HomeEducation LoanBest Banks for Education Loan in India 2024

Best Banks for Education Loan in India 2024

India’s cost of education is rising faster than that of other countries. There is no denying the value of education, which is why everyone strives to attend the best schools, and why every school wants the top students. Parents and students are battling for the best grades and careers while also dealing with the economic effects of education and thus creating the need for the best banks for education loans in India. Advanced education is expensive and keeps getting more expensive as time goes on.

Two options support students in pursuing their academic goals:

“Scholarships and education loans”.

However, choosing the best banks for education loans in India can be challenging. The best banks for education loans in India are intended to give students the resources they need to fulfill their academic commitments and aspirations. In order to choose the best banks for education loans in India for themselves, students must be familiar with the full range of education loan services.

Read more: What is Education Loan: How to Finance Students Higher Studies

What is an Education Loan?

A financial loan to cover costs associated with higher education or postsecondary education is known as an education loan. Education loans are designed to pay for living expenditures while the lender pursues a degree and tuition, books, and supplies.

Depending on the school and course of study chosen, the best banks for education loans in India offer a variety of loan programs, and students can benefit from them. Since most of these best banks for education loans in India have flexible repayment options, the student can organize his finances. The moratorium period, which lasts for about six months after the borrower has finished the course, is another feature of education loans. After this time, or earlier, loan repayment may start if the borrower finds work or another source of income.

List of Best Banks for Education Loans in India

Some best banks in India for education loans are listed below to find the convenient option you would be looking for Loan:

Name of BanksName of LoanRate of Interest
HDFC BankHDFC Education Loan14.1%
SBI BankSBI Global Ed-Vantage10.25%
Punjab National BankPNB Saraswati10.50 – 11.25%
Union Bank of IndiaUnion Education – Skill Development Loan10.65 – 12.30%
Axis BankAxis Education Loan8.95%
ICICI BankICICI Eduaction Loan11.5%
Bank of BarodaBaroda Vidya Programme11.10%
IDBI BankIDBI Education Loan9.90%
Canara BankCanara Bank Education Loan10%
Andhra BankAndhra Bank Education Loan10.25%

There are many banks providing education loans in India. Let’s have a look at the 10 best banks for education loans in India: 

1. HDFC Bank Education Loan

Loan Limit: up to Rs. 150 Lakhs

For more than 950 courses across 36 countries, students who apply for an HDFC Education Loan can receive education finance services right at their door. It is the best bank in India for education loans. Up to Rs 20 lakhs in student loans are available in the best banks for education loans in India.

Without any collateral, loans up to Rs 7 lakh can be obtained. Processing fees for the best banks for education loans in India can be up to 1.5% of the loan amount, and there are no penalties for paying off the loan early. One of the few best banks for education loans in India, HDFC has wholly waived the prepayment fees.

In terms of loans and other financial services, the best banks for education loan in India offers the best education loans in international education assistance services.

SchemeInterest rates
Loan for Education in India9.55% to 13.25%
Loan for Education Overseas9.55% to 13.25%


  • Lowered interest rates
  • Speedy processing


  • 1% processing fee for loans
  • Prepayment charges of up to 4%
  • Fewer loans for studying in India

2. SBI Education Loan

Maximum Loan Amount: up to Rs. 1.5 Crores

It goes without saying that this nationalized bank is the big brother of all other Indian banks; it is the best bank for education loans in India and needs no introduction. Under the SBI Global Ed-Vantage program for international studies, provide loans for up to Rs. 1.50 crores. Professional and technical degree programs, postgraduate programs, and diploma programs from reputable universities are among the courses offered.

Education loans are also available for CIMA-London and CPA-US certification programs. The maximum amount of the best bank for education loans in India, SBI Education Loan is INR 30 lakhs, and collateral is required only for loans above INR 7.5 lakhs. Depending on the loan amount, repayment tenure ranges from 10 to 12 years. It might be your best option if you’re looking for a bank with a low rate of interest.

