Most affordable interest rates for education loans for studying abroad .

[ Indian Bank, Union Bank, and Bank of Baroda provide the cheapest rates .]

If you’re considering traveling abroad for studies in August or September, it’s likely that you’ve completed most of the necessary admission and funding procedures. However, if you haven’t, it’s essential to act quickly. Begin by researching banks that offer education loans with lower interest rates. Many banks have special loan programs for students intending to study overseas. These loans typically cover tuition fees, living expenses, and other miscellaneous costs such as laptops, books, and flight tickets.

When choosing a bank for your education loan, you and your parents should consider various factors such as interest rates, processing time, loan duration, repayment terms, and the grace period, which usually extends beyond the course duration by six months to one year. Here are the top 10 banks (ranked by secured assets) that offer interest rates below 13.7 percent on education loans of Rs 50 lakh with a seven-year tenure, according to data compiled by Bankbazaar.com:

1. Union Bank of India: Interest starts at 9.25 percent, with an EMI of Rs 81,081 for a Rs 50-lakh loan over seven years.
2. Bank of Baroda: Interest starts at 9.7 percent, with an EMI of Rs 82,233 for the same loan and tenure.
3. ICICI Bank and Punjab National Bank: Interest starts at 10.25 percent, resulting in an EMI of Rs 83,653.
4. Canara Bank: Interest starts at 10.85 percent, with an EMI of Rs 85,218.
5. State Bank of India: Interest starts at 11.15 percent, with an EMI of Rs 86,007.
6. Bank of India: Interest starts at 11.85 percent, with an EMI of Rs 87,863.
7. HDFC Bank: Interest starts at 12.50 percent, with an EMI of Rs 89,606.
8. Axis Bank: Interest starts at 13.7 percent, resulting in an EMI of Rs 92,873.

This data was collected from the respective banks’ websites . Banks are listed in ascending order of interest rates, with the bank offering the lowest rate placed at the top and the one offering the highest rate at the bottom. EMIs are calculated based on a seven-year tenure, assuming zero processing and other charges for EMI calculation.