Prathama Bank Education Loan Interest Rates


Prathama Bank Education Loan

Prathama Bank is the first (Pratham in Hindi) regional rural bank of India which was formed in 1975 and is sponsored by Syndicate Bank. The bank has its own currency chest of category A. The bank offers advances for education under personal banking sector to deserving scholars. The features of education loan scheme is as follows-

Loan Purpose
To give financial aid to the bright students in getting in to higher education. The loan focuses on ensuring the laborious and brilliant students do not miss the chance to go for further studies because of lack of funding.

Eligibility Criterion
Students who have good and consistent academic record and have secured admission to a specific study program in the institutions which are affiliated by government.

Eligible Courses
The bank offers loan for graduate and post graduate courses in India as well as in foreign countries.
• Courses approved by UGC, AICTE, ICMR, AIBMS, and Govt. etc. for Graduation/Post Graduation programs (Degree/Diploma) and conducted by reputed Colleges/Universities.
• ICWA, CA, CFA courses and programs conducted by prestigious institutes like IIM, IIT etc.
• Government approved degree or diploma programs in fields like Aeronautics, Shipping, and Pilot training are eligible for this loan.
• B.Ed., TGT or nursing etc. courses which are approved by either Central or State Govt. are also permitted.
• Courses offered by reputed and approved Foreign Universities in India.
• For job oriented courses be it professional or technical offered by reputed institutions or Universities.

Quantum of Loan
The sanctioned loan will be need based and it will depend upon applicant’s repaying capacity:
• For studies in India: up to. Rs.7.50 lacs
• For studies abroad: up to  Rs.15.00 lacs

Margin for the education loan is mentioned below-
• For loans up to 4 lacs – Nil
• For loans more than 4 lacs- 5 %

• Upto Rs.4 Lakhs –  No security
• Above Rs.4 Lakhs: Collateral security of suitable value and co-obligation of parents/ guardians/ third party along with the assignment of future income of the student for payment of instalments.

The tenure of this education loan is from 5 to 7 years. It will be paid back to bank in appropriate equated monthly instalments (EMI). Repayment to commence after 1 year of culmination of study program or after 6 months of securing a job, whichever is earlier. All the same the parent / guardian is needed to bear the interest accrued monthly on the loan.

Interest on loan
Up to 7.5 lacs the interest rate is 12.50% and more than 7.5 lacs, the rate of interest is 13.50%. Please note that these rates are applicable on subsisting as well as fresh education loans. Relaxation on interest rates is there for women candidates, it is 0.5% below the prevailing interest rate of the bank for education loan.

Comprehensive life insurance policy for the student availing Educational Loan equivalent to loan amount, for a minimum period of loan term (i.e. course period + moratorium period + repayment period) should be obtained and assigned in favour of the Bank.

Prathama Bank Official website:


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