11 Best Banks for Education Loan in India 2022

Let’s check the 11 best education loans in India.

Best Banks for Education Loan in India (up to 75 Lakhs)

#1. HDFC Bank Education Loan

Maximum Loan Limit: Rs. 20 Lakhs and above.

HDFC Bank grants education loans to study in India and abroad. The maximum loan amount for studying in India is limited to Rs. 20 Lakhs.

Whereas, all the cost of education is covered under the loan for foreign education, with no upper limit. But you need to provide collateral in the form of a fixed deposit or immovable property to the bank.

SchemeRate of Interest
Education Loan for Indian Education9.25% to 13.68%
Education Loan for Foreign Education9.25% to 13.68%

The loan is for a maximum period of 15 years and is disbursed directly to the institution based on the fee structure.

You will find that HDFC bank doesn’t have a dedicated education loan scheme for skill development courses. That is why they recommend personal loan for skill development courses.


  • Lower interest rates
  • Quick processing


  • 1% loan processing fee
  • Up to 4% prepayment charges (during the moratorium period)
  • 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 are high.

#2. Axis Bank Education Loan

Maximum Loan Limit: Rs. 75 Lakhs

Axis Bank has only one scheme for education loans (starting 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 the parent’s profile. The bank has made it mandatory for parents to show a regular source of income.


  • Quick processing of the loan application
  • Higher loan amount up to 75 Lakhs
  • NIL processing fee for a loan below Rs. 10 Lakhs


  • A high rate of interest.
  • Up to 15% margin for loan above 4 Lakhs
  • 24% p.a. penal interest for late payments.

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

#3. Union Bank of India Education Loan

Maximum Education Loan granted: Need-based finance

Union Bank of India has 4 different categories of education loan scheme:

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

Union Bank does not charge any processing fee from Indian students for education loans irrespective of the loan amount.

But asks for life insurance equal to the value of the loan amount. So you need to buy life insurance to get your education loan.

Education loan schemeRate of Interest
Courses in India and abroadup to 10.05% depending on the quantum of loan
For Kisan Shiksha Suvidhaup to 10.05% depending on the quantum of loan
For Premier Management & Technical institutions (India)Skill Development Courses6.80%
For Tier II Management & Technical institutions (India)8.55%


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


  • Slow processing and documentation process.
  • Mandatory to get life insurance

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).

#4. IDBI Bank Education Loan

IDBI Bank logo

Loan Amount Offered: Up to Rs. 20 Lakhs for studies in India and Rs. 30 Lakhs for foreign education

If you are planning to get an education loan for AICTE, UGC, ICMR and government-approved courses, job-oriented courses and technical diploma courses then you should check IDBI Bank’s education loan.

IDBI Bank also provides education loan for students securing admission through management quota.

The repayment terms extend up to 15 years but you need to offer tangible collateral security for an education loan amount of over Rs. 7.5 Lakhs.

Education loan schemeRate of Interest
Education loan for non-vocational coursesUp to Rs. 7.5 Lakhs – 8.40%
Above Rs. 7.5 Lakhs – 8.90%
Education loan for vocational / skill development coursesFor all amounts – 8.80%
Education loan for premier education institutes (including ISB)For all amounts – 6.90%


  • Lower interest rate for loans for premier institutes.
  • NIL processing fees for study in India.
  • NIL foreclosure charges


  • 1.33 times tangible collateral needed for a loan amount of over 7.5 lakhs
  • Slow loan processing.

Go to IDBI bank for an education loan if you have secured admission in any of the premier institutes and have adequate (1.33 times) collateral security for easy approval.

#5. Avanse Education Loan

Avanse Financial Services Logo

Maximum Loan Amount: Need-based with no upper cap. Minimum – Rs. 50,000 for study in India.

Avanse Financial Services is an RBI regulated NBFC focused on providing affordable education loans for students in India.

