11 Best Banks for Education Loans in India 2023

Education loan is very helpful for students who want to study higher but because of financial reasons, they are unable to chase their dreams.

The government of India promote banks to provide education loans to the candidates and also provides scholarships to deserving candidates so that nothing can stop them from chasing their dreams.

Financial crises can’t snatch the right to education from the needy and deserving candidates, with the help of these Education loans In India, various banks provide education loans on different norms and terms with different rates of Interest and policies of returning the principal amount and interest amount. Here in this article, we are going to discuss. List of Best Education Loans in India

List of 11 Best Education Loans in India.

1. State Bank of India Education Loan


The State Bank of India is a well-recognized bank in India that provides various benefits and facilities to its users. SBI bank provides loans at low interest as compared to others, and their main motive behind providing these loans at low interest is to encourage the candidates to continue their education and not stop because of money.

The bank provides the facility of education loans to fulfill the dream of further education abroad or to get a degree from a high-grade university in the country.

The candidates can check the main website of SBI Bank for further details about the bank loan.

SBI Maximum Loan Amount: up to Rs. 1.5 Crores

SBI also provides education loans at one of India’s lowest interest rates.

SBI Education Loan SchemeRate of Interest (ROI)
SBI Student Loan11.15%
SBI Scholar Loan 8.55% to 10.05%
SBI Skill Loan 10.65%
SBI Global Ed vantage 11.15%

NOTE: “Personal guarantee for the loan from a reputable person has an added advantage”

2. Union Bank of India Education Loan


The leading public sector bank of India, which is also known as UBI. UBI provides education loans for Ph.D. degrees, Post-graduation, graduation from a top college, and education from abroad and opens the door to various education sectors where the only hassle of admission is a financial crisis.

Under the loan scheme, there is no limit to the maximum amount set by the bank, one can freely apply for any amount which is needed by them for their education.

The candidate can open its online UBI bank website and check for the loan details there.

Maximum Education Loan: Finance based on need (max 150 Lacs)

There are 4 primary types of education loan programs offered by Union Bank of India.

  • Student loans for Indian courses.
  • Education loan for study abroad.
  • Financial support for top technical and management schools in India.
  • Finance for higher education at Tier II Management & Technical Institutions in India
UBI Education loan schemeRate of Interest (ROI)
Loan in IndiaDepending on the loan amount, up to 12.55%
Loan in AbroadDepending on the loan amount, up to 10.80%
For the best technical and management universities in India, courses to develop skillsUP to 10.80%
Tier II Management & Technical Institutions (India)UP to 10.80%

NOTE: Education loans are covered by Union Bank under the credit guarantee fund scheme. As a result, you must provide information about each application, including KYC records, current income proofs, an allotment letter, and a thorough fee structure.

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3. HDFC Bank Education Loan


HDFC Bank Education loans in abroad and India. The candidate needs to go through the procedure for applying for the education loan in the loan department of the bank and can apply for it.

The loan amount sanctioned by the bank is directly distributed to the college or university.

The candidate can be eligible for up to 7 lakh rupees loan without following any collateral.

Although for the exceeding amount, the candidates need to follow the collateral the candidate is eligible to avail the loan amount of 20,00,000 lakh amount of loan. For online information, the candidate can visit the official website of HDFC Bank.

Maximum Education Loan: Finance based on need (max 150 Lacs)

HDFC Bank Education loan schemeRate of Interest (ROI)
Education Loan for Indian Students9.55% to 13.25%
Education Loan for Abroad Students9.55% to 13.25%

NOTE: The possibility of approval is great if you have a current account, premium savings account, or a positive, long-standing banking connection with HDFC.

4. IDBI Bank Education Loan


The bank provides a loan amount of 4 lacks, which doesn’t need any security, although if the amount exceeds more than 4 lacks or between 4-7 lakh then it needs to provide a guarantee as well, it makes the parents joint borrower of the loan amount.

The loan amount provided by IDBI bank covers residential facility, library facility examination fee, institution fee, and other expenses which are connected with the study of that candidate.

Maximum Education Loan: Up to Rs. 20 lakhs for in-country studies and Rs. 30 lakhs for studying abroad.

Education loan Amount up to Rs. 7.5 Lakhs, you must provide tangible collateral security, although the payback periods are extended to 15 years.

IDBI Education Loan schemeRate of Interest (ROI)
Loan for vocational or skill-development courses in Higher EducationUp to Rs. 7.5 Lakhs – 10.60%
Above Rs. 7.5 Lakhs – 11.10%
Loan for vocational or skill-development courses in higher EducationAll amounts – 11%
Educational loans for excellent colleges (including ISB)All amounts – 9.10%

NOTE: If you have been accepted to one of the top institutions and have sufficient (1.33 times) collateral security for an uncomplicated approval, go to IDBI bank for an education loan.

5. Punjab National Bank Education Loan


PNB provides a huge list of education loans to the candidates, It offers the PNB Saraswati scheme to the candidates, or the meritorious students to support them financially.

