What is the interest rate on student loans?
Curious about student loan
The interest rate on student loans in India varies depending on the lender, the type of loan, and the borrower's creditworthiness. The interest rate on education loans offered by banks and financial institutions typically ranges from 7% to 14%.
For governmentsponsored education loans, the interest rate is usually lower than that of private lenders. However, these loans may have stricter eligibility criteria and may require collateral or a guarantor.
It's important to note that the interest on education loans starts accruing from the time the loan is disbursed, and the borrower may have to pay interest during the moratorium period (i.e., the period during which the borrower is not required to make repayments). Therefore, it's recommended to carefully consider the interest rate and the total cost of the loan before taking out an education loan.