India is a country where education loans are costlier than car loans. While car loans are available for rates around 8 percent, educational loans can cost you around 12 percent.
Reduce Educational Loan rates
The rate of interest of Education Loan given by Banks should be reduced to 3% – 5%, equivalent to the interest rate charged for Savings account with repayment period of 5-7 years.
The loan given for educational purposes need to be considered as a case of no gain – no loss transaction by the banks.The financial aid given to students for education will not be a loss to the nation.