What's the Lowest Interest Rate on an Education Loan for the USA?
US loans are large — often ₹50 lakh or more for a two-year MS — so a small difference in rate adds up to lakhs. Here is every starting rate for US study, lowest first, and who actually gets it.
Quick answer
PNB Udaan's fixed 8.35% is the lowest — but only at its 23 listed US universities (Harvard, Stanford, MIT, Columbia, Yale and others), 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 US education loan rate, lowest first
| Lender | Rate from | Collateral | Who gets this rate |
|---|---|---|---|
| PNB Udaan | 8.35% fixed | Required | Only at its 23 listed US 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 |
| Avanse Global | 12% | Not required | 936 US 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 ₹60 Lakh loan
| Offer | Rate | Monthly EMI (10 years) | Total interest |
|---|---|---|---|
| PNB Udaan (with collateral) | 8.35% | ₹73,911 | ₹28,69,312 |
| SBI Global Ed-Vantage (no collateral) | 9.2% | ₹76,656 | ₹31,98,770 |
| Avanse Global (no collateral) | 12% | ₹86,083 | ₹43,29,908 |
A two-year US MS typically needs a loan of around ₹60 Lakh. On a loan this size, the gap between the lowest collateral rate and a collateral-free NBFC rate is several lakh rupees over ten years. Model your own loan in the education loan EMI calculator.
How to get the lowest rate
- Check PNB Udaan first if you're admitted to one of its 23 listed US universities and can offer collateral.
- Offer collateral if you can — on a US-sized loan it saves the most.
- 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 US costs and lenders on our USA education loan guide. Can't offer collateral? See collateral-free loans for the USA.
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