Education Loan Interest Rates in India
✓ Updated Interest rates
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Here we are going to look at the interest rates offered by different public banks, private banks, and NBFCs for education loans for secured, unsecured, and partially secured education loans.
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What is an Education Loan Interest Rate?
An education loan interest rate refers to the percentage charged by the lenders on the borrowed funds. When you take out a student loan, the lender charges a certain percentage of the total principal loan amount as interest for the loan.
Interest rates play a significant role in education loan repayments. The interest rate of an education loan helps students understand the extra amount they need to repay on top of the borrowed loan amount during the repayment period. Banks offer two types of interest rates for education loans, floating rates and fixed rates.
Floating Interest Rates:
A floating interest rate doesn’t remain constant and changes according to the lender and market conditions, like the repo rate. This type of education loan interest rate can keep changing throughout the loan tenure, affecting the EMIs.
Although floating interest rates change according to the market conditions, it doesn’t necessarily have a negative effect on student loan repayments. A decrease in the repo rate often lowers the interest rate of education loans with floating rates. This allows students to lower their education loan repayments or reduce the loan tenure.
Fixed Interest Rates:
Unlike floating rates, the interest rate of an education loan with fixed rates will remain constant throughout the loan tenure. It will not be affected by changes in the market conditions. This means that the EMIs of the student loan will also remain the same for the entire loan duration.
Comparison Of Education Loan Interest Rates
The following table compares the interest rates and loan amounts of education loans offered by different lenders.
| Bank Name | Maximum Loan Amount | Interest Rate |
|---|---|---|
| State Bank Of India (SBI) | 3 Crores (Secured) | Starts from 8.15% |
| Bank Of Baroda (BOB) | 1.5 Crores (Secured) | Starts from 8.70% |
| Bank Of India (BOI) | 1.5 Crores (Secured) | Starts from 9% |
| Central Bank of India | 2 Cr (Secured) | Starts from 9.45% |
| UCO Bank |
20 Lakhs (Unsecured) Secured Loan based on Need | Starts from 8.70% |
| Punjab National Bank | Need-Based Financing | Starts from 9.5% |
| Canara Bank | 1 Crore (Secured) | Starts from 8.75% |
| Union Bank of India | 1.5 Crore (Secured) | Starts from 9.25% |
| Axis Bank | 1.5Crore (Secured) | Starts from 10.5% |
| ICICI Bank | 2 Crore (Secured) | Starts from 9% |
| IDFC First Bank | 1.5 Crore (Secured) | Starts from 9.5% |
| Federal Bank | 20 Lakhs (Secured) | Starts from 11.25% |
| South Indian Bank | 1.5 Crores (Secured) | Starts from 9.99% |
| Karur Vysya Bank | 1.5 Crores (Secured) | Starts from 11% to 13.50% |
| Bandhan Bank | 25 Lakhs (Unsecured) | Starts from 13.45% |
| HSBC Bank | Need-Based Financing | Starts from 9.99% |
| IDBI Bank | Need-Based Financing | Starts from 7.65% to 15.50% |
| Kotak Mahindra Bank | 20 Lakhs (Secured) | Starts from 9.98% |
| Karnataka Bank | 20 Lakhs (Secured) | Starts from 9.26% |
| Tamilnad Mercantile Bank | 20 Lakhs (Secured) | Starts from 11.55% to 11.60% |
| IndusInd Bank | Need-Based Financing | Starts from 10.49% |
| Jammu and Kashmir Bank | 30 Lakhs (Secured) | Starts from 9.20% to 10.20% |
| Yes bank | Need-Based Financing | Starts from 9.75% to 14.95% |
| Auxilo | 60 Lakhs (Unsecured) | Starts from 9.5% |
| Avanse | 85 Lakhs (Unsecured) | Starts from 10.25% to 11% |
| Incred | 80 Lakhs (Unsecured) | Starts from 11% |
| HDFC Credila | 1 Crore (Unsecured) | Starts from 9.95% |
