Education Loan Interest Rates 2024: Check Updated List of Banks

Learn about the most recent interest rates on education loans that the largest banks in India are offering so that you can compare them and select the one that best suits your needs. The education loan interest rate is determined by several factors.

Learn what they are and how to calculate your student loan EMI to enhance your money management. To improve your chances of having your application accepted, make sure you understand all of the requirements for qualifying and the paperwork you’ll need to submit it.

Education Loan Interest Rate of Different Banks

BanksInterest RatesProcessing Fees
Union Bank of India 8.10% p.a. to 12.50% p.a.Nil
State Bank of India8.15% p.a. to 11.75% p.a.Zero charges for loan amounts below Rs.20 lakhLoan amount above Rs.20 lakh: Rs.10,000 (plus taxes)
Punjab National Bank4% p.a. to 12.75% p.a.For Studies in India: Nil For Studies Abroad: 1%, with a minimum of Rs. 10,000 (Refundable after the first disbursement) For PNB Pravasi Shiksha Loan: 1% of the loan amount, with a minimum of Rs. 10,000 (Non-refundable)
IDFC FIRST Bank10% p.a. to 15% p.a.Up to 1.5% of the loan amount
Bank of Baroda8.15% p.a. to 13.70% p.a.No charges up to Rs.7.50 lakh1% of loan amount up to Rs.10,000
Canara Bank9.25% p.a.Contact the bank
Bank of Maharashtra 8.10% p.a. to 11.95% p.a.0.50% of the loan amount for studying abroad
HDFC9.50% p.a. onwardsUp to 1% for loan amounts less than Rs. 7.5 lakh
Indian Overseas Bank9.75% p.a. to 13.00% p.a.Contact the bank
ICICI Bank 9.85% p.a. onwardsUp to 2% plus GST
Karnataka Bank10.48% p.a. onwardsContact the bank
Tamilnad Mercantile Bank11.75% p.a. to 13.00% p.a.No charge for studies in India1% of the loan amount for studies abroad
Karur Vysya Bank12.05% p.a. to 14.55% p.a.Nil
Axis Bank13.70% p.a. to 15.20% p.a.2% of the loan amount plus GST
IDBI Bank8.50% p.a. to 11.10% p.a.Nil for studies in India  1% of the loan amount (Maximum: Rs.5,000) for studies abroad 
Bank of India11.05% p.a. to 11.85% p.a.No charges for studies in India
UCO Bank4.00% p.a. to 12.35% p.a.Nil
Federal Bank12.55% p.a. onwardsContact the bank
Kotak Mahindra BankUp to 16% p.a.Nil

*Note:  The majority of Indian banks offer no processing fees for courses. Please get details from the bank.

Education Loan Interest Rates: Regional Rural Banks 

Government-owned scheduled commercial banks in India are called Regional Rural Banks (RRBs). This is a list of RRBs in India that provide competitive interest rates on a range of education loan schemes.

Name of BankInterest Rates (p.a.)Processing Fees
Assam Gramin Vikash Bank9.45% p.a. to 9.95% p.a.Nil: for studies in India1% of the loan amount (Maximum: Rs.11,800): for studies abroad
Andhra Pradesh Grameena Vikas Bank9.50% p.a.Nil up to Rs. 4 lakh 1% for the loan amount above Rs. 4 lakh (maximum: Rs. 15,000)
Arunachal Pradesh Rural Bank8.5% p.a.Contact the bank
Bangiya Gramin Vikash Bank12% p.a. to 12.75% p.a.Nil: for studies in India0.20% of the loan amount: for studies abroad
Baroda Gujarat Gramin Bank10.30% p.a. to 11.80% p.a.Contact the bank
Baroda UP Bank10.55% p.a. to 14.55% p.a.Nil
J&K Grameen Bank10.95% p.a. to 12.20% p.a. Up to Rs. 4.50 lakh: NILAbove Rs. 4.50 lakh (For studies in India): 0.25% of the loan amountAbove Rs. 4.50 lakh (For studies abroad): 0.50% of the loan amount
Karnataka Gramin Bank10.50% p.a. onwards (for studies in India)10.25% p.a. onwards (for studies abroad) Contact the bank
Kerala Gramin Bank10.50% p.a. to 13.60% p.a.Nil: for studies in India
1% of the loan amount: for studies abroad
Madhya Pradesh Gramin Bank11.50% p.a. to 13.00% p.a.Nil: for studies in IndiaRs.5,000 plus GST: for studies abroad
Maharashtra Gramin Bank11.95% p.a. to 13.45% p.a.Contact the bank
Also Read: Education Loan for Studying Abroad in 2024

