11 Best Banks For Education Loan In India 2021

Following my research, I have compiled a list of the “Best Education Loan in India 2021”. The article’s second section outlines the key factors banks take into consideration when approving an education loan in India.

Let’s start by looking at the The top 11 banks that offer education loans in India for 2021

Best Banks to Get Education Loans in India 2021 (upto 75 Lakhs).

#1. HDFC Bank Education Loan

Maximum Limit Rs. 20 Lacs.

HDFC Bank offers education loans for students studying in India and abroad. Maximum loan amount to study in India is Rs. 20 Lakhs

The loan for foreign education covers all costs of education with no maximum limit. However, you will need to provide collateral to the bank in the form a fixed deposit or immovable asset.

Schema Rate of interest
Education Loan for Indian Education 9.25% to 13.68%
Education Loan for International Education 9.25% to 13.68%

The maximum loan term is 15 years. It is paid directly to the institution according to the fee structure.

HDFC bank does not have a special education loan program for skilled development courses. They recommend personal loans 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
  • Rapid processing

What We Didn’t Like

  • Processing fee of 1% for loans
  • Prepayment fees up to 4% (during the moratorium)
  • Study in India requires less loan

HDFC usually takes between two and three days to process your loan request and disburse loan amount.

Expert Tip: You can get a premium if you have one.Savings bank account. If you have a long-standing relationship with HDFC or a bank that is reliable, your chances of approval are good.

#2. Axis Bank Education Loan

Maximum Limit:Rs. 75 Lakhs

Axis Bank only offers one education loan scheme (starting at Rs. 50,000 to Rs. 75 Lakhs Axis finance education loans only to students who have attained at least 50% in their HSC or Graduation.

Education loan amount Rate of interest
As high as Rs. 4 Lakhs 15.20%
Above Rs. 4 Lakhs to Rs. 7.5 Lakhs 14.70%
Above Rs. Above Rs. 13.70%

Axis Bank gives preference to parents’ profiles. Parents must show proof of regular income to be eligible for Axis Bank’s parent-only program.


  • Rapid processing of your loan application
  • Higher loan amounts up to 75 Lakhs
  • NIL processing fee for loans below Rs. 10 Lakhs


  • High interest rates
  • Maximum 15% Margin for Loans Above 4 Lakhs
  • 24% per annum Late payments are subject to penal interest

Expert Tip: Keep xerox copies of income and net worth ready before applying. These documents include the proof documents: copies of CA certificate, last three years IT returns, a photo of CA certificate, sale declaration of immovable property, FD and NSC receipts, Bonds or Demat statements. ”

#3 Union Bank of India Education Loan

Maximum Education Loan: Finance based on need

There are four types of education loan schemes offered by Union Bank of India:

  • Education loan for courses in India or abroad
  • Education loan for Kisan Shiksha Suvidha
  • Education loan for Premier Management & Technical institutions in India
  • Education loan for Tier II Management & Technical Institutions (India)

Union Bank charges no processing fees from Indian students to obtain education loans, regardless of loan amount.

However, they ask for life insurance equal in value to the amount of the loan amount. To get your education loan, you will need to purchase life insurance.

Education loan scheme Rate of interest
Courses available in India and overseas Depending on the amount of the loan, up to 10.05%
For Kisan Shiksha Suvidha Depending on the amount of loan, up to 10.05%
Skill Development Courses for Indian Premier Management & Technical Institutions 6.80%
Tier II Management & Technical Institutions (India) 8.5%


  • There are no processing fees
  • Lower interest rates
  • Female students get 0.50 % concessional rate


  • Slow processing and documentation.
  • Life insurance is mandatory

Expert tip: Union Bank provides education loans through the credit guarantee scheme. You will need to provide details about all applicants, such as KYC documents and valid income proofs, an allotment letter, and the fees structure.

If you can, open a savings or deposit account (FD/RD).

