A comparative analysis of education loans offered by SBI and HDFC Bank

A slew of banks in India are offering education loans to the students who are pursuing degree and post graduate courses. Let us take two leading players in the banking segment in both public and private sectors: State Bank of India and HDFC Bank. The public sector lender, State Bank of India is one of the key players in this segment. Its education loan can be divided into five categories such as skill loan, takeover of education loan, scholar loan, global ed-vantage and student loan. In the private sector banking segment, HDFC Bank offers up to Rs.10 lakh as student loans for studies in India.

HDFC versus SBI

Let us see a comparison study between HDFC Bank and SBI education loans. The SBI’s student loan is a term loan granted to Indian nationals for pursuing higher education either in India or in the overseas varsities, where admission has been secured, as mentioned on the official website of the bank. The repayment can extend up to 15 years after the course period in addition to the twelve months of repayment holiday. What is more, there is no processing fees or upfront charges on education loans. You can apply for a loan amount of Rs.10 lakh for you to pursue studies in India and Rs.20 lakh for you to study abroad. Besides that there is also this SBI Scholar Loan for courses at select leading institutions in India such as IITs, IIMs, NITs, AIIMS and other premier institutions. You can apply for loan amount of up to Rs.30 lakh.

Global ed-vantage loan is disbursed to the students from Rs.20 lakh to Rs.1.5 crore. Skill loan is a term loan offered to Indian nationals for pursuing vocational education and training in India, where admission has been secured. The bank also offers takeover of education loans, you can switch your existing high cost education loan to SBI and reduce monthly EMIs.

In contrast, let us see the details of HDFC Bank’s education loans. The bank offers up to Rs.10 lakh as education loans for studies in India. A wide spectrum of collateral options is also available with the bank’s education loans. Residents of India between the ages of 16 and 35 are eligible for educational loans. As per the website, for Loan amount of Rs. 4 lakh <=Rs.7.5lakh: third party guarantee and parent(s) as joint borrower(s) are required. For loan amount > Rs.7.5 lakh: tangible collateral security along with parents is required to be joint borrower(s). The maximum tenure can go up to 10 years for loans up to Rs. 7.50 lakh. For loans above Rs. 7.50 lakh, the maximum tenure can go up to 15 years.

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