Best Banks for Education Loan in India

Last Updated : June 27, 2025, 3:03 p.m.

Pursuing higher education in India or abroad is a significant investment, and education loans play a vital role in making it accessible. With rising tuition fees and living expenses, choosing the best bank for an education loan can save you money and simplify repayment. This article highlights the top banks in India for education loans in 2025.

Why Choose the Right Education Loan?

Education loans cover tuition fees, accommodation, books, travel, and other study-related expenses. The best education loans offer low interest rates, flexible repayment terms, and moratorium periods, allowing students to focus on their studies without financial stress. Factors like interest rates, loan limits, processing fees, and collateral requirements are crucial when selecting a bank. Below, we explore the top banks offering education loans in India for 2025.

Top Banks for Education Loans in India 2026

State Bank of India (SBI): Best for Low Interest Rates

SBI is a top choice for education loans due to its competitive interest rates and flexible terms. The SBI Education Loan and Scholar Loan schemes cater to students studying in India or abroad.

• Interest Rate : 8.15% -- 11.75% per annum (domestic) and 10.15% -- 11.75% (overseas).
• Loan Amount : Up to ₹50 lakh for India, ₹1.5 crore for abroad.
• Moratorium Period : Course duration plus 6–12 months.
• Key Benefits : No processing fees for loans up to ₹20 lakh, 0.50% interest concession for female students, and interest subsidies under government schemes like CSIS.
• Eligibility : Admission to recognized institutions via merit or entrance exams.

SBI’s Scholar Loan Scheme offers lower rates (8.30%–9.80%) for premier institutes like IITs and IIMs.

HDFC Bank: Fastest Loan Disbursal

HDFC Bank is renowned for quick processing and flexible repayment options, making it ideal for students needing timely funding.

• Interest Rate : 9.55% -- 13.25% per annum.
• Loan Amount : Up to ₹50 lakh (India), no upper limit for abroad with collateral.
• Moratorium Period : Course duration plus 1 year.
• Key Benefits : No processing fees for domestic loans, tax benefits under Section 80E, and disbursal within 2–3 days for premium account holders.
• Eligibility : Admission to recognized institutions, co-applicant required.

HDFC’s focus on premier institutes and minimal documentation makes it a top pick.

ICICI Bank: Best for Overseas Studies

ICICI Bank offers robust education loans for both domestic and international studies, with attractive terms for reputed universities.

• Interest Rate : 10.25% onwards.
• Loan Amount : Up to ₹50 lakh (India), ₹3 crore (overseas).
• Moratorium Period : Course duration plus 6–12 months.
• Key Benefits : No collateral for loans up to ₹40 lakh, preferential forex rates for abroad studies, and no prepayment charges.
• Eligibility : Secured admission to recognized institutes, co-applicant required.

ICICI’s I-SMART loans for Canada offer lower rates, making it ideal for international students.

Punjab National Bank (PNB): Best for Flexible Schemes

PNB’s Udaan and Pratibha schemes cater to students studying abroad and in premier Indian institutes, respectively

• Interest Rate : 8.10%–12.75% (India), 9.25%–12.75% (abroad).
• Loan Amount : Need-based, up to ₹40 lakh without collateral.
• Moratorium Period : Course duration plus 1 year.
• Key Benefits : 0.50% concession for female students, no margin for loans up to ₹4 lakh, and government subsidy eligibility.
• Eligibility : Indian nationals with confirmed admission.

PNB’s flexible collateral norms make it accessible for diverse students.

Bank of Baroda: Best for School Education

Bank of Baroda offers loans for studies from nursery to postgraduate levels, with competitive rates for both domestic and international courses.

• Interest Rate : 8.45%–13.05% (India), 9.70%–13.70% (abroad).
• Loan Amount : Up to ₹125 lakh (India), ₹150 lakh (abroad).
• Moratorium Period : Course duration plus 1 year.
• Key Benefits : No processing or documentation fees, covers 100% of costs for premier institutes.
• Eligibility : Admission to recognized institutions, co-applicant required.

Bank of Baroda is ideal for parents funding school education.

Axis Bank: Best for Minimal Documentation

Axis Bank provides hassle-free education loans with quick disbursal for graduate and postgraduate courses.

• Interest Rate : 13.70%–15.20%.
• Loan Amount : Minimum ₹50,000, no upper cap with collateral.
• Moratorium Period : Course duration plus 1 year or 6 months after employment.
• Key Benefits : No processing fees, no collateral for loans up to ₹7.5 lakh, and disbursal within 15 days.
• Eligibility : Minimum 50% marks in HSC or graduation, co-applicant required.

Axis Bank prioritizes parental income stability for approvals.

Bank of India: Best for Low Processing Fees

Bank of India’s Star Vidya Loan offers competitive rates and zero margin for loans up to ₹7.5 lakh.

• Interest Rate : 8.25%–11.85% (India), 10.05%–11.85% (abroad).
• Loan Amount : Up to ₹40 lakh (India), ₹75 lakh (abroad).
• Moratorium Period : Course duration plus 1 year.
• Key Benefits : No processing fees, taxhepatic subsidy under CSIS for economically weaker sections.
• Eligibility : Admission to approved courses, co-applicant required.

How to Choose the Best Education Loan?

When selecting an education loan, consider these factors:

• Interest Rates : Opt for banks like SBI or Bank of India for rates as low as 8.15%–8.25%.
• Loan Amount : Ensure the loan covers tuition, living costs, and other expenses.
• Moratorium Period : Look for longer moratoriums (e.g., SBI’s 6–12 months) to delay repayment.
• Collateral Requirements : Banks like ICICI and Axis offer unsecured loans up to ₹40 lakh and ₹7.5 lakh, respectively.
• Processing Fees : Choose banks like SBI or Bank of Baroda with zero processing fees for domestic loans.
• Government Subsidies : Check eligibility for schemes like CSIS or PM-Vidyalaxmi for interest subsidies.

Use an EMI calculator to estimate repayments based on loan amount, interest rate, and tenure.

Conclusion

Selecting the best bank for an education loan in 2025 requires comparing interest rates, loan amounts, repayment terms, and additional benefits like subsidies or tax deductions under Section 80E. Banks like SBI, HDFC, ICICI, PNB, Bank of Baroda, Axis, and Bank of India offer tailored solutions for students pursuing higher education in India or abroad.