Top 10 Student Education Loans in India

Educational loans are provided to students who wish to pursue their higher studies. They are offered to courses from reputed institutes for both graduate as well as postgraduate courses. Banks like SBI, HDFC, Citibank, Bank of Baroda, AXIS bank and other Government as well as private banks offer this loans. Students can also avail loans not only for studying in India but also abroad.

Also read: 10 Best EMI Calculators and Tips To Get Student Loan for Higher Studies

Cent Vidyarthi

Central bank of India offers loans up to 10 lakhs in India and up to 20 lakhs abroad. It is offered to all graduate courses in Management/Job-oriented courses, Professional Courses of recognized Universities / reputed Institutes, Computer courses conducted by NIIT, APTECH, CMC, C-DAC with duration of one year and more.

They are also provided to postgraduate courses in Science, Technology, Medicine, Engineering and Management courses, Law, Accountancy leading to Master’s degree or Post-Graduate Diploma in recognized University abroad. But the candidates must have a consistent academic record with 60% marks in 10th as well as 12th. There is no processing fee for loans in India while Rs.500/- for loan up to Rs.10 lakh and Rs.1000/- for loan above Rs.10 lakh will be charged on abroad loans.
Related: How to get an education loan in India – Process + Checklist

Interest for male students10.25+2%
Interest for female students10.25%+1.5%

United Bank of India

United Bank of India offers loans for students who wish to pursue education in India as well as abroad. To avail this loan you have to be an Indian national and must have passed the entrance exam for a professional or technical course. Maximum amount of loan is 10 lakhs in India and abroad is 20 lakhs. For loans below 4 lakhs they can be paid in a period of 7 years. Loans up to 7.5 lakh can be repaid within 10 years while loans above 7.5 cannot exceed more than 15 years.

Loan Amount – Interest Rate
Up to 4 lakhs – 10.25% + 2%
4 lakhs – 7.5 lakhs – 10.25% + 2.75%
Above 7.5 lakhs – 10.25% + 2%

Also read: Tips to get student loan for higher studies.

State Bank of India’s Student Loan

SBI offers educational loans at very attract interest rates. It can be availed for graduate/post graduate courses approved by UGC/ AICTE/IMC/Govt. Extra expenses like hostel fees, laboratory fees, caution deposit, travel expenses can also be considered for the loan. You can get up to 10 lakhs for studying in India and 30 lakhs for studying abroad. There is no processing fee but for loans abroad you need to pay Rs 5,000 as deposit which will be later adjusted in the margin.

Loan Amount – Interest Rate
Up to 4 lakhs – 13.5%
4 lakhs – 7.5 lakhs – 13.75%
Above 7.5 lakhs – 11.75%

Apply For A Loan Here

PNB Saraswati – Punjab National Bank’s Student Loan

Punjab National Bank offers financial assistance for graduate/post graduate courses from recognized colleges and university. Job oriented courses can also be pursued form abroad by availing loans from this bank. To be eligible for this loan you have to be an Indian national and must have completed 10+2 or equivalent. For education in India you can avail loans up to 10 lakh while abroad you can get up to 20 lakhs.

Loan Amount – Interest Rate
Up to 4 lakhs – 10.25% + 3%
4 lakhs – 7.5 lakhs – 14.25%
Above 7.5 lakhs – 12.25%

Security & Collateral

Up to 4 lakh – Parent/Guardian made joint borrower
4.00-7.5 lakh – Apart from parent/guardian you need collateral security in the form of suitable third party guarantee
7.5 lakhs and above – Apart from parent/guardian you need collateral security in the form of suitable third party guarantee as well as an assessment of the future income of the student. For loans above 7.5 provided there is collateral security required.

IDBI Bank’s Student Loan

Students who wish to pursue their higher studies can avail loans from IDBI bank. They offer loans for non-vocational courses, vocational courses, management quota and under Financial Inclusion Program. There is no processing fee for studies in India while studying abroad there is 1% of the loan amount subject to a maximum of Rs. 5000 plus taxes.

Loan qualifying as Priority Sector Lending (PSL)11.25% (BR+1.00%)
Loan amount not qualifying as Priority Sector Lending (PSL)12.25% (BR+2.00%)
Vocational Courses11.25% (BR+1.00%)
Education Loans for students studying in Premier Education Institutes10.25% (BR+0.00%)
Education Loan for other students who secured admission under Management Quota.13.75% (BR+3.50%)
Education Loan under Financial Inclusion program (FIP)11.75% (BR+1.50%)

Canara Bank’s Education Loan for Students

Canara Bank offers loans for the purpose of meeting educational needs like course fees, books, equipment and hostel fees. They can be availed for all graduate as well as post graduate courses from recognized university. For studying in India a maximum of 10 lakhs can be secured while for abroad you can secure up to 20 lakhs. For loans up to 4 lakh there is no collateral security while up to 7.5 lakh you will require third party guarantee. For loans above 7.5 lakhs a security equivalent to the loan is needed. Base rate is 10.20%.

