The basic idea behind extending tax concession to all streams has been to enable students from all economic walks of life to reap the benefits of the scheme.

The scheme would also be applicable for parents who have taken the loan for a child whom they have legally adopted.

Current rates of interest charged by banks for education loans

Up to Rs. 4 lakhs: For loans up to Rs. 4 lakh, the lowest rates are given by Bank of India at 8.50% to female candidates for management course. For the same loan amount, Bank of Baroda offers 9%. Many other banks offer loans for this amount at 10-13.25 %

Rs. 4 lakh to Rs 7.5 lakh: For loans in this range, Bank of India again offers the lowest rates at 9% while Central bank of India offers 9.50%. The rates charged by most of the other banks lie in the range of 10-14%.

Above Rs. 7.5 lakh: In this category Canara Bank charges the lowest rate at 8.75% while Syndicate Bank offers 9.50%. The rates charged by major banks are in the range of 10-13.50%.

Reach out to the Education Loans page on RupeeTimes to access more information on educational loans.