Loan SchemeInterest Rates
State Bank of India Student loan11.15%
State Bank of India Scholar Loan8.55% – 10.05%
State Bank of India Skill loan10.65%
State bank Of India Global education vantage11.15%


  • The interest rate for loans up to Rs 7.5 Lakhs is 10.25% p.a.
  • The interest rate is 10.50% per annum for amounts over Rs. 7.5 Lakhs.
  • The interest rate after the reduction for female students is 0.50 %.
  • For students who choose SBI Rinn Raksha or other current policies as classified by SBI, there is a 0.50% interest rate concession.
  • Students who pay their interest on time will receive a 1% concession throughout the loan’s term if used during the moratorium period. It includes the length of the course.


  • Long processing time

3. Punjab National Bank Education Loan

Maximum Loan Limit: No upper limit

One of India’s best banks in India for education loans and the most prominent public sector banks, PNB prioritizes its clients’ needs and provides the best banks for education loans in India. Borrowers must pay a 1% upfront processing fee for PNB Education Loans. Borrowers of student loans have a maximum tenure option of 15 years. For education loans under INR 4 lakhs, there is no loan margin requirement. This one can be regarded as the best bank for education loans due to the flexibility of the loan services; students can choose what they want and ignore the rest.

Loan SchemeInterest Rates
Punjab National Bank SaraswatiAs far as 12%
Punjab National Bank UdaanAs far as 12%
Punjab National Bank Prathibha8.55% – 10.50%
Punjab National Bank Kaushal10.75%
Punjab National Bank Honhaar11.25%


  • Refundable processing costs for loans for international education.
  • Using state-level education expenses as the basis, the state has programs for specialized student loans.
  • Disability-friendly education loans with lower interest rates.
  • For domestic education loans, there are no processing costs.
  • Education loans for vocational studies up to INR 150000.


  • Time-consuming paperwork and follow-up

4. Union Bank of India Education Loan

Maximum Education Loan Granted: Need-based finance (max 150 Lacs)

One of the best banks in India for education loans and public sector banks, this bank is also known as UBI in India. For student loans, you should contact this bank. Students must verify their enrollment in one of India’s top 20 banks for student loans and knock on the doors of a reputable college within India or abroad. Graduation, post-graduation, and diploma programs at respected Indian institutions are the courses for which student loans are available.

For students who have been offered Ph.D. positions at universities all over India, UBI also provides loans. However, suppose eligible students apply to the bank in the course’s later years and provide proof that they have yet to receive a loan from another bank or financial institution for the program’s initial years. In that case, educational loans may also be taken into consideration. The maximum loan amount with this approved under the best education loan bank in India program is unrestricted.

Education loanInterest Rates
Courses within IndiaAs far as 12.55%
Courses abroadAs far as 10.80%
Premier Management and Technical institutions Skill DevelopmentAs far as 10.80%
Tier II Management and Technical institutionsAs far as 10.80%


  • Minimal interest rate
  • No additional fees or administrative costs
  • Reduced paperwork and no processing charges
  • For up to 4 lakhs, no security is needed.
  • 0.5% off for female students

5. Axis Bank Education Loan

Maximum Loan Limit: up to 100% of the total cost

Axis Bank is one of the most well-known private banks in India, constantly ready to assist students in need with the best education loan bank in India. The smallest loan that can be obtained from this best bank in India for education loans, which is among the top 10 in India for education loans, is Rs 50,000. Only students who received a minimum of 50% in their HSC or graduation are eligible for financing through Axis for education loans for graduate or postgraduate coursework. The loan pays for books, dorm fees, and other expenses besides tuition.

The maximum amount of this best education loan bank in India can be established by considering the applicant’s necessities and the total cost of the required education.

