Education Loan Interest Rate
Avanse Education Loan Interest Rates, Fees, and Service Charges
| Loan Type | Indicative Interest Rate | Maximum Tenure |
|---|---|---|
| Education Loan Domestic | Starting at 9.5% per annum | Up to 15 years |
| Student Loan International | Starting at 10.25% per annum | Up to 15 years |
| Unsecured Loans | Starting at 11% per annum | Custom tenure |
Ready to Let Your Dreams Take Flight With an Education Loan?
Apply NowWhat Is the Education Loan Interest Rate?
The educational loan interest rate refers to the extra percentage you will pay back to your lender, over and above the amount you borrow to help finance your higher education. You can consider the cost of borrowing the amount from your lender.
What Impacts the Education Loan Interest Rate?
Lender’s Policies
Lender’s usually have a fixed formula or base interest rate that they levy on all loan applications. It’s one of the most important factors that determines your interest amount.
Your Co-Applicant’s Credit Score
Most students have not had adequate time to build their credit ratings. Choosing a family member with a strong credit rating as your co-applicant can enhance your chances of securing a favourable rate.
Your Academic Background and Choices
Education-focused lenders might offer preferential rates to students who have consistently performed well and to those seeking loans for courses that will likely translate into high-paying roles in the future.
Types of Interest on Education Loans
Generally speaking, there are two types of interest on education loans:
Fixed Interest
When lenders offer a fixed rate of interest, your rate remains the same for the entire loan tenure. Some students prefer a fixed interest on education loans as it makes it easier for them to plan their finances.
Floating Interest
A floating rate changes periodically over time based on market fluctuations. Floating interest rates could potentially become lower in the future. However, it makes it difficult for borrowers to plan their finances in advance.
At Avanse, we offer both fixed and floating education loan interest rates. You can evaluate your options and decide on what works best for you and your finances.
Benefits of Choosing Avanse Student Loan Interest Rates
Here’s how you benefit with an Avanse education loan interest rate:
Affordable Rates
Avanse interest rates start at just 9.5% per annum, helping to keep your loan manageable while you focus on achieving your academic dreams.
Transparency You Can Trust
We outline our terms and costs clearly, ensuring 100% transparency. You will be informed about all our charges in advance.
Customised for Your Convenience
At Avanse, we can customise your loan to match your repayment capacity and future earning potential.
Factors Affecting Your Educational Loan Interest Rate
At Avanse, we evaluate the following factors to better understand the best student loan interest rate for you:
How much you intend to borrow will play a vital role in determining your education loan interest rate. Some lenders may offer a preferential rate to individuals borrowing high amounts.
Lenders will likely offer a low education loan interest rate when you opt for a shorter repayment tenure. However, this could mean higher monthly installments.
Lenders will evaluate the reputation of your chosen university and offer you an student loan interest rate accordingly. Top-ranked institutions in India and abroad usually come with more favourable terms.
How to Calculate Your Education Loan Interest Rate
Understanding and calculating your educational loan interest rate is not always easy. Instead of memorising complicated formulae, you can use an online education loan EMI calculator to better understand your interest amount and your monthly outgoings once you start repaying your domestic or abroad education loan.
To use the calculator, you simply have to input your loan amount, the interest rate, and your repayment tenure. The calculator provides an instant estimate, enabling you to plan your finances.
Crucially, you can rely on such calculators to change the amounts and identify the best student loan interest rate based on your finances. At Avanse, we provide a free EMI calculator on our website. You can use the calculator to see how our competitive loans and flexible repayment options work for you.
Step-by-Step Guide to Secure the Best Student Loan Interest Rates
Here’s how you can boost your chances of securing a low interest rate on your education loan.
Check Your Eligibility Online
You can use Avanse’s online tools to better understand the maximum loan amount you will easily get. Applying for something within that limit can help you secure a low education loan interest rate.
Submit the Right Documents
Providing accurate and complete documentation ensures a smoother approval process and can help you secure a low education loan interest rate.
Speak to Our Loan Advisors
Our education loan experts will walk you through the loan process and even help you explore repayment plans that can lower the interest on education loans.
Choose Your Co-Applicant Wisely
Having a financially stable co-applicant with a high credit score increases your chances of securing a low interest rate for an education loan.These tips can strengthen your application and help you get an education loan with a low interest rate.
Check Education Loan Eligibility Criteria
Before applying, check that you meet your chosen lender’s eligibility criteria and prepare all the necessary documents. Doing so can help you secure a competitive education loan rate of interest and ease your journey to approvals.
Eligibility Criteria
To qualify for an Avanse education loan, you must meet the following requirements:
- Be an Indian citizen over the age of 18
- Have confirmed admission to a recognised institution in India or abroad
- Have a parent/guardian with a stable income as your co-applicant
Documents Required for Education Loan
Keep these essential documents ready for quick processing:
| Documents | Applicant | Co-Applicant | Collateral (If Applicable) |
|---|---|---|---|
| Valid photo ID (e.g., Aadhaar, Passport, Driver’s License) |
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| Proof of residence | |||
| Date of birth proof | |||
| Academic records (mark sheets, certificates) |
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| Proof of admission | |||
| Fee structure from the institution | |||
| Additional documents (if applicable) |
|||
| Income proof (salary slips, ITR, Form16) |
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| Bank statements for the last 8 months | |||
| Proof of relationship with the applicant | |||
| Additional documents (if applicable) |
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| Property documents | |||
| Insurance papers | |||
| Fixed deposit receipts |
Ready to Let Your Dreams Take Flight With an Education Loan?
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FAQs About Student Loan
Interest Rates
The interest rate on your student loan refers to the additional amount you must repay, over and above the amount you borrow. Lenders evaluate multiple factors before deciding the interest rate.
Education loan interest rates determine the interest that accrues on the disbursed education loan amount.
A floating interest rate is one that changes over time based on fluctuating market conditions. Usually, the Reserve Bank of India’s (RBI’s) repo rate impacts the floating interest rate. This means that your interest amount may increase or decrease during your loan tenure.
Yes, your interest rate can change during the loan tenure if you have opted for a floating education loan interest rate. In some, rare cases, the fixed interest rate may also change. However, your lender will inform you of any changes in advance.
Yes, some lenders allow you to switch from a fixed rate to a floating rate and vice-versa during the loan tenure. However, you may have to pay a fee to make the switch.
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