planning your studies? Find out which bank offers the cheapest student loan


Popularly known as student loans, education loans help you borrow money from banks to pay for your education expenses. Students opt for this type of loan mainly for higher education or specialized courses in reputable institutions both inside and outside the country.

Often hundreds of Indian students come through some of the best universities for higher education, but they find it difficult to assemble a huge corpus to complete their studies. It can be seen that some courses and institutions are expensive and require bank funding. Since obtaining an education loan is easy and the terms are also flexible, it helps deserving students to further their higher education studies in top-rated colleges in India and abroad. Depending on your needs, many educational loans will help you to cover your tuition fees as well as your travel and accommodation costs.

Banks adhere to simple criteria and an instant disbursement process for education loans so students don’t have to pay late fees and other fees. If you meet the criteria, it’s easy to get a loan for your education. Before you start applying for an educational loan, it is advisable to check your eligibility beforehand. You can check your eligibility online at portals such as

Banks are careful when analyzing eligibility to ensure their funding only reaches deserving students. So, they would typically check the student’s academic performance, educational institutions where he studied and will study, placement in entrance exams and degree program from an employment perspective, admissions status, etc.

To apply, you must fill out an application form. You can also go to your nearest bank branch, log into the bank’s website or contact customer service to help you with the process.

Remember that the role of your parents/parents, spouse, etc. is very important in this process as your guardian will be treated as a co-applicant under the loan. One of the benefits of taking out an education loan is that you get a Section 80E tax deduction on the interest.

For study in India you can avail a loan amount up to Rs 50 lakh while students going abroad can even get a loan up to Rs 1 crore depending on their eligibility. The repayment period is up to 15 years and can vary from bank to bank.

Typically, collateral is not required for a loan up to Rs 7.5 lakh, but collateral with a co-applicant is mandatory for loans over Rs 7.5 lakh. If you meet the bank’s eligibility criteria, you’ll likely get 100 percent funding. The interest rate on your loan may vary depending on the loan amount. Banks may also require student life insurance for the amount of the loan taken out. Repayment of the educational loan begins at the end of the moratorium, which is usually 6-12 months after graduation. However, this period may vary from bank to bank.

Please note that you must repay the education loan on time. If there is a default, the creditworthiness of the borrower and the co-applicant will be affected and the collateral may also be forfeited. In the event of late repayment, interest rates can also rise, so there are many challenges if you delay or fail to repay the loan. It is therefore advisable to read all the conditions carefully and clarify your doubts with the bank before signing the loan agreement.

In the table below you can compare interest rates and EMIs on education loans from Rs 20 lakh for seven years.

Interest rates and EMI for education loans

Compiled by

Note: Interest rate on education loans for all listed (BSE) public and Pvt banks considered for data compilation; Banks for which data is not available on their website are not included. Data collected from each bank’s website as of April 27, 2022. Banks are listed in ascending order of interest rate, meaning the bank that offers the lowest interest rate on education loans (regardless of loan amount and term) is listed at the top and highest placed bottom. EMI is calculated based on the interest rate shown in the table for a Rs 20 lakh 7 year loan (processing and other charges are assumed to be zero for EMI calculation); *Minimum APR rate during the period 21st October – 21st December.


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