Current education loan interest rates from 15 banks and NBFCs, how rates differ by type of lender, and what you can do to get a lower rate.
Quick answer
Education loan rates range from about 8.05% to 14% a year. Public sector banks are cheapest (from 8.05% at SBI); NBFCs charge more but approve faster and lend more without collateral. Collateral, your university and your co-applicant's CIBIL score decide where you land in the range.
| Lender | Product | Type | Interest rate (p.a.) |
|---|---|---|---|
| SBI | SBI Global Ed-Vantage & Scholar Loan | Public sector | 8.05% – 10.15% |
| Canara Bank | Canara Bank Vidya Turant | Public sector | 8.60% – 10.25% |
| PNB | PNB Education Loan (Saraswati / Pratibha) | Public sector | 8.80% – 10.95% |
| Bank of Baroda | Bank of Baroda Vidya / Vidya Sarathi | Public sector | 8.85% – 10.50% |
| Prodigy Finance | Prodigy Finance International Student Loan | International | 9.25% – 13.50% (USD/GBP) |
| Union Bank | Union Bank Education Loan | Public sector | 9.30% – 11.40% |
| ICICI | ICICI Bank Education Loan | Private | 9.85% – 12.50% |
| Axis Bank | Axis Bank Education Loan | Private | 10.10% – 12.75% |
| IDFC First Bank | IDFC First Bank Education Loan | Private | 10.25% – 12.25% |
| Yes Bank | Yes Bank Education Loan | Private | 10.50% – 12.75% |
| HDFC Credila | HDFC Credila Education Loan | NBFC | 10.50% – 13.00% |
| Poonawalla | Poonawalla Fincorp Education Loan | NBFC | 10.50% – 13.50% |
| Tata Capital | Tata Capital Education Loan | NBFC | 10.99% – 13.99% |
| Avanse | Avanse Education Loan | NBFC | 11.00% – 14.00% |
| Auxilo | Auxilo Education Loan | NBFC | 11.00% – 13.50% |
Indicative ranges from each lender's published terms. The lowest rates usually need collateral or admission to a premier institution.
| Lender type | Rate range | Lenders |
|---|---|---|
| Public sector banks | 8.05% – 11.4% | SBI, Canara Bank, PNB, Bank of Baroda, Union Bank |
| Private banks | 9.85% – 12.75% | ICICI, Axis Bank, IDFC First Bank, Yes Bank |
| NBFCs | 10.5% – 14% | HDFC Credila, Poonawalla, Tata Capital, Avanse, Auxilo |
| International lenders | 9.25% – 13.5% (USD/GBP) | Prodigy Finance |
Why it matters: on a ₹30 Lakh, 10-year loan, just 1% lower (9% instead of 10%) saves about ₹1.97 Lakh in interest — ₹1,642 a month.
Most bank education loans are floating: linked to an external benchmark such as the RBI repo rate (EBLR/RLLR) or the bank's MCLR. When the benchmark changes, your rate — and your EMI or tenure — changes too. Some NBFCs offer fixed rates, which stay the same but are usually priced higher. Floating-rate loans to individuals can be prepaid without penalty under RBI rules.
Interest on an education loan is fully deductible under Section 80E for up to 8 years, with no upper limit — under the old tax regime only. In the 30% slab, an 11% loan effectively costs about 7.7%; in the 20% slab, about 8.8%. Factor this in when comparing offers, and see what your EMI looks like in the EMI calculator.
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