#4 IDBI Bank Education Loan

Available Loans: For studies in India, Rs. 30 Lakhs to study in India and Rs.20 Lakhs

You should consider IDBI Bank’s education loans if you plan to obtain an education loan for AICTE or UGC, ICMR, and courses that are approved by the government, such as job-oriented courses or technical diplomas.

IDBI Bank offers education loans to students who are admitted through management quota.

Repayment terms can be extended up to 15 years, but you will need to provide collateral security for education loans exceeding Rs. 7.5 Lakhs

Education loan scheme Rate of interest
Education loan for courses that are not vocational As high as Rs. 7.5 Lakhs – 8.40%
Above Rs. Above Rs.
Education loan for vocational/skill development courses All amounts: 8.80%
Education loan for top education institutions (including ISB). All amounts – 6.90%


  • Premier institutes have lower interest rates
  • NIL processing fees to study in India
  • Foreclosure charges are negligible


  • 1.33 times the amount of tangible collateral required for a loan amount exceeding 7.5 lakhs
  • Slow loan processing

Expert tip: If you have been admitted to one of the top institutes, and have sufficient (1.33x) collateral security, IDBI Bank will approve your education loan.

#5. Avanse Education Loan

Maximum loan amount: No upper limit, need-based Minimum – Rs. For study in India, you need to have at least Rs.

Avanse Financial Services, a RBI-regulated NBFC, focuses on affordable education loans for Indian students.

Warburg Pincus, a global PE firm, holds 80% of Avanse’s equity. Avanse offers a variety of education loans, including a loan for –

  • Study in India
  • International studies
  • Vocational courses
  • Financial school fees, and even
  • E-learning education loan

Avanse offers fast processing, 100% financing and doorstep service.

Education loan scheme Rate of interest
Education loan for international and domestic studies Avanse base rate + spread.
This can reach up to 18%


  • Maximum loan amount of 100%
  • Quick processing and less paperwork
  • Also available: Education loan for E-learning


  • High interest rates
  • Processing charges: 1% to 2%
  • In the first six months, no pre-payment is allowed

The Best Indian Banks to Get Education Loans for Foreign Studies

#6. State Bank of India Education Loan

Maximum loan amount:Up to Rs. 1.5 Crores

SBI provides educational loans up to Rs. 1.50 Crores in SBI Global Ed-Vantage for international studies.

These courses can be used to obtain a professional or technical degree, a PG, diploma, or a certificate course like MCA, MBA, MS, and MS from reputable universities. Education loans are available for courses that have been certified by CIMA-London or CPA-US.

SBI offers education loans at the lowest interest rates in India.

SBI Scholar Loan Scheme is only for merit students who wish to study professional/technical courses at premier institutions such as IITs, IIMs, and NITs.

Education loan scheme Rate of interest
SBI Student Loan Scheme 9.30%
SBI Scholar Loan scheme 6.90% to 8.20%
SBI Skill Loan Scheme 8.80%
SBI Global Ed vantage Scheme 9.30%


  • Low rates of interest up to 9.30%
  • NIL Processing Fees up to 20 Lakhs
  • Different loan schemes


  • Processing time is high
  • 15% Margin for Study Abroad

Expert Tip: A personal guarantee by a trusted person is an additional benefit for the loan.“.

#7 Punjab National Bank Education Loan

Maximum Loan Limit: There is no upper limit. It all depends on your repayment capacity and the margin

PNB Udaan, an exclusive loan program to help meritorious students study abroad at reputable universities, is available. The loan is available for degree (job-oriented), PG(MCA, MS, & MBA), CIMA and CPA courses in aeronautical, pilot and shipping.

Punjab National Bank has many education loan programs for domestic students. PNB Saraswathi, a traditional IBA-model education loan scheme for highly qualified students, is available. PNB Prathibha is for students who wish to study in top colleges such as NIT or IIT.