Loan AmountInterest Rates
Till Rs. 4 Lakhs15.20%
Above Rs. 4 Lakhs – Rs. 7.5 Lakhs14.70%
After Rs. 7.5 Lakhs13.70%


  • The largest domestic student loan is INR 75,00,000 (75 Lakhs).
  • For female students, there is a 50-basis point special interest subsidy.
  • No margin is required.
  • Cover in-flight and out-of-pocket expenses for international Indian students with Axis Bank Outward Remittances.
  • Student Insurance with included coverage for international risks


  • High-interest rate.
  • 15% of the loan’s value may be subject to a margin.
  • Penal interest of 24 % per annum for late payments.

6. ICICI Bank Education Loan

Get Maximum Loan: up to Rs. 2 Crore

If one is looking for the best education loan bank in India, ICICI Bank, renowned for its approachable attitude towards students who want to study, one need not look any further. One can turn to this one of the top 20 banks in India for education loans, whether required for studying here at home or abroad. For studies within India, ICICI Bank provides education loans up to Rs. Fifty lakhs, and up to Rs. 1 crore for studies abroad.

One of the main advantages of this best education loan bank in India is that no collateral is required for education loans up to Rs. 20 lakhs (for undergrad courses) and Rs. 40 lakhs.

loan schemeInterest Rates
loan for Indian and Overseas studies9.50% – 15.85%


  • High loan balance
  • Fewer documents and faster processing
  • No margin up to 20 lakhs rupees


  • Hidden charges
  • High rate of interest

7. Bank of Baroda Education Loan

Maximum Loan Limit: Rs. 4 Lakhs for school studies.

Under the Baroda Vidya program, the Bank of Baroda offers educational loans for students in kindergarten through grade 12. With the aid of the best banks for education loans in India, economically disadvantaged students can receive a quality foundational education. For loans for higher education of up to Rs. 4 lakhs, there is absolutely no margin in this nation. For a loan up to Rs. 4 lakhs for international studies, there is no margin. The bank also provides the best education loan bank in India to students at prestigious universities.

Other best education loan bank in India includes Baroda Scholar (up to 80 Lakhs) for study abroad and Baroda Gyan (up to 80 Lakhs) for higher education in India.

loan schemeInterest Rates
Baroda Gyan11.05% – 11.15%
Baroda Vidya12.50%
Baroda Scholar10.40% to 11.15%
loan required for premier institutions9.15% to 10.20%
Skill loan scheme10.65%


  • Competitive interest rates.
  • A good selection of student loan products.
  • Zero processing fees.


  • Processing of the loan applicant needs to be faster.

8. IDBI Bank Education Loan

Loan Amount Offered: Up to Rs. 20 Lakhs

It is one of the reputable and best education loan banks in India banking institutions in India that provides loans for higher education students who are determined to continue their studies. Truly worthy students receive financial aid from IDBI Bank, whether studying in India or abroad. One does not need to provide security for loans under Rs. 4 lakhs and parents can borrow jointly.

If the loan is between Rs. 4 and Rs. 7 lakhs, a third-party guarantee is required, and parents will be co-borrowers. This program for the best banks for education loans in India covers expenses for examinations, libraries, labs, and dorms, and the loan will be paid directly to the academic institution.

Loan SchemeInterest Rates
loan required for non-vocationalAs far as Rs. 7.5 Lakhs – 10.60%

After Rs. 7.5 Lakhs – 11.10%

Loan required for vocational or skill development11%
loan required for premier institutes9.10%


  • No margin is required for loans up to 4 lakhs.
  • The maximum loan amount is 20 lakhs rupees.

9. Canara Bank Education Loan

Maximum Loan amount: up to 4 lakhs Rs.

The students are allegedly given financial aid based on need by this prestigious public sector bank. In order to apply for the best bank for education loans in India, students can go to a bank branch close to their parent’s home or one close to the school they are attending. One of the top 20 banks in India, Canara Bank for student loans offers loans up to Rs 4 lakhs with no margin. The loan repayment will take place over an additional 15 years, not including the moratorium period, in equal monthly installments.

