Education Loan Interest Rates
Compare rates across major banks and NBFCs
| Bank Name | Maximum Loan Amount | Interest Rate | Action |
|---|---|---|---|
| State Bank Of India (SBI) | 3 Crores (Secured) | Starts from 8.15% | |
| Bank Of Baroda (BOB) | 1.5 Crores (Secured) | Starts from 8.70% | |
| Bank Of India (BOI) | 1.5 Crores (Secured) | Starts from 9% | |
| Central Bank of India | 2 Cr (Secured) | Starts from 9.45% | |
| UCO Bank | 20 Lakhs (Unsecured) | Starts from 8.70% | |
| Punjab National Bank | Need-Based Financing | Starts from 9.5% | |
| Canara Bank | 1 Crore (Secured) | Starts from 8.75% | |
| Union Bank of India | 1.5 Crore (Secured) | Starts from 9.25% | |
| Axis Bank | 1.5 Crore (Secured) | Starts from 10.5% | |
| ICICI Bank | 2 Crore (Secured) | Starts from 9.5% | |
| IDFC First Bank | 1.5 Crore (Secured) | Starts from 9.5% | |
| Federal Bank | 20 Lakhs (Secured) | Starts from 11.75% | |
| South Indian Bank | 1.5 Crores (Secured) | Starts from 9.50% | |
| Karur Vysya Bank | 1.5 Crores (Secured) | Starts from 9.99% | |
| Bandhan Bank | 25 Lakhs (Unsecured) | Starts from 9.47% | |
| HSBC Bank | Need-Based Financing | Starts from 9.99% | |
| IDBI Bank | Need-Based Financing | Starts from 8.50% | |
| Kotak Mahindra Bank | 20 Lakhs (Secured) | Maximum 16% | |
| HDFC Credila | 1 Crore (Unsecured) | Starts from 9.75% | |
| Avanse | 85 Lakhs (Unsecured) | Starts from 10.50% | |
| Incred | 80 Lakhs (Unsecured) | Starts from 11% | |
| Auxilo | 60 Lakhs (Unsecured) | Starts from 11.50% |
Detailed Lender Rates
State Bank of India (SBI)
SBI offers floating interest rates for education loans with rates starting from 7.15% and loan amounts up to ₹3 Crores.
| Scheme Name | Interest Rate | Final Rate | Discounts |
|---|---|---|---|
| SBI Student Loan Scheme | EBR + 1% to 2% | 9.15% to 10.15% | 0.50% for female students, 0.50% Rinn Raksha |
| SBI Scholar Loan Scheme | EBR - 0.25% to 1% | 7.15% to 7.90% | 0.50% for female students, 0.50% Rinn Raksha |
| SBI Global Ed-Vantage Scheme | EBR + 0.5% to 1% | 8.65% to 9.15% | 0.50% for female students, 0.50% Rinn Raksha |
| SBI Skill Loan Scheme | EBR + 1.50% | 9.65% | 0.50% for female students, 0.50% Rinn Raksha |
| Shaurya Education Loan (Secured) | EBR + 1.50% to 2.00% | 9.15% | 0.50% for female students, 0.50% Rinn Raksha |
Updated EBR: 8.15% effective 15-06-2025 | Last Updated: 11-07-2025
Bank of Baroda (BOB)
BOB provides both floating and fixed interest rates for education loans with various schemes for domestic and international studies.
