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Education Loan Interest Rates 2026

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.

Written by Deepak Agrawal, Founder & CEO, FundMyCampus · MBA, IIM BangaloreReviewed by Ashmita Agarwal, Director, FundMyCampusUpdated on

Quick answer

Education loan rates range from about 7.15% to 14% a year. Public sector banks are cheapest (from 7.15% at SBI for premier Indian institutes). NBFCs charge more but approve faster and lend more without collateral. For study abroad, the lowest standard rate is 9.15% (SBI, with collateral), or 8.35% (floating) at PNB Udaan's 50 listed universities. Collateral, your university and your co-applicant's CIBIL score decide where you land in the range.

Interest rates by lender

Education loan interest rates by lender
SBISBI Global Ed-Vantage & Scholar LoanPublic sector7.15% to 10.15%Study abroad, with collateral: 9.65% (9.15% at SBI's select universities)Study abroad, without collateral: 9.65% at SBI's select universities, up to ₹50 lakhStudy in India (Scholar Loan, premier institutes): 7.15% to 7.90%
Canara BankCanara Bank Vidya TurantPublic sector8.60% to 10.25%
PNBPNB Education Loan (Saraswati / Pratibha)Public sector8.80% to 10.95%
Bank of BarodaBank of Baroda Vidya / Vidya SarathiPublic sector8.85% to 10.50%
Prodigy FinanceProdigy Finance International Student LoanInternational9.25% to 13.50% (USD/GBP)
Union BankUnion Bank Education LoanPublic sector9.30% to 11.40%
CredilaCredila Education LoanNBFC9.70% to 13.00%Without collateral, top-ranked universities: from 9.7%Standard profile or university: from 10.5%
ICICIICICI Bank Education LoanPrivate9.85% to 12.50%Study abroad: 10.25% to 12.50%Study in India: from 9.85%
Axis BankAxis Bank Education LoanPrivate10.10% to 12.75%
IDFC First BankIDFC First Bank Education LoanPrivate10.25% to 12.25%
Yes BankYes Bank Education LoanPrivate10.50% to 12.75%
PoonawallaPoonawalla Fincorp Education LoanNBFC10.50% to 13.50%
Tata CapitalTata Capital Education LoanNBFC10.99% to 13.99%
AvanseAvanse Education LoanNBFC11.00% to 14.00%
AuxiloAuxilo Education LoanNBFC11.00% to 13.50%
PNB UdaanPNB Udaan Scheme (with collateral)Public sector8.35% to 9.30%PNB's 50 premium universities: 8.35% floatingOther universities, with collateral: 8.6% (if you pay simple interest during the course; 9.6% otherwise)Other universities, without collateral: Rate on request
Avanse GlobalAvanse Global (no collateral)NBFCFrom 12%

Indicative ranges as of October 2026. The lowest rates usually need collateral or admission to a premier institution.

Studying abroad? See the lowest rates for the UK and the USA, the PNB Udaan scheme, or every lender side by side in our study abroad loan comparison.

Rates by type of lender

Education loan rates by lender type
Lender typeRate rangeLenders
Public sector banks7.15%11.4%SBI, Canara Bank, PNB, Bank of Baroda, Union Bank
Private banks9.85%12.75%ICICI, Axis Bank, IDFC First Bank, Yes Bank
NBFCs9.7%14%Credila, Poonawalla, Tata Capital, Avanse, Auxilo
International lenders9.25%13.5% (USD/GBP)Prodigy Finance

Pilot training loans: government banks lend against property at around 9.5%, linked to the RBI repo rate, with nothing to pay during training. Read the pilot training loan with collateral guide.

What decides your interest rate

  • Collateral: secured loans are typically 1.5–3% cheaper than unsecured ones. See collateral-free limits.
  • Your university: lenders give their best rates to institutions on their premier lists.
  • Co-applicant's credit score: CIBIL 750+ gets the best pricing. Below 700 narrows your options.
  • Loan amount and course: some lenders price larger loans or professional courses differently.
  • Women borrowers: Canara Bank, PNB, Bank of Baroda, IDFC First Bank offer a rate concession (typically 0.50%).

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.

Fixed vs floating rates

Most bank education loans are floating: linked to an external benchmark such as the RBI repo rate (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.

Your effective rate after tax (Section 80E)

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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Education Loan Interest Rates FAQs

Straight answers to the questions students ask us most

Across the 15 lenders we work with, education loan rates currently range from about 7.15% to 14% a year. For study in India, SBI's Scholar Loan for premier institutes starts at 7.15%. For study abroad, PNB Udaan starts at 8.35% at its 50 premium universities and 8.6% elsewhere if you pay simple interest during the course (9.6% otherwise). SBI starts at 9.15% with collateral (9.65% without, at its select universities), and NBFCs go up to 14%. Avanse Financial's collateral-backed range is 11%–14%. Your actual rate depends on your university, collateral and co-applicant.
For study in India, State Bank of India's Scholar Loan has the lowest starting rate at 7.15%, for premier institutes. For study abroad, PNB Udaan is lowest with collateral: 8.35% (floating) at its 50 premium universities, and 8.6% elsewhere if you pay simple interest during the course (9.6% otherwise). SBI Global Ed-Vantage starts at 9.15% with collateral. Starting rates usually apply to strong profiles, so compare the rate you're actually offered, not just the headline number.
Most bank education loans are floating, linked to an external benchmark such as the RBI repo rate (RLLR) or the bank's MCLR, so your rate moves when the benchmark changes. Some NBFCs offer fixed-rate options. Under RBI rules, floating-rate loans to individuals can be prepaid without penalty.
Yes. Most lenders charge simple interest during the course and grace period. You can pay it monthly or let it be added to the loan when EMIs start. Paying it saves a significant amount. Use our education loan EMI calculator to see the difference for your loan.
Several public sector banks offer women borrowers a concession, typically 0.50%, including Canara Bank, PNB, Bank of Baroda, IDFC First Bank. Check the current offer with the bank, as concessions change from time to time.
Offer collateral if you can (usually 1.5–3% cheaper), choose a co-applicant with a CIBIL score of 750+, apply to lenders whose premier-institute list includes your university, pay interest during the moratorium, and compare several offers. Tax savings under Section 80E (old tax regime) also lower your effective cost.

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