| Allahabad Bank (Merged with Indian Bank) | Need-Based Financing | Starts from 13.95% |
| Andhra Bank (Merged with Union Bank) | 40 Lakhs (Unsecured) | Starts from 8.25% |
| Bajaj Finserv | 10.50 Crores | Starts from 11.50% |
| Citibank | 30 Lakhs (Personal Loan) | Starts from 10.75% |
| Standard Chartered Bank | Need-Based Financing | Starts from 11.49% |
| Syndicate Bank (Merged with Canara Bank) | 1 Crore (Secured) | Starts from 8.25% |
| Assam Gramin Vikash Bank | Up to 15 Lakhs | Starts from 9.45% |
| Andhra Pradesh Grameena Vikas Bank | Up to 60 Lakhs | Starts from 9.25% |
| Arunachal Pradesh Rural Bank | Need-Based Financing (Personal Loan) | Starts from 8.5% |
| Bangiya Gramin Vikash Bank | Up to 20 Lakhs | Starts from 12.75% |
| Baroda Gujarat Gramin Bank | Up to 10 Lakhs | Starts from 10.5% to 12% |
| Baroda UP Bank | Need-Based Financing | Starts from 10.50% |
| Dakshin Bihar Gramin Bank | Need-Based Financing | Starts from 11.05% |
| J&K Grameen Bank | Up to 20 Lakhs | Starts from 10.70% |
| Karnataka Gramin Bank | Up to 1 Crore | Starts from 10.25% |
| Kerala Gramin Bank | Up to 20 Lakhs (unsecured) | Starts from 10.30% |
| Madhya Pradesh Gramin Bank | Up to 20 Lakhs | Starts from 13.00% |
| Maharashtra Gramin Bank | Up to 20 Lakhs | Starts from 9.75% |
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SBI Bank Education Loan Interest Rate
The State Bank of India(SBI), one of the largest public banks in India, offers floating interest rates for education loans. SBI offers education loans for both studies in India and abroad through various SBI education loan schemes. The SBI education loan interest rate varies by scheme and starts from 7.15% with loan amounts ranging up to 3 Crores. Below are the SBI education loan interest rates according to the scheme.
| Scheme Name | Interest rate | Final Interest Rate | Discounts |
|---|---|---|---|
| SBI Student Loan Scheme | EBR + 1% to 2% | From 9.15% to 10.15% |
|
| SBI Scholar Loan Scheme | EBR - 0.25% to 1% | From 7.15% to 7.90% |
|
| SBI Global Ed-Vantage Scheme | EBR + 0.5% to 1% | 8.65% to 9.15% |
|
| SBI Skill Loan Scheme | EBR + 1.50% | 9.65% |
|
| Shaurya Education Loan (secured) | EBR+ 1.50% to 2.00% | 9.15% |
|
| Shaurya Education Loan (unsecured) | EBR+ 1% | 9.15% to 10.15% |
|
Updated EBR: 8.15% effective w.e.f. 15-06-2025
Last Updated on 05-03-2026
Bank of Baroda Education Loan Interest Rate
The Bank of Baroda(BOB) is a multinational Indian public bank offering both floating and fixed interest rates for education loans. The bank has designed various education loan schemes to offer student loans for both domestic and international studies. The Bank of Baroda education loan interest rate varies according to the scheme. Below are the floating and fixed interest rates of various BOB education loan schemes.
Floating Interest Rates
| Scheme Name | Condition | Repo Rate + Spread | Effective Rate of Interest | Discounts |
|---|---|---|---|---|
|
Baroda Education Loan to Students of Premier Institutions (For Studies in India) | Top 10 IIMs and Top 10 IITs | BRLLR - 1.05% | From 7.10% | - |
| List AA | BRLLR - 0.70% | From 7.45% | - | |
| List A | BRLLR - 0.50% | From 7.65% | - | |
| List B | BRLLR + 0.00% | From 8.15% | - | |
| List C | BRLLR + 0.50% | From 8.65% | - | |
| Baroda Executive Development Premier Institutions (Offered By Premier Universities in India) | Top 10 IIMs and Top 10 IITs | BRLLR - 1.05% | From 7.10% | - |
| List AA | BRLLR - 0.70% | From 7.45% | - | |
| List A | BRLLR - 0.50% | From 7.65% | - | |
| List B | BRLLR + 0.00% | From 8.15% | - | |
| List C | BRLLR + 0.50% | From 8.65% | - | |
| Baroda Executive Development Premier Institutions (For Studies abroad) | Abroad (Up to Rs. 7.5 lakhs) | BRLLR + 2.00% | Up to 7.5 lakhs - 11.45% Above 7.5 lakhs - 11.25% | - |
