What is the current interest rate for educational loans in India?

Question : What is the current interest rate for educational loans in India?

Answer 1: Interest Rate on Education Loan: Some banks offer a 'fixed' rate of interest while others offer 'floating' rate of interest on education loan. If the difference between fixed and floating rate is only about 1 per cent, it is advisable to opt for fixed rate as education loans have shorter repayment tenures of 5-7 years. Many banks do not offer genuine fixed interest rate where the interest rate remains fixed for the full tenure of the loan. They, typically offer a fixed rate loan with a reset clause. This means the bank will have the right to revise interest rate after 2 or 3 years or whenever the bank feels it necessary to increase interest rate. So make sure that you take a genuine fixed rate loan. If it is a fixed rate with reset clause, a floating rate may be a better option. State Bank of India charges the following interest rate: For loans upto Rs.4 lacs - 12.75% p.a. Floating For loans above Rs.4 lacs - 13.75% p.a. Floating For more details please check the following link: http://www.statebankofindia.com/viewsection.jsp?id=0,1,20,118 [1] or you may contact us at counsellor@studyplaces.com [2]