Along with the candidates who want to wish in the premier institution of India the bank provides them with the education loan facility under a scheme named ‘Prathiba” The bank also provide benefit to those candidates who wants to pursue vocational education, from its PNB Kaushal field.

Maximum Loan Limit: No upper limit; based on margin and repayment capability

Numerous financing programs for education are available from Punjab National Bank.

  • PNB Saraswathi is an average education loan program for deserving students depending on the IBA model.
  • For students who aspire to pursue higher education at prestigious institutions like IIT, NIT, and other top business schools, there is the PNB Prathibha plan.
PNB Education Loan SchemeRate of Interest (ROI)
PNB Saraswati up to 12%
PNB Udaanup to 12%
PNB Prathibha8.55% to 10.50%
PNB Kaushal10.75%
PNB Honhaar11.25%

NOTE: PNB benefits people who already have a pension account or a paycheck with them. At least five years’ worth of compensation should have been routed into the account.

6. ICICI Bank Education Loan


The ICICI bank provides a huge loan amount of 50 lakh rs for the candidates who want to study within the geosocial boundary of India, along with 1 crore to the candidates who want to study abroad.

The candidate can be eligible for a loan for post-graduation and under-graduation education from any of the recognized universities in India.

Get A Maximum Loan of – up to Rs. 2 Crore

ICICI Education Loan schemeRate of Interest (ROI)
Education loans for international as well as domestic studies9.50% – 15.85%

Parents with high net worth are preferred borrowers for education loans by ICICI Bank.

NOTE: You are eligible to qualify for a no-collateral loan up to Rs. 40 lakhs if your net worth higher than Rs. 1 crore.

7. Canara Bank Education Loan


The candidates can apply for the education loan from this bank directly or indirectly way, by applying to the educational institute.

The bank doesn’t cost any margin up to the loan amount of 4 lakh rupees.

There are no unique programs with a more significant loan limit offered by Canara Bank for Bachelor’s degree programs abroad. Therefore, it is very difficult to obtain a loan for a larger sum (than the IBA model).

Canara Bank Education Loan schemeRate of Interest (ROI)
Education loan for a master’s degree abroad from a select, highly respected university10.85% – 11.35%
IBA Scheme Loan10.65%
Vidya Sagar Scheme Loan10.85% – 11.25%
Vidya Turant Scheme Loan9.25% – 9.85%

NOTE: If you offer a guarantee that fully covers the loan amount, the loan request can be approved quickly.

8. Bank of Baroda Education Loan


The bank provides loans for basic schooling education to those candidates’ higher education.

From the countryside to abroad the university provides education loans for every university.

Maximum Loan Limit: 4 lakh rupees for educational expenses. Education loans up to 150 lakhs.

BOB Education Loan SchemeRate of Interest (ROI)
Baroda Gyan (IBA scheme)11.05% – 11.15%
Baroda Vidya12.50%
Baroda Scholar10.40% to 11.15% (Depending on institutions)
Financial aid for the Best institutions in India9.15% to 10.20% (Depending on institutions)
Skill Loan 10.65%

NOTE: Your loan application will benefit from a personal guarantee from an ongoing, reliable user.

9. Tata Capital Education Loan


Tata Capital can provide the candidate with a loan amount of 30 Lakh rupees with an interest rate of, 10.99% onwards.

The processing amount of avail this loan amount is 2.75% including taxes.

Maximum Loan Limit: ₹75,000 – ₹30,00,000

TATA CAPITAL Education Loan Loan Name 
Nationality Indian 
Age group EligibleBetween 16 – 26 
Loan Tenure12 – 72 months
Branches across India 200+

NOTE: According to your needs and qualifications, the maximum amount will be given. The maximum loan amount often authorized for studying within India is INR 15 lakhs, and the maximum loan amount approved for studying abroad is INR 30 lakhs.

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10. Kotak Mahindra Bank Education Loan

Kotak Mahindra Bank

The Kotak Mahindra Bank provides education loans with an interest amount of 16%. The bank provides a loan amount of 10 lakh rupees within India.

Along with 20 lakh rupees loan can be generated for the abroad studies.Education Loan, Student Loan by Kotak Mahindra Bank

Kotak Education Loan SchemeRate of Interest (ROI)
Loan Amount:Up to 20 lacs
Rate of Interest:(ROI)For collateralized loans: 9-11%
For non-collateral loans: 12-14% 
Period of moratorium in India:Time Period One Year
Repayment Duration:15 years maximum including the moratorium period in kotak mahindra bank

Federal Bank Education Loan

The bank provides a loan with an interest of 10.05%. It offers a loan amount of 10 lacks within the Indian boundaries and a 20 lakh rupees loan for the candidate who wants to study abroad. Federal Bank Education Loan

📝Final words

These are some well-recognized banks in India that help students provide education by providing them with a facility or educational loan. You can visit the websites of these banks to gather more information about the educational loan facility and choose wisely.

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