| Abroad (Above Rs. 7.5 lakhs) | BRLLR + 2.35% | 10.50% | - | |
| Special ROI (Baroda Yodha Education Loan) | BRLLR + 1.10% | 9.25% | - | |
| EL for study in AWES Institute |
| From 8.60% to 9.05% | - | |
| Baroda Skill Loan Scheme | BRLLR + 1.50% |
| - | |
| Baroda Vidya | Studying in school in India | BRLLR + SP+ 3.10% | 13.50% | - |
*Special rate of Interest for Children of defence personnel Under the Baroda Yodha Education Loan Scheme
Baroda Scholar
Education loan to Premier Institution Abroad (specified in the list of Premier Institutions)
| Scheme | Repo Rate + Spread | Effective Rate of Interest |
|---|---|---|
| Abroad | BRLLR + 0.55% | From 8.70% |
| Abroad (for CANADA) | BRLLR + 0.55% | From 8.70% |
Education loans to Non-Premier Institutions Abroad (which are not specified in the list of Premier Institutions)
| Scheme | Loan Limit | Repo Rate + Spread | Effective Rate of Interest |
|---|---|---|---|
| Abroad | Up to Rs.7.50 Lakh | BRLLR + 2.00% | 10.15% |
| Above Rs 7.50 lakh | BRLLR + 1.05% | 9.20% | |
| Special ROI (Baroda Yodha Education Loan) | BRLLR + 1.05% | 9.20% | |
| Abroad (for Canada) | Up to Rs 7.50 Lakh | BRLLR + 2.00% | 10.15% |
| Above Rs 7.50 lakh | BRLLR+2.55% | 10.70% |
Baroda Gyan
| Loan Limit | Repo Rate + Spread | Effective Rate of Interest |
|---|---|---|
| Up to Rs 7.50 Lakh | BRLLR + 2.00% | 10.15% |
| Above Rs 7.50 lakh | BRLLR + 1.90% | 10.05% |
| Special ROI (Baroda Yodha Education Loan) | BRLLR + 1.10% | 9.25% |
*A special concession of 0.50% for female students
*An additional 0.50% for studying Medical courses
Fixed Interest Rates
| Scheme Name | Conditions | Repo Rate + Spread | Effective Rate of Interest | Discount |
|---|---|---|---|---|
| Baroda Education Loan to Students of Premier Institutions (For Studies in India) | List AA | BRLLR + 1.00% | 9.15% | - |
| List A | BRLLR + 1.30% | 9.45% | - | |
| List B (Up to Rs 7.50 Lakh) | Base Rate + 2.00% | 11.40% | - | |
| List B (Above Rs 7.50 lakh) | BRLLR + 2.60% | 10.75% | - | |
| List C (Up to Rs 7.50 Lakh) | Base Rate + 2.00% | 11.40% | - | |
| List C (Above Rs 7.50 lakh) | BRLLR + 2.80% | 10.95% | ||
| Baroda Executive Development Premier Institutions (Offered By Premier Universities in India) | List AA | BRLLR + 1.00% | 9.15% | - |
| List A | BRLLR + 1.30% | 9.45% | - | |
| List B (Up to Rs 7.50 Lakh) | Base Rate + 2.00% | 11.40% | - | |
| List B (Above Rs 7.50 lakh) | BRLLR + 2.60% | 10.75% | - | |
| List C (Up to Rs 7.50 Lakh) | Base Rate + 2.00% | 11.40% | - | |
| List C (Above Rs 7.50 lakh) | BRLLR + 2.80% | 10.95% | - | |
| Baroda Executive Development Premier Institutions (For Studies abroad) | Abroad (Up to Rs. 7.5 lakhs) | Base Rate + 2.00% | 11.40% | - |
| Abroad (Above Rs. 7.5 lakhs) | BRLLR + 4.35% | 12.50% | - | |
| Special ROI - Baroda Yodha Education Loan (Up to Rs. 7.50 Lakh) | Base Rate + 2.00% | 11.40% | - | |
| Special ROI - Baroda Yodha Education Loan (Above Rs 7.50 Lakh) | BRLLR + 3.10% | 11.25% | - | |
| EL for study in AWES Institute | Up to Rs 7.50 Lakh | Base Rate + 2.00% | 11.40% | - |
| Above Rs 7.50 lakh |
| From 11.35% to 11.80% | - | |
| Baroda Skill Loan Scheme | Up to Rs.7.50 Lakh | Base Rate +1.50% | 10.90% | - |
| Above Rs 7.50 lakh | BRLLR +3.50% | 11.65% | - | |
| Baroda Vidya | Study in school in India | BRLLR + SP+ 5.10% | 13.50% | - |
Baroda Scholar
Education loan to Premier Institutions Abroad (specified in the list of Premier Institutions)
| Details | Loan Limit | Repo Rate + Spread | Effective Rate of Interest | Discount |
|---|---|---|---|---|
| Abroad | Up to Rs 7.50 Lakh | Base Rate + 2.00% | 11.40% | - |
| Above Rs 7.50 lakh | BRLLR + 2.55% | 10.70% | - | |
| Special rate of Interest for Children of defence personnel under the Baroda Yodha Education Loan Scheme) | Up to Rs 7.50 Lakh | Base Rate + 2.00% | 11.40% | - |
