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Education: The Most Essential Investment

Education is one reason for the development of civilization. Every tradition and culture grows depending upon the knowledge imparted to them through their ancestors. Education is realistic and helps in solving problems in the world in a more simplified manner. Education is learning in which the knowledge, skills, values, benefits and beliefs of a group is transmitted from one generation to another through discussions, teaching, training and research. One can even learn to think, feel or act from their experiences. Education is one of the essentials of investment.

Inflation Rate in Education Sector

Inflation rate in education sector is constantly growing high. With every passing year, the graph of inflation is growing in education sector. Every parent wants to give the best education to their child, and thus to meet the education needs of your child, it is important to make the right investment at the right time. Insurance is your investment for the future happenings and ensures a healthy financial future to you and your family.

What is Education Loan?

Quality education is important to have a complete and successful life. ‘Quality Education’ offered by acclaimed educational institutions in India are costly and not easily available to everyone, this is when education loans come into picture. These are the funds offered by financial institutions to merit holders or deserving students so that they can pursue their higher education, in India or abroad.

Almost all banks offer education loans and the demand for it is stable in Indian community.

Features of Education Loan- 

The feature of education loan over a personal loan are listed below-

·        Expensive Education-

Once you have an education loan, you do not have to worry about accumulating sufficient money to fund your child’s higher education. The inflation rate of education is growing rapidly and thus ‘quality education’ has become quite expensive. A good education loan helps you to be safe from unexpected surprises.

·        Specialized Help-

There are various expenses in a standard course like deposits, library fees, building deposits etc. With a good education loan, you can address such needs to your child’s education without any risk of running out of money.

·        Easily Available-

Education loans are a priority product in banks and RBI has listed these as a part of priority sector lending of banks. To get an education loan, all you need to do is confirm some basic requirements and your ability to repay.

·        Timely Help-

A good education loan offers support when you are at a crucial stage that promises a successful life-education. You do not have to worry about collecting the amount required as a full-fledged education loan puts you at ease.

Benefits of Education Loan-

The benefits offered are complete deal makers, when it comes to an education loan. Here are the benefits offered as a part of the education loan-
1.     Anyone who wishes to study can apply for this loan as this is universally applicable.
2.   You can avail these to pursue any type of academic courses (graduation, post-graduation, vocational courses or other certificate courses), in India and abroad.
3.   You can take loan from a minimum of Rs. 10 lakhs to a maximum of Rs. 15 lakhs. For education abroad, banks will provide loans for an amount of Rs. 20 lakhs.
4.   The applicants’ annual family income and the course pursued are the primary factors that determine the applicable loan amount.
5.    Female students are offered discounts or lower interest rates.
6.   The applicant can pau the loan post the completion of course, the repayment period can be stretched up to 5-7 years.
7.    Generally, if the loan is below Rs. 4 lakhs, then there is no need for a security or guarantor.
Each bank, according to their capacity offers exclusive features and benefits.

Comparing Education Loans from Top Indian Banks:

Loan Amount/ Interest Rate
Max. Loan Amount
Repayment Tenure
State Bank of India (Base Rate- 9.70%)
Upto Rs.4 lakhs / 13.35% p.a (base rate + 3.65%)

Between Rs.4 lakhs- Rs.7.5 lakhs / 13.60% p.a (base rate + 3.90%)

Above Rs.7.5 lakhs / 11.60% p.a (base rate + 1.90%)
Studies in India- Rs.10 lakhs Studies Abroad- Rs.30 lakhs
5-7 years
Axis Bank
(Base Rate- 9.95%)
Upto Rs.4 lakhs / 16.95% p.a (base rate + 7.00%)

Between Rs.4 lakhs- Rs.7.5 lakhs / 17.95% p.a (base rate + 8.00%)

Above Rs.7.5 lakhs / 15.95% p.a (base rate + 6.00%)
Studies in India- Rs.10 lakhs Studies Abroad- Rs.20 lakhs
Maximum 7 years
Punjab National Bank (Base Rate- 10.00%)
Upto Rs.4 lakhs / 12.00% p.a (base rate + 2.00%)

Between Rs.4 lakhs- Rs.7.5 lakhs / 13.00% p.a(base rate + 3.00%)

Above Rs.7.5 lakhs / 12.50% p.a (base rate + 2.50%)
Studies in India- Rs.10 lakhs
Loans upto Rs.7.5 lakhs : 10 years Loans above Rs.7.5 lakhs : 15 years
Avanse Education Loan (Avanse Base Lending Rate- 11.50%)
Calculated individually based on course being pursued and the accompanying cost.
Minimum- Rs.50,000 Maximum- No Limit
Minimum Repayment Tenure- 12 months Maximum Repayment Tenure- 120 months


Investing into your child’s education is the best way to invest your money. There are various child plans available in the market as per your needs and requirements. It is best to understand the child policy better to determine which policy suits you the best before investing. It can be concluded that education is the essentials of investment.


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Your child is the backbone of any civilization as they carry forward the name, tradition and history of human race forward. Every parent’s priority is to provide the best education to their child. This can be a challenge for many parents as the rate of inflation in education sector is growing with every passing day. Providing best education to your child has become a nightmare for most of the parents.
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