How Much Do Student Loans Cost

Hey friend, you got admission in college but seeing the fees and expenses you are getting dizzy is not it? Be it India or abroad,

The cost of studies is increasing tuition, books, hostel, and daily food Students think,

Dear student how much money will it cost to take a student loan? What is the scenario of EMI Do not worry this article is your friend

I will explain everything to you in simple language the actual cost of student loans, interest rates, fees, and the Government schemes which can provide a little relief.

Be it the calculation of EMI or loan waiver, everything will become clear. I have checked the latest information from schemes like SBI, HDFC and PM-Vidyalaxmi,

So you can be sure. Just read this article and understand how to take a loan that helps you fulfill your dreams of studying, without making your wallet cry

1: Understanding the Cost of Student Loans

Dear student, I am thinking of taking a student loan, but I am not able to understand how its cost is? Come, let me tell you in simple language.

The cost of student loan depends on some basic things first, how much money I took principal amount, secondly,

What is the interest rate, thirdly, for how long the loan has to be repaid (tenure), and fourthly, the extra fees that the bank adds.

For example, if you take ₹10 lakh at 10% interest, then you will have to pay EMI every month.

EMI refers to that monthly payment which covers both the principal and interest. Now if the loan is bigger or the tenure is shorter then the EMI can also be bigger.

Check out the websites of banks like SBI or HDFC, the loan structure is clear there Once these basics are clear you will get an idea of ​​how much a student loan actually costs.

2: How Much Are Student Loan Interest Rates Right Now?

What is this matter with student loan interest rates Come, let me tell you the latest scene Now in India,

SBI education loan rates range from 8.15% to 11.75% and HDFC’s from 8.6% to 14%, depending on the bank and loan type.

If it is a secured loan like against property or FD the rates are a little low compared to unsecured loans.

Course also matters for MBBS, IIM or abroad studies, like banks, SBI gives special rates, especially for premier institutes.

Now understand the fundamentals of fixed vs floating rates If fixed rate remains the same throughout the loan tenure,

Then EMI is fixed Floating rate moves up and down with the market EMI can change. Government schemes like PM-Vidyalaxmi also offer low rates or subsidies.

So, choose after looking at your course and budget and check the EMI calculator

Reed: So I Qualify For Student Loan Forgiveness

3: How Much Are Student Loan Fees?

You have understood the interest rates of student loan, but what is the scene of these extra fees Let me break it down,

Banks like SBI, HDFC, or Axis charge some fees with the loan processing fees 0.5–1% of loan amount, legal charges for verifying documents, and valuation fees if the property is collateral.

If you made the payment late Then there could be a penalty as well, usually 2% extra on the overdue amount.

Good news Banks like HDFC and Axis sometimes waive the prepayment penalties, meaning if you repay early then there is no extra charge

And yes, under PM-Vidyalaxmi scheme the processing fees are zero for top institutes.

So, before taking a loan calculate these hidden costs and check schemes like PM-Vidyalaxmi for low-cost options

4: How Much Loan Can a Student Get in India?

This question comes to every student mind How much loan can I get in India Come, let me answer it

The loan amount depends on the course and the bank. For example Bank of Baroda gives loan up to ₹125 lakh for MBBS and up to ₹150 lakh for abroad studies.

One can get collateral-free loan up to ₹50 lakh from HDFC, especially for top institutes like IIT, IIM or medical colleges.

Minimum loan Usually it starts from ₹50,000, from banks like Axis. But there are conditions for taking a loan

You should get admission in a recognised institute UGC/AICTE approved or reputed foreign university.

Plus, there should be a co-borrower, like parents or spouse who can take responsibility for repayment. Academic records are also checked.

So, look at your course and institute and talk to the bank you will get a loan according to your needs

5: Can I Get a 100% Education Loan?

Are you wondering if the entire course expense can be covered by a loan Yes, it is absolutely possible

For top institutes like IIMs, IITs or AIIMS, PM-Vidyalaxmi scheme and Bank of Maharashtra Maha Scholar Loan provide 100% financing, meaning tuition, hostel, books, everything is covered.

There is no need for collateral or guarantor for these, just admission should be confirmed.

But this is only for NIRF top-ranked or premier institutes. In other cases there is a margin meaning 5% for studies in India or 15% For studies abroad may have to be paid by yourself.

860 QHEIs are eligible under PM-Vidyalaxmi, so check whether your college is in the list or not.

These schemes are perfect for meritorious students so apply and study tension free.

6: How Much Do Student Loans Cost Per Month?

What is this matter of EMI and how much will the student loan cost every month Let me understand with a simple example.

Suppose I take a loan of ₹10 lakh at 10% interest for 5 years then the EMI would be around ₹21,247 per month.

Now this EMI can increase or decrease if the tenure is longer or shorter. For example if it is 7 years then the EMI will become a little less.

The exact amount can be checked from the EMI calculators of banks like HDFC or Bank of Baroda just enter the loan amount, interest rate and tenure.

One more thing, student loans have a moratorium period course time + 6-12 months, where EMI does not start but interest keeps accumulating.

After this, the EMI may increase a little So, plan your budget and calculate it using the EMI calculator and stay tension free.

7: Government Subsidies and Forgiveness Schemes

Hey, are you afraid of the interest on student loan Don’t worry, there are government schemes which can save money.

Schemes like PM-Vidyalaxmi, Central Sector Interest Subsidy (CSIS) and Padho Pardesh provide interest subsidies to economically weaker sections family income up to ₹4.5-8 lakh.

For example, in CSIS if your family income is less than ₹4.5 lakh, the government provides interest for the moratorium period (course time + 1 year) on loans for professional/technical courses, up to ₹10 lakh loan.

In PM-Vidyalaxmi also, students with an income of ₹8 lakh get 3% interest subsidy for top 860 institutes. Padho Pardesh used to give interest subsidy on loans for studying abroad for minorities (Muslim, Christian, Sikh, etc.) but it was stopped from 2022-23.

These schemes reduce the cost of loans especially for OBC, EBC, or minority students. After checking the eligibility, you will get the details from the Ministry of Education or Canara BankFriend

8: Additional Costs: Living Expenses and Other Fees

Student loan is not just for fees, it covers a lot more Living expenses like hostel rent, food, and pocket money can also be included in the loan, especially for studying abroad.

You can also add books, laptop, or travel costs flights for international students.

For example, Bank of Baroda or Union Bank of India loans include hostel fees, insurance premiums, and caution deposits (up to 10% of tuition fees)

So, if you need a laptop for a course then yes, you can get a loan for that too You just have to provide proof to the bank that it is necessary for education. Visa fees are also covered in Abroad loans. Ask the bank and plan your expenses

FAQs

My Opinion: Choosing the Best Student Loan

So friend, now that you have understood the basics of loan, how to choose the best one? First, check the interest rates SBI (starting from 8.15%), HDFC, and Bank of Baroda offer competitive rates.

Secondly, check the repayment flexibility like moratorium period or prepayment without penalty. The reputation of the bank also matters,

So you can trust these companies like the big banks. Use EMI calculator, like on SBI or HDFC website, to understand the monthly expense.

And yes, you may not get 0% loan, but you can get interest subsidy from schemes like PM-Vidyalaxmi or CSIS.

Check the eligibility of your course, budget, and government schemes. Do some research and select a tension-free loan that suits you