Loan Amount – Interest Rate
Up to 4 lakhs – BR+1.5%
4 lakhs – 7.5 lakhs -BR+2%
Above 7.5 lakhs -BR+1.5%
Non priority category – BR+1.5%
Vocational education and training – BR+1.5%

Apply For A Loan Here

Bank of India’s Student Education Loan

Bank of India offers loans for educational purposes in India as well as abroad. Loans can be availed for graduate, post graduate, professional courses recognized by university. You can get a maximum of 10 lakh for loans in India while up to 20 lakh for loans outside. To get loan you must be Indian and must have secured selection for entrance exam through merit based selection. All student borrowers have an option to avail term insurance covers that has premium as item of finance.

Loan Amount – Interest Rate
Up to 7.5 lakhs – 13.20%
Above 7.5 lakhs -12.70%

Dena Vidyalaxmi Education Loan

Dena Bank offers loans for Graduation courses, Post-Graduation courses, Masters & PhD, Professional courses. You can avail up to 10 lakhs for loans in India while up to 20 lakh for loans abroad. Here the loans also cover course fees, hostel fees, books, equipment, travel and all expenses included in the course. Loans up to 7.5 lakhs can be repaid in 10 years while loans above 7.5 lakhs can be paid off in 15 years. But for availing this loan you must be an Indian citizen and must be selected in a university form India or abroad. 1% interest concession if interest serviced during the study period.

For loans above Rs. 4 lacs, 1% p.a. interest concession for girl students including as applicable in Dena Shakti.

For loans above Rs. 4 lacs, 1% p.a. interest concession for IIM / IIT / ISB (Indian School of Business, Hyderabad) students.

Bank of Baroda’s Student Loan

Bank of Baroda offers numerous loans schemes for students who wish to pursue education. Baroda Vidya is for students from nursery to senior secondary school.Baroda Gyan is for students who want  to do their graduation/post graduation in India while Baroda Scholar is for studying abroad.Baroda Vidya you get a maximum of 4 lakh while Baroda Gyan you get a maximum of 10 lakh and for Baroda Scholar you avail up to 20 lakhs. Base rate is 10.25% and there is 0.5% concession for loans for girls.

Loans up to 4.00 lakhsBase Rate + 2.50%
Loans above Rs.4.00 lacs and up to Rs 7.50 lacsBase Rate + 2.50%
Loans above Rs.7.50 lacsBase Rate + 1.75%
Baroda Education Loan for Vocational Education & TrainingBase Rate + 2.00%

Apply For A Loan Here

Vijaya Bank’s Student Loan

Vijaya Bank’s educational loan covers course fees, hostel fees, laboratory fees, travel expenses and more. It is available for Indian students who wish to pursue higher studies. You can avail a maximum of 10 lakhs loans for studying in India while abroad you can avail up to 20 lakhs. Eligible courses include regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt./AIBMS/ICMR. Etc. For courses abroad you have Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities and Courses conducted by CIMA-London, CPA in USA.

IBAUp to 4 lakhBase Rate + 1.80 = 12.05%
IBA4 lakh and aboveBase Rate + 2.25 = 12.50%
Management Quota (Non IBA)Irrespective of loanBase Rate + 2.55 = 12.80%
Education Loan to Indian School of Business studentIrrespective of loan11.75% ( Fixed)
Education Loan to the students of Premier Central Institutions such as IIMs, IITs etcIrrespective of loan11.75% ( Fixed)


Student loans are getting cheaper in India. At least, the options are plenty these days. Getting a student loan is not easy though. What most banks look for is your eligibility. Do you have good marks, whether you have the capacity to pay the interest back and if not, do you have collateral to offer, or co-signers to guarantee. If you apply for loan without preparation, you are more likely to be disappointed. But prepare well, understand what the banks look for and create a good case for yourself before applying. Going for higher studies? Check out this article on how you can get student loans for higher studies in USA. This will increase your chances of approval by many times.

All the best!

Disclaimer: Loan rates are subject to change, rates mentioned in this article might have changed since the time of publication, so please check with the corresponding banks for accurate information.

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About the author

Mani Karthik

As an NRI (Non-Resident Indian), I've lived in the USA, India & Middle East for over a decade, in over 6 cities like Mountain View, Dubai, San Jose, Fort Lauderdale, Kochi, and Chennai. I've worked for small and big companies and recently started my own startup. On this blog, I share everything I've learned in life, living abroad as an NRI with my roots in India. Everything from personal finance to immigration. I'm on a mission to help all NRIs return to India. WhatsApp me at +001-408-489-4785 if you have questions.

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Having lived in the USA, India and UAE, I share everything that I’ve learned in life. My aim is to help people by sharing whatever I know, through this blog. Come join my pursuit in becoming a smarter, richer & happier person! About Me!