Loan interest

Student loan interest rates for girls are lower: check benefits and rates

Classroom

oi-Kuntala Sarkar

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Student loan is currently essential for parents and ambitious students who wish to opt for higher education in the best colleges/universities in India or who wish to go abroad. Tuition increases every year as tuition increases. However, a college loan should not prevent a student from gaining admission to their dream institutes. Certainly, student loans make the journey easier when, for a girl, the road is even easier. The student loan interest rate for a girl is 0.50% lower than for others.

The Union government has several scholarship programs for female students and many investment programs like Sukanya Samriddhi Yojana for girls to provide them with a better future, in terms of college career, etc. This lower interest rate on student loans for girls will encourage them to be more ambitious in higher education.

Below here, the student loans from some public banks have been mentioned with their interest rates.

Bank Interest rate (with concession)
SBI Student Loan Program 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) Loans for Education (above Rs.7.50 lakh) 9.25%
PNB Saraswati, PNB Udaan (for outstanding amount up to Rs. 10.00 lakh) 9.75%
Kaushal PNB loan up to Rs. 1.50 lakh 8.50%
Bank of Maharashtra Education Loan Model (Above Rs.7.50 lakh) 7.95%

A discount or concession of 0.50% of the interest rate is allowed for female beneficiaries.

Many Indian families opt for an education loan because these types of loans are easier to obtain and have better and affordable interest rates than others. Gold loans and home loans are there, but using education loans has become easier now, with net banking. Generally, any bank offers several student loan options, depending on the loan amount and the institution, whether it is in India or abroad.

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

Guarantee against student loan

Collateral is considered an asset that a lender requires as collateral for a loan. For student loans, the concept of collateral is simpler than for other loans. In many cases, banks, mainly public banks, offer student loans without any collateral. However, it does not apply to all student loans and many loan applications are rejected for it. Public banks such as SBI, PNB, BOI and Bank Of Baroda will offer any unsecured student loans up to Rs. 7.5,000,000. However, in some cases, students can also avail Rs. 40 lakhs unsecured student loans from SBI, for some top institutes in the country. For private banks, they have only certain selected institutes, for which they approve unsecured student loans.

Additionally, banks can also take insurance premiums against life insurance policies, to save banks the NPA amount. In the event of the student’s death, this will save both the student’s family and the bank.

To get an education loan, a student must also check the eligibility and benefits of the “Pradhan Mantri Vidya Lakshmi Karyakram” which was introduced to administer and monitor scholarships as well as education loan schemes , “with a view to enabling all poor and middle-class pupils to pursue higher education.”

Article first published: Friday, December 10, 2021, 6:38 p.m. [IST]