Interest Rates | Education Loans for Canada

If you are planning to pursue higher education abroad, taking out an education loan to cover the expense of international education is the best option.

Financial institutions may be able to finance 100% of the course fee depending on the amount and your profile. However, in order to choose the finest foreign education loan, one must carefully consider the following crucial features of the many alternatives accessible.

1 Interest Rate

Even a 1% rise in the interest rate on student loans has a significant financial impact. Loan Amount: Rs. 30,00,000, Example Loan repayment will take 5 years after graduation, and the course will last 2 years. While you will pay Rs. 9.7 lakhs in interest at 10%, you will pay Rs. 10.9 lakhs at 11 percent - a difference of 1.2 lakhs for just 1%.

2 Margin Money

The amount you must pay out of your own and the bank covering the rest. If a bank offers a 0% margin, that means they will pay for all of your educational expenses.

3 Hidden Fees

Your lender may charge you a number of hidden fees that, when combined, might cost you a lot of money, such as

Some lenders charge a forex conversion fee when an international school loan is approved in INR and disbursed in another currency. This might be as high as 1.5 percent, or Rs. 45,000 on a Rs. 30 lakh loan.

4 Processing Fees

This might range from zero to 2%. It might go as high as Rs. 60,000 for a loan of Rs. 30,00,000.

5 Cost of Credit Life Insurance

Some lenders ask the applicant to get credit life insurance in order to safeguard their loan amount in the event of unforeseen circumstances. If the premium is too high, the cost of the school loan would eventually rise as well.

6 Mandatory Cross-Sell

Even though it is not needed on the applicant's end, some lenders try to cross-sell additional products before approving the education loan.

7 Interest Rate in Different Currencies

Students are usually confronted with the option of whether to take out a lower-interest education loan in dollars or a higher-interest education loan in Indian rupees.

Given the current trend of rising US$ to INR conversion rates, taking out a loan in INR, even if it comes with a higher interest rate, is prudent.

As you can see, selecting the right foreign education loan can help you save up to 6% on your education expenditures.

Name of the bank	Loan amount limit	Interest rate	Processing Fees	Loan tenure	Moratorium period	Margin Money
State Bank Of India	For India - Upto INR 20 Lakhs For abroad - Upto INR 1.5 crore	For India - 9.55% For abroad - 8.8% (Men); 8.3% (Women)	INR 10,000 + GST	Maximum 15 years	Course period + 6 months	10%
Bank of Baroda	For India - Upto INR 60 Lakhs For abroad - Upto INR 80 lakhs	For India - 8.85% (Men); 8.35% (Women) For abroad - 7.75% (Men); 8.25% (Women)	INR 10,000 + GST	Maximum 15 years	Course period + 12 months	Above INR 4 lakhs - 10%
Canara Bank	Upto INR 40 lakhs	6.90% - 8.90%	Nil	Maximum 15 years	Course period + 12 months	5% to 15%
Bank of India	For India - INR 10 lakhs For abroad - INR 20 lakhs	8.85% - 9.85%	For India - NIL For abroad - INR 5000	Maximum 15 years	Course period + 12 months	15%
Central Bank of India	No upper limit	9.0% (Men); 8.50% (Women)	Loans upto INR 10 lakhs - INR 500 Loan above INR 10 lakhs - INR 1000	10 - 15 years	Course period + 6 or 12 months	15%
Indian Overseas Bank	For studies in India - INR 30 lakhs For abroad studies - INR 40 lakhs	10.05%	Nil	15 years	Course period + 12 months	5% to 15%
IDBI Bank	INR 20 lakhs	8.65% - 9.15%	For India - NIL For abroad - INR 5000 (refundable)	10 - 15 years	Course period + 6 months	upto 15%
Karur Vysya Bank	For India - INR 10 lakhs For abroad - INR 20 lakhs	10.75% to 11.75%	Nil	Upto 7 years	Course period + 6 or 12 months	upto 15%
United Bank of India	For India - INR 10 lakhs For abroad - INR 20 lakhs	10.65% - 11.40%	Nil	10 - 15 years	Course period + 6 or 12 months	upto 15%
Union Bank of India	No upper limit	Up to Rs.7.50 lakhs: 12.25% Above Rs.7.50 lakhs: 12.00%	Nil	15 years	Course period + 12 months	15%
Indian Bank	For India - INR 15 lakhs For abroad - INR 25 lakhs	12.50%	-	10 - 15 years	Course period	5% to 15%
UCO Bank	For India - INR 10 lakhs For abroad - INR 20 lakhs	Up to Rs.7.50 lakhs: 11.20% Above Rs.7.50 lakhs: 12.20%	Nil	Up to 15 Years	Course period + 1 year	For India - 5% For abroad - 15%
Punjab National Bank	INR 40 lakhs to INR 60 lakhs	8.80% to 9.55%	1% of the loan amount	15 years	Course period + 12 months	15%
Oriental Bank of Commerce	For premium colleges - INR 20 lakhs For others - INR 10 lakhs	7.30% - 9.30%	-	Up to 15 Years	Course period + 12 months	15%
Andhra Bank	INR 20 lakhs	11.15% to 11.45%	-	5-7 years	Course period + 12 months	upto 15%