Education Loan Interest Rates In 2024
The interest rates for education loans in India in 2024 vary depending on the bank. The loan amount, the course, and the institution. According to Forbes Advisor India, the mean rate of interest for education loans in February 2023 was 10.47%. However, some banks offer lower or higher rates depending on various factors. Here are some examples of the interest rates offered by different banks as of August 2023:
- SBI Student Loan Scheme: 10.90% for loans up to Rs 7.5 lakhs and above Rs 7.5 lakhs. There is a 0.50% concession for female students. And for students availing of SBI Rinn Raksha or any other existing policy assigned in favor of the bank.
- Bank of India Star Education Loan: 9.95% to 10.75% for loans up to Rs 7.5 lakhs. And above Rs 7.5 lakhs for studying in India, and 9.95% to 11.60% for studying abroad. There is a 0.50% concession for female students and for students from economically weaker sections.
- Axis Bank Education Loan: 13.70% to 15.20% for all categories of loans. There is no concession for any category of students.
- IDFC First Bank Education Loan: 9% to 15% for all categories of loans. There is no concession for any category of students.
Now Compare Education Loan Interest Rates 2023
| Banks | Interest Rates |
| State Bank of India | 8.15% p.a. onwards |
| Punjab National Bank | Up to 11.25% p.a. |
| IDFC FIRST Bank | 9.00% p.a. to 15.00% p.a. |
| Bank of Baroda | Up to 12.50% p.a. |
These are just some examples of the education loan interest rates in India in 2023. You can compare the interest rates of different banks and schemes on the [Education Loan Portal], which is a one-stop solution for all your education loan needs. You can also read more about the features and benefits of different education loan schemes on Forbes Advisor India and other sources.
How To Calculate Education Loan Interest Rate
The interest rate for an education loan is the percentage of the loan amount. That you have to pay as interest to the lender. The interest rate can vary depending on the type of loan. The amount of the loan, the duration of the loan, the lender, and other factors. To calculate the interest rate for an education loan, you need to know the following information:
- The principal loan amount (P), is the total amount of money that you borrow from the lender.
- The annual interest rate (R), is the percentage of the principal loan amount. You have to pay as interest per year. You can divide this by 12 to get the monthly interest rate.
- The number of monthly payments (n), which is the total number of months that you have to repay the loan.
One way to calculate the interest rate for an education loan is to use a formula called EMI (equated monthly installment). Which is the fixed amount of money that you have to pay every month to repay the loan. The EMI formula is:
EMI = [P x R x (1+R)^n] / [(1+R)^n-1]
Using this formula, you can find out how much interest you will pay every month. And how much interest you will pay in total over the duration of the loan. You can also use online calculators to find out the EMI and interest rate for your education loan. For example, you can use [this calculator] to enter your loan details and get the EMI and interest rate.
Alternatively, you can use another method to calculate the interest rate for an education loan. Which is based on a simple daily interest formula. This method calculates the amount of interest that accrues every day on your loan balance. The simple daily interest formula is:
Daily Interest = Principal Loan Amount x Daily Interest Rate
The daily interest rate is the annual interest rate divided by 365 (the number of days in a year). To find out how much interest you will pay in a month. You can multiply the daily interest by the number of days since your last payment. To find out how much interest you will pay in total over the duration of the loan. You can add up all the monthly interest payments. You can also use online tools to find out the daily interest and total interest for your education loan. For example, you can use [this tool] to enter your loan details and get the daily interest and total interest.