Education Loan Interest Rates
An interest rate is the amount of interest charged over and above the principal amount by the lender from the borrower. In simple words an interest rate is the amount of interest paid by the borrowers for the money they have borrowed from the lender. Interest rate is usually a percentage of the sum borrowed, For eg; a simple 10% interest means if one borrows Rs 100, he will have to pay back Rs 110.
Education Loan Interest Rates in Comparison to Banks
Education Loan is a type of loan avail by the students to pursue their higher education. There are various education loan schemes offered by the banks. Today in this post we are going to discuss about education loan interest rates as per their schemes. Mentioned below are interest rates, processing fees, loan amount, loan tenure, prepayment charges of education loan as per the banks.
Read Also: Car Loan Interest Rates
1. State Bank of India Education Loan Interest Rates
SBI offers wide range of education loan[1]. If you are planning to study abroad or planning for your higher studies but can’t afford because of higher fees then, no need to worry, you can opt for education loan and can go for your dream education. SBI Education Loan is a popular option for every students because of its low interest rate, easy repayment options, income tax benefits, interest rate concession for female students and many more.
| Loan Schemes | Loan Limit | Interest Rate |
| SBI Student Loan Scheme | Up to Rs 7.5 lakh | 10.55% |
| SBI Scholar Loan Scheme | Rs 40 lakh to Rs 7.5 lakh | Ranges from 7.95% to 9.45% |
| SBI Skill Loan Scheme | Up to 1.5 lakh | 10.5% |
| SBI Global Ed Vantage | Above Rs 7.50 lakh to Rs 1.5 crore | 10.55% |
| SBI Takeover of Education Loan Scheme | Above Rs 10 lakh to Rs 1.5 crore | 10.55% |
| SBI Shaurya Education Loan | Up to Rs 7.50 lakh to Rs 1.50 crore | 10.55% to 11.15% |
| Processing fees | Loans up to Rs 20 lakh: Nil Loans above Rs 20 lakh: Rs 10,000 + tax |
| Loan Amount | For Studies in India Maximum limit is up to Rs 50 lakh For Medical up to 30 lakh Studies in Abroad up to Rs 7.50 lakh Maximum limit is Rs 1.50 crore under Global Ed – Vantage scheme |
| Repayment tenure | Up to Rs 15 years |
| Margin | No margin for amount up to Rs 4 lakh For Studies in India and Abroad the margin is 5% and 15% respectively for amount above Rs 4 lakh |
2. Canara Bank
Canara Bank offers various education loan schemes[1]. Individuals who want to pursue their higher education can avail for Canara bank education loan at lowest and attractive interest rate with 15 years of repayment tenure.
Canara Bank Education Loan Interest Rates
| Loan Scheme | Maximum Loan Amount | Interest Rate |
| New Education Loan scheme to pursue master degree from top ranking universities | Up to Rs 1 crore | 10.75% – 11.25% |
| Vidya Sagar Loan Schem | NA | 10.75% – 11.25% |
| IBA Skill Loan Scheme | Rs 5000 to Rs 1.5 lakh | 10.30% |
| Vidya Shakthi | Rs 7.5 lakh to Rs 1.5 lakh | 9.15% |
| Vidya Sahay | Up to Rs 1 lakh | 11.15% |
| Eligibility Criteria | Students who have secured admission |
| Loan repayment tenure | Up to 15 years |
| Processing fee | NIL |
| Quantum of Loan | Up to Rs 10 lakhs for studies in India and up to 20 lakhs for studies abroad |
| Margin | No margin required for loans up to Rs 4 lakhs, 5% of margin for loans above Rs 4 lakhs for studies in India and 15% of margin for above 4 lakhs for studies overseas |
3. HDFC Bank Education Loan Interest Rates
There are three different forms of education loans available for students from HDFC Bank[1]. These loans offers several advantages, such as cheap interest rates and are these interest rates are competitive and convenient for all applicants of different income brackets as compared to other private banks.
| Interest Rate | 9.55% – 13.25% |
| Loan amount | Up to 10 lakhs for studies in India and no limit for overseas |
| Loan tenure | Up to 15 years |
| Processing fee | 1% of the sanctioned loan amount or Rs 1000 whichever is higher and 1.5% of sanctioned loan amount |
| Prepayment charges | For India Studies: 4% of outstanding loan amount For Abroad: NIL |
| Charges for late EMI payment | 24% p.a. on the outstanding EMI amount from the EMI due date |
| EMI return charges | Rs 450 |
4. Axis Bank
Axis Bank offers education loan to students who have secured admission to study in India or abroad. Axis Bank offers education loan at low interest rate and less paperwork. The minimum loan that can be availed is Rs 50,000. The education loan offered by Axis Bank comes with various features such as tax benefits, simple documentation, faster disbursal and no prepayment charges. Axis Bank education loan interest rate ranges from 10.5% to 15%.
