Education Loan Interest Rate Comparison: All Major Lenders (2026)
| Lender | Interest Rate (p.a.) | Max Loan | Collateral Req. | Moratorium | Processing Fee |
|---|---|---|---|---|---|
| SBI Global Ed-Vantage | 9.55–10.55% | ₹1.5 crore | Required above ₹7.5L | Course + 12 months | ₹10,000 |
| Bank of Baroda Baroda Scholar | 9.70–10.60% | ₹80 lakhs | Required above ₹7.5L | Course + 12 months | ₹10,000 |
| Canara Bank IBA | 10.0–10.85% | ₹40 lakhs | Required above ₹7.5L | Course + 6 months | ₹5,000 |
| Punjab National Bank | 10.0–11.0% | ₹30 lakhs | Required above ₹7.5L | Course + 12 months | ₹5,000 |
| Axis Bank | 10.5–13.0% | ₹75 lakhs | Flexible (up to ₹40L without) | Course + 12 months | 1% of loan |
| ICICI Bank | 10.5–12.5% | ₹1 crore | Required above ₹40L | Course + 12 months | 1% of loan |
| HDFC Credila | 11.0–13.5% | ₹75 lakhs (no collateral) | Not required (top universities) | Course + 6–12 months | 1–2% of loan |
| Avanse Financial | 11.5–14.0% | ₹75 lakhs (no collateral) | Not required | Course + 6 months | 1–2% of loan |
| InCred | 12.0–14.5% | ₹60 lakhs | Not required | Course + 6 months | 2–3% of loan |
* Rates are indicative for May 2026. All rates are floating (linked to repo rate / MCLR). Actual rates depend on applicant profile, co-applicant income, university, and loan amount. Always get a formal quote before committing.
Which Education Loan Should You Choose? Decision Guide
If You Have Collateral (Property, FDs, NSC): Choose Public Sector Banks
SBI Global Ed-Vantage and Bank of Baroda Baroda Scholar offer the lowest interest rates (9.5–10.6%) for loans with collateral. Over a 10-year repayment, this saves ₹8–15 lakhs in interest vs an NBFC loan.
If You Have No Collateral and are Admitted to a Top University
HDFC Credila is the best choice — it has the widest university whitelist, the highest approval rate for top global universities, and the most flexible repayment terms. Apply to HDFC Credila first.
If Your University is Not in Top-Tier NBFCs' Whitelist
Avanse and InCred have broader university acceptance policies. InCred is also faster (2–3 weeks processing).
The Hybrid Strategy (Most Common for Indian Students)
- Apply to SBI (or BOB) for the maximum secured loan amount your collateral supports
- Top-up with HDFC Credila or Avanse for the remaining amount needed (unsecured)
- Use scholarships to reduce the total loan quantum
- Consider working part-time (20 hrs/week) to reduce interest accrual during the course
EMI Estimates for Common Loan Amounts (2026)
Sample monthly EMI estimates after the moratorium period ends (assuming 10-year repayment):
| Loan Amount | At 10% (SBI secured) | At 12% (HDFC Credila) | At 14% (InCred) |
|---|---|---|---|
| ₹20 lakhs | ₹26,430/month | ₹28,694/month | ₹31,018/month |
| ₹40 lakhs | ₹52,860/month | ₹57,388/month | ₹62,036/month |
| ₹60 lakhs | ₹79,290/month | ₹86,082/month | ₹93,054/month |
* EMI is calculated post-moratorium (after course + 12 months). Interest accrues during the moratorium period.
Section 80E Tax Benefit — Don't Miss This
Under Section 80E of the Indian Income Tax Act, the entire interest paid on an education loan (for self or a dependent) is deductible from your taxable income — for up to 8 consecutive years from the year you start repayment. This is available for loans from banks and approved NBFCs, not from private/family loans.