Education Loans
Education Loan Interest Rates: 11 Lenders Compared
Public banks, private banks, dedicated education-loan NBFCs, and abroad-focused fintech lenders, side by side.
Last verified 1 September 2026. Rates change with RBI's repo rate and each lender's own policy — confirm the current rate directly with the lender before applying.
| Lender | Type | Interest rate range | Collateral-free | Processing fee |
|---|---|---|---|---|
| State Bank of India (SBI) | Public sector bank | 9.15% - 11.15% | Up to ₹7.5 lakh (CGFSEL) | Nil for loans up to ₹20 lakh |
| Bank of Baroda | Public sector bank | 8.85% - 10.85% | Up to ₹7.5 lakh (CGFSEL) | Nil for most education loans |
| Punjab National Bank (PNB) | Public sector bank | 8.95% - 11.25% | Up to ₹7.5 lakh (CGFSEL) | Nil to nominal, varies by scheme |
| Union Bank of India | Public sector bank | 8.80% - 11.05% | Up to ₹7.5 lakh (CGFSEL) | Nil for most education loans |
| Axis Bank | Private bank | 9.70% - 13.70% | Case-by-case, generally above ₹4 lakh needs security | Up to 1% of loan amount |
| ICICI Bank | Private bank | 10.50% - 13.00% | Case-by-case | Up to 1-2% of loan amount |
| HDFC Credila | Dedicated education-loan NBFC | 10.25% - 13.50% | Often available for strong institution/profile combinations | Typically 1-1.5% of loan amount |
| Avanse Financial Services | Dedicated education-loan NBFC | 10.50% - 13.75% | Available depending on course/institute/co-applicant profile | Typically 1-2% of loan amount |
| Auxilo Finserve | Dedicated education-loan NBFC | 10.75% - 14.00% | Available depending on profile | Typically 1-2% of loan amount |
| Prodigy Finance | Abroad-focused fintech lender | ~12% - 15% (varies by program risk profile) | Yes, no India-based collateral or co-signer for eligible programs | Origination fee typically 3-6% of loan amount |
| MPower Financing | Abroad-focused fintech lender | ~13% - 15% | Yes, no co-signer or collateral required | Origination fee applies, varies by program |
Lender notes
State Bank of India (SBI)
Concession for girl students and Scholar Loan scheme for premier institutes.
Bank of Baroda
Baroda Gyan and Baroda Scholar schemes for listed premier institutes.
Punjab National Bank (PNB)
PNB Saraswati and PNB Udaan schemes for domestic and abroad study.
Union Bank of India
Union Vidya and Union Education loan schemes.
Axis Bank
Faster processing than most PSU banks; abroad-focused product line.
ICICI Bank
Strong abroad-study processing network through partner institutions.
HDFC Credila
Fast turnaround; widely used for study-abroad admits at top-ranked universities.
Avanse Financial Services
Covers a wide range of Indian and international institutes.
Auxilo Finserve
Focused specifically on education loans, domestic and abroad.
Prodigy Finance
Assesses future earning potential rather than requiring a co-signer; limited to partner programs.
MPower Financing
US/Canada-focused; assesses applicant without requiring an Indian co-signer.
How to actually compare lenders, beyond the headline rate
The lowest advertised rate isn't always the cheapest loan. Before deciding, compare:
- Fixed vs floating rate, and what benchmark a floating rate is linked to
- Whether interest is serviced or capitalized during your moratorium — this can change your total repayment by a meaningful amount over the loan's life; use our EMI calculator to see the difference for your own numbers
- Prepayment charges, in case you want to repay early once you start earning
- What collateral or co-applicant profile actually gets you the advertised low end of the range, since these are ranges, not flat rates
See our complete education loans guide for how moratorium, collateral rules, and the PM Vidyalaxmi scheme work, and Section 80E for the tax deduction on the interest you end up paying.