How is Education Loan Interest Rates Calculated?

Education loan interest rates are calculated based on factors like the loan amount, tenure, and borrower profile. Tata Capital applies competitive rates for student loans and interest rates are calculated on the disbursed amount.

Factors Affecting Education Loan Interest Rates

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.

What are the expenses covered under student loans?

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.

For what kind of courses can I avail an education loan?

You can avail of loans at competitive education loan rates for a wide range of courses, including undergraduate, postgraduate, and doctoral programs, as well as professional, technical, and vocational training. Loans cover studies both in India and abroad at recognized institutions, ensuring access to quality education and specialized career paths.

Are there any tax benefits that can be availed on an education loan?

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.

Does Tata Capital provide interest free Education loan?

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

Is any collateral required for student loan?

Tata Capital offers both secured and unsecured education loans. Collateral will be based on case to case.

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Rates and Charges

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 EMI is due but valid instrument is not available for banking due to Mandate rejected by Borrower’s bank or EMI Post-dated cheques(wherever applicable) are not available. 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