Floating Interest Rates - Premier Institutions (India)
| Category | Institutions | Rate Calculation | Effective Rate |
|---|---|---|---|
| Top Tier | Top 10 IIMs and IITs | BRLLR - 1.05% | From 7.10% |
| List AA | Premier Institutions | BRLLR - 0.70% | From 7.45% |
| List A | Selected Institutions | BRLLR - 0.50% | From 7.65% |
| List B | Other Institutions | BRLLR + 0.00% | From 8.15% |
| List C | Standard Institutions | BRLLR + 0.50% | From 8.65% |
Education Loans - Abroad (Non-Premier)
| Loan Limit | Rate Calculation | Effective Rate |
|---|---|---|
| Up to ₹7.50 Lakh | BRLLR + 2.00% | 10.15% |
| Above ₹7.50 Lakh | BRLLR + 1.05% | 9.20% |
Updated BRLLR: 8.15% effective 07-06-2025 | Last Updated: 11-07-2025
Bank of India (BOI)
BOI offers competitive education loans with rates starting from 7.50% for the Star Vidyalaxmi scheme.
Star Education Loan (IBA Scheme)
| Scheme Name | Rate Calculation | Final Rate | Discounts |
|---|---|---|---|
| Star Education Loan (Under 7.5 Lakhs) | RBLR + 1.70% | 10.05% | 0.50% for female students, 0.50% for STEM courses |
| Star Education Loan (Above 7.5 Lakhs) | RBLR + 1.50% | 9.85% | 0.50% for female students, 0.50% for STEM courses |
Star Vidyalaxmi Loan
| Institute Category | Interest Rate |
|---|---|
| List A Institutes | 7.50% |
| List B Institutes | 7.85% |
| List C Institutes | 8.35% |
| List D Institutes | 8.85% |
Updated RBLR: 8.35% effective 06-06-2025 | Last Updated: 11-07-2025
Central Bank of India
Central Bank offers education loans starting from 7% with special discounts for female and SC/ST students.
| Institution Category | Rate Calculation | Final Rate | Discounts |
|---|---|---|---|
| AAA Category | Repo + 1.50% | From 7.00% | 0.5% for Female/SC/ST students |
| AA Category | Repo + 1.70% | From 7.20% | 0.5% for Female/SC/ST students |
| A Category (Collateral) | RBLR - 0.35% | From 8.15% | 0.5% for Female/SC/ST students |
| B Category (Collateral) | RBLR + 0.95% | From 9.45% | 0.5% for Female/SC/ST students |
| Cent Skill Loan | RBLR + 1.50% | 10.00% | Not applicable |
Updated RBLR: 8.50% effective 10-06-2025 | Last Updated: 11-07-2025
Understanding Interest Rate Terms
Base Rate
The minimum interest rate set by RBI for lending a loan.
Repo Rate
The rate at which RBI lends money to other banks against government security.
EBLR
External Benchmark Lending Rate - repo rate set by RBI + spread.
MCLR
Marginal Cost of Funds Based Lending Rate - internal base rate for each bank.
EBR
External Benchmark-Linked Rate - SBI MCLR rate (RBI repo + SBI spread).
BRLLR
Baroda Repo Linked Lending Rate - Bank of Baroda's MCLR.
Interest During Moratorium Period
Understanding how different lenders handle the grace period
Public Banks
Offer a grace period of 6-12 months where you don't pay anything. Interest is compounded after the grace period and EMI is calculated.
Private Banks
Charge either full or partial simple interest during moratorium. Interest is compounded after the moratorium period ends.
NBFCs
Direct EMI payment starts during the moratorium period immediately after loan disbursement.
Latest Updates
MCLR Increase by Up to 10 Basis Points
Several public sector banks, including Bank of Baroda and Canara Bank, have raised their marginal cost of funds based lending rates (MCLR) by up to 10 basis points.
- Bank of Baroda: One-year MCLR increased from 8.65% to 8.70% (effective August 12)
- Canara Bank: MCLR increased by 5 basis points to 8.70% (effective August 12)
- Bank of Maharashtra: One-year MCLR raised by 10 basis points to 8.60% (effective August 10, 2023)
The Monetary Policy Committee (MPC) of RBI has kept the policy repo rate steady at 6.50%. RBI Governor Shaktikanta Das explained that with inflation above the 4% target, the focus is on gradually withdrawing accommodation to align inflation with the target while supporting economic growth.
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