Education loan interest rates play a key role in deciding how much extra you’ll pay when borrowing to fund your studies. Whether you want to study in India or abroad, banks and financial institutions offer loans that cover tuition fees, hostel, books, and other expenses.
These rates vary depending on your loan amount, course type, and the reputation of the college or university. Many banks offer special lower rates for girl students or those admitted to reputed institutes. 📚
Latest Education Loan Interest Rates from Top Banks in India
| Bank/NBFC | Interest Rate (p.a.) | Loan Amount | Loan Tenure | Processing Fee |
|---|---|---|---|---|
| SBI | 10.65% – 11.75% | Minimum ₹10 lakh – maximum loan amount of ₹3.00 crore. | Up to 15 years | INR 10,000 + GST |
| HDFC Bank |
9.55% – 13.25% | Ranging from ₹50,000 to ₹150 lakhs (₹1.5 Crore) | Up to 30 years | Up to 1% of the loan amount, or Minimum of Rs. 1000. |
| Hero FinCorp | 1.58% – 19% | Minimum amount of ₹50,000 and a maximum amount of ₹1,50,000 | Starting at about 6 months and extending up to 3 years | 2.5% plus applicable taxes. |
| ICICI Bank |
9.75% – 14.25% | Ranging from a minimum of ₹1 lakh to a maximum of ₹3 crore. | Range from 5 to 15 years | Up to 2% of the loan amount, plus GST |
| Axis Bank | 9.58% – 15.20% | ₹50,000 – Up to ₹1 crore | 5 to 7 years | 0.75% of the sanctioned amount, plus applicable GST. |
| Kotak Mahindra Bank |
10.25% – 16% | Minimum Loan Amount: ₹50,000 – Maximum Loan Amount: Up to ₹35 lakh | Up to 4 years | ₹1,000 – ₹2,000 |
| Union Bank of India |
8% – 15% | Minimum : ₹.7.50 Lakhs Maximum : ₹.150.00 Lakhs | Maximum loan repayment tenure of 15 years (180 months) | ₹5,000 |
| Yes Bank | 11.25% – 12.75% | Minimum of ₹50,000 to a Maximum of ₹50 lakh | Up to 15 years | 2% of the loan amount |
| Bandhan Bank | 9.47% – 11.55% | Minimum Loan Amount: ₹1,000 & Maximum Loan Amount: ₹10,000 | Up to 1 year | 1% of the loan amount |
| Punjab national bank(PNB) |
7.50% – 12.35% | Minimum of Rs. 5,000 to a Maximum of Rs. 7.50 lakh. | Up to 15 years | 1% of the loan amount (minimum Rs. 10,000) |
Note: The final interest rate may vary based on your credit score, income, job type, and how easily you can repay the loan.
🔗 Calculate and Compare Your Education Loan EMI
Before choosing a loan, it’s wise to calculate your education loan EMI. This helps you pick a loan that fits your monthly budget and repayment ability.
| Education Loan Calculator | Check Loan Eligibility |
📊 What Affects Education Loan Interest Rates?
Knowing the factors that influence education loan interest rates can help you plan better:
- Loan Amount – Interest rates can change depending on how much money you borrow.
- Collateral (Security) – Providing collateral may reduce your interest rate.
- Course & Institution – Loans for top colleges often get better rates.
- Credit Score – If the co-applicant has a good credit history, it can help get better loan conditions.
- Repayment Tenure – Paying back the loan in a shorter time means higher monthly payments but you pay less interest overall.
💼 Loan Processing Time and Approval
Most banks take 7 to 15 working days to process education loans. The process takes longer or shorter depending on how fast you provide all documents and how complete your application is.
Keep your admission letter, fee structure, ID proof, and academic records ready to speed up approval. ⏳
📄 Documents Required for Education Loan
Here’s a basic list of documents usually needed:
- Admission letter from college/university
- Mark sheets (10th, 12th, and degree if applicable)
- Identity and address proof of applicant and co-applicant
- Income proof of co-applicant (parents or guardian)
- Fee structure from the institution
- Bank statements for the last 6 months
💰 Tax Benefits on Education Loans
Good news! Under Section 80E of the Income Tax Act, you can save money on taxes by claiming the interest paid on your education loan. There is no upper limit, but the benefit lasts for 8 years from when you start repaying the interest. 💸
🏛️ Government Schemes to Help Students
There are government programs that lower education loan interest rates for students who qualify:
- Central Sector Interest Subsidy Scheme (CSIS) helps families with low income.
- Padho Pardesh Scheme for minority community students studying abroad (currently paused)
- Dr. Ambedkar Interest Subsidy Scheme is for OBC and EBC category students.
These programs help make education loans easier to afford for many students. 🎯
🌍 Education Loan for Abroad Studies
Banks in India offer education loans for studying abroad covering tuition, living expenses, travel, and insurance.
Keep in mind:
- Higher loan amounts are usually required
- For loans above ₹7.5 lakh, the bank may ask for some form of security or guarantee.
- Watch exchange rates and repayment rules carefully
- Some banks offer special schemes with flexible repayment for students going overseas. ✈️
🤔 Fixed or Floating Interest Rate – Which to Choose?
When taking an education loan, you can choose between:
Fixed Interest Rate: The rate stays the same during the loan tenure, so your EMI is stable.
Floating Interest Rate: The rate can change with market trends and RBI policies, which might increase or decrease your EMI.
Fixed rates provide peace of mind, while floating rates can be cheaper if interest rates drop. Pick the option that feels best for you and fits your repayment schedule.
🔎 How to Find the Best Education Loan Interest Rates.
- Keep a good credit score for both you and your co-applicant.
- Apply early and keep all education loan documents ready.
- Look for banks offering subsidies or special schemes.
- Compare interest rates and loan features carefully.
- Pick loans that offer easy repayment plans and have no hidden charges.
❓ FAQs on Education Loan Interest Rates
1. What are the current education loan interest rates in India?
A1. Interest rates for education loans in India usually range from 8% to 13% per year, depending on the bank, loan amount, and applicant profile.
2. How can I reduce the interest rate on my education loan?
A2. To get the lowest rate, apply with a good credit score, choose a reputed college, add a co-applicant, and provide collateral
if needed.
3. Do girl students get lower education loan interest rates?
A3. Yes, many banks in India offer special interest rate concessions for female students, often reducing the rate by 0.5% or more.
4. How does the loan repayment start after my course ends?
A4. Repayment usually begins after a moratorium period, which includes the course duration plus 6–12 months. This gives time to find a job before EMIs start.
5. Can I switch banks if I find better education loan interest rates later?
A5. Yes, you can transfer your education loan to another bank offering lower interest rates.
6. Is it possible to repay the education loan early without penalty?
A6. Some banks allow early repayment without extra charges, but others may have a small prepayment fee. Always check with your lender before deciding.
✍️ Final Words
Knowing about education loan interest rates and related topics like education loan EMI, tax benefits on education loans, and education loan documents helps you borrow smartly. Always compare offers, understand loan terms, and plan your repayments well.
The right education loan can make your study journey smooth and worry-free! 🎉
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