| Above Rs 7.50 lakh | BRLLR + 2.55% | 10.70% | - | |
| Abroad (for CANADA) | Up to Rs 7.50 Lakh | Base Rate + 2.00% | 11.40% | - |
| Above Rs 7.50 lakh | BRLLR + 2.55% | 10.70% | - |
Education loans to Non-Premier Institutions Abroad (which are not specified in the list of Premier Institutions)
| Details | Loan Limit | Repo Rate + Spread | Effective Rate of Interest | Discount |
|---|---|---|---|---|
| Abroad | Up to Rs.7.50 Lakh | Base Rate + 2.00% | 11.40% | - |
| Above Rs 7.50 lakh | BRLLR + 3.05% | 11.20% | - | |
| Special rate of Interest for Children of defence personnel Under the Baroda Yodha Education Loan Scheme | Up to Rs.7.50 Lakh | Base Rate + 2.00% | 11.40% | - |
| Above Rs 7.50 lakh | BRLLR + 3.05% | 11.20% | - | |
| Abroad (for CANADA) | Up to Rs 7.50 Lakh | Base Rate + 2.00% | 11.40% | - |
| Above Rs 7.50 lakh | BRLLR+4.55% | 12.70% | - |
Baroda Gyan
| Details | Loan Limit | Repo Rate + Spread | Effective Rate of Interest | Discount |
|---|---|---|---|---|
| Study in India | Up to Rs 7.50 Lakh | Base Rate + 2.00% | 11.40% | - |
| Above Rs 7.50 lakh | BRLLR + 3.90% | 12.05% | - | |
| Special rate of Interest for Children of defence personnel under the Baroda Yodha Education Loan Scheme | Up to Rs 7.50 Lakh | Base Rate + 2.00% | 11.40% | - |
| Above Rs 7.50 lakh | BRLLR + 3.10% | 11.25% | - |
Updated BRLLR: 8.15% effective w.e.f 07-06-2025
Last Updated on 05-03-2026
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Bank of India Education Loan Interest Rate
Bank of India is one of the leading public sector banks offering education loans. The bank offers education loans through various schemes. The Bank of India education loan interest rates start from 7.50% for the Star Vidyalaxmi scheme.
Star Education Loan as per IBA Scheme:
| Scheme Name | Interest rate | Final Interest Rate | Discounts |
|---|---|---|---|
| Star Education Loan (Under 7.5 Lakhs) | RBLR + 1.70% | 10.05% |
|
| Star Education Loan (Above 7.5 Lakhs) | RBLR + 1.50% | 9.85% |
|
Star Vidyalaxmi Loan:
| Institutes | Interest Rate |
|---|---|
| Institutes as per List A | 7.50% |
| Institutes as per List B | 7.85% |
| Institutes as per List C | 8.35% |
| Institutes as per List D | 8.85% |
Updated RBLR: 8.35% effective w.e.f 06-06-2025
Last Updated on 05-03-2026
Central Bank of India Education Loan Interest Rate
The bank offers a range of education loan schemes for students to help them pursue higher education in India and abroad. The Central Bank of India education loan interest rate starts from 7%, making it a popular choice among students. Here are the interest rates of education loans offered by the Central Bank of India.
| Institution | Interest Rate | Final Interest Rate | Discounts |
|---|---|---|---|
| AAA Category | Repo + 1.50% | Starts from 7.00% | 0.5% for Female/ SC/ ST students |
| AA category | Repo + 1.70% | Starts from 7.20% | 0.5% for Female/ SC/ ST students |
| A category with collateral Security | RBLR - 0.35% | Starts from 8.15% | 0.5% for Female/ SC/ ST students |
| B category with Collateral Security | RBLR+0.95% | Starts from 9.45% | 0.5% for Female/ SC/ ST students |
| C category with Collateral Security | RBLR+1.25% | Starts from 9.75% | 0.5% for Female/ SC/ ST students |
| D category with Collateral Security (Abroad) | RBLR+0.95% | Starts from 9.45% | 0.5% for Female/ SC/ ST students |
| Cent Skill Loan | RBLR + 1.50% | 10.00% | Not applicable |
Updated RBLR: 8.50% effective w.e.f 10-06-2025
Last Updated on 05-03-2026
UCO Bank Education Loan Interest Rate
UCO Bank offers a wide range of education loan schemes to cater to the diverse requirements of students. The Bank offers education loans for studies in India as well as abraod. the UCO Bank education loan interest rates start from 8.05%. Below are the interest rates of various UCO Bank education loan schemes.