The PNB Kaushal loan program is available for vocational and skill development courses.

PNB offers a variety of loan programs, including PNB Honhaar to students in Delhi and PNB Bihar Student credit cards scheme for students from Bihar. A special program with a reduced interest rate is available for people with disabilities.

A scheme that helps minor communities to study abroad through the Padho Pardesh subvention scheme.

Education loan scheme Rate of interest
PNB Saraswati Scheme Up to 9.5%
PNB Udaan 9.5%
PNB Prathibha 6.90% to 7.5%
PNB Kaushal 8.30%
PNB Honhaar 8.95%


  • Low ROI
  • NIL processing fees to study in India
  • There are many education loan options available


  • Follow-up and Tedious Paper Works

Expert Tip: PNB prefers people who have a salary or pension account. At least five years of salary should be routed to the account.

#8. ICICI Bank Education Loan

Maximum Loan Available: Up to Rs. 1 Crore

Education loans of up to Rs. 50 Lakhs to study in India or Rs. 1 Crore to study abroad

You don’t need collateral to get education loans of up to Rs. One of the main benefits is that you don’t have to hold any collateral. 20 Lakhs for UG courses and Rs. 40 Lakhs for PG Courses at select premier institutions

The major drawback to the ICICI education loan is the 6-month repayment period, regardless of employment status.

Education loan scheme Rate of interest
Education loan for international and domestic studies 10.25% – 11.75


  • Loan amount high
  • Quick processing and less paperwork
  • There is no margin above Rs. 20 Lakhs


  • High interest rates
  • Hidden charges

Expert tip: “ICICI Bank prefers to give education loans to parents with high net worth. You must have a net worth greater than Rs. You can apply for a loan with no collateral up to Rs. 1 Crore. 40 Lakhs for PG courses and Rs. 20 Lakhs for UG courses“.

#9. South Indian Bank Education Loan

Maximum Loan Amount –Rs. 1.5 Crores for global Education

South Indian Bank (SIB), can provide a loan for foreign education to finance a full-time degree, PG/ PhD or diploma in skill development courses and UG/PG/ PhD.

SIB Global Education Scheme provides funding for tuition fees and exams, library & laboratory fees, travel expenses as well as hostel, insurance, and books costs.

The loan is available to students up to 50 years old. SIB also offers a 0.5% discount for women borrowers.

Education loan scheme Rate of interest
SIB Global Education Scheme 10.05%-10.80%


  • Loan amounts up to 1.5 million
  • Covers diploma & skill development courses
  • Maximum age for application: 50 years


  • Minimum 25% Margin
  • 100% collateral equals loan amount and interest required
  • SIB will reimburse course fees and accommodation if there is proof

Expert tip: “SIB seeks high net worth and sufficient collaterals when processing global education loans“.

Best Bank for Education Loans in India for Vocational and Skill Development Courses

#10. Canara Bank Education Loan

Maximum Loan Amount –Rs. 1.5 Lakhs for skill development. For others, need-based financing

Canara Bank offers need-based financing under the Skill Loan Scheme to vocational education and training. Maximum amount you can receive is Rs. 1.5 Lakhs

Canara Bank uses the IBA education loan method for other types of education loans. The loan amount you receive is determined by your needs and can reach up to Rs. 40 Lakhs for premier institutes like ISB- Hyderabad.

They offer loans up to Rs. 500 for students who wish to study in elite premier universities. Under the Vidya Turant scheme, 40 Lakhs.

Canara Bank does NOT offer any overseas study programs with a higher loan limit. It is difficult to get a loan amount that is higher than the IBA model.

Education loan scheme Rate of interest
IBA-based Scheme Up to 9.40%
Vocational Education and Training 8.90%
Vidya Turant 7.40%


  • Vocational courses at a low interest rate
  • Processing fees are low
  • Female students receive a 0.50% discount on ROI


  • Low loan amount
  • For loan processing, you will need to use a lot of paper.

