Interest Rates

Education Loan Interest Rates in India

Interest rates on education loans vary based on the lender, loan amount, collateral, and the applicant’s profile. Here’s a current comparison.

Public Sector Banks

• SBI: 8.15% – 10.20% p.a.
• Bank of Baroda: 8.30% – 9.85% p.a.
• PNB: 8.45% – 10.45% p.a.
• Canara Bank: 8.50% – 10.35% p.a.

Private Banks & NBFCs

• HDFC Credila: 9.00% – 11.50% p.a.
• Avanse: 10.50% – 14.00% p.a.
• ICICI Bank: 9.25% – 11.75% p.a.
• Axis Bank: 9.50% – 12.00% p.a.

Fixed vs Floating Rates

Most education loans in India use a floating rate (linked to MCLR or repo rate). Fixed-rate options are rare and typically carry a premium of 1–2%.

How to Get the Best Rate

• Maintain a strong academic record
• Choose a top-ranked institution
• Offer collateral for larger amounts
• Ensure co-applicant has a good credit score