Processing Fee


State Bank of India
7.95% onwards
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Up to Rs.10,000 No charged required for loan amount below Rs.20 lakh Loan amount above Rs.20 lakh: Rs.10,000 (plus taxes)
Punjab National Bank
8.80% onwards
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0.35% of loan amount
Axis Bank
13.70% to 15.20%
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2.00% of the loan plus GST





Federal Bank
11.95% onwards
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Bank Of Baroda
8.50% onwards
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No processing charges up to Rs.7.50 lakh1% of loan amount up to Rs.10,000
9.55% to 13.25% (full-time course) 12.75% (part-time course)
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Up to 1% of loan amount or minimum of Rs.1000 (whichever is more) or Abroad/Part Time/Special Initiative cases
Kotak Mahindra Bank
Up to 16%
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Note: These interest rates are effective as of September 2022 and are subject to change as per the bank's rules and regulations.

Depending on the bank or financial institution, you can have a fixed interest rate package or a fluctuating interest rate package. Most floating rates are based on the Repo Rate, with a spread applied before the final effective interest rate is presented to you (EIR).

  1. Punjab National Bank Education Loan

    1. Maximum Loan Amount: Need Based
    2. Maximum Loan Tenure: 15 Years
    3. Collateral: Nil Up to Rs.7.5 lakh
    4. Margin: Nil Up to Rs.4 lakh
    5. Offers loans to Indian residents and OCIs/PIOs/students born abroad to Indian parents and want to pursue studies in India.
    6. No security is required up to Rs.7.50 lakh
    7. Moratorium period is course period and 1 year
  2. SBI Education Loan

    1. No collateral or third-party guarantee required up to Rs. 7.5 lakh
    2. Repayment to be done one year after course completion
    3. Repayment up to 15 years post the course completion + 12 months
    4. Zero processing fees for loans up to Rs.20 lakh
    5. Second loan can be availed for completing higher studies
  3. Axis Bank Education Loan

    1. Minimum loan amount is Rs.50,000
    2. Maximum Loan Tenure: 20 years
    3. Margin: Nil Up to Rs.4 lakh
    4. Can secure loan before admission based on profile.
    5. Loan disbursal within 15 business days from the date the bank receives your complete application.
    6. Unsecured loans up to Rs.20 lakh for working professionals.
  4. Bank of Baroda Education loan

    1. Maximum Loan Amount: Rs.150lakh
    2. No security up to Rs.7.5 lakh
    3. No margin on loans up to Rs.4 lakh
    4. No processing fees
    5. No documentation charges
  5. HDFC Bank Education Loan

    1. Maximum loan amount is Rs.1.5 crore
    2. Loan repayment tenure is up to 15 years
    3. Easy documentation process
    4. No collateral required up to Rs.7.5 lakh
    5. Tax benefit can be availed on education loan
    6. Loan amount will be directly disbursed to the institution based on its fee structure
  6. TATA Capital Education Loan

    1. Maximum loan amount of Rs.30 lakh
    2. Collateral: Nil Up to Rs.4 lakh
    3. Rate of interest starting at 10.99%
    4. The processing fee is 2.75% of the loan amount.
    5. Choose from 3 EMI plans as per your convenience.
    6. Minimal documentation and quick approval of loans

Education Loan Eligibility


  • Indian citizens
  • Non-Indian Residents (NRIs)
  • Overseas Citizens of India (OCI)
  • Persons of Indian Origin (PIOs)
  • Students born to Indian parents abroad and wish to study in India


  • Undergraduate programs
  • Postgraduate programs
  • Doctoral courses and PhDs
  • Certificate courses of 6 months or longer duration
  • Job-oriented courses
  • Technical/diploma/professional courses


  • Recognized institutions and government colleges
  • Private institutes aided by government
  • Professional institutions
  • International colleges and universities


  • Collateral-free loans up to Rs.7.5 lakh from leading lenders
  • Collateral-free loans up to Rs.40 lakh for select courses/institutions from select lenders

Acceptable collateral: Residential or commercial property or plot, fixed deposits, insurance

Loan amount: Up to Rs.1 crore


  • Job oriented courses (professional/technical) for Graduation/Post Graduation/Diploma such as MBA/MCA/MS, etc. offered by reputable institutions.
  • Courses conducted by CIMA and CPA.

List of Expenses Covered in Education Loan

Here's what the loan amount will cover:

  • Tuition fees
  • Hostel fees
  • Travel expenses passage money for students studying abroad
  • Insurance premium
  • Cost of books/equipment/instruments/uniform
  • Examination/laboratory/library fees
  • Cost of a computer/laptop required for course completion
  • Caution deposit, building fund/refundable deposit supported by institution bills/receipts
  • Any other expenses required to complete the course such as study tours/thesis/project work





Features & Benefits of Study Loan

  • Loan financing up to Rs.1 crore available.
  • Loan repayment tenure up to 15 years.
  • Get Education loans for studies in India and abroad.
  • Some lenders offer loan disbursal before applying for a Visa.
  • Door-step service to collect required documents.
  • Children of the bank's employees enjoy preferential rates at several banks.
  • Certain banks offer concessional interest rates to female students.
  • Enjoy a moratorium period of up to 1 year after course completion. During this period, you do not have to make payments on the loan.
  • Enjoy tax benefits up to 8 years on the interest paid.

Tax Benefits on Education Loan

The interest you pay on your student loan can be deducted under Section 80E of the Income Tax Act of 1961. This advantage is only available to individual borrowers and is only offered for the purpose of higher education. The deduction is available to all fields of study, both domestically and internationally. It includes both vocational and academic courses.

It's important to remember that the tax deduction only applies to the interest portion of the EMI, not the principle. There is, however, no limit to how many times you can claim this benefit. You'll need a certificate from your bank or financial institution that separates the principal and interest components of your EMIs to qualify for this benefit.

This benefit is accessible for 8 years from the day you started repaying your loan or until the interest component is paid off, whichever comes first.

List of Documents Required for Education Loan

Here is an indicative list of documents that most lenders ask:

  • Admission letter from the educational institution
  • Marksheets (previous education - school/college)
  • Age proof
  • ID proof
  • Address proof
  • Signature proof
  • Salary slips
  • Recent bank account statements
  • ITR with income computation
  • Audited balance sheet
  • Recent bank statements
  • Proof of turnover (service tax return/sales receipt)
  • Completed application form with signature
  • Latest passport size photographs
  • Appropriate Visa for studies abroad





How to Apply for an Education Loan

There are several ways of applying for a student loan:

Apply Online:

Step 1: This is the easiest and the most convenient way of applying. There are two ways of applying online. The first is a straightforward application form that you will fill out online, attach the necessary documents, and submit the form.

Step 2: The second is where you apply through providing all the requested details and the lender will then get in touch with you to discuss the terms of the loan before proceeding with the application.


Step 1:Visit a Branch: You can apply for a loan by visiting your nearest branch with the necessary documents, discussing the terms of the loan with a representative, filling in the form, and applying in person.

Step 2:Call the Lender: You can either call the lender or request a call back by expressing your interest. You can then discuss the loan terms and proceed to apply.

Virtual Assistant

To better serve their consumers, banks and other financial organisations are turning to digital ways. Using a Virtual Assistant to clear your doubts and request assistance with the application process is one such way.

Expenses Covered by Education Loans

Some of the additional expenses covered by education loans are:

  • Hostel fees
  • Exam fees, laboratory and library fees
  • Cost of books, uniforms, projects, etc.
  • Travel expenses for overseas education
  • Deposits required by the educational institute