10 Best Banks for Education Loan in India 2020 (Latest)

Best Education Loan Provider in All over India
Written by Chetan Darji

Top Most Low Rate Banks for Education Loan in India (up to 7.50 Lakhs)

#1. HDFC Bank

Maximum Loan Limit: Rs. 10 Lakhs

HDFC Bank grants education loans to study in India and abroad. The maximum loan amount for studying in India is limited to Rs. 10 Lakhs.

SchemeRate of Interest
Education Loan for Indian Education9.20% to 13.64%
Education Loan for Foreign Education9.20% to 13.64%

HDFC bank doesn’t have a dedicated education loan scheme for skill development courses. Hence you will find them recommending personal loan for skill development courses. But I think taking a personal loan for educational purposes is a bad idea because of the higher rate of interest.What We Liked

  • Lower interest rates
  • Quick processing

What We Didn’t Like

  • High processing fee
  • Hidden charges
  • Less loan for study in India

Usually, HDFC takes two to three days to process your loan application and disburse the loan amount.

Expert Tip: If you have a premium savings bank account or a good long-standing banking relationship with HDFC, then the chances of approval is high.

#2. Axis Bank

Maximum Loan Limit: Rs. 75 Lakhs

Axis Bank has only one scheme for education loan (loan amount from Rs. 50,000 to Rs. 75 Lakhs). Axis finances education loan only for the graduate or postgraduate courses for students who have secured a minimum of 50%  marks in HSC or Graduation.

Education loan amountRate Of Interest
Up to Rs. 4 Lakhs15.20%
Above Rs. 4 Lakhs to Rs. 7.5 Lakhs14.70%
Above Rs. 7.5 Lakhs13.70%

Axis Bank gives more preference to parents profile. The bank has made mandatory for parents to show a regular source of income.


  • Quick processing of the loan application
  • Higher loan limit.
  • NIL processing fee below Rs. 10 Lakhs


  • A high rate of interest.
  • No specialized education loan schemes
  • High penal interest for late payments.

Expert Tip. “ Keep ready, xerox copies related to income and net worth before application. The proof documents are last three years IT returns, a copy of CA certificate, sale deed of immovable properties, FD and NSC receipt, Bonds, Demat statement etc. ”

#3. Vijaya Bank

Maximum Limit: Rs. 10 Lakhs:

Apart from the regular education loan scheme, Vijay Bank also grants education loan for the students joining under management quota. In the management quota loan scheme, you need to bring 15% margin and the remaining 85% will be financed by the Bank.

Vijaya Bank even has an education loan scheme without any upper limit. The scheme is helpful for students of ISB and other premier institution having higher course fees.

Education loan schemeRate Of Interest
IBA Scheme10.75% to 10.90%
Vocational Courses11.50%
Skill Development Courses10.40%
Management Quota12.25%
Educational Loan for ISB8.75%
Education loan for Premier Central Institutions8.75%


  • A low rate of interest for courses at premier institutions
  • Scheme for management quota students
  • No processing fee up to Rs. 10 Lakhs
  • Concession for girls in interest rate (0.50% less)


  • Slow application processing

Expert Tip: “Vijay Bank prefers borrowers who can provide immovable property as collateral”.

#4. Union Bank of India

Maximum Education Loan granted: Rs. 20 Lakhs

Union Bank of India has three different categories of education loan scheme:

  • Education loan for courses in India
  • Education loan for courses abroad
  • Education loan for courses in Premier institutions (India)

The maximum limit for pursuing courses in India is Rs. 20 Lakhs and for overseas the maximum loan amount is Rs. 30 Lakhs. Union Bank does not charge any processing fee for education loan irrespective of the loan amount.

The drawback is that the student must have life insurance equal to the value of the loan amount. So you need to buy life insurance.

Education loan schemeRate Of Interest
IBA Scheme10.70% to 11.85%
Scheme for Premier Management & Technical Institutes8.70%
Skill Development Courses11.85%
Education loan for ISB8.90%


  • No processing charges.
  • 0.50 % concessional interest rate for girl students


  • Slow processing and documentation process.
  • Slightly higher interest rate

Expert tip: “Union Bank covers education loans under the credit guarantee fund scheme. Therefore you need to submit details of all applicants such as KYC documents, valid income proofs, allotment letter and detailed fees structure.

If possible open a savings account or deposit account (FD or RD).”

Best Banks for Education Loan in India for Foreign Studies

#5. State Bank of India

Maximum Loan Amount: Rs. 1.5 Crores

SBI student loan scheme is based on the IBA model. The SBI Scholar Scheme is exclusively for merit students who want to pursue professional/technical courses in premier institutions like IIT, IIM, NIT etc.

For foreign studies, SBI grants educational loans of Rs. 20.00 Lakhs to Rs. 1.50 Crores through SBI Global Ed Vantage scheme.

SBI also offers one of the lowest interest rates for education loan in India.

Education loan schemeRate Of Interest 
SBI Student loan Scheme10.80%
SBI Scholar Loan scheme8.75% to 10.05%
SBI Skill loan scheme10.05%
SBI Global Ed vantage Scheme10.80%


  • A low rate of interest
  • Low processing fees
  • Different loan schemes


  • High processing time

Expert Tip: “Personal guarantee from a reputed person for the loan has an added advantage ”.

#6. Punjab National Bank

Maximum Loan Limit: No upper limit, depends on repayment capacity and margin

If you look for educational loan schemes of Punjab National Bank, you will find a lot of schemes. PNB Saraswathi is a normal IBA model education loan scheme for meritorious students. PNB Prathibha scheme is for the students who want to pursue higher education in premier colleges like IIT, NIT and other top business schools.

