Top Education Loan Providers in India 2023: Best Education Loan in India, Interest Rate, Processing Fee, Education Loan in India by Govt

This article serves you with the list of top education loan providers in India 2023. Refer to this post if you are keen to know about top banks offering education loans, which bank gives lowest interest rate for education loan in India, name of government and private lenders, processing fee, eligibility, repayment period, margin, security etc.

Education system has undergone drastic change over the period of time. From basic ‘pathshalas’ to ‘digital classroom’, Indian education system has witnessed an exemplary change which way more than ever thought of. It is not only the way of teaching and nodes of education sources that have been revolutionized but also the financial structure that makes education a reasonable affair. Here, we are not focusing on the primary education but the higher education that comprise high cost. Government of India and its many money lending hands have collaborated to make education more accessible to all students of India by and large. There are various schemes and policies that have been revised to facilitate education to Indian students not only for studying in Indian colleges but also abroad. Here is a list of various institutions that offer education loan in India:-

Best Education Loan Providers in India 2023

Check out the list of top banks offering education loans in India:

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SBI Education Loan

SBI Eduation Loan

State Bank of India offers a variety of term loan to Indian nationals in order to pursue higher education in India as well as abroad. The bank offers interest rate starting from 10.05% p.a with repayment period up to 15 years after the course period plus 12 months additional repayment holiday.

Rate of Interest Starting from 10.05% p.a
Repayment period Up to 15 years after Course Period plus 12 months of repayment holiday
Processing fee Loans above Rs. 20 lacs: Rs. 10,000 (plus taxes)

Loans upto Rs. 20 lacs : NIL

Security Up to the amount Rs. 7.5 Lacs: There is no third party guarantee or collateral security required. Parent/Guardian will act as co-borrower

Above Rs. 7.5 Lacs: Tangible collateral security is required. Parent/ Guardian will act as co-borrower

Margin Above Rs 4 Lacs: 15% for studies in abroad & 5% for studies in India

Indian Bank (Allahabad Bank) Education Loan

Indian Bank Education Loan

The bank facilitates finance to students for both Indian and International colleges. For students willing to avail loan for pursuing academics in India the loan granted is up to Rs 75 lacs and for students applying for university abroad, the loan granted are Rs.75 lacs. Entire loan amount is to be repaid within the period of 15 years.

Rate of Interest Floating interest rate of 12.50% per annum
Repayment period Up to 15 years
Loan amount Study in India- Up to Rs.75 Lac

Study abroad: Rs.75 Lac

Security Up to Rs.4 Lac- no collateral security

Above Rs.4 Lac: Based on the course or type of institute. Security may vary from third party guarantee, co-obligation of parents, full collateral security

Union Bank of India Education Loan (Merged with Andhra Bank and Corporation Bank)

Union Bank of India

Only Indian national is eligible to avail education loan from Union Bank of India. The loan is valid for various graduate and post graduate courses and students who wish to study abroad. The maximum repayment tenure would be 15 years irrespective of quantum of loan.

Rate of Interest Starting from 8.80 percent
Repayment Tenure Up to 15 years
Security Up to Rs.4 Lakh and & up to Rs.7.50 Lakh: There is no security required if the loan is covered CGFSEL

Above Rs.7.50 Lakh: Tangible collateral security

Margin Up to Rs.4 Lakh: NIL

Above Rs.4 Lakh:

·         Studies in India: 5%

·         Studies abroad: 15%

NRI students: 15%


Bank of Baroda Education Loan

Bank of Baroda Education Loan

Parents can take education loan for their child right from nascent state to higher education levels. Loans are obtainable for student’s right from nursery level to class XII and for other higher education courses at different colleges and universities.

Rate of Interest Starting from 7.50%
Repayment Period 10-15 years
Security No security needed to loan up to 4 lakhs
Address proof Voter’s ID, Driving License, Aadhaar Card, Passport

Axis Bank Education Loan

Axis Bank Education Loan

The bank provides necessary financial students to pursue their higher education. The loan is provided to students who pursue career oriented disciplines as in engineering, management, medicine or wish to pursue graduate and post-graduate courses.

Rate of Interest Starting from 8%
Minimum Loan Value Rs.50000/-
Margins Up to Rs.4Lakh: No margin

Above Rs.4Lakh for studies in India: 5%

Above Rs.4Lakh for studies overseas: 15%

What will cover? Tuition fees, hostel charges(if any), cost of books etc.

Central Bank of India Education Loan

Central Bank of India Education Loan

The  loan facility extends to  not only education but also comprise other spheres as in hostel fee, caution deposit, library fees, admission fees, examination fees,  books cost, uniform, and other requirements pertaining to education. One side air way fee is also included in case student wishes to study abroad. The amount of the loan is to be paid after 6 months of securing a job or 12 months after completion of studies. Maximum time of loan repayment is up to 10 years for loans up to Rs.7.50 lakh and maximum repayment period up to 15 years for loans above Rs.7.50 lakh.

Rate of Interest Male Students ( India ,Abroad): REPO+ 5.00= 9.00%

Female SC,ST,( India ,Abroad): REPO+ 4.500= 8.50%

Margin Up to Rs. 4 lacs: NIL

Above Rs.4 lacs for studies in India: 5% margin

Above Rs. 4 lacs for studies in abroad: 15% margin

Repayment period For loans up to Rs.7.50 lakh: Up to 10 years

For loans above Rs.7.50 lakh: Up to 15 years

Processing fee For studies in India: No processing fee

For studies abroad:

for loan up to Rs.10 lakh: Rs.500/-

for loan above Rs.10 lakh: Rs.1000/-

Canara Bank Education Loan

Canara Bank Education Loan

The financial assistance is doled out meritorious students’ right from High School onwards to further classes that comprise graduation including professional and other technical courses.

Rate of Interest Up to 7.5 Lakh:   ongoing  One Year MCLR+2.00 %

Above 7.5 Lakh:  ongoing One Year MCLR+1.50 %

Eligibility Indian National
Margin Up to Rs.4.00 Lakhs – Nil

Above Rs.4.00 Lakhs –

·         For Studies in India –  5%

·         For Studies abroad   – 15%


Security Up to Rs.7.50 Lakhs: No collateral Security

Above Rs. 7.50 Lakhs: Tangible Collateral security

Repayment period Up to 15 years

HDFC Bank Education Loan

HDFC Bank Education Loan

The bank provides an education loans to student to pursue their academic course. The loan covers various cost of education as in examination fees, admission fees, tuition charges and other fees.

Loan amount Up to 7.5 lakhs is approved without collateral

One can avail loan amount up to 20 lakhs

Repayment period Up to 15 years
Processing and approval Quick approval with no hidden cost
Processing charge Up to 1% of the loan amount or minimum amount Rs.1000/- whichever is higher

Bank of India Education Loan

Bank of India Education Loan

The education loan is only provided to meritorious and deserving candidates for pursuing education both at India and abroad.

Margin Up to Rs.4 lakh : Nil

Above Rs.4 lakh

·         For studies in India: 5%

·         For studies abroad: 15%

Eligibility Indian National
Security Up to Rs. 7.50 lakh: Parents or Guardian should be co-borrower

Above Rs.7.5 lakh: Co-obligation of Parents along with tangible Collateral security


Quantum of Finance For Studies in India – Maximum Rs.10 lakh

For Studies abroad – Maximum Rs.20 lakh

Bank of Maharashtra Education Loan

Bank of Maharashtra Education Loan

Education loan is provided to students for various courses. The rate of interest vary as in for loan up to 7.50 Lacs rate of interest is 8.90% and for loan more than Rs 7.50 Lacs rate of interest is 8.55%.

Rate of Interest Up to 7.50 Lacs: 8.90%

Above Rs 7.50 Lacs: 8.55%

Maximum loan amount In India : Rs. 10.00 lac
Abroad : Rs. 20.00 lac
Margin Up to 4 lakhs: NIL

Above 4 lakhs:

For studies in India: 5%

For studies abroad: 15%

Repayment Period Up to 15 years

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