Since the expansion, student loan rates have increased. The central bank has thus far raised the key policy rate by a total of 140 basis points.
Additionally, due to the recent announcement of a stricter credit policy, both new and current borrowers will need to prepare for significantly higher interest rates in the upcoming months. Nevertheless, according to data from BankBazaar.com, many lenders, primarily public sector banks, continue to impose an interest rate of less than 8% on a returned school loan of Rs 20 lakh. Seven years make up the term.
According to data from Bank Bazar, the Reserve Bank of India now has the lowest interest rate at 6.95 percent. A loan for Rs 20 lakh with a seven-year term would have an equivalent monthly payment of Rs 30,136. With an interest rate of 7.45 percent, the second-cheapest lender is the state-owned Punjab National Bank (PNB). This would have an EMI of Rs 30,627.
SBI charges a somewhat higher interest rate on these student loans, at 7.5%. The EMI will be Rs 30,677 in total. Students are subject to the similar interest rates at Union Bank of India and IDBI Bank, two other state-owned institutions.
On education loans of Rs 20 lakh with a term of seven years, Indian Bank assesses an interest rate of 7.9%. The EMI due from the borrower is Rs 31,073.
For a Rs 20 lakh, seven-year education loan from Indian Bank, the interest rate is 7.9%. The EMI due from the borrower is Rs 31,073.