Rates & lenders
Top Education Loans in India 2026
Eight lenders compared on starting rate, collateral-free limit, margin, moratorium and fees — and which suits which student.
Updated 27 September 2026 · 8 lenders trackedLowest education loan rate
6.75%
Union Bank Education LoanWhat you need to know
Public-sector banks dominate education lending and offer the lowest rates, especially for premier institutes where rates start between 6.75% and 7.00% without collateral. HDFC Bank and the NBFC Credila charge more but can be faster and, in Credila’s case, lend much larger amounts without collateral for study abroad.
All lenders compared
Lowest (starting) rateHighest published rate
6%8.25%10.5%12.75%15%
| Lender | Interest rate (p.a.) | Processing fee | Tenure | EMI per ₹1 lakh* | Rates as of |
|---|---|---|---|---|---|
| Union Bank Education LoanPublic sector bank | 6.75% – 10.00% | Not published in the sources checked — ask the branch | Up to 15 years after the moratorium | ₹1,148 | 27 Sep 2026 (aggregator) |
| Bank of Baroda Education LoanPublic sector bank | 6.85% – 9.90% | 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 | Up to 120 EMIs (loans up to ₹7.5 lakh) or 180 EMIs (above ₹7.5 lakh) after the moratorium | ₹1,153 | BRLLR eff 6 Dec 2025 |
| Canara Bank Education LoanPublic sector bank | 6.85% – 10.10% | Vidya Turant: nil (PM-Vidyalaxmi portal fee ₹200 + GST); Master’s-abroad scheme 0.50% (capped at ₹10,000 – ₹20,000) | Up to 15 years excluding the moratorium | ₹1,153 | Scheme page updated 1 Apr 2026 |
| SBI Education LoanPublic sector bank | 6.90% – 9.90% | 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 | Up to 15 years after the moratorium | ₹1,156 | 9 Jun 2026 |
| Bank of India Education LoanPublic sector bank | 7.00% – 9.80% | Studies in India: nil (portal fee ₹100 + GST); studies abroad: ₹5,000 (aggregator) | 15 years from start of repayment | ₹1,161 | — |
| PNB Education LoanPublic sector bank | 8.10% – 11.25% | About 1% for study-abroad loans (aggregator); India loans as per PNB’s service-charge schedule | Up to 15 years | ₹1,219 | Jul 2026 (aggregator) |
| Credila Education LoanNBFC | 8.95% – 13.00% | 0.5% – 1% of the loan + GST | Up to 14 years | ₹1,264 | 29 Jul 2026 (aggregator) |
| HDFC Bank Education LoanPrivate sector bank | 9.00% – 14.10% | Studies in India: 1% of loan or ₹1,000, whichever is higher; studies abroad: 1.5% + taxes | Up to 10 years for loans up to ₹7.5 lakh; up to 15 years above | ₹1,267 | Sep 2026 (aggregator) |
* At the lowest rate for 10 years. Starting rates go to borrowers with strong credit scores and income; your rate depends on your profile. Sources and dates on each lender page — confirm with the lender before applying.
Collateral, margin and moratorium by lender
| Lender | Collateral-free limit | Margin money | Moratorium |
|---|---|---|---|
| Union Bank Education Loan | ₹7.5 lakh for CGFSEL-covered loans (BankBazaar also lists ₹4 lakh — confirm with the branch) | 5% (India) / 15% (abroad) | Course period + grace period |
| Bank of Baroda Education Loan | Baroda Gyan / Scholar: ₹4 lakh. Premier Institutions (India): Category AA ₹40 lakh, A ₹30 lakh, B ₹15 lakh, C ₹10 lakh | Baroda Scholar: nil up to ₹4 lakh, 15% for ₹4–7.5 lakh, above ₹7.5 lakh nil (premier) / 10% (non-premier). Premier Institutions (India): nil / 5% / nil | Course + 1 year |
| Canara Bank Education Loan | IBA Model scheme: ₹7.5 lakh (CGFSEL cover); Vidya Turant: fully collateral-free | IBA Model: nil up to ₹4 lakh; 5% (India) / 15% (abroad) above. Vidya Turant: nil | Course + 1 year |
| SBI Education Loan | Student Loan ₹7.5 lakh; Scholar Loan up to ₹50 / ₹40 / ₹30 lakh for List AA / A / B institutes (with parent co-obligation); Global Ed-Vantage up to ₹50 lakh at select institutions | Student Loan: nil up to ₹4 lakh; 5% (India) / 15% (abroad) above. Scholar Loan: 100% finance | Student Loan and Scholar Loan: course + 1 year; Global Ed-Vantage: course + 6 months |
| Bank of India Education Loan | ₹7.5 lakh (parent co-borrower; CGFSEL cover) | Nil up to ₹4 lakh; 5% (India) / 15% (abroad) above | Course + 1 year |
| PNB Education Loan | ₹7.5 lakh (with parent co-borrower) | Nil up to ₹4 lakh; 5% (India) / 15% (abroad) above | Course + 1 year |
| Credila Education Loan | Up to ₹75 lakh (profile and university dependent) | Nil — up to 100% of cost can be financed | Course + 12 months; choose partial simple interest, full simple interest or full EMI during study |
| HDFC Bank Education Loan | Up to ₹4 lakh (co-borrower required) | Nil up to ₹4 lakh; 5% (India) / 15% (abroad) above | Course-linked for select courses; simple interest is charged during the moratorium |
As published by each lender or compiled by aggregators; premier-institute limits depend on the list your institute is on.