PNB has an exclusive loan scheme for pursuing higher education abroad, called PNB Udaan. For vocational and skill development course you will find PNB Kaushal loan scheme.

PNB also has area-specific loan schemes like PNB Honhaar for Delhi and PNB Bihar Student credit card for Bihar. They have a special scheme with a concessional interest rate for persons with disability.

Even a scheme to help the minor communities for overseas studies through Padho Pardesh subsidy scheme.

Education loan schemeRate Of Interest
PNB Saraswati Scheme10.55%
PNB Udaan10.40%
PNB Prathibha8.55% to 9.20%
PNB Kaushal10.05%
Loan to Persons with DisabilitiesWomen – 3.50%


  • Low ROI
  • Low processing fees
  • Wide range of education loan schemes


  • Tedious paper works

Expert Tip: “PNB prefers those who already have a salary or a pension account with them. The salary should be routed in the account at least for the past five years

#7. ICICI Bank

Get Maximum Loan of Rs. 1 Crore

ICICI Bank offers education loan up to Rs. 50 Lakhs for studies in India and Rs. 1 Crore for studies aboard.

One of the key benefits is that- you do not need to keep any collateral for education loan up to Rs. 20 Lakhs (for UG courses) and Rs. 40 Lakhs (for PG Courses at selective premier institutions).

The main drawback of ICICI education loan is that- the repayment holiday period is restricted to 6 months after the completion of the course, irrespective of the employment status.

Education loan schemeRate Of Interest
Education loan for domestic and international studiesStarting at 11.5%


  • High loan amount
  • Less paperwork and quick processing
  • No margin up to Rs. 20 Lakhs


  • High rate of interest
  • Hidden charges

Expert tip: “ICICI bank prefers giving education loan to parents with high net-worth. If you have net-worth more than Rs. 1 Crore then you can apply for a collateral free loan up to Rs. 40 Lakhs (for PG course) and up to Rs. 20 Lakhs (for UG course)”.

Best Bank for Education loan in India for Vocational and Skill development courses.

#8. Corporation Bank

Maximum Education Loan: Rs. 1.5 Lakhs

Corporation Bank has three education loans products and to avail loan, the applicant must have secured a minimum of 60% marks (55% for SC and ST) in HSC/UG.

Under Corp skill loan you can avail as low as Rs. 5000 to Rs. 1.50 Lakhs of loan for studying vocational courses. Corporation Bank also provides short term demand loan for entrance training courses for professional exams like NEET, JEE called Corp Tutor fee scheme.

Corp Tutor fee scheme is usually preferred those who have a salary or pension account with them.

Education loan schemeRate Of Interest
Corp Vidya Scheme10.95%
Corp Skill Loan10.45%


  • No processing fees.
  • 0.50% concession for girls in the interest rate.


  • Slow processing of loan application.

Expert Tip: “If you have already availed a business loan secured by a tangible asset with Corporation Bank, then your education loan may be considered favorably.

#9. Canara Bank

You get a Maximum Loan of Rs. 1.5 Lakhs

Canara Bank gives need-based finance for vocational education and training. The maximum amount you can get is Rs. 1.5 Lakhs.

For other types of education loan, Canara Bank follows the IBA education loan model. Hence, the quantum of finance is restricted to Rs. 10 Lakhs for studies in India and Rs. 20 Lakhs for abroad studies.

For the students, who want to pursue professional courses in selective premier institutions, they offer a maximum loan of Rs. 25 Lakhs under the Vidya Turant scheme.

They don’t have any special schemes for overseas studies with a higher loan limit. So getting a higher amount of loan (more than the IBA model) is very difficult.

Education loan schemeRate Of Interest
IBA based Scheme10.70%
Vocational Education and Training10.20%
Vidya Turant8.90%


  • Low-interest rate for vocational courses.
  • Low processing fees.
  • Concessional interest rate for girl students.


  • Low loan amount
  • Tedious paper works for loan processing.

Expert tip: Your loan application can be processed quickly if you are offering collateral security covering 100% of the loan amount.

Best Bank for Education Loan in India for School studies

#10. Bank of Baroda

Maximum Loan Limit: Rs. 4 Lakhs

Bank of Baroda gives education loan from elementary to higher secondary education under the scheme Baroda Vidya. This scheme helps economically backward students get basic education from a reputed school.

The maximum loan amount is Rs. 4 Lakhs and the loan should be repaid in 12 installments. Bank of Baroda does not charge processing fees for any of their education schemes.

Education loan schemeRate Of Interest
Baroda Gyan (IBA scheme)10.75%
Baroda Vidya11.25%
Baroda Scholar10.00% to 10.75% (based on institutions)
Education loan for premier institutions8.75% to 10.25% (based on institutions)
Skill loan scheme.10.25%


  • Competitive Interest rate.
  • Good range of education loan products.
  • No processing charge.


  • Slow processing of the loan application.

Expert Tips: “Personal guarantee from an existing valued customer helps your loan application.


If you are looking for a higher loan amount for studying abroad then you can consider applying at SBI (Rs. 1.5 Crores). For studies in India, you can pick Allahabad Bank (up to Rs. 75 Lakhs).

But if you are looking for quick processing and a higher amount, then you can apply at ICICI Bank (up to Rs. 1 Crore).

About the author

Chetan Darji

Hi, My name is Chetan Darji , and I am the owner and Founder of this website. I am 24 years old, Gujarat-based (India) blogger.
I started this blog on 20th January 2019.

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