🎓Compare Education Loans

Study in India or abroad — collateral-free up to ₹20L • Rates from 8.15% - 15%

Step 1: Employment Details

What is a Education Loan?

An education loan is a purpose-specific loan designed to cover the cost of higher education. The student is the primary borrower, with a parent/guardian as co-applicant. Most banks offer a moratorium period (course duration + 6-12 months) during which only interest or no payment is required.

An education loan funds your higher studies in India or abroad — covering tuition fees, living expenses, travel, and equipment. Loans up to ₹20 lakh are available without collateral, and interest starts at 8.15% p.a. Education loan interest is fully tax deductible under Section 80E.

Education Loan Interest Rates 2026 — Bank-wise Comparison

Compare the latest education loan interest rates across India's top banks and NBFCs. Rates updated March 2026.

Bank / NBFCInterest Rate (p.a.)Max AmountProcessing FeeTenure
SBI8.15% - 11.15%₹1.5 Cr (abroad)NilUp to 15 years
Bank of Baroda8.40% - 10.85%₹1 CrNilUp to 15 years
PNB8.45% - 10.65%₹80 LakhNilUp to 15 years
Canara Bank8.50% - 10.90%₹40 LakhNilUp to 15 years
IDFC First9.50% - 14.00%₹75 Lakh1-2%Up to 12 years
Credila (HDFC)9.50% - 13.00%₹2 Cr1.5%Up to 15 years

* Rates are indicative and subject to change. Actual rate depends on CIBIL score, income, and bank policies.

Education Loan Eligibility Criteria

💼 For Salaried Individuals

  • Indian citizen with admission to a recognized institution
  • Age: 18-35 years
  • No minimum income requirement (co-applicant income considered)
  • Academic merit considered for approval
  • Co-applicant (parent/guardian) required

🏢 For Self-Employed

  • Same as salaried — no income distinction for students
  • Co-applicant must have stable income source
  • Collateral required for loans above ₹7.5-20 lakh (varies by bank)
  • Course must be in bank's approved list
Check Your Eligibility Now →

Documents Required for Education Loan

  • 📄Admission letter from the institution
  • 📄Fee structure from the institution
  • 📄Mark sheets of qualifying exams (10th, 12th, graduation)
  • 📄KYC documents of student and co-applicant
  • 📄Co-applicant income proof
  • 📄Collateral documents (for loans above ₹7.5 lakh)

Tips to Get the Best Education Loan Deal

  1. Apply to government bank schemes (SBI Scholar, BOB Baroda Scholar) for the lowest rates
  2. Start paying interest during the moratorium to reduce total cost by 15-20%
  3. Section 80E deduction has no upper limit — claim full interest as tax deduction
  4. Apply 2-3 months before the course starts to ensure timely disbursal

Frequently Asked Questions — Education Loan

Can I get an education loan without collateral?+
Yes, most banks offer collateral-free education loans up to ₹7.5-20 lakh depending on the bank and course. SBI, for example, offers up to ₹7.5 lakh without collateral for domestic studies. For loans under the Government's Vidyalakshmi scheme, collateral-free limits are being enhanced.
When do I start repaying my education loan?+
Repayment begins after the moratorium period — which is your course duration + 6-12 months (grace period). During the moratorium, some banks allow interest-only payments to reduce the total cost.
Is education loan interest tax deductible?+
Yes, education loan interest is 100% tax deductible under Section 80E — with no upper limit on the deduction amount. This benefit is available for 8 years from the start of repayment. Only the interest component (not principal) qualifies for this deduction.
Which courses are eligible for education loans?+
Almost all full-time courses from recognized institutions are eligible — engineering, medical, MBA, MS, law, chartered accountancy, and more. Part-time and online courses may also qualify with select banks. Foreign universities must be on the bank's recognized list.
Can I get an education loan for studying abroad?+
Yes, most banks offer education loans for studying abroad with higher limits (up to ₹1.5 crore from SBI). Admission to a recognized foreign university is mandatory. Collateral is usually required for amounts above ₹7.5-20 lakh.

Education Loan by Bank

Compare education loan offers from specific banks with detailed features, pros & cons.

🏦

SBI

8.15% onwards

Related Tools & Resources

🧮

EMI Calculator

Eligibility Check

📊

CIBIL Score