Education loans are unsecured loans as they do not require any collateral. They are provided based on the merit of the student and her future capacity of earnings. There are many benefits of an education loan. You can take an education loan to finance your higher studies or any other kind of study. For instance, there are education loans for CA students as well.
The student education loan interest rate in India is higher than that of home loans or car loans. In other words, the cost of an education loan is higher than that of a home loan or car loan. However, nowadays, you can avail study loans from online lenders as well.
Education Loan At 0 Interest
It is not possible to get an education loan at 0 interest. Banks have their highest percentage of Non-Performing Assets (NPAs) from the product of education loan itself. And so, there also is much scrutiny for student loans from the lender’s side.
There can be ways by which you can reduce your education loan interest but getting an education loan at 0 interest seems farfetched.
However, can education loans in India be actually interest-free?
The answer is no. Or at least, technically, you cannot avail of an interest-free education loan unless you have availed some economic benefits or academic subsidies from either the government or your institution. Even then, it is largely difficult to find an utterly interest-free loan. In most cases, it is just subsidised.
However, you can still make your way around to avail education loan at 0 interest
Firstly, you can find a loan with the lowest education loan interest rate and negate the effect of the interest by availing of scholarships. Based on the course and institute of your choice, there are various scholarships available.
You can check and apply for those relevant to you. Even with regular scholarships, you can at least pay off the loan’s interest amount so that it is not a significant burden for you or your family. Many foundations like Tata Trust, KC Mahindra Trust, etc., effectively offer 0% interest scholarships.
Secondly, if your annual family income is below INR 4.5 lakhs, the government offers a subsidy on the interest for the moratorium period, which is the course period plus 6 months/1 year. You start repaying only after getting stable in your job/business for a year after the course. There is no interest paid until then. This can be availed under the Central Sector Interest Subsidy Scheme and can be benefited only from one of the scheduled banks.
According to industry experts, you must make and start saving in a separate education corpus way ahead of your kid’s education. When you start early, the compounding also works in your favour. And if the funds fall short at the time of your kid’s education, you can bridge the gap with an education loan.
Avail Instant Personal Loans for your Education Fees
While you learn more about education loans, here is a detailed article on steps for availing of an education loan. It is advisable to be fully prepared in terms of documents and procedures, as getting a student loan can be a time-consuming process.
If you do not have much time by your hand or low income, you can get an instant personal loan for low salaried individuals. You can avail of instant digital loans of up to INR 5 lakhs from PaySense.
Your loan is approved in three easy steps within a few minutes with the PaySense instant personal loan app. And it gets disbursed in your account within a few hours. With attractive interest rates, these instant personal loans are a perfect fit for many students and rightly so.
- Is education loan interest-free in India?
– No, education loan is not interest-free in India. However, student loan without interest is a possibility in India with scholarships and subsidies. You can negate the effect of interest on your education loan by availing 0% interest scholarships or subsidies with Government subsidy schemes.
- Which student loans have no interest?
– No student loans come with no or zero interest. However, with a government subsidy scheme, you can avail a no-interest moratorium period for your education loan.
- Which bank provides the cheapest education loan in India?
– Banks like SBI and Punjab National Bank provides the cheapest education loan in India.
- Who is eligible for an education loan?
– A student that is a resident of India falling in the age group of 18 to 35, undergoing a graduate or postgraduate degree, having confirmed admission in a recognised institution in India or abroad, and having a co-applicant is eligible for an education loan in India.
However, you can easily avail of an education loan from PaySense, fulfilling our basic personal loan eligibility criteria.
- How can I get an education loan?
– Education loans are easily and widely available in India. So, if your question is ‘how do I get an education loan‘, it is easy to avail of from banks and other lenders in India. In fact, they are a priority product in various Indian banks according to the RBI’s guidelines. Alternatively, you can also avail of education loans from digital lenders like PaySense.
- How to pay an education loan without interest?
– You can take the help of scholarships and subsidies to pay education loans without interest.
- Does an education loan have interest?
– You do have to pay interest while repaying upon taking education loans.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs