Indian students now have access to education loans of up to Rs. 1 crore with flexible repayment terms extending up to 15 years. Education should never be restricted due to financial constraints, and banks in India are offering more options than ever before. With interest rates ranging between 8.05% and 15.20% per annum, students can secure funding for their studies with or without collateral. Additionally, loans come with tax benefits under Section 80E for the interest paid.
These student loans cover tuition fees, hostel charges, travel expenses, and even insurance premiums. Repayment typically starts 12 months after course completion or 6 months after securing a job. Let’s explore the top 11 education loan options in India for 2025.
1. State Bank of India (SBI) Education Loan
Features and Benefits:
- Loans available for graduate, postgraduate, and professional courses.
- Up to Rs. 30 lakh for medical courses and Rs. 10 lakh for other disciplines.
- SBI’s Global Ed-Vantage Scheme offers up to Rs. 1.5 crore for overseas studies.
- Moratorium period: course duration + 12 months or 6 months after employment.
- Special discount of 0.50% for female students.
Interest Rates:
- SBI Student Loan Scheme: 10.15%-11.15%
- SBI Scholar Loan Scheme: 8.15% - 8.90%
- SBI Global Ed-Vantage: 10.15%
2. HDFC Bank Education Loan
Features and Benefits:
- Loan amount up to Rs. 150 lakh.
- Covers graduate and postgraduate degrees.
- No processing fees for loans up to Rs. 7.5 lakh.
- Special interest subsidy for families earning under Rs. 4.5 lakh per year.
Interest Rates:
- Starts from 10.50% per annum.
- Flexible repayment tenure up to 15 years.
3. Bank of Baroda Education Loan
Features and Benefits:
- Maximum loan limit: Rs. 150 lakh for international studies.
- Processing fee waived for loans up to Rs. 7.5 lakh.
- Female students get a 0.50% discount on interest rates.
- No collateral is required for loans up to Rs. 4 lakh.
Interest Rates:
- 8.15%–10.20% per annum.
4. Punjab National Bank (PNB) Education Loan
Features and Benefits:
- Vidya Jyoti Scheme offers multiple loan plans.
- Maximum loan limit up to Rs. 2 crore for international studies.
- Processing fee of 1%, refundable after first disbursement.
- 15-year repayment period with moratorium.
Interest Rates:
- 9.25%–12.75% per annum.
5. Axis Bank Education Loan
Features and Benefits:
- Loan amounts from Rs. 50,000.
- Covers tuition fees, hostel charges, books, and travel.
- Tax benefits under Section 80E.
- No prepayment penalties.
Interest Rates:
- 13.70%–15.20% per annum.
6. Canara Bank Education Loan
Features and Benefits:
- Vidya Turant Scheme: Instant sanction for up to Rs. 50 lakh.
- Covers over 2,200 premier institutions.
- No processing fees for loans up to Rs. 20 lakh.
Interest Rates:
- 8.55%–9.05% per annum.
Comparison Table: Top Study Loan Options in India
| Bank Name | Interest Rate (p.a.) | Maximum Loan Amount | Processing Fees | Collateral Requirement | Moratorium Period | Repayment Tenure |
|---|---|---|---|---|---|---|
| SBI | 8.15% - 11.15% | Rs. 30 lakh (India), Rs. 1.5 crore (Abroad) | No fees up to Rs. 20 lakh | Required above Rs. 7.5 lakh | Course duration + 12 months | 15 years |
| HDFC Bank | 10.50%+ | Rs. 150 lakh | No fees up to Rs. 7.5 lakh | Not required for select institutions | Course duration + 1 year | 15 years |
| Bank of Baroda | 8.15% - 10.20% | Rs. 150 lakh | No fees up to Rs. 7.5 lakh | Required above Rs. 7.5 lakh | Course duration + 12 months | 15 years |
| PNB | 9.25% - 12.75% | Rs. 2 crore | 1% (Refundable) | Required above Rs. 7.5 lakh | Course duration + 1 year | 15 years |
| Axis Bank | 13.70% - 15.20% | Rs. 50,000+ | 2% of loan + GST | Required above Rs. 4 lakh | Not mentioned | Not mentioned |
FAQs
1. What are the typical interest rates for study loans in India for 2025?
Education loan interest rates in India range from 8.05% to 15.20% per annum, depending on the bank and scheme. Some banks offer lower rates for premier institutions or female students.
2. Which Indian banks offer the best education loan terms?
Banks like SBI, HDFC Bank, and Bank of Baroda provide competitive education loan terms, starting from 8.15% per annum.
3. Do Indian banks require collateral for education loans?
Most banks do not require collateral for loans up to Rs. 7.5 lakh. For higher amounts, banks typically ask for property, fixed deposits, or third-party guarantees.
4. What is the repayment period for education loans?
Most banks offer a repayment period of up to 15 years, starting after the moratorium period (course duration + 6-12 months or after securing employment).
Conclusion
Choosing the right education loan is essential to managing finances effectively while pursuing higher studies. Whether you're planning to study in India or abroad, consider interest rates, repayment tenure, collateral requirements, and moratorium periods before making a decision. If you need hassle-free education loan options, SBI, HDFC, and Bank of Baroda are among the best choices.
Which bank loan are you considering for your studies? Let us know in the comments!
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