Loan SchemeInterest Rates
Loan required for Master’s Degree abroad in a top university10.85% – 11.35%
IBA based10.65%
Vidya Sagar10.85% – 11.25%
Vidya Turant9.25% – 9.85%


  • Lower interest rates
  • Full financial coverage

10. Andhra Bank Education Loan

Maximum Loan amount: up to Rs. 7.50 lakhs

Andhra Bank is the best bank for education loans in India for those wishing to pursue higher education in India or abroad. For those interested in taking vocational courses, educational loans are also provided. There are no age restrictions for obtaining the best bank for education loans in India. Loans up to Rs. 7.50 lakhs are available at MCLR (one year) + 2.00%. MCLR (one year) + 1.70% for amounts over Rs. 7.50 lakhs. Additionally, female students are given a 0.5% discount. Students enrolled in a few elite institutions can also benefit from interest rate reductions. Simple interest is charged from the start of the study period until the end of repayment.

Loan SchemesInterest Rates
Loan For Indian Students9.5% to 13.25%
Loan for Foreign Students9.5% to 13.25%
Student Loan10.05%
Scholar Loan8.95% – 9.25%
Global Vantage10.05%
Skill Loan9.55%
Take Over10.05%


  • There is no upper limit on loans.
  • In India, there is no processing fee.
  • For loans up to INR 4 Lacs, there is no margin charge.

Read more: ICICI Child Education Plan

Documents Required to Apply for the Best Education Loan in India?

When applying for the best banks for education loans in India, the following list of documents a person should need to the majority of banks and financial institutions:

  • Two passport-sized photos of the applicant and the co-applicant, along with the application form (filled out).
  • Original letter of acceptance from the Institute. It must be written on the Institute’s letterhead and include the Institute’s name and address.
  • A complete breakdown of the course’s fees and costs as provided by the Institute. The tuition fee, course term, annual fees, and other charges must be included.
  • A thorough academic history of the borrower student. The 12th-grade report card, graduation or post-graduation certificate, score report from the entrance exam, and any scholarship documentation must all be included.
  • A declaration that you have not obtained a loan for your education from any other bank.
  • PAN cards, Aadhar cards, driver’s licenses, passports, and others are examples of ID proof.
  • Ration cards, driver’s licenses, passports, and Aadhaar cards are examples of address proof.
  • Proof of age, such as a birth certificate or 10th-grade transcript.

Read more: Child Education Plan Calculator

Best Banks for Education Loans in India – FAQs

Do I require a co-applicant for the best banks for education loans in India?

Ans. Yes, most banks in India that offer student loans require a co-applicant. However, an exception may be made if a student is employed while pursuing a course of study, but only if they are responsible for paying back all the student loans they have taken out. Loan co-applicants can fall into two categories: Primary Co-applicants, which include parents, siblings, and the spouse, and Secondary Co-applicants, which include immediate in-laws and paternal/maternal uncles and aunts.

Are travel and lodging costs covered by student loans for international study?

Ans. Yes indeed. Nearly all of the best banks for education loans in India for studying abroad include travel and lodging costs. These expenses include rent for housing, meal cards, hostel fees, mess fees, and some expenses related to limited international travel. Some of these best banks for education loans in India do not offer the typical foreign institutions’ “building fees, legal charges for rent agreement, membership/maintenance fees of student residential property.” Students should confirm these costs with the company that provides their student loans.

Do two banks allow me to take a loan for my education?

Ans. Yes, if a student qualifies for a second education loan, they may apply with the same bank from which they already received their first loan, or they may choose to apply with a different bank.

How long does it take to get an education loan approved?

Ans. It totally depends on the applicant’s submission of the necessary paperwork. The loan processing and approval process for the best banks for education loans in India can vary between banks and take up to 15 days.

What is the maximum limit one can get from the best banks for education loans in India?

Ans. For studies within India, most lenders have a maximum limit of Rs 10–15 lakhs, whereas the maximum limit on education loans for studies abroad is between Rs 20–30 lakhs. However, if bank-accepted collateral is presented, some best banks for education loans in India will sanction a significant loan amount for the applicant.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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