Axis Bank Education Loan Interest Rates
| Loan Amount | Interest Rate |
| Up to Rs 4 lakh | 15.20% |
| Rs 4 lakh to Rs 7.5 lakh | 14.70% |
| More than Rs 7.5 lakh | 13.70% |
| Loan amount | Up to Rs 75 lakh |
| Processing fees | 1% – 2% of the loan amount + GST |
| Quantum of Loan | Minimum of INR 50,000 and Maximum of INR 75 lakhs |
| Margin | No margin required for loans up to INR 4 lakhs, 5% of margin for loans above INR 4 lakhs for studies in India and 15% of margin for above 4 lakhs for studies overseas |
5. Punjab National Bank Education Loan Interest Rates
Punjab National Bank offers various education loan with attractive interest rates and 0.50% concession on interest for girl students. Aval education loan from PNB with less paperwork and low interest.
| Loan Scheme | Interest Rates p.a. |
| PNB Saraswati | 11% to 11.75% |
| PNB Saraswati – Female | 10.50% to 11.25% |
| PNB Pratibha | 8.30% to 10.25% |
| PNB Udaan | 11% to 11.75% |
| PNB Udaan (Female) | 10.50% to 11.25% |
| PNB Kaushal | 10% to 10.50% |
| PNB Honhaar | 11% |
| PNB Pravasi Shiksha Loan | 11% |
| PNB PM CARES Education Loan Scheme | 9.25% to 9.75% |
| Loan amount | Up to 10 lakhs for studies in India and up to 20 lakhs for studies overseas |
| Loan tenure | Up to 15 years |
| Processing fees | NIL |
| Margin | No margin required for loans up to INR 4 lakhs, 5% of margin for loans above INR 4 lakhs for studies in India |
6. Federal Bank
Federal Bank offers education loan for students to pursue their higher education. Federal Bank education loan interest rate starts from 10.25% per annum. Federal bank offers 0.50% rebate in the rate of interest for female applicants.
Federal Bank Education Loan Interest Rates
| Particulars | Details |
| Interest Rate | 10.5% |
| Loan amount | INR 10 to 20 lakh |
| Loan tenure | Up to 15 years |
Mentioned below are Education Loan Interest Rates, Loan Amount and Loan Tenure according to loan schemes
| Loan Schemes | Loan Amount | Interest Rates |
| Special Vidya Loan | Up to Rs 10 lakhs for studies in India and Rs 20 lakhs for abroad | 10.5% |
| Federal Scholars | Up to Rs 20 lakhs | 10.5% |
| Federal Career Solutions Loan | For Studies in India: Up to Rs 75 lakhs For Abroad: Up to Rs 100 lakhs | 10.5% |
| Loan Scheme | Security and Margin | Loan Repayment Tenure |
| Special Vidya Loan | No security is needed up to Rs 4 lakhsUp to Rs 4 lakhs no margin is applicable5% margin for studies in India above Rs 4 lakhs15% margin for studies in abroad for above Rs 4 lakhs | Moratorium period + 5 to 7 years |
| Federal Scholars | No security is requiredNo margin is required up to Loan amount of Rs 10 lakh5% margin for loans above Rs 10 lakhs | Up to 15 years |
| Processing fees | Up to INR 4 lakhs: NIL INR 5000 for above INR 4 lakhs |
| Prepayment charges | NIL |
| Penal charges | 2% to be charges for loans above Rs 4 lakhs |
7. ICICI Bank
ICICI Bank provides education loan to students without any prepayment charges and pre-closure charges. Students who have secured admission at universities are eligible for this loan. Avail loan from ICICI bank with hassle free process.