Expert tip: If you offer collateral security that covers 100% of the loan amount, your loan application will be processed quickly.

Best Bank for Education Loans in India for School Studies

#11.Bank of Baroda Education Loan

Maximum LimitRs. 4 Lakhs to fund school studies. For other education loans, up to 80 Lakhs

Under the Baroda Vidya scheme, Bank of Baroda offers education loans to help students in school from kindergarten through 12th Std. This program helps economically backward students to get basic education at a reputed school.

Maximum loan amount is Rs. The maximum loan amount is Rs. 4 Lakhs. The loan should be repaid over 12 installments. Bank of Baroda doesn’t charge any processing fees for any of its education plans.

Baroda Gyan (upto 80 Lakhs), for higher education in India, and Baroda Scholar(up to 80 Lakhs), for study abroad.

Education loan scheme Rate of interest
Baroda Gyan (IBA scheme) 8.85%
Baroda Vidya 9.5%
Baroda Scholar Based on institutions, 8.35% to 9.0%
Education loan for top institutions Based on the amount and institution, 6.85% to 8.70%
Skill loan program. 8.35%


  • Competitive Interest Rate
  • A good selection of education loan products.
  • There is no processing fee


  • Slow processing of loan applications

Expert TipsA personal guarantee from a valued customer will help you with your loan application.

Factors that Affect Approval for Best Education Loans in India 2021

#1.CIBIL Score

When applying for an education loan, the first thing you should do is check your CIBIL score.

“A good CIBIL score of 700+ or more is a prerequisite for loan applications.

The bank could reject your loan application if you or your coapplicant don’t have a high CIBIL score.

#2.Eligibility of the Course and University

Only approved professional, technical, and UG/PG courses from accredited universities (UGC/ AICTE certified) are eligible.

Before applying for an education loan, make sure you check the type of university and course. Check out the Bank’s education loan programs for vocational training courses.

You cannot, for example, borrow money to finance a beauty school course at XYZ Bridal Institute. The Beautician degree is not professional and the institution that is offering it is not accredited by UGC or AICTE.

#3 Eligible Education Expense

The banks do not finance any expenses that are included in the fees structure. The college bus fee, for example, is not included in the calculation of eligible expenses. However, overseas travel expenses to the college are considered.

Banks take into account expenses necessary to complete the course in order to determine the loan amount.

#4 Pro Tip

Send the loan application along with a copy of the detailed fees structure and breakdown of expenses to the college..

#5. Co-obligant/ Personal Guarantee

If you are a minor student, your spouse and you will be joint borrowers. Any parent with an income source can be a joint borrower for a major student.

The loan amount must not exceed Rs. If the loan amount is more than Rs. 4 lakhs, Bank may insist on a Third-Party Guarantee. This means that a guarantee from someone who is not your relative will be provided.

The Bank might consider waiving the third party guarantee clause if you provide sufficient documentation and a clear disclosure of your net worth at the time you apply.

#6.Tangible Security

You can apply for a loan amount up to Rs. You must provide collateral security if you are looking for a loan amount of Rs. You should provide collateral security with tangible assets like FD, LIC and NSC bonds, shares or immovable property.

“Confirm your collateral securities details and keep xerox copies all supporting documents related to the collateral secure.”

#7 Holiday Period for Repayment

There are two ways to repay the education loan. The first is to repay the loan after you have completed the course and obtained a job.

Another option is to pay the monthly interest, and get an installment holiday for principal until course completion.

You can take a holiday up to one year after your studies are over or six months after you get a job, depending on when it is.

This will show that you intend to repay the education loan. This will demonstrate your intent to repay the education loan.


SBI (Rs. 1.5 Crores) is a good option if you’re looking for a larger loan amount to study abroad. 1.5 Crores). If you need fast processing and a larger amount, you can apply at ICICI Bank for an education loan (up to Rs. 1 Crore).

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