An education loan helps a student meet their various financial requirements such as tuition fees, cost of books, hostel fees, exam fees, and more. Many government and private banks offer education loans for pre-specified courses in India as well as abroad. Whether you are a working professional or a student, you can apply for an education loan to pursue full time and part-time courses.
Best Education Loans in 2022
Here is a list of the top banks offering education loans that will help you choose the one that suits you the best:
| Bank | Interest Rates | Axis Bank | 13.70% to 15.20% |
|---|---|
| Kotak Mahindra Bank | Up to 16.00% |
| State Bank of India | 6.70% onwards |
| ICICI Bank | 10.50% onwards |
| Punjab National Bank | 7.15% onwards |
| Canara Bank | 7.30% to 9.30% |
| Bank of Baroda | 7.15% onwards |
Axis Bank Education Loan:
Axis Bank offers education loans for studying in India as well as overseas at low interest rates. The application process is simple and requires minimal documents. The bank sanctions loans within 15 working days from the date of submitting the application.
Axis Bank’s education loans come with the following features and benefits:
- Maximum loan amount: Up to Rs.40 lakh without security
- Margin: NIL for loans of up to Rs.4 lakh
- Processing fee: NIL for loans up to Rs.10 lakh
- Collateral: NIL for loans up to Rs.40 lakh
- Tax benefit under section 80 (E)
Kotak Mahindra Bank Education Loan:
Kotak Mahindra Bank has collaborated with HDFC Credila to offer education loans with a host of benefits. HDFC Credila has provided loans with attractive interest rates to students pursuing over 1,500 courses in more than 2,500 universities. You can avail of pre-approved loans before applying to universities.
Kotak Mahindra Bank’s education loans come with the following features and benefits:
- Maximum loan amount: Up to Rs.45 lakh without security
- Margin: NIL
- Maximum loan tenure: Up to 15 years
- Collateral: NIL for loans up to Rs.45 lakh
- Processing fee: Up to 1.5% of the loan amount + taxes
State Bank of India Education Loan:
State Bank of India (SBI) provides loans to students who wish to pursue higher education in India as well as abroad. With minimal documentation and a quick application process, you can avail of loans of up to Rs.20 lakh without any processing fee. The repayment period is 15 years and starts a year after the course is completed.
SBI’s education loans come with the following features and benefits:
- Maximum loan tenure: 15 years
- Processing fee: NIL for loans up to Rs.20 lakh
- Margin: NIL for loans of up to Rs.4 lakh
- A second loan to complete studies can be availed
- Collateral: NIL for loans up to Rs.7.5 lakh
ICICI Bank Education Loan:
ICICI Bank strives to provide education loans of up to Rs.1 crore at attractive interest rates. The bank offers a repayment period of up to 12 years along with an additional six months. Students who wish to pursue higher education abroad can avail of preferential forex rates.
ICICI Bank’s education loans come with the following features and benefits:
- Maximum loan amount: Up to Rs.50 lakh (India) Up to Rs.1 crore (Overseas)
- Maximum loan tenure: Under Graduate: Up to 10 years plus six months Post Graduate: Up to 12 years plus six months
- Margin: NIL for premier institutions
- Collateral: Under Graduate – NIL for loans up to Rs.20 lakh Post Graduate – NIL for loans up to Rs.40 lakh
- Processing fee: Up to 2% of the loan amount plus taxes
Punjab National Bank Education Loan:
Punjab National Bank (PNB) offers various education loans to meet the financial needs of every student. The education loan covers college fees, insurance fees, exam fees, hostel fees, and more.
PNB’s education loans come with the following features and benefits:
- Margin: NIL for loans of up to Rs.4 lakh (domestic courses)
- Maximum loan tenure: Up to 15 years
- Maximum loan amount: Need-based
- Moratorium period: Course duration plus 12 months
- Collateral: NIL for loans up to Rs.7.5 lakh
Canara Bank Education Loan:
Canara Bank offers a wide range of education loan schemes for students who want to study in India as well as abroad. It has a simple application process and minimal documentation that enables quick disbursal of loans.
Canara Bank’s education loans come with the following features and benefits:
- Maximum loan amount: Need-based
- Margin: NIL for loans up to Rs.4 lakh
- Maximum loan tenure: Up to 15 years
- Collateral: NIL for loans up to Rs.7.5 lakh
- Eligibility criteria: Indian citizens, NRIs who have valid Indian passports
Bank of Baroda Education Loan:
Bank of Baroda offers education loans of up to Rs.125 lakh to students who wish to pursue undergraduate, postgraduate, and various professional courses in India. You don’t have to pay any processing fee or documentation fee to obtain loans from this bank.
Bank of Baroda’s education loans come with the following features and benefits:
- Maximum loan amount: Rs.125 lakh (Aviation and Medical courses) Rs.10 lakh (Other professional courses)
- Margin: NIL for loans up to Rs.4 lakh
- Maximum loan tenure: Up to 15 years
- Collateral: NIL for loans up to Rs.4 lakh
- Processing fee: NIL
FAQs on Best Education Loans in India
- Can I get an education loan without collateral?
- What is the maximum loan repayment period for an education loan?
- Can I apply for an education loan online?
- What is the maximum loan amount I can get for studying abroad?
- What is the moratorium period?
- Is there a pre-payment penalty on an education loan?
- Do female applicants get any incentive on education loans?
- Are there any tax benefits on education loans?
Yes, most public and private banks offer education loans without asking for collateral.
The maximum loan repayment period for an education loan is up to 15 years.
Yes, you can apply for an education loan online.
Banks typically offer loans of up to 90% of the education expenses. However, the loan amount is determined by a number of factors such as your academic record, your parent's or legal guardian's monthly income, etc.
The moratorium period is the course term plus 6 months or 1 year, during which the lender permits students to figure out their finances and plan for loan repayment.
While most banks do not impose a prepayment penalty on education loans, it is always advisable to confirm with the bank.
Most banks offer a concession of 0.50% on education loans for female applicants.
Yes, you can claim tax deductions on your education loan under Section 80E of the Income Tax Act. You can avail of this deduction in addition to the Rs.1.5 lakh deduction permitted under Section 80C.
