Best Education Loans for Higher Studies in India


  • Education loans from the best banks for admission in universities or other educational institutions in India
  • Compare interest rates, loan eligibility, margin money requirement, etc, before choosing the best one

Looking for higher studies in India? As far as the cost of higher studies is concerned, they can go as high as INR 10 lakh in India. Do you have that sum with you? No! Don’t worry, banks have education loans for you to fulfill your aspirations. So, there are a bundle of choices for you! But which is the best one? For that, you must consider the loan eligibility across banks without collateral, margin money, and without a doubt, the interest rate. The best should be the one offering maximum loan without collateral at an affordable interest rate with the least margin money. That makes a case of comparison between lenders on these aspects. Let’s do it and choose the best one.

List of Best Banks for Education Loans

BanksInterest Rate (per annum)Maximum Loan Quantum (INR)MarginCollateral Requirement
Punjab National Bank (PNB)6.90% - 9.55%10 Lakh5% for Loan above INR 4 LakhAbove INR 7.5 Lakh
State Bank of India (SBI)6.90% - 9.30%10 Lakh5% for Loan above INR 4 LakhAbove INR 7.5 Lakh
Bank of Baroda6.85% - 9.95%10-80 Lakh5% for Loan above INR 4 LakhAbove INR 4 Lakh
Axis Bank13.70% - 15.20%40 Lakh5% for Loan above INR 4 LakhAbove INR 40 Lakh
Union Bank of India7.20% - 10.45%20 Lakh5% for Loan above INR 4 LakhAbove INR 7.5 Lakh
HDFC Bank9.25% - 13.68%20 Lakh5% for Loan above INR 4 LakhAbove INR 7.5 Lakh
Canara Bank7.40% - 9.40%Need-Based5% for Loan above INR 4 LakhAbove INR 7.5 Lakh
Central Bank of India6.85% - 9.00%10 Lakh5% for Loan above INR 4 LakhAbove INR 4 Lakh
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Why Do Banks Ask for the Collateral to Sanction an Education Loan?

Most banks ask for collateral when the loan required goes above INR 7.5 lakh. The collateral can be in the form of a house, flat, bungalow, non-agricultural land, fixed deposit, life insurance, etc. The 100% value of your collateral is taken into account so that you can borrow a high loan for the admission to the desired university or educational institution. So, in case you fail to pay the loan dues, the lender will take over the collateral in its name and sell the same as and when it feels right in doing so.

A Take on Banks That Sanction Maximum Loan without Collateral

Some banks offer you a high limit to borrow funds for the education purpose and those are Axis Bank and HDFC Bank. You can borrow up to INR 40 lakh from the bank. HDFC Bank also offers you a loan up to INR 10 lakh to students under Credila to pursue higher studies in India. And the interest rate on your loan is dependent on your admission to the university or institution. If the student is admitted in a reputed college or university for higher studies, the rate of interest could be lower. So, for the unsecured education loan for studies, you can apply for the loan at these two banks for education loans.

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