IDFC FIRST Bank
You’ll be spoilt for choice with different banks and NBFCs offering the loan.
But whom to choose? Let’s decode.
Banks usually charge a lower processing fee on the loan compared to NBFCs. As such, your loan expenses are reduced if you choose banks.
Bank loans are linked to the MCLR and are more standardised while NBFCs can charge any interest rate depending on their policies.
Eligible students can claim interest subsidies on bank loans which brings down the added interest rate. Such subsidies are not allowed for NBFCs.
Tax deduction on interest under 80E is available on bank loans. For NBFCs, the deduction is available only if the NBFC is notified by the CBDT.
Banks might require you to fund 10% to 20% of the education costs from your pockets as margin money while NBFCs usually don’t require margins.