Lowest Interest Rate on Education Loan

Bank of Baroda Education Loan Interest Rates

Bank of Baroda provides a wide range of education loans with a low rate of interest. The maximum amount offered depends on the type of loan chosen by the student. Here is the list of the education loan offered by the Bank of Baroda:

• Note: Interest rates updated on 09 October 2026.
• Processing fee: Nil. 
• Security: Available. 
• Co-borrowers: Parents or guardians can be co-borrowers. 
• Margin: 5% for loan above INR 4 lakh. 
• Concession: Female applicants get up to 0.50% concession on their return on investment. 

SBI Education Loan Interest Rate Comparison

State Bank of India (SBI) provides a wide range of education loans with interest rates starting from 6.90%p.a and flexible repayment tenures. Education loans can be availed by students both for studies in India and abroad. SBI also offers loans to students to pursue vocational training and other professional courses.

Let us have a look at the table given below to know the interest rates charged by SBI on different education loans:

Note: The interest rates are effective from 09 June 2026. 

SBI also offers a special concessional rate of 6.75% p.a. to students admitted to all IITs, valid till 31 December 2026.

SBI Features 

• Processing fee: For studies abroad under SBI Global ED-VANTAGE, 0.50% of the loan amount (minimum Rs.10,000 and maximum Rs.50,000) plus applicable GST. For SBI Student Loan above Rs.20 lakh, 0.50% of the loan amount, subject to a maximum of Rs.25,000, plus applicable GST. Loan schemes for scholars, skill upgradation, and takeover of education loans from other banks will not be charged any processing fees.
• Security: On loans above Rs. 7.5 lakh, tangible collateral security is required. 
• Co-borrower: Parents or guardians can be co-borrowers. 
• Collateral: This applies only to takeover of education loans. 
• Concession: Girl applicants get up to 0.50% concession on their return on investment. 

ICICI Bank Education Loan Interest Rate

Individuals aged between 16 and 65 years at loan maturity are eligible for ICICI Bank's education loans, subject to their academic progress, GPA score, and confirmation of admission to recognized institutions in India or overseas.

A parent or guardian serves as the co-applicant and is required to provide tangible collateral as security, with specifics dependent on the course, loan amount, and source of income. These loans typically feature competitive and low-interest rates. 

ICICI Bank prices its education loan by course and security offered: loans for studies abroad start from 9.00% p.a. (secured) or 10.25% p.a. (unsecured), while select domestic institutes start from 8.50% p.a. (secured) or 9.25% p.a. (unsecured). 

ICICI Bank Features 

• Processing fee: Up to 2%. 
• Security: Fixed deposit, property, and an existing ICICI Bank home or mortgage loan (as cross-collateral).
• Co-borrowers: Parents or guardians can be co-borrowers  Margin: Nil for premier institutes. Accepted in the form of FD, and scholarship or initial fee paid to the institute. 
  

Bank of India Education Loan Interest Rate

Bank of India offers a wide range of education loan schemes to students who wish to pursue higher studies in India and abroad. The loans will be provided on the basis of the earning potential of students after completing the courses.

Note: The interest rates are effective from 01 June 2026.

• Processing fee: Nil. 
• Security: No collateral security up to Rs.7.50 lakh; tangible collateral security acceptable to the bank above Rs.7.50 lakh
• Co-borrowers: Parents or guardians. 
• Margin: Nil on loans to INR 4 lakh 
• Concession: Up to 0.50% concession on RoI to female borrowers and up to 0.50% to students pursuing professional courses.

PNB Education Loan Interest Rate

Punjab National Bank (PNB) provides several types of education loans to students with attractive interest rates and repayment tenures of up to 15 years. The students who are planning to pursue their higher education in India, abroad, or at premier institutions are eligible to apply for education loans from Punjab National Bank.

PNB links the interest rate on its PM-Vidyalaxmi education loan to its Repo Linked Lending Rate (RLLR), with an institute-specific spread of up to 1.25% below RLLR for the listed institutes. 

• Processing fee: For studies at foreign institutions, the processing fee will be 1% of the loan amount, subject to a minimum of Rs.10,000.
• Security: In the case of loans applied for overseas studies, above Rs.7.50 lakh, tangible collateral security is required.
• Co-borrower: Parents or guardians can be co-borrowers. 
• Concession: Students with disabilities are eligible for concessions.

Education Loan Eligibility

Students should have a look at the following eligibility criteria before applying for education loans:

Courses Covered Under Low‑Interest Education Loans

Students can apply for education loans for the following courses:

• Professional certification courses
• Vocational training
• Undergraduate courses
• Postgraduate courses
• PhDs and Doctorate courses
• Job-oriented courses

Nationality Criteria for Education Loan Eligibility

Students who are planning to apply for education loans should be

• Indian citizens
• Persons of Indian Origin (PIO)
• Non-Resident Indians (NRIs)
• Overseas Citizens of India (OCI)

Institutes Eligible for Low-Interest Education Loans

Banks provide education loans to the following:

• Government colleges
• Recognized Universities
• Private institutions
• International universities and colleges

Documents Required for Education Loan Application

Students have to submit scanned copies of the following documents to get education loans from banks:

• Admission letter from the college or university
• Marksheets of Std.10, Std.12, and graduation
• Permanent Account Number (PAN) card
• Aadhaar card
• Passport
• Voter ID card
• Bank passbook
• Salary slips of the co-applicant
• Income Tax Returns for the last two years of the co-applicant
• Two passport size photographs

Points to Consider Before Applying for an Education Loan

• Government schemes like PM-USP CSIS and PM-Vidyalaxmi provide interest subvention during the moratorium period on eligible education loans, while CGFSEL provides a credit guarantee on eligible loans of up to Rs.7.50 lakh

• The Pradhan Mantri Vidyalaxmi Yojana is now offered alongside these schemes by several lenders, including SBI, Bank of Baroda, Central Bank of India and PNB specific rates linked to PNB's Repo Linked Lending Rate), and can lower the interest rate on an eligible education loan further

• Several lenders sanction an education loan of up to Rs.7.50 lakh without collateral or a third-party guarantee, as reflected in several banks' loan terms above

• Tax Ededuction is available on education loan interest under Section 129 of the Income-tax Act, 2025 (earlier Section 80E)

• Some banks charge additional 0.10% risk premium if borrower lacks credit life insurance

Application Process: Students can apply online (filling form and uploading documents) or offline (visiting bank branch with physical form and documents).

Summary

Bank of Baroda, SBI, ICICI Bank, Bank of India and PNB each price education loans differently by course, institute and security offered, so the lowest interest rate on an education loan varies by lender and applicant profile. Comparing the schemes above, along with any government interest subsidy you qualify for, is the most reliable way to find the lowest interest rate on an education loan. Confirm the current rate directly with the chosen bank before applying, since education loan pricing is revised periodically and floating rates move with the RBI repo rate.