Education Loan Interest Rates 2026
Current education loan rates of 8 lenders, what decides your rate, and how much a 1% difference costs.
Updated 30 September 2026 · 8 lenders trackedWhat you need to know
Education loan rates in India range from 6.75% for students at top premier institutes to about 14% at private lenders for weaker profiles. Almost all bank education loans are floating-rate and linked to an external benchmark such as the repo rate (5.25%), so EMIs move when RBI changes policy rates.
Rates by lender
| Lender | Interest rate (p.a.) | Processing fee | Tenure | EMI per ₹1 lakh* | Rates as of |
|---|---|---|---|---|---|
| Union Bank Education LoanPublic sector bank | 6.75% – 10.00% | Not published in the sources checked — ask the branch | Up to 15 years after the moratorium | ₹1,148 | 27 Sep 2026 (aggregator) |
| Bank of Baroda Education LoanPublic sector bank | 6.85% – 9.90% | Nil up to ₹7.5 lakh and for premier institutes in India; studies abroad 1% (max ₹10,000), refunded for premier institutes; ₹8,500 per property mortgaged | Up to 120 EMIs (loans up to ₹7.5 lakh) or 180 EMIs (above ₹7.5 lakh) after the moratorium | ₹1,153 | BRLLR eff 6 Dec 2025 |
| Canara Bank Education LoanPublic sector bank | 6.85% – 10.10% | Vidya Turant: nil (PM-Vidyalaxmi portal fee ₹200 + GST); Master’s-abroad scheme 0.50% (capped at ₹10,000 – ₹20,000) | Up to 15 years excluding the moratorium | ₹1,153 | Scheme page updated 30 Sep 2026 |
| SBI Education LoanPublic sector bank | 6.90% – 9.90% | Student Loan: nil up to ₹10 lakh, ₹5,000 + GST for ₹10–20 lakh, 0.50% (max ₹25,000) above ₹20 lakh. Scholar Loan: nil. Global Ed-Vantage: 0.50% (min ₹10,000, max ₹50,000) + GST | Up to 15 years after the moratorium | ₹1,156 | 9 Jun 2026 |
| Bank of India Education LoanPublic sector bank | 7.00% – 9.80% | Studies in India: nil (portal fee ₹100 + GST); studies abroad: ₹5,000 (aggregator) | 15 years from start of repayment | ₹1,161 | — |
| PNB Education LoanPublic sector bank | 8.10% – 11.25% | About 1% for study-abroad loans (aggregator); India loans as per PNB’s service-charge schedule | Up to 15 years | ₹1,219 | Jul 2026 (aggregator) |
| Credila Education LoanNBFC | 8.95% – 13.00% | 0.5% – 1% of the loan + GST | Up to 14 years | ₹1,264 | 29 Jul 2026 (aggregator) |
| HDFC Bank Education LoanPrivate sector bank | 9.00% – 14.10% | Studies in India: 1% of loan or ₹1,000, whichever is higher; studies abroad: 1.5% + taxes | Up to 10 years for loans up to ₹7.5 lakh; up to 15 years above | ₹1,267 | Sep 2026 (aggregator) |
* At the lowest rate for 10 years. Starting rates go to borrowers with strong credit scores and income; your rate depends on your profile. Sources and dates on each lender page — confirm with the lender before applying.
What decides your rate
Premier lists (IIMs, IITs, top NIRF, PM-Vidyalaxmi QHEIs) get rates 2–3 percentage points lower.
Secured loans are cheaper — e.g. SBI Student Loan 9.40% secured vs 9.90% unsecured.
0.50% lower at SBI, Union Bank and PNB; 0.20% at Bank of Baroda.
Some banks cut the rate if you service interest during the moratorium.
Rates are set as a spread over EBLR/RLLR/BRLLR, which follow the RBI repo rate.
Abroad loans at non-premier universities usually cost more.
EMI per ₹1 lakh
| Rate | 5 yrs | 7 yrs | 10 yrs | 12 yrs | 15 yrs |
|---|---|---|---|---|---|
| 8.00% | ₹2,028 | ₹1,559 | ₹1,213 | ₹1,082 | ₹956 |
| 9.00% | ₹2,076 | ₹1,609 | ₹1,267 | ₹1,138 | ₹1,014 |
| 10.00% | ₹2,125 | ₹1,660 | ₹1,322 | ₹1,195 | ₹1,075 |
| 11.00% | ₹2,174 | ₹1,712 | ₹1,378 | ₹1,254 | ₹1,137 |
| 12.00% | ₹2,224 | ₹1,765 | ₹1,435 | ₹1,313 | ₹1,200 |
EMI for every ₹1 lakh borrowed. Multiply by your loan amount in lakh.
How much a higher rate costs
| Rate | EMI | Total interest | Extra vs lowest rate |
|---|---|---|---|
| 8.00% | ₹12,133 | ₹4,55,931 | ₹0 |
| 9.00% | ₹12,668 | ₹5,20,109 | ₹64,178 |
| 10.00% | ₹13,215 | ₹5,85,809 | ₹1,29,878 |
| 11.00% | ₹13,775 | ₹6,53,000 | ₹1,97,069 |
| 12.00% | ₹14,347 | ₹7,21,651 | ₹2,65,720 |
₹10,00,000 for 10 years.
Benchmark rates
| Benchmark | Rate | Note |
|---|---|---|
| RBI repo rate | 5.25% | Unchanged at the 5 Aug 2026 policy (neutral stance) |
| SBI EBLR | 7.90% | Repo + 2.65% (effective 15 Dec 2025) |
| SBI 1-year MCLR | 8.70% | Effective 15 Sep 2026 |
| HDFC Bank 1-year MCLR | 8.35% | Effective 7 Sep 2026 |
| PNB 1-year MCLR | 8.80% | Effective 1 Sep 2026 |
| Canara Bank 1-year MCLR | 8.75% | Effective 12 Jun 2026 |
Frequently asked questions
Is the education loan rate fixed or floating?
Bank education loans are almost always floating and reset with the benchmark. At a reset RBI rules let you choose a higher EMI or longer tenure, switch to fixed (if offered) or prepay.
Why does my rate differ from the advertised rate?
Advertised starting rates are for premier institutes, girl students or secured loans. Your rate depends on your institute’s list, loan amount, collateral and scheme.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.