| Scheme Name | Interest rate | Final Interest Rate | Discounts |
|---|---|---|---|
| Education Loan |
UCO float rate + 2.00% (Loans up to 7.5 Lakhs) UCO float rate + 2.40% (Loans above 7.5 Lakhs) | 10.80% to 11.20% | Not Applicable |
| Utkarsh Loan Scheme | UCO float rate - 0.15% to + 1.45% | 8.15% to 9.75% | Not Applicable |
| UCO Skill Loan Scheme | UCO float rate + 1.50% | 10.30% | Not Applicable |
| Udaan Loan Scheme | UCO float rate - 0.25% to + 1.35% | 8.05% to 9.65% | Not Applicable |
| UCO Aspire 2.0 | UCO float rate - 0.25 to + 0.75% | 8.05% to 9.05% | Not Applicable |
Updated UCO Float rate: 8.80% effective w.e.f: 10-04-2025
Last Updated on 05-03-2026
Punjab National Bank Education Loan Interest Rate
The Punjab National Bank(PNB) provides a wide range of student loan schemes. The bank provides education loans to help students pursue higher studies in India as well as abroad. The PNB education loan interest rates for various schemes are listed below.
| Scheme Name | Interest rate | Final Interest Rate | Discounts |
|---|---|---|---|
| PNB Saraswati (Secured) | RLLR+BSP+ 1.25% | 8.35% | 0.5% for female students |
| PNB Saraswati (Unsecured) | RLLR+BSP+ 2.00% | 10.35% | 0.5% for female students |
| PNB Udaan | RLLR+BSP | 8.35% | 0.5% for female students |
| PNB Kaushal | RLLR+BSP+1.50% | 8.35% | Not applicable |
| PNB Honhaar | RLLR+BSP+2.00% | 10.35% | Not applicable |
PNB Pratibha
| Institute | Interest rate | Final interest rate |
|---|---|---|
| IIMs, IITs, ISB Hyderabad, ISB Mohali, MDI Gurgaon & XLRI Jamshedpur | RLLR + BSP - 1.35% | 7.00% |
| Other | RLLR + BSP - 0.25% | 8.10% |
Updated RLLR: 8.25% effective w.e.f 01-07-2025
BSP: 0.10% effective w.e.f 01-07-2025
Last Updated on 05-03-2026
Canara Bank Education Loan Interest Rate
Canara Bank education loans provide financial assistance to students admitted to premier institutions in India and abroad. The Bank offers various education loan schemes to help students pursue their higher education dreams. Here are the interest rates of all the student loan schemes offered by the bank.
| Scheme Name | Interest rate | Final Interest Rate | Discounts |
|---|---|---|---|
| Vidya Sagar Scheme | RLLR + CRP (1.25% to 2.00%) | 9.50% to 10.25% |
|
| IBA Skill Loan | RLLR + CRP (1.50%) | 9.75% |
|
| Vidya Turant Scheme | RLLR + CRP (-0.65% to 0.60%) | 7.60% to 8.85% |
|
| New Education Loan Scheme For Pursuing Master’s Degree Abroad From Select Top Ranking Universities Of the World |
RLLR + CRP :
| 9.50% to 10.35% |
|
| Vidya Sahay Scheme | RLLR + CRP (2.00%) | 10.25% |
|
| Vidya Shakthi | RLLR + CRP (0%) | 8.25% |
|
Updated RLLR: 8.25% effective w.e.f 12-06-2025
Last Updated on 05-03-2026
Union Bank of India Education Loan Interest Rate
Union Bank of India is one of India’s largest public sector banks that offers student loans at interest rates starting from 7.10% to students for their higher education. The following are the Union Bank education loan interest rates for different schemes.
