6 leading banks providing personal loans you can use for education – Find the best rates

Education is a crucial part in building a foundation to shape your career. However, if you are facing a financial crunch and are looking for ways to fund your education, a student personal loan can be an option that you can consider. However, you must note that a personal loan for education can only be availed by the parents and not by students. These loans provide quick loan disbursement and generally require a guarantor. The requirements for personal loans for students are slightly different from the regular personal loans. Let us discuss in detail; 

What are personal loans for education? 

A personal loan is an unsecured loan and is far more flexible than education loans which are given based on the tuition fee and course. Since personal loans do not require collateral, they can be availed by parents who do not own any assets and are in need of funds to meet their child’s education expenses. These personal loans can be used for numerous expenses such as rent or travelling or even buying a computer.

Top banks providing personal loans for education

Axis Bank: The maximum loan amount offered by Axis Bank on personal loans is up to 10 lakh. The interest rates offered by the bank range between 10.49% - 22.50%. The repayment tenure usually varies from 6 months to 5 years. The bank also charges processing fees which is up to 2% of the loan amount. 

Bank of Baroda: The bank offers loan amounts up to 20 lakh. The interest rates offered by the bank range between 11.05% - 18.75%. The repayment tenure is offered up to 7 years. You may be charged a processing fee up to 2% of the loan amount. 

State Bank of India: You can get a personal loan from SBI with an interest rate varying from 11.45% - 14.60%. The bank also offers repayment tenure of up to 7 years. The bank charges no processing fees on the loan. 

HDFC Bank: The loan amount offered by the bank is up to 40 lakh with a maximum repayment tenure of up to 6 years. The bank provides interest rates varying from 10.85% - 24%. The bank also charges processing fees of ₹6,500 + GST. 

ICICI Bank: The bank offers loan amounts up to 50 lakh with the interest rate ranging between 10.85% - 16.25%. The bank also charges processing fees which is generally up to 2% of the loan amount. You can choose a repayment tenure between 1 to 6 years. 

Kotak Mahindra Bank: The bank offers a maximum loan amount of up to 35 lakh. The maximum loan tenure is offered up to 6 lakh. The bank also charges a processing fee of up to 5% of the loan amount. The interest rate usually varies from 10.85%  to 16.25%. 

Punjab National Bank: The loan amount offered by the bank is up to 20 lakh. You can avail a maximum loan repayment tenure of up to 5 years. The bank charges a processing fee which is equivalent to 1% of the loan amount. The interest rate on the personal loan usually varies from 12.40%  to 17.95%. 

Note: The deal which you may get for your personal loan will ultimately depend on the bank’s policies as well as your overall profile. 

In conclusion, personal loans can help your children achieve their career goals while providing temporary financial assistance. However, you must evaluate your financial situation before applying for the loan. This way you will be able to repay the loan on time without any financial burden.

Personal loans have higher interest rates as compared to other loans in the market. Hence, before applying for a personal loan, you can also check out grants and scholarships which are provided by universities and the government which can help you in meeting your financial requirements.

(Note: Raising a loan comes with its own risks. So, due caution is advised)