ICICI Bank Education Loan Interest Rates
| Interest Rate | Secured: Starting at 10.50% per annumUnsecured: Starting at 10.75% per annum |
| Loan amount | Up to 10 lakhs for studies in India and up to 20 lakhs for studies overseas |
| Loan tenure | Up to 12 years |
| Processing fees | Up to 2% + GST |
| Margin | Premium institutes: No margin required Other institute: No margin required up to Rs 20 lakh For loans more than Rs 20 lakh, 5% to 15% margin required |
| Cheque bounce charges | Rs 500 + GST |
| Type of credit facility | Minimum | Maximum | Mean |
| Education Loan isMart Interest Rate | 8.25% per annum | 13.20% per annum | 10.77% per annum |
8. Bank of Baroda Education Loan Interest Rate
Bank of Baroda offers a wide range of education loan with low-interest rates. Bank of Baroda Education loan interest rate starts from 6.85% with repayment duration of up to Rs 15 years. No collateral is required for loans up to Rs 4 lakh.
| Loan Scheme | Interest Rate |
| Baroda Vidya1 | 12.20% |
| Baroda Gyan | 10.85% to 11.10% |
| Baroda Education Loan to Students of Premier Institutions (For studies in India) | 8.85% to 10.85% |
| Baroda Scholar | 10.60% to 11.25% |
| Baroda Executive Development Premier Institutions (For Studies in India) | 9.10% to 11.10% |
| Baroda Executive Development Premier Institutions (For Studies Overseas) | 10.85% to 11.20% |
| Baroda Skill Loan Scheme | 10.60% |
List of charges
| Penalty interest | 2% above INR 2 lakh |
| Processing fees | NIL |
| Loan amount | Up to 60 lakhs |
| Repayment Period | Up to 15 years |
| Margin | No margin required |
| Security | No security required |
9. UCO Bank
UCO Bank provides a wide range of educational loans for studies in India and abroad. The loans have affordable interest rates. UCO Bank understands the needs of the students and offers extremely competitive education loans at a better interest rate. Apply education loan from UCO Bank with less paperwork and you will get a fastest disbursal.
The interest rates for the various education loan schemes offered by the bank are as given below:
| Loan Schemes | Loan Amount | Interest Rates |
| UCO Bank Education Loan | Up to 10 lakhs for India and Rs 20 lakhs for Overseas | 9.30% p.a. to 9.70% p.a. |
| UCO Bank Premier Educational Loan Schemes | Up to Rs 30 lakh | 8.45% p.a. |
| UCO Bank Super Premier Educational Loan Scheme | Up to Rs 30 lakh | 7.30% p.a. |
| UCO Aspire | India: Rs 10 to Rs 73 lakh Overseas: Rs 20 to Rs 75 lakh | 7.30% p.a. |
| UCO Skill Loan | Up to Rs 1.5 lakh | 8.80% p.a. |
| Loan amount | Up to 30 lakhs |
| Loan tenure | Up to 15 years |
| Processing fees | NIL |
| Prepayment charges | NIL |
10. Union Bank
Union Bank offers education loan at lowest interest rates. Avail education loan from Union bank with less paperwork. It also offers 0.50% concession for girl students. Union Bank provides term loan to India students for pursuing higher education in India and abroad.
Union Bank Education Loan Interest Rates
| Loan Schemes | Maximum Loan Amount | Interest Rates |
| Union Education (under CGFSEL) | Up to Rs 7.5 lakh | 9.70% p.a. |
| Under Education (not under CGFSEL) | No maximum loan limit. Need based financing For NRI students up to Rs 30 lakh | 9.30% p.a. to 10.95% p.a. |
| Under Education Loan for ISB Students | Rs 30 lakh | 7.70% p.a. to 7.90% p.a. |
| Union Education Special Education Loan Schemes | India: Rs 10 to Rs 75 lakh For Overseas: Rs 20 to Rs 75 lakh | 7.50% p.a. to 9.45% p.a. |
| Union Education Skill Development | Up to Rs 1.5 lakh | 9.20% p.a. to 10.95% p.a. |
| Loan amount | Maximum 10 lakhs for studies in India and Maximum Rs 20 lakhs for Overseas |
| Repayment tenure | Up to 15 years |
| Processing fees | NIL |
| Margin | No margin required for loans up to Rs 4 lakhs, 5% margin required for loans above 4 lakhs for studies in India and 15% of margin for above 4 lakhs for studies overseas |
FAQs
1. What is the loan repayment tenure for an education loan?
Ans: The average tenure for an education loan is between 5 to 7 years. However, for larger loan amount the maximum loan tenure term is up to 15 years.
2. When can I start repaying my loan?
Ans: The repayment tenure may start either after completion of your course or after getting a job.
3. Can I add co-applicant to my loan?
Ans: Yes, for some banks, a co-applicant is mandatory for an education loan.
4. To whom I can add as my co-applicant?
Ans: Parents, guardians, and spouses can be your co-applicant.
5. Is there a prepayment penalty on education loan?
Ans: Most banks levy prepayment penalty on education loan and most banks does not levy.
6. Are interest free education loans provided by lenders?
Ans: No, an interest free education loan is not provided by the lenders. Interest rate is mandatory.
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