Rates & lenders
Education Loan Processing Fee & Charges
Processing fees at 8 lenders, plus portal, valuation, legal, insurance and penal charges.
Updated 27 September 2026 · 8 lenders trackedLowest education loan rate
6.75%
Union Bank Education LoanWhat you need to know
Many public-sector banks charge no processing fee on education loans up to ₹7.5–10 lakh, while study-abroad loans and private lenders charge 0.5%–1.5%. All fees must appear in the Key Facts Statement and are included in the APR.
Lender-wise fees
| Lender | Processing fee | Prepayment / foreclosure |
|---|---|---|
| Union Bank Education Loan | Not published in the sources checked — ask the branch | No prepayment charge on floating-rate loans to individuals |
| Bank of Baroda Education Loan | Nil up to ₹7.5 lakh and for premier institutes in India; studies abroad 1% (max ₹10,000), refunded for premier institutes; ₹8,500 per property mortgaged | No prepayment charge on floating-rate loans to individuals |
| Canara Bank Education Loan | Vidya Turant: nil (PM-Vidyalaxmi portal fee ₹200 + GST); Master’s-abroad scheme 0.50% (capped at ₹10,000 – ₹20,000) | No prepayment penalty |
| SBI Education Loan | Student Loan: nil up to ₹10 lakh, ₹5,000 + GST for ₹10–20 lakh, 0.50% (max ₹25,000) above ₹20 lakh. Scholar Loan: nil. Global Ed-Vantage: 0.50% (min ₹10,000, max ₹50,000) + GST | No prepayment or foreclosure charge — education loans are floating-rate loans to individuals |
| Bank of India Education Loan | Studies in India: nil (portal fee ₹100 + GST); studies abroad: ₹5,000 (aggregator) | No prepayment charge on floating-rate loans to individuals |
| PNB Education Loan | About 1% for study-abroad loans (aggregator); India loans as per PNB’s service-charge schedule | No prepayment penalty (PNB Udaan); no charge on floating-rate loans to individuals |
| Credila Education Loan | 0.5% – 1% of the loan + GST | No prepayment charges |
| HDFC Bank Education Loan | Studies in India: 1% of loan or ₹1,000, whichever is higher; studies abroad: 1.5% + taxes | No prepayment charge on floating-rate loans to individuals; confirm in the Key Facts Statement |
Other charges to expect
| Charge | What to expect |
|---|---|
| Portal fee | Small fee when applying through PM-Vidyalaxmi at some banks (e.g. Canara ₹200 + GST, Bank of India ₹100 + GST) |
| Valuation and legal charges | For mortgaged property — e.g. Bank of Baroda ₹8,500 per property |
| Stamp duty / mortgage registration | As per state law, for secured loans |
| Insurance premium | Optional life cover for the student; the premium can be included in the loan |
| Penal charges | On overdue EMIs; RBI rules since 2024 require penal charges (not penal interest) disclosed upfront |
| GST | 18% on fees and charges |
Frequently asked questions
Is the processing fee refundable?
Usually not, although Bank of Baroda refunds its study-abroad fee for premier institutes. Ask before you pay.
Can the processing fee be added to the loan?
Some banks include it in the loan; the Key Facts Statement will show it either way.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.