Education Loan Interest Rates

Planning to study abroad?

Welcome to Leap Finance, where we help you secure an education loan for abroad. You only need to fill an online application, get your papers in order, and then you can obtain a loan sanction that covers everything from your tuition fee, living expenses, and your other needs within a few days. But the cherry on the cake is that the rate of interest on the loan that you have to repay is unmatched by any other sponsor or banking institution in India!

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Why do you need to calculate education loan interest rates?

You must have a clear idea of the education rate of interest that is applied to the amount which you have to repay after you have taken an education loan. This allows you to make quick decisions and have clarity about how you want to structure your new life and finances during the repayment period.

A lot of banks, NBFCs, and private lenders offer education loans to Indian students applying for MS abroad at competitive terms. However, there are a lot of hidden costs that you are unaware of till the last moment.

That’s why you need a smart, transparent, and advanced lender who clears all your doubts. These doubts include, how much can you be eligible to borrow, what your repayment timelines are, how much rate of interest is to be accrued on the amount borrowed and what your repayment structure looks like. If your lender is unable to offer you a simple loan interest rate breakup or is unable to give you a clear outline of all the terms and conditions to be taken care of while repaying the loan via EMIs, you can face a lot of issues.

At Leap Finance we apply customised interest rates according to your application. You know upfront what you have to pay, and this helps you prepare for the repayment process in a structured manner.  

Things which impact your Education loan interest rate

1. University

The University where you successfully secure admission is the first thing that is considered by your lender, to determine how much loan you are eligible for.  The loan interest to be accrued on this amount is also influenced directly by the college you apply for. The reason is simple because, if your college is renowned, their placement rate is higher and there’s a likely chance of you getting a job. This determines how comfortably and how quickly you can repay the loan.

Leap Finance looks at your future income prospects post MS and determines the rate of interest accordingly.

2. Course

The course that you want to study is also a factor that determines the rate of interest to be applied to the repayment amount.

3. Country

The country that hosts the university you’re applying to also matters when your rate of interest is being calculated. If the country has friendly immigration policies and better corporate policies, your interest rate terms on the education loan can be favorable.

4. GRE and overall academic performance

Your GRE scores and overall academic performance history is also a major factor that influences the rate of interest levied on your education loan repayment amount.

5. Your Work Experience

Apart from all your academic achievements, your personalised rate of interest on the education applied for depends on your work experience and performance.

If the course you’re applying for, helps you to upgrade your skills, the chances of you getting a high paying job are higher, and that reflects on the interest rate determined for you.

6. Loan Tenure

Loan tenure is the sum of the moratorium period and the repayment tenure. The moratorium period is defined by the length of the course.  At Leap Finance, we define the repayment period based on how long we think you'll need to repay the borrowed amount based on the course and career prospects.

Some lenders structure the repayment process in such a format that you can start the repayment while still in college. In such a scenario, the rate of interest applied is low and is fixed for the tenure of the course.

After the course is completed and you’re working, the rate of interest determined by other banks, and NBFCs keeps changing according to your repayment performance during the earlier period. 

At Leap Finance, we assess and determine interest rates independent of the amount and the rate of interest remains fixed throughout.

7. Collateral Vs No Collateral

Banks and NBFCs usually offer education loans for MS abroad based on a collateral or a guarantee. This is done to safeguard their interests as lenders. This is watertight, but it also means that not everyone can apply for loans to fund their dreams. In the past few years, a no collateral loan policy has come up which helps applicants from all financial backgrounds apply and secure loans to help them study for courses that will eventually get them into careers that bring them the life they have always wanted.

Leap Finance has a strong credit engine that allows us to offer interest rates that are similar to a collateral loan despite not looking at collateral. We have innovated on multiple dimensions — technology, financial structuring, and risk — to bring down the interest rate and improve customer experience. Know more about education loans without collateral.

8. Personalized Interest Rate

Some lenders like to personally assess the applicant, their potential, and their credit histories before calculating the interest rate to be applied to the loan amount.

This is a new and revolutionary idea as it customizes the repayment process according to every applicant’s potential.

At Leap Finance, we send you your personalized interest rate of repayment after just 10 minutes of completing your loan application submission. This will help you understand where you stand immediately and will help you make faster decisions with respect to your education and life in the new country during and post your graduation. 

9. Prepayment

If you can make a prepayment on your education loan, the interest rate applicable changes.  At Leap Finance, you do not have to worry about prepayment at all as there are no additional charges on prepayment.

Why Leap Finance?

At Leap Finance, we believe that money should never be a hindrance when it comes to working for the life you want.

We take the pressure off you by taking care of the finances so that you are free to prepare for your new life ahead. You can apply for your VISA without any stress, find the right accommodation near the university you’re applying to, connect with potential flatmates, future classmates, teachers, potential recruiters, and mentors.

Leap Finance offers interest rates which is one of the lowest in the industry. Our interest rate ranges between 8.45% - 9.49%.