| Scheme Name | Interest rate | Final Interest Rate | Discounts |
|---|---|---|---|
| Special Scheme for students of Premier Management & Technical Institutes Inland (Tier - I) | EBLR - 1.15% to EBLR + 0.75% | 7.10% to 9.00% | - |
| Union Education India /Abroad/ NRI Student | EBLR + 2.00% | 10.25% | 0.50% discount for female students |
| Union Education – Skill Development Loan |
| 9.75% to 11.00% | 0.5% discount for female students |
| Premium medical schools scheme |
Up to 40 lacs
Above 40 lacs
|
Up to 40 lacs
Above 40 lacs
| - |
Union Education Special-Education Loan Scheme:
| Course Name | Interest Rate | Final Interest Rate |
|---|---|---|
| Special Scheme for students of Tier-I Premier Management & Technical institutes | EBLR - 1.15% to EBLR + 0.75% | 7.10% to 9.00% |
| Special scheme for students of Tier-II Management & Technical Institutes | EBLR + 1.25% to EBLR + 1.75% | 9.50% to 10.00% |
Special Union Education Scheme for ISB
| Course Name | Interest Rate | Final Interest Rate |
|---|---|---|
| Post Graduate Programme in Management (PGPM) | EBLR - 1.10% | 7.15% |
Special Union Education Loan Schemes for Premier Institute Abroad Studies
| Quantum of Loan | Interest Rate | Final Interest Rate |
|---|---|---|
| Up to Rs. 40 Lakh | EBLR + 0.50% (without Collateral) | 8.75% to 9.00% |
| Above Rs. 40 Lakh | EBLR to EBLR + 0.50% (50% Up to <100% Collateral) | 8.25% to 8.75% |
Updated EBLR: 8.25% effective w.e.f 07-07-2025
Last Updated on 05-03-2026
Axis Bank Education Loan Interest Rate
| Education Loan | Rate of Interest | Rate of Interest |
|---|---|---|
| For studies in India | Up to Rs 4 lakhs - 10.71% | Greater than Rs 4 lakhs - 12.29% |
| For studies abroad | Up to Rs 4 lakhs - 10.85% | Greater than Rs 4 lakhs - 10.93% |
Read More: Axis Bank Education Loan Interest Rate
ICICI Bank Education Loan Interest Rate
| Course | Interest rate |
|---|---|
| Engineering and Management | Secured - 9% Unsecured - 9.75% |
| Medical Courses | Secured - 9.5% Unsecured - 10.25% |
Read More: ICICI Bank Education Loan Interest Rate
IDFC First Bank Education Loan Interest Rate
| Institute | Interest rate |
|---|---|
| Platinum/ Titanium | 8.5% to 10% |
| Gold | 8.5% to 11% |
| Bronze | 10% to 12% |
Federal Bank Education Loan Interest Rate
| Scheme Name | Interest rate | Final interest rate |
|---|---|---|
| Special Vidya Loan | Repo Rate + 5.75% onwards | 11.75% onwards |
| Fed Scholars | Repo Rate + 5.75% onwards | 11.75% onwards |
| Federal Career Solutions Loan | Repo Rate + 5.75% onwards | 11.75% onwards |
Updated Repo Rate: 5.50%
South India Bank Education Loan Interest Rate
South Indian Bank offers education loans through various schemes to cater to different requirements of students. The SIB education loan interest rate starts from 9.50%.
| Scheme Name | Interest rate | Final interest rate | Discounts |
|---|---|---|---|
| SIB Vitjnan Pradhanscheme (VPS) | Repo Rate (5.50%) + 4.80% onwards | 10.30% onwards |
|
| SIB Excellence Scheme | Repo Rate + 4.55% | 10.05% | Not applicable |
| SIB Edusum | Repo Rate + 10.7% | 16.20% | Not applicable |
| SIB Global Education Scheme | Repo Rate + 4.49% | 9.99% | 0.5% for female students |
Education Loan Interest Rate of other Private Banks
The following table contains the education loan interest rates of other prominent private banks in India.
| Bank Name | Scheme Name | Interest rate |
|---|---|---|
| Karur Vysya Bank | Education Loan | 11% - 13.50% |
| City Union Bank | Vidyavani | Starts from 14.75% |
| Bandhan Bank | Sushiksha Loan | 13.45% |
| HSBC Bank | Personal loan | 9.99% to 16% |
| IDBI Bank | Education Loan | Starts from 7.65% |
| Kotak Mahindra Bank | Education Loan | Starts from 9.98% |
| Karnataka Bank | KBL PEAK Education Loan | Starts from 9.26% |
| Tamilnad Mercantile Bank | TMB Education Loan | 11.55% to 11.60% |
| IndusInd Bank | Personal Loan | Starts from 10.49% |
| Jammu and Kashmir Bank | Education Loan | Starts from 9.20% |
| Yes bank | Personal Loan | Starts at 9.75% |
*0.50% concession for female students
Education Loan Interest Rate for NBFCs
| Bank Name | Final interest rate |
|---|---|
| Auxilo | Starts from 9.5% |
| Avanse | Starts from 10.25% |
| Incred | Starts from 11% |
| HDFC Credila | Starts from 9.95% |
Interest During Moratorium Period
A moratorium period on education loans is a grace period during which the repayments of the loan do not start. However, banks and NBFCs can charge interest on student loans during this period. Here’s how it varies from different lenders.
