans, this large public bank applies an interest rate of 7%. Over the course of seven years, you would have to pay an EMI of Rs 30,185.
Bank of Baroda and Punjab National Bank, two major public sector lenders, will provide an education loan of Rs 20 lakh with a repayment period of seven years and an interest rate of 7.15%.
The student loan from India’s largest bank reportedly bears an interest rate of 7.25%. The EMI on a loan of Rs 20 lakh with a repayment period of seven years will be Rs 30,340. According to data from BankBazaar, two relatively smaller public banks – Bank of India and Indian Overseas Bank – offer the same rate of ‘interest.
This public bank is last on the list of the ten cheapest lenders, with an interest rate on education loans of 7.30%. A loan of Rs 20 lakh with a repayment period of seven years has an EMI of Rs 30,480.
Source – Bankbazaar
First published: June 14, 2022, 04:50 IST
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