Loan size, tenure and concessions
| Lender | Maximum loan | Repayment tenure | Concessions |
|---|---|---|---|
| Union Bank Education Loan | Premier institutes abroad up to ₹150 lakh; otherwise need-based | Up to 15 years after the moratorium | 0.50% for girl students |
| Bank of Baroda Education Loan | Baroda Scholar up to ₹150 lakh (premier) / ₹60 lakh (non-premier); Baroda Gyan up to ₹125 lakh; Premier Institutions (India) up to ₹80 lakh with collateral; Baroda Vidya up to ₹4 lakh | Up to 120 EMIs (loans up to ₹7.5 lakh) or 180 EMIs (above ₹7.5 lakh) after the moratorium | 0.20% for girl students (non-premier Baroda Scholar); 0.20% for 100% security (premier) |
| Canara Bank Education Loan | Vidya Turant: Category A up to ₹50 lakh, B ₹40 lakh, C ₹30 lakh; IBA Model scheme need-based | Up to 15 years excluding the moratorium | Lower rate for girl students (amount not stated) |
| SBI Education Loan | Student Loan up to ₹50 lakh (₹75 lakh for medical courses at top-100 NIRF institutes; need-based up to ₹1 crore); Global Ed-Vantage ₹7.5 lakh – ₹3 crore | Up to 15 years after the moratorium | 0.50% for girl students (Student Loan; Global Ed-Vantage at non-select institutions); aggregators report a 1% concession if interest is serviced during the moratorium |
| Bank of India Education Loan | Up to ₹150 lakh for studies in India, medical and non-medical (official); Star Vidya up to ₹30 lakh (aggregator) | 15 years from start of repayment | — |
| PNB Education Loan | Need-based; PNB Udaan (abroad) up to about ₹1 crore (aggregator) | Up to 15 years | 0.50% for girl students (Pratibha, as reported); lower rate for female students on Udaan |
| Credila Education Loan | Up to ₹1.5 crore (secured); collateral-free up to ₹75 lakh | Up to 14 years | — |
| HDFC Bank Education Loan | Studies in India up to ₹10 lakh (standard); higher, need-based amounts for studies abroad (₹20 lakh+) | Up to 10 years for loans up to ₹7.5 lakh; up to 15 years above | Eligible for the CSIS interest subsidy; special rates for premier institutions |
Which lender suits you
| Situation | Consider |
|---|---|
| Premier institute in India (IIM, IIT, top NIRF) | Union Bank (6.75% for IIMs), Bank of Baroda Premier (6.85%), Canara Vidya Turant (6.85%), SBI Scholar (6.90%), BOI Star Vidya (7.00%) |
| Other recognised college in India, loan up to ₹7.5 lakh | Any public-sector bank under the IBA scheme — collateral-free with CGFSEL; check CSIS / PM-Vidyalaxmi eligibility |
| Study abroad with property to mortgage | SBI Global Ed-Vantage, Bank of Baroda Scholar, PNB Udaan, Union Bank premier abroad |
| Study abroad, large amount, no collateral | Credila (up to ₹75 lakh unsecured) or bank premier-university schemes (e.g. SBI up to ₹50 lakh for select institutions) |
| Girl students | SBI, Union Bank and PNB offer 0.50% concession; Bank of Baroda 0.20% |
Special schemes
| Lender | Scheme / feature | Details |
|---|---|---|
| Union Bank Education Loan | Union Education Loan (premier) | 6.75% for IIMs; 6.85% for PM-Vidyalaxmi Tier I institutes |
| Union Bank Education Loan | Premier institutes abroad | 8.00% – 8.50%, up to ₹150 lakh |
| Union Bank Education Loan | Medicos abroad | 8.50% – 9.00% for medical studies abroad |
| Union Bank Education Loan | Union Skill Loan | 9.50% for skill-development courses |
| Bank of Baroda Education Loan | Baroda Premier Institutions | Top Indian institutes by category (AA/A/B/C) with collateral-free limits of ₹10–40 lakh |