Public banks generally offer a grace period of 6 to 12 months where you don’t have to pay anything. After the grace period, the interest is compounded in government banks, and the EMI is calculated. Private banks charge either full or partial simple interest during the moratorium period, and the interest is compounded after the moratorium period. In NBFCs, direct EMI is to be paid during the moratorium period immediately after the disbursement.
Important Terms of Education Loan Interest Rates
- What is Base Rate?
The base rate is the minimum interest rate RBI sets for lending a loan. - What is Repo Rate?
The repo rate is the rate of interest at which the Reserve Bank of India (RBI) lends money to other public banks, private banks, and NBFCs in India against government security. - What is EBLR?
EBLR is known as the external benchmark lending rate. It is the repo rate set by RBI + spread (different for each bank) - What is MCLR?
MCLR stands for Marginal Cost of Funds Based Lending Rate. It is the internal base rate given for each bank/ financial institution lending loans in India considering its cost of funds. It is different for each bank and is decided by the RBI. - What is EBR?
EBR is also called External Benchmark- Linked Rate. It is the SBI MCLR at which SBI gives out loans. It is the RBI repo rate + SBI spread% - What is BRLLR?
BRLLR is also called Baroda Repo Linked Lending Rate. It is the MCLR at which the Bank of Baroda lends out loans. It is RBI repo rate + BoB spread% - What is RBLR?
RBLR stands for Repo Linked Benchmark Lending Rate. The difference between RBLR and MCLR is that MCLR is based on the cost of funds of a bank. Whereas, RBLR depends on the repo rate which is set by the RBI.
What’s Your Next Step in The Education Loan Journey
WeMakeScholars has created comprehensive guides and tools for every stage of your education loan journey. Pick from the resources below to make the process easier.
Education loan questions, answered
- No, it is not possible to get an education loan at 0% interest rate from the bank. However, you can apply for various scholarships or check for government subsidies to reduce the loan debt.
- The interest rate imposed by NBFCs on education loans varies based on the nation in which the students choose to study. The starting interest rate in NBFCs is 11%.
- Private lenders' unsecured education loans are the quickest to process. Since there are no collateral involved, the loan can be sanctioned within a week's time.
- Yes! Each year many students fulfill their dream of studying abroad by taking education loans from NBFCs. However, the interest rates are at a little higher sides when compare to Government banks, but you can take loans from NBFCs.
- No, you cannot avail of a student loan at a 0% interest rate.
The bank providing the lowest interest rate will depend on the kind of loan you are going for, secured or unsecured. In general, public sector banks have lower interest rates than private sector banks because of some sort of government subsidy and policies and because they primarily offer secured education loans. For instance, banks like the State Bank of India often provide competitive rates concerning education loans, more so under schemes like the SBI Student Loan Scheme and SBI Global Ed Vantage Scheme.
Students would need to compare the rates of different banks, the terms and conditions attached, and check for any subsidies or special schemes available. Rates may also vary based on the co-applicant’s credit score, course of study, and educational institution. Request a callback and let your financial officer get the best deal for you. Get an ROI concession of upto 2% on going through with WeMakeScholars.
- The average interest rate for an education loan offered by banks/ financial institutions in India is around 10 to 11%.
- The method used by each bank to determine interest during the moratorium period varies. Some banks compound the interest component by adding the accumulated interest to the principal each month, while others compound it annually.
- No, 11% is the average interest rate offered by banks in India. Generally, the interest rate for an education loan ranges from 8.5% to 13.5%.
Education loan interest rates are the percentage charged by lenders on the principal amount of the loan taken for higher education by students. The cost of borrowing and this rate can be changed and may vary according to the lender, type of loan, borrower's credit rating, and other factors. For example, most education loans offered by public banks in India offer education loans at cheaper interest rates, and the rates charged are complemented by government subsidy or through its schemes, such as the Central Scheme of Interest Subsidy (CSIS), for interest relief during the moratorium period. In general, these rates are lower than those from private lenders. On the other hand, private education loans offer fixed or variable rates and are determined by market conditions, a borrower's credit history, and other risk factors.
Students and families need to understand the rate of interest being charged on these loans because it impacts the cost of education and, accordingly, the repayment burden on graduation.
An interest amount on an education loan is generally calculated on the principal amount borrowed, the rate at which the interest is calculated, and the tenure of the loan. The interest amount generally has to be calculated using the formula for simple interest: Interest = Principal x Rate x Time. Most of the education loans operate on a compound-interest basis: interest is levied on the principal amount and all of the interest that has been previously accrued. The formulae for compound interests, which shall apply in the above calculations, are A = P(1 + r/n)^(nt), where A = amount of money accumulated after n years including interest. Where P is the principal amount, r is the annual interest rate, n is the number of times by which the interest is compounded in one year and t is time in years. Therefore, applying this formula gives a more accurate, exact amount of total repayment. Many banks and financial institutions provide online calculators so that borrowers can approximate both the amount of interest due to them and the repayment amounts, as per their loan details.
