If you want to know which bank has the lowest rate on education loans or are searching for the cheapest education loan in India, you are at the right place.
Read More About: How to Get Personal Loan for Professional Courses?
To answer our most important question, let’s take a look at the top banks offering education loans.
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
| SBI Student Loan Scheme | According to requirement | 10.90% |
- Nil for loans up to Rs.20 Lakh - Rs.10,000 for loans above Rs.20 Lakh |
| SBI Scholar Loan Scheme (IITs, IIMs, NITs, etc.) | Rs.7.5 Lakh onwards, no upper limit | 8.30% - 9.80% | Nil |
| SBI Skill Loan Scheme | Up to Rs.1.5 Lakh | 10.50% | Nil |
| SBI Global Ed-vantage Scheme | Rs.7.5 Lakh - Rs.1.5 Crore | 10.90% | Rs.10,000 |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
| Baroda Vidya | Up to Rs.4 Lakh | 12.50% |
Nil |
| Baroda Gyan | No upper limit | 11.05% - 11.15% |
- Nil for loans up to Rs.7.50 Lakh - 1% of the loan amount (maximum Rs.10,000) for loans above Rs.7.5 Lakh |
| Baroda Scholar | No upper limit | 10.40% - 11.15% |
- Nil for loans up to Rs.7.50 Lakh - 1% of the loan amount (maximum Rs.10,000) for loans above Rs.7.5 Lakh |
| Baroda Education Loan to Students of Premier Institutions | Depends on the categorization of the institute | 9.15% - 10.20% |
- Nil for studying in India - 1% of the loan amount (maximum Rs.10,000) for studying abroad - 0.50% for loans taken for career development |
| Baroda Skill Loan Scheme | Rs.5,000 - Rs.1.5 Lakh | 10.65% | Nil |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
| Union Education Scheme | Up to Rs.46.50 Lakh | 11.30% | Nil |
| Special Union Education Loan Scheme for Premier Institute Abroad Studies | Rs.7.50 Lakh to Rs.150 Lakh | 9.30% - 10.80% | Nil |
| Special Union Education Loan Scheme for Premier Medical Institutes | Up to Rs.200 Lakh | 10.30% - 10.80% | Nil |
| Union Education - Skill Development Loan | Up to Rs.1.5 Lakh | 10.80% - 12.55% | Nil |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
| PNB Saraswati | According to requirement | 10.75% - 12% | Nil |
| PNB Pratibha | According to requirement | 8.55% - 10.50% | Nil |
| PNB Udaan | According to requirement | 10.75% - 12% | 1% (minimum Rs.10,000, refundable) |
| PNB Kaushal | Rs.5,000 to Rs.1.5 Lakh | 10.25% - 10.75% | Nil |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
| Star Education Loan - Studies in India | Up to Rs.150 Lakh | 9.95% - 10.75% | Nil |
| Star Education Loan - Studies Abroad | Up to Rs.150 Lakh | 9.95% - 10.75% | Rs.5,000 (refundable) |
| Star Vidya Loan | Up to Rs.40 Lakh, depending on the institute | 8.25% | Nil |
| Star Progressive Education Loan | Up to Rs.4 Lakh | Contact the bank branch | Nil |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
| Cent Vidyarthi |
- Up to Rs.10 Lakh (for studying in India) |
10.65% - 11.25% |
- Nil for studying in India - 1% of the loan amount (maximum Rs.15,000) for studying abroad |
| Cent Vidyarthi for Executive MBA | Up to Rs.40 Lakh | 8.30% | Nil |
| Cent Skill Loan | Rs.5,000 to Rs.1.5 Lakh | 10.90% - 10.95% | Nil |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
| Vidya Turant | Up to Rs.50 Lakh (depending on institute) | 9.25% - 9.85% | Nil |
| Vidya Shakthi | Up to Rs.7.50 Lakh | 9.25% | Nil |
| Vidya Sahay | Up to Rs.1 Lakh | 11.25% | Nil |
| Vidya Sagar | According to requirement | 10.85% - 11.25% | Nil |
| IBA Skill Loan Scheme - Education Loans | Rs.5,000 to Rs.1.5 Lakh | 10.65% | Nil |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
| Education Loan - Vidyajyoti | Rs.7.50 Lakh to Rs.30 Lakh | 12.55% | Contact the bank branch for details |
| Vidya Suraksha | Up to Rs.7.50 Lakh | 11.55% | |
| Vidya Shresht | Up to Rs.30 Lakh | 9.75% - 10.25% | |
| IOB Scholar | Up to Rs.60 Lakh | 11.55% - 12.55% | |
| Skill Loan | Rs.5,000 - Rs.1.5 Lakh | 11.05% |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
| Education Loan for Indian Education | Up to Rs.150 Lakh | Contact the bank branch for more details | Nil |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
| For domestic courses | Up to Rs.50 Lakh | 9.50% onwards | Up to 2% |
| For international courses | Up to Rs.1 Crore | 9.50% onwards |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
| Prime Domestic | Up to Rs.50 Lakh | 13.70% - 15.20% | Up to 2% |
| Prime Abroad | Up to Rs.50 Lakh | 13.70% - 15.20% |
Education loans or student loans are a sum of money borrowed for the purpose of funding one’s higher education. There are certain defining factors of an education loan -
Education loans come with a moratorium period until the completion of the studies. During this time, only simple interest is chargeable on the loan amount
The interest rates and eligibility criteria vary from one bank to another. But there are some ways for you to get the cheapest education loan. They are listed below -
Money should not be a hindrance when you are thinking about your or your child's future. Education loans are a great way to fund dreams, and work towards a preferred career. But remember to do your due research to find out which bank will give you the lowest interest rates.
As any other loan, your credit score, debt to income ratio, and other such factors will always be determinants of the interest rate being offered to you.
If you want to calculate your EMI before you apply for a loan, this education loan calculator can help you out. And in case you want to take a personal loan to fund your education, or for some extra expenses, personal loans through the Moneyview digital lending app are there for you!
If you want to know which bank gives education loan with lowest interest rate, currently it is the Bank of India’s Star Vidya Loan. It has the lowest interest rate, starting from 8.25%.
When you take an education loan, your interest rate depends on many factors. Some of them are -
In most cases, an education loan has a moratorium period of the course duration. You only need to pay the interest during that period. You can start repaying the loan once you finish your course.
The following are the eligibility criteria for getting an education loan in India:
Education loans cover all expenses related to the degree or course, right from tuition fees, cost of books, food and accommodation, lab and library fee, travel expenses, expenses for a study tour, etc.
Thank you. Your feedback is important to us.
