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Lowest Interest Rate on Education Loan

Lowest Interest Rate on Education Loan - 2025

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.

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Which Bank Gives Education Loan with Lowest Interest Rate?

To answer our most important question, let’s take a look at the top banks offering education loans.

1. State Bank of India

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

2. Bank of Baroda

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

3. Union Bank of India

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

4. Punjab National Bank

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

5. Bank of India

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

6. Central Bank of India

Scheme	Amount	Interest Rate	Processing Fee
Cent Vidyarthi	- Up to Rs.10 Lakh (for studying in India) - Up to Rs.20 Lakh (for studying abroad)	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

7. Canara Bank

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

8. Indian Overseas Bank

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%

9. HDFC Bank

Scheme	Amount	Interest Rate	Processing Fee
Education Loan for Indian Education	Up to Rs.150 Lakh	Contact the bank branch for more details	Nil

10. ICICI Bank

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	Up to 2%

11. Axis Bank

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%	Up to 2%

Lowest Interest Rate Student Loans - Eligibility Criteria

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 -

It is available for anyone looking for funds for higher studies between the ages of 18 and 35
As the primary applicant of the loan may not be earning, a co-applicant (either a parent, sibling, or any close relative) is needed for the sanction of the loan
The credit score of the co-applicant is taken into consideration
An education loan covers expenses like tuition fees, cost of books, food and accommodation, lab and library fee, travel expenses, expenses for a study tour, etc.

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

How to Get the Cheapest Education Loan in India?

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 -

Consider all options
Before you zero in on a specific loan provider, research well. Discuss your case with a few shortlisted banks to know which bank will be able to give you the best interest rate.
Consider taking a secured education loan
You might see the option of taking an education loan against your property. This way your loan would be a secured loan, and you might be able to get lower interest rates.
Make sure you meet all eligibility criteria
Go through your loan provider’s list of eligibility criteria and make sure you meet them. In that way, you will not have to negotiate on that front, and you might be able to bargain for a lower interest rate.
Look for special loans or subsidies
State governments or the central government have various schemes for higher education. Often schemes would be specific to your field of study. Be informed about them, and if you can avail of one, you will get a bigger loan at subsidized rates.

Conclusion

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!

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Lowest Interest Rate on Education Loan - Related FAQs

Which bank gives an education loan with the lowest interest rate?

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%.

What will my interest rate be if I take an education loan?

When you take an education loan, your interest rate depends on many factors. Some of them are -

Nature of the degree course
Stature or position of the institute
Credit score
Debt to income ratio
Type of loan (secured or unsecured)
Income, profession, and age
Loan tenure and loan amount

What is the moratorium period in an education loan?

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.

What is the eligibility criteria for an education loan?

The following are the eligibility criteria for getting an education loan in India:

Candidate must be between 16-35 years of age
Candidate must be an Indian national
Candidate must have secured admission in a college in India or abroad

What expenses does an education loan cover?

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.