Best Education Loans in India
Education loans in India help students pay for their studies, whether in India or abroad. 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.
List of Banks Offering Best Education Loans in India
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 |
3.50% p.a. to 13.00% p.a. | |
Maximum up to 16% p.a. | |
7.15% p.a. to 10.15% p.a. | |
9.00% p.a. to 11.20% p.a. | |
Mahabank Education Loan | Starting from 7.10% p.a. |
7.50% p.a. to 10.35% p.a. | |
Starting from 7.10% p.a. onwards | |
Starting from 10.50% p.a. | |
Starting from 9.50% p.a. | |
Starting from 10% p.a. |
Education Loan Details Offered by Various Indian Banks
The details of various education loans offered by various Indian banks are listed below:
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:
Loan features | Details |
Loan amount | Minimum: Rs.25,000Maximum limit:Unsecured: Rs.1.5 croreSecured: no limit |
Processing fee | Up to 2% of loan amount plus GST |
Loan tenure | Up to 15 years |
Foreclosure charges | Nil |
Margin | Up to Rs.4 lakh: NilAbove Rs.4 lakh: 5% (within India)Above Rs.4 lakh: 15% (abroad) |
Collateral | Required |
Tax benefits | Under Section 80E of the Income Tax Act |
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:
Loan features | Details |
Loan amount | Rs.10 lakh for Indian colleges and Rs.20 lakh for colleges abroad. |
Processing fee | Nil |
Loan tenure | Contact the bank |
Foreclosure charges | Nil |
Margin | Nil (100% funding) |
Collateral | Required |
Tax benefits | Under Section 80E of the Income Tax Act |
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 yourself 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:
Loan features | Details |
Loan amount | Up to Rs.3 crore (for studies abroad) Loan limit may vary depending upon course and institution |
Processing fee | Nil |
Loan tenure | Up to 15 years |
Foreclosure charges | No charges on prepayment. Contact the bank for more details on foreclosure charges. |
Margin | Nil (depending on loan amount) |
Collateral | Nil (depending on loan amount) |
Tax benefits | Under Section 80E of the Income Tax Act |
ICICI Bank Education Loan
ICICI Bank strives to provide education loans of up to Rs.3 crore at attractive interest rates. The bank offers a repayment period of up to 15 years and an easy online application process. 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:
Loan features | Details |
Loan amount | Up to Rs.3 crore |
Processing fee | 0.50% or Rs.30,000 plus GST, whichever is lower. |
Loan tenure | Up to 15 years |
Foreclosure charges | Nil |
Margin | Nil |
Collateral | Nil up to Rs.2 crore |
Tax benefits | Under Section 80E of the Income Tax Act |
Bank of Maharashtra Education Loan
Mahabank Education loan provides various education loan schemes, such as Model Education Loan, Maha Bank Skill Loan schemes, and PM-Vidya Laxmi Education Loan schemes. This loan scheme ensures low EMI, offers high loan amount, no hidden charges, simple disbursement of loan amount, and charges zero prepayment penalty.
Loan features | Details |
Loan amount | Up to Rs.20 lakh |
Processing fee | Nil |
Loan tenure | Up to 15 years |
Foreclosure charges | Nil |
Margin | Nil |
Collateral | Nil |
Tax benefits | Under Section 80E of the Income Tax Act |
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:
Loan features | Details |
Loan amount | Depends on the need, but maximum up to Rs.50 lakh (in some cases depends on the project cost) |
Processing fee | Nil |
Loan tenure | Up to 15 years |
Foreclosure charges | Contact the bank |
Margin | Nil |
Collateral | Nil (Depending on the loan type) |
Tax benefits | Under Section 80E of the Income Tax Act |
Bank of Baroda Education Loan
Bank of Baroda offers education loans of up to Rs.150 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:
Loan features | Details |
Loan amount | Up to Rs.150 lakh |
Processing fee | Nil |
Loan tenure | Up to 15 years |
Foreclosure charges | Contact the bank |
Margin | Nil (100% funding, depending on the loan type) |
Collateral | Nil (Depending on the loan type) |
Tax benefits | Under Section 80E |
HDFC Bank Education Loan
HDFC bank offers education loans to Indian students between 16 to 35 years of age. A co-applicant is mandatory to avail this loan, and applicant must secure admission recognized institutions in India or Abroad through Entrance Test or Merit Based Selection process. The loan covers various courses, such as a graduate or post graduate degree and PG diplomas conducted by recognized colleges, universities recognized by UGC, Government, AICTE, AIBMS, ICMR etc.
Loan features | Details |
Loan amount | Up to Rs.150 lakh |
Processing fees | Up to Rs.7.50 lakh: NilMore than Rs.7.50 lakh: 1% |
Loan tenure | Up to 15 years |
Foreclosure charges | Contact the bank |
Margin | Nil, 100% funding |
Collateral | Up to Rs.50 lakh: NilMore than Rs.50 lakh: Applicable |
Tax benefits | Available under Section 80-E |
IDFC FIRST Bank Education Loan
IDFC FIRST Bank offers education loans with customised repayment plans, tax benefits, and flexible tenures. The loan is offered to Indian citizens above 18 years of age who has secured admission in their preferred institution or course. Pre-admission loans will be sanctioned if secure admission is not available.
Loan features | Details |
Loan amount | Up to Rs.1.50 crore |
Processing fees | Up to 1.50% of the loan amount |
Loan tenure | Up to 15 years |
Foreclosure charges | Nil |
Margin | Nil (Up to 100% funding) |
Collateral | Free up to loan amount Rs.75 lakh |
Tax benefits | Can be availed by the individuals (borrowers) and parents who applied for a loan for their children. |
RBL Bank Education Loan
RBL bank offers education loans to Indian students for pursuing higher studies in domestic and international colleges. This loan scheme covers a wide range of courses and colleges and ensures quick loan processing and simple documentation.
Loan features | Details |
Loan amount | Up to Rs.2 crore |
Loan tenure | Up to 180 months |
Processing fee | Up to 1% plus GST |
Foreclosure charges | Nil |
Margin | Nil (Funds 100% of the education cost) |
Collateral | Available |
Tax benefits | Yes, under Section 80E |
FAQs on Best Education Loans in India
- What is the maximum loan repayment period for an education loan?
The maximum loan repayment period for an education loan is up to 15 years.
- Can I get an education loan without collateral?
Yes, most public and private banks offer education loans without asking for collateral.
- Can I apply for an education loan online?
Yes, you can apply for an education loan online.
- What is the maximum loan amount I can get for studying abroad?
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.
- What is the moratorium period?
The moratorium period is the course term plus 6 months or 1 year, a temporary halt period during which the lender permits students to figure out their finances and plan for loan repayment.
- Is there a pre-payment penalty on an education loan?
While most banks do not impose a prepayment penalty on education loans, it is always advisable to confirm with the bank.
- Do female applicants get any incentive on education loans?
Most banks offer a concession of 0.50% on education loans for female applicants.
- Are there any tax benefits on education loans?
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.
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