Global PE firm Warburg Pincus holds 80% equity in Avanse. You can apply for all sort of education loans at Avanse like loan for –

  • Study in India
  • International studies
  • Vocational courses
  • School fees financial, and even
  • Education loan for E-learning

Avanse provides up to 100% financing, fast processing and doorstep service.

Education loan schemeRate of Interest
Education loan for domestic and international studiesAvanse base rate + spread.
Which can go up to 18%


  • Up to 100% loan amount
  • Less paperwork and quick processing
  • Education loan for E-learning also


  • High rate of interest
  • 1% – 2% processing charges
  • No pre-payment allowed in first 6 months

You should go with an Avanse education loan if you have been denied loans from private and public banks or want to fund E-learning courses.

Best Banks for Education Loan in India for Foreign Studies

#6. State Bank of India Education Loan

Maximum Loan Amount: up to Rs. 1.5 Crores

SBI grants educational loans of up to Rs. 1.50 Crores under the SBI Global Ed-Vantage scheme for foreign studies.

The courses include professional & technical degree, PG and diploma courses like MCA, MBA and MS from a reputed university. Certification courses conducted by CIMA-London and CPA-US are also eligible for education loans.

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

The SBI Scholar Loan Scheme is exclusively for merit students who want to pursue professional/ technical courses in premier institutions like IITs, IIMs and NITs.

Education loan schemeRate of Interest 
SBI Student loan Scheme9.30%
SBI Scholar Loan scheme6.90% to 8.20%
SBI Skill loan scheme8.80%
SBI Global Ed vantage Scheme9.30%


  • Up to 9.30% low rate of interest
  • NIL processing fees up to 20 Lakhs
  • Different loan schemes


  • High processing time
  • 15% margin for studies abroad

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

#7. Punjab National Bank Education Loan

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

PNB Udaan is an exclusive loan scheme to support meritorious students for pursuing higher education abroad in reputed universities. Degree (job oriented), PG (MCA, MS & MBA), CIMA, CPA and diploma courses in aeronautical, pilot training and shipping are eligible for the loan.

For domestic studies, Punjab National Bank offers a lot of education loan 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.

For vocational and skill development courses you have the PNB Kaushal loan scheme.

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

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

Education loan schemeRate of Interest
PNB Saraswati Schemeup to 9.55%
PNB Udaan9.55%
PNB Prathibha6.90% to 7.55%
PNB Kaushal8.30%
PNB Honhaar8.95%


  • Low ROI
  • NIL processing fees for study in India
  • Wide range of education loan schemes


  • Tedious paper works & follow-up

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

#8. ICICI Bank Education Loan

Get Maximum Loan of – up to Rs. 1 Crore

ICICI Bank offers education loans 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 loans 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 studies10.25% – 12.75%


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


  • High rate of interest
  • Hidden charges

ICICI bank prefers giving education loan to parents with high net-worth. If you have a net worth of 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)

#9. South Indian Bank Education Loan

South Indian Bank logo

Maximum Loan amount – Rs. 1.5 Crores for global education

You can get foreign education loan from South Indian Bank (SIB) for pursuing a full-time UG/ PG/ PhD and diploma, skill development courses abroad with a duration of more than a year.

The SIB Global education scheme provides funding for tuition fees, exams, library & lab fees, travel expenses, hostel, insurance and books costs.

Students up-to 50 years of age are eligible for the loan and SIB offers a 0.5% concession for women borrowers.

Education loan schemeRate of Interest
SIB Global Education Scheme10.05% – 10.80%


  • High up to 1.5 crore loan amount
  • Covers diploma & skill development courses
  • Maximum application age up to 50 years


  • High 25% margin required
  • 100% collateral equal to loan amount & interest needed
  • SIB reimburses course fees and accommodation within one year with proof

SIB look for high net worth and adequate collaterals while processing global education loan

Best Bank for Education Loan in India For Vocational and Skill Development Courses.

#10. Canara Bank Education Loan

Maximum Loan amount – Rs. 1.5 Lakhs for skill development. Need-based finance for others.