Education Loan Interest Rates: NBFCs

To assist students in realising their ambitions of pursuing higher education, non-banking financial corporations, or NBFCs, provide education loans. The following is a list of prominent NBFCs in India and their interest rates for education loans:

Name of NBFCInterest Rates (p.a.)Processing Fees
Bajaj Finance11.00% p.a. to 38% p.a.Up to 3.93% of the loan amount
HDFC Credila13.80% p.a. onwardsContact the loan provider

Types of Education Loan Interest Rates

The bank determines the interest rate for student loans. Fixed-interest rate loans are provided by certain banks for the duration of the loan.

Certain ones have interest rates linked to the Lending Rate for a year, which is based on the Marginal Cost of Funds Lending Rate (MCLR). The interest rate on the student loan might change if this were reset frequently.

Eligibility Criteria 

While the requirements for eligibility may vary among lenders, these are the standard requirements that must be fulfilled to be granted an education loan:

  • Indian citizen
  • Upto 35 years old for unemployed people and up to 45 years old for those in employment
  • Evidence of enrollment in the course of study
  • Authentic academic credentials with a strong academic record (greater than 50% marks)
  • Proof of the guarantor’s income or credit history
  • Passport, I-20 form, or visa if studying overseas

Documents Required

Among the documents that are needed to finish your loan application are the following:

  • Completed application form with relevant passport-size photos attached
  • Admissions letter on the educational institution’s letterhead
  • The applicant’s academic credentials
  • Marks from any entrance exams, if any
  • Documentation for scholarships, if any
  • A statement confirming you have not taken out a loan from another lender
  • Identity proof in the form of a driver’s licence, passport, Aadhaar card, Permanent Account Number (PAN) card, etc.
  • Evidence of residency or address, such as a passport, utility bill, ration card, or Aadhaar card, is required.
  • Age verification, such as a birth certificate or a certificate from the 10th grade

Important Things to Take into Account Before Taking Out an Educational Loan

While selecting an education loan, there are numerous things to consider. These would be:

  • Qualification standards
  • Courses that qualify for the loan
  • If any collateral is needed, a guarantee is also needed.
  • Margin quantity
  • Rate of interest
  • Loan amount
  • Duration of repayment


What is a good interest rate on a student loan?

Currently, the interest rates on federal student loans range from 5.50 per cent to 8.05 per cent. Conversely, the average interest rate on a private student loan can vary from 4.10 per cent to nearly 15.70 per cent. Each borrower of a federal student loan has the same interest rate.

Can I get a 20 lakh education loan?

For educational purposes, you are eligible to receive a 20 lakh education loan. Different terms and conditions, such as interest rates, repayment alternatives, and eligibility requirements, apply to education loans.

How to get a 0-interest education loan?

A zero percent APR education loan is not available. But, by taking out a low-interest student loan, you can still realise your dream of attending a famous university. In certain situations, you might also think about getting a personal loan to pay for your schooling.

Ayushi Singh Content Writer
 | Website

Ayushi is a content writer passionate about helping students achieve their study abroad dreams. With expertise in the study abroad domain, She provides practical tips and clear guidance on choosing universities and navigating the application process. Additionally, she is an amateur artist. An ever-curious learner, she enjoys reading good books in her free time. She thinks that all she has been given is not hers to retain, but rather to put to good use for others, and she lives by the word 'kindness.'

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top