Educational loans are provided by a number of banks to help students pursue their higher studies in India or abroad. The interest rates for education loans in India begin at around 9% and can go upwards based on certain factors. 

Factors affecting interest rate for educational loans:

1. University for higher studies:

If you are joining a reputed institution like IIT, IIM or similar universities abroad, then the interest rate that is charged for an educational loan is much lower. Also, collateral is not required for such universities. This is very beneficial for academically excellent students. 

2. Gender:

Girl students get a lower interest rate than boy students in most banks. This is to promote the girl child to study and help her achieve academic excellence with the same opportunities provided to the male students in the society. 

3. Parents with a good credit score:

Educational loans are provided to the students along with their parents who are considered as joint applicants. If the parents have a good credit score, the interest rate that is offered is generally lower as they are considered as creditworthy customers and thus reduces the risk factor to the bank. 

4. Tenure:

Ensure that you choose a short repayment tenure rather than a long one. This can make sure that the outflow of money towards the repayment of the interest is lower. The longer the tenure, the more the money spent on interest. 

5. Credit score:

If the student himself/herself has a good credit score, it can be very useful to lower the interest rate on an educational loan. The better the credit score, the lower the interest rate charged. A credit score above 750 is always best to be considered a creditworthy customer.