What's the Lowest Interest Rate on an Education Loan for the UK?
The lowest rate depends on what you qualify for — your university, whether you can offer collateral, and your co-applicant. Here is every starting rate for UK study, lowest first, and who actually gets it.
Quick answer
PNB Udaan's fixed 8.35% is the lowest — but only at its 7 listed UK universities (Oxford, Cambridge, Imperial, LSE, UCL, King's and Edinburgh), with collateral. Everywhere else, the lowest standard rate is SBI from 8.65% with collateral, or from 9.2% without. "Lowest" always depends on eligibility.
Every UK education loan rate, lowest first
| Lender | Rate from | Collateral | Who gets this rate |
|---|---|---|---|
| PNB Udaan | 8.35% fixed | Required | Only at its 7 listed UK universities |
| SBI Global Ed-Vantage | 8.65% | Required | Any university SBI funds |
| PNB Udaan | From 8.7% (negotiable) | Required | Other top universities |
| SBI Global Ed-Vantage | 9.2% | Not required | Highly ranked universities |
| Prodigy Finance | 9.25% – 13.5% (USD/GBP) | Not required | Listed STEM and MBA programmes; no co-applicant |
| Union Bank of India | 9.3% | Not required | Up to ₹30 lakh, or ₹40 lakh at listed institutions |
| HDFC Credila | 9.7% | Not required | Top-ranked universities (standard profile from 10.5%) |
| ICICI Bank | 10.25% | Depends on profile | Depends on profile and university |
| Yes Bank | 10.5% | Not required | Courses on its eligible list |
| Avanse Global | 12% | Not required | 127 UK universities on its list |
Starting rates as of October 2026. Other public sector banks such as Canara Bank and Bank of Baroda also publish starting rates in the 8.6%–8.9% range — worth checking if your university is on their lists.
What the rate difference costs on a ₹40 Lakh loan
| Offer | Rate | Monthly EMI (10 years) | Total interest |
|---|---|---|---|
| PNB Udaan (with collateral) | 8.35% | ₹49,274 | ₹19,12,875 |
| SBI Global Ed-Vantage (no collateral) | 9.2% | ₹51,104 | ₹21,32,514 |
| Avanse Global (no collateral) | 12% | ₹57,388 | ₹28,86,606 |
A typical UK Master's loan is around ₹40 Lakh. Model your own amount, moratorium and tenure in the education loan EMI calculator.
How to get the lowest rate
- Check PNB Udaan first if you're going to one of the 7 listed UK universities and can offer collateral.
- Offer collateral if you can — it's usually the biggest single rate cut.
- Pick a strong co-applicant — a CIBIL score of 750+ gets the best pricing.
- Compare offers from two or three lenders; the rate you're offered matters more than the headline.
See every lender side by side in our study abroad loan comparison, all-India rates on education loan interest rates, and UK costs and lenders on our UK education loan guide. Can't offer collateral? See collateral-free loans for the UK.
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