| Bank of Baroda Education Loan | Baroda Scholar | Study abroad up to ₹150 lakh at premier institutions |
| Bank of Baroda Education Loan | Baroda Medi Elite | Collateral-free loan for medical courses |
| Bank of Baroda Education Loan | bob Eco-Saarthi | For ESG / sustainability-related courses, up to ₹25 lakh |
| Bank of Baroda Education Loan | Baroda Digital Education Loan | Online application and sanction |
| Canara Bank Education Loan | Canara Vidya Turant | Collateral-free loans for premier institutes (Cat A/B/C) from 6.85%, applied through the PM-Vidyalaxmi portal |
| Canara Bank Education Loan | IBA Model Education Loan | Standard scheme for India and abroad, collateral-free up to ₹7.5 lakh |
| Canara Bank Education Loan | Master’s degree abroad scheme | For postgraduate study abroad; 0.50% processing fee |
| SBI Education Loan | SBI Scholar Loan | For students admitted to premier institutes on SBI’s AA/A/B lists: 6.90% – 7.65%, nil processing fee, 100% finance |
| SBI Education Loan | SBI Global Ed-Vantage | Study abroad: ₹7.5 lakh – ₹3 crore at 9.40% (8.90% at select institutions with collateral); moratorium course + 6 months |
| SBI Education Loan | PM-Vidyalaxmi linked loans | Utkarsh 6.90%, Uttam 7.20%, Uday 8.40% for students at Quality Higher Education Institutions |
| SBI Education Loan | Shaurya Education Loan | For children of defence and CAPF personnel: 8.65% |
| SBI Education Loan | SBI Skill Loan | For certified skill-development courses: 9.40% |
| Bank of India Education Loan | BOI Star Education Loan | For studies in India and abroad |
| Bank of India Education Loan | Star Vidya | For students at premier institutes: 7.00% – 8.75% |
| Bank of India Education Loan | Star Progressive Education Loan | For higher studies by working or experienced students |
| PNB Education Loan | PNB Pratibha | For students at premier institutes in India |
| PNB Education Loan | PNB Saraswati | For other recognised courses in India |
| PNB Education Loan | PNB Udaan | For studies abroad; no prepayment penalty |
| PNB Education Loan | PNB Kaushal | For skill-development courses |
| PNB Education Loan | Loan for students with disabilities | Concessional scheme listed at 4% |
| Credila Education Loan | Pre-admission sanction | Sanction before you get your admission letter — useful for visa and proof-of-funds planning |
| Credila Education Loan | Top-up loans | Additional funding later in the course |
| Credila Education Loan | Flexible study-period payment | Pay part or full simple interest, or full EMI, while studying |
| HDFC Bank Education Loan | Premier institution pricing | Lower rates for students admitted to listed premier colleges |
| HDFC Bank Education Loan | CSIS subsidy | Students from families earning up to ₹4.5 lakh a year can claim moratorium interest subsidy on eligible loans |
Frequently asked questions
Are public-sector banks always cheaper?
For most students, yes — their education loans are linked to repo-based benchmarks and follow the IBA model scheme. NBFCs charge more but may lend larger amounts without collateral and decide faster.
Should I apply to several banks?
You can, and the PM-Vidyalaxmi portal lets you apply to participating banks from one place. Multiple applications create credit enquiries on the co-applicant’s report, so shortlist two or three.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.