Head on to the WeMakeScholars EMI calculator to get the most accurate EMI estimation according to the 2024 RBI guidelines.
Education loans cannot be given without charging any interest because they draw their major source of income from interest; however, there are a few ways through which the burden of the interest can be reduced. One way is to start making interest payments during the moratorium period, which is the time the student is still in school and up to six months after graduation before regular loan payments begin. In such a case, interest can be capitalized as long as it is paid when accrued. That is to say, it minimizes the cost of interest repayment in total. On top of that, some governments offer various interest subsidies to weaker sections, where they pay the interest for the students both during the study period and moratorium.
Also, you can consider financial help in the form of scholarships, grants, and financial aid that does not need to be repaid to the provider. Some other options include refinancing to a lower interest rate, assuming the borrower's credit score has improved or market rates have dropped. Another perk of early repayment comes in the form of a reduction in paid interest over the loan's life, though some loans come with prepayment penalties.
Education loans are not completely without charges as charges are the interest and interest is where the lenders make their profits from. However, some conditions and schemes can minimize or bring forward the interest cost. India’s government offers interest rate subvention for education loans availed by students belonging to economically weaker sections of the society especially during the moratorium period through the CSIS. Although they do not eliminate interest on the loan, they considerably minimize the interest that the student has to pay for the loan he or she is receiving. Contact your financial officer and get your education loan approved at the lowest interest rate and also with a deduction in ROI up to 2% only if you proceed through WeMakeScholars.
Part-period interest on an education loan is interest collected on the loan amount during the moratorium period of the tenure of the loan, usually before the start of regular repayment or your EMIs start. This period usually includes the time when the student is in school and an additional grace period of six months to a year after graduation. During this period, the interest would accrue on the borrowed amount although the borrower may not be compelled to make full repayments. For instance, a student takes an education loan of 15 Lakhs with an interest rate of 9% per annum. The part period interest would be the interest accruing every year in their studies plus the grace period. By having the student be in school for four years and have a six-month grace period, the partial period interest that would have accrued during this period would be added to the loan balance, capitalizing, of course, unless the student opts to pay the interest associated with this partial period during this period. Get your moratorium period negotiated with WeMakeScholars and know about the best way to handle your repayment. Request a callback to get started.
In the Income Tax Act under Section 80E, Students or parents of students can claim a deduction on the interest portion of the total amount of the education loans. You can get a deduction for a maximum of 8 years or up to the time the interest is fully paid whichever is the earliest. These tax benefits can go a long way in assisting the borrowers hence reducing their total tax burden. Under this Act, people can take this exemption on an education loan taken for himself or herself, their spouse, children, or someone they are the legal guardian of. Get familiar with all the tax privileges and subventions that apply to your loan by speaking with your financial officer. To get a callback and begin the process of getting the education loan, click on the ‘request a callback’
In the Income Tax Act under Section 80E, Students or parents of students can claim a deduction on the interest portion of the total amount of the education loans. You can get a deduction for a maximum of 8 years or up to the time the interest is fully paid whichever is the earliest. These tax benefits can go a long way in assisting the borrowers hence reducing their total tax burden. Under this Act, people can take this exemption on an education loan taken for himself or herself, their spouse, children, or someone they are the legal guardian of. Get familiar with all the tax exemptions that apply to your loan by speaking with your financial officer. To get a callback and begin the process of getting the education loan, click on the ‘request a callback’
To reduce the interest rate in education loans borrowers can pay the interest during the moratorium period, which will also help in decreasing the principal amount, which later results in less impact on the interest rate over time. Some lenders offer discounted interest rates for auto-payments or customers who exhibit repayment activity at regular intervals. Other strategies include doing prior research and comparing the various offerings by different lenders before actually borrowing, as the rates of interest can vary a great deal. Finally, the borrower should also take advantage of all scholarship, grant, or employer-sponsored education benefits possible, which lower the amount that must be borrowed and therefore the size of the interest cost. Get your interest rates negotiated along with all the scholarships you are eligible for by going through your education loan with WeMakeScholars.
*Interest rates and limits shown are indicative samples and change with RBI policy, lender approval, collateral and applicant profile. T&C apply.
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Calculators For Your Need
Education Loan Calculator
This calculator is a self-help tool for illustrative purposes only. Figures shown above are indicative, and actual values may differ based on the applicant's profile. All loans are subject to the bank's policy and approval.
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