Education Loan Interest Rates & Charges

Learn about education loan interest rates and use our calculator to estimate your EMIs and total repayment.

Rates and Charges

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Education Loan Interest Rates

Here are the student loan interest percentages at Tata Capital:

Details	Secured Loan	Unsecured Loan
Interest Rate (Disbursed on/after 1st May 2024)	11.50% (from 1st Sep 2024) 11.30% (from 1st May 2024)	11.50% (from 1st Sep 2024) 11.30% (from 1st May 2024)
Interest Rate (Disbursed before 1st May 2024)	15.25% (from 11th Mar 2024) 15.00% (from 22nd Dec 2023)	15.25% (from 11th Mar 2024) 15.00% (from 22nd Dec 2023)
Loan Tenure	Up to 13 years	Up to 13 years
Maximum Loan Amount	Up to ₹200 lakhs	Up to ₹85 lakhs
Collateral Requirement	Property or Fixed Deposit	Not required
Moratorium Period	Covers the entire course duration, plus up to 12 months as a grace period	Covers the entire course duration, plus up to 12 months as a grace period
Margin	No margin for premier institutes. For other institutes, you pay 15% of the total cost from your own funds	No margin for premier institutes. For other institutes, you pay 15% of the total cost from your own funds

Education Loan Fees & Service Charges

Penal Charges

Penal Charges, if any, in case of delayed payments

This is a charge for late EMI payments, calculated based on the number of days your EMI remains unpaid.

At Tata Capital, For default in payment of interest and/ or principal amounts 3% per month on defaulted amount (Annualized Penal Charge of 36%)

Dishonour of any cheque/
payment instruments

These are those charges that are levied in case of an EMI bounce per instance. In other words, these charges are levied when you miss a Education loan EMI payment due to inadequate funds in your bank account. At Tata Capital, you’ll be required to pay Rs. 600 per instrument per instance

Mandate Rejection Service Charge

Charges will be levied if new mandate form is not registered within 30 days from the date of rejection of previous mandate form by borrower’s bank for any reasons whatsoever. Tata Capital charges a nominal amount of Rs. 450.

Other Charges

Processing Fees

The processing fee is a non-refundable fee levied by Tata Capital while processing your loan application. You are charged this one-time fee even if the loan does not get sanctioned.

At Tata Capital, you are charged Up to 2% of the loan amount.

Stamp Duty

This is a government-mandated fee required for legally registering your loan agreement.

At Actuals

Foreclosure Charges

This is a charge applied if you choose to repay your entire loan before the end of the contracted loan term.

Nil

Charges for switching of loans from floating to fixed rate and vice versa

If you wish to change the loan interest structure from floating to fixed rate or vice versa, impacting loan terms and repayment schedules, you are charged Repricing Charges.

Nil

Statement of Accounts Charges

This is a charge applied for providing a physical copy of the Statement of Account – a statement having a list of all transactions made in your loan account during a given period.

At Tata Capital, you will be charged
Customer portal – Nil
Branch walk-in - Rs. 250

Legal & Valuation Fees (Incase of secured)

This fee covers the legal review of your loan and valuation of any asset or property provided as collateral.

At Tata Capital, you are charged Rs. 5000/-

Document Handling and Retrieval Charges in case of secured

This is a charge applied for safe storage, maintenance, and retrieval of collateral documents.

At Tata Capital, you will be charged Rs. 5,000/-

Documentation Charges

This fee covers the cost of verifying your documents, completing necessary compliance checks, and conducting due diligence before your loan is disbursed.

At Tata Capital, you are charged Up to Rs. 1999.

CERSAI Charges (Non Refundable)

This is a government fee imposed for registering mortgage details with CERSAI to enhance loan security and transparency to prevent multiple lending frauds and protect lender interests.

a) For loans up to Rs. 5 Lacs - Rs. 50 per filing/modification

b) For loans above Rs. 5 Lacs - Rs 100 per filing/modification.

c) OR such other charges as may be stipulated by Central Registry from time to time

Loan Cancellation Charges

This is a charge applied for cancellation of your loan.

Nil

Part- Prepayment Charges

This is a charge applied if you choose to repay part of your loan before the end of your loan tenure.

Nil

Note: GST, other government taxes and levies as applicable, will be payable on all fees and charges.

FAQs on Education Loan Interest Rates

The interest on an education loan is calculated using the reducing balance method. Here’s what its formula looks like:

Interest = (Loan Amount × Interest Rate × Time) ÷ 100

For example, on a Rs. 10,00,000 loan at 12% per annum, the first year’s interest will be Rs. 1,20,000.

No, education loan interest rates do not vary by course. They mainly depend on factors like loan amount, tenure, applicant profile, and whether the loan is secured or unsecured.

Education loan interest rates depend on factors like the loan type (secured or unsecured), lender’s base rate, loan amount, repayment tenure, borrower’s academic record, co-applicant’s financial profile, institution reputation, government subsidies, and market conditions.

Tata Capital education loans cover tuition fees, accommodation, travel, meals, living costs, books, and essential equipment like laptops. Additional costs like exam fees and study materials are also included.

Yes, education loans offer tax benefits under Section 80E of the Income Tax Act. You can claim a deduction on the student loan interest rates paid for up to 8 years starting from the loan repayment date. This benefit applies only to loans from recognized financial institutions and is limited to the interest component, not the principal.

Tata Capital offers education loans both with and without collateral, depending on the loan amount and applicant profile. A guarantor is usually required, especially for full-time academic programs, as they share repayment responsibility and provide additional financial assurance to the lender.

No, Tata Capital does not provide interest-free education loans. However, we offer competitive interest rates, flexible repayment options, and schemes tailored to ease the financial burden of pursuing higher education.

Yes, there are government schemes that make education loans more affordable. The Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) scheme gives students collateral-free, guarantor-free loans and a 3% interest subsidy if the family income is up to Rs. 8 lakh and admission is in approved institutes. The Central Sector Interest Subsidy (CSIS) scheme helps students from families earning up to Rs. 4.5 lakh by covering the entire interest during the moratorium period.

For Tata Capital education loans, the margin money depends on the type of institution. For both secured and unsecured loans, no margin is required if you are admitted to a premier institute. For other institutes, you must contribute 15% of the total cost from your own funds.