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Educational Loans

Student Education Loans in India: Overview

Studying in India or abroad often demands substantial funding. To support students, various public and private banks, along with NBFCs, offer tailored education loans—featuring competitive interest rates, flexible repayment schedules, and minimal processing charges. Government initiatives like PM Vidyalaxmi and skill-based loan schemes further enhance affordability.

Central Portal for Student Loans

Vidya Lakshmi Portal: A one-stop platform listing loan schemes from over 45 banks (139 plans), facilitating students to compare and apply—covering up to ₹1.5 crore for studies abroad.

Major Banks & Loan Schemes

State Bank of India (SBI)

  • Loan range: Up to ₹1.5 Cr (India); ₹2 Cr (abroad)
  • Interest: MCLR + ~1.65%; starting from ~7.55%–8.15% depending on scheme
  • Repayment tenure: Up to 15 years with moratorium during studies.

Special schemes: PM Vidyalaxmi (8%+), Scholar Loan, Global-EdVantage

Punjab National Bank (PNB)

  • Interest: 4%–12.35%; recently reduced rates under PM Vidyalaxmi
  • Loan features: PNB Udaan (abroad) & PNB Pratibha (top Indian institutes); no processing fees for domestic studies.

HDFC Bank

Loan cap: ₹20 lakh (domestic); ₹40 lakh (abroad)

Interest: Approximately 9.25%–13.99%

ICICI Bank

  • Loan cap: ₹1 crore (domestic); ₹50 lakh (abroad)
  • Interest: Starts from ~9.30%–11.50%
  • Benefits: Flexible repayment up to 15 years; zero margin for select institutes

Axis Bank

  • Loan cap: Up to ₹75 lakh (domestic); ₹1.5 crore (abroad)
  • Interest: Roughly 10.50%–15.20%
  • Collateral-free loans: Up to ₹75 lakh

Bank of Baroda

  • Loan cap: ₹80 lakh (domestic); ₹60 lakh (abroad)
  • Interest: 6.75%–8.25%
  • Perks: No collateral for ≤₹7.5 lakh

Union Bank of India (UBI)

  • Loan cap: ₹40 lakh unsecured; up to ₹1.5 crore secured
  • Interest: Starts from ~9.75%

IDFC First Bank

  • Unsecured loan: Up to ₹75 lakh
  • Interest: ~11.75%–13.25%

Yes Bank

  • Unsecured loan: Up to ₹50 lakh
  • Interest: ~11.50%–13%

Other PSU Banks

  • Include: Canara, IDBI, UCO, Indian Overseas, Federal, Karur Vysya, Tamilnad Mercantile, etc. with rates ranging 7.5%–14%

Leading NBFC Players

NBFCs offer fast disbursal and higher loan amounts:

  • Credila, Avanse, Auxilo, InCred, HDFC Credila, Bajaj Finance, Tata Capital, etc.

These typically offer ₹10 lakh–₹1.5 crore unsecured, with interest rates approx. 10%–16.5%

Eligibility & Interest Factors

Common eligibility criteria:

  • Indian nationality, ages 18–35
  • Admission to recognized UG/PG/diploma/professional/tech/PhD courses
  • Co-applicant often required (usually a parent with stable income)

Interest rate determinants:

  • Loan amount
  • Domestic vs. foreign education
  • Collateral availability
  • Borrower's credit & academic profile

Processing Fees:Typically USD 0–2% of total loan; many waive fees up to ₹7.5 lakh

Moratorium Periods:Generally course duration + 6–12 months; some banks offer concession or interest-free during this phase

Choosing the Right Option

Interest Rate

Lower is better, especially for long tenures.

Collateral Terms

Collateral-free loans simplify and speed up eligibility.

Disbursal Speed

NBFCs often process faster.

Moratorium & Repayment Flexibility

EMI pause and flexible plans ease financial burden.

Value-Added Schemes

Schemes like PM Vidyalaxmi offer extra benefits.

Repayment Tenure

Longer tenures lower EMI but increase interest paid overall.

Bank / NBFCMax Loan (₹ Cr)Interest RangeCollateral-Free Limit
SBIDom: 1.5, Abroad: 2~7.55%–10.65%≤ ₹7.5 lakh
PNBNeed-based~4%–12.35%Varies per scheme
HDFCDom: 0.2, Abroad: 0.4~9.25%–13.99%≤ ₹7.5 lakh
ICICIDom: 1, Abroad: 0.5~9.30%–11.50%Selected institutes
AxisDom: 0.75, Abroad: 1.5~10.50%–15.20%≤ ₹75 lakh
Bank of BarodaDom: 0.8, Abroad: 0.6~6.75%–8.25%≤ ₹7.5 lakh
UBISecured: 1.5~9.75%+Depends on loan
IDFC First / Yes / NBFCsVaried~10.5%–16.5%₹0.50–1.5 crore