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

For other types of education loans, Canara Bank follows the IBA education loan model. The amount of loan you get is need-based and can stretch up to Rs. 40 Lakhs for premier institutes like ISB- Hyderabad.

For the students, who want to pursue professional courses in selective premier institutions, they offer a maximum loan of up to Rs. 40 Lakhs under the Vidya Turant scheme.

Canara Bank does not 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 Schemeup to 9.40%
Vocational Education and Training8.90%
Vidya Turant7.40%


  • Low-interest rate for vocational courses.
  • Low processing fees.
  • 0.50% concession in ROI 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

#11. Bank of Baroda Education Loan

Maximum Loan Limit: Rs. 4 Lakhs for school studies. Up to 80 Lakhs for other education loans.

Bank of Baroda gives education loans for school education from nursery to 12th Std 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.

Other educational loans include Baroda Gyan (up to 80 Lakhs) for higher studies in India, Baroda Scholar (up to 80 Lakhs) for study abroad.

Education loan schemeRate of Interest
Baroda Gyan (IBA scheme)8.85%
Baroda Vidya9.95%
Baroda Scholar8.35% to 9.0% (based on institutions)
Education loan for premier institutions6.85% to 8.70% (based on institution and amount)
Skill loan scheme.8.35%


  • 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.

Factors Affecting Approval of Best Education Loan in India 2022

#1. CIBIL Score

Checking CIBIL score and ensuring that the report doesn’t have any errors should be your first step while applying for an education loan.

“A Good CIBIL report with score of 700+ is an entry ticket for your loan application.

If you or your co-applicant doesn’t have a good CIBIL score then the bank may reject your loan application.

#2. Eligibility of the Course and University

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

So before applying for an education loan, you need to check the type of course and the university. For vocational training courses, additionally, check the Bank’s education loan schemes.

For example, you can not take an education loan for a beautician degree course from an XYZ Bridal Institute. Beautician degree is not a professional course and the institute conducting the course is also not recognized by UGC and AICTE.

#3. Eligible Education Expense

All expenses mentioned in the fees structure are not considered for finance by the banks. For example, the college bus fee is not considered while calculating the eligible expenses. But overseas travel expense to the college location is considered.

Banks consider expenses that are essential to complete the course for arriving at the loan amount.

#4. Pro Tip

Get a detailed fees structure from the college with the breakup of expense particulars and submit it along with the loan application.

#5. Co-obligant/ Personal Guarantee

In case of a minor student, you and your spouse will act as a joint borrower. For a major student, any one of the parents with an income source will be made a joint borrower.

If the loan amount is above Rs. 4 lakhs, Bank will insist on a third-party guarantee, means a guarantee from a reputed person who is not in your relation.

“If you disclose your net-worth properly along with documentary evidence at the time of application, the Bank may consider waiving third party guarantee clause.”

#6. Tangible Security

If you are looking for a loan amount of Rs. 7.5 lakhs and above, you need to secure the loan by providing collateral security. The security should be tangible assets such as FD, LIC, NSC bonds, shares, debt bonds and immovable properties.

“Mention your collateral securities details clearly and keep xerox copies of all the supporting documents related to the collateral security ready.”

#7. Holiday Period for Repayment

You have two options of repaying the education loan. One is repaying the installment after completing the course and getting the job.

Another is by paying the monthly interest and getting installment holiday for principal up to course completion.

The holiday period is available up to one year after the end of studies or six months after getting a job, whichever is earlier.

“On your loan application, you need to mention that you are willing to pay the monthly interest and submit your income source. This will show your intention to repay the education loan.”


If you are looking for a higher loan amount for studying abroad then you can consider applying at SBI (Rs. 1.5 Crores). But if you are looking for quick processing and a higher amount, then you can apply for an education loan at ICICI Bank (up to Rs. 1 Crore).

About Pardeep Goyal

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20 thoughts on “11 Best Banks for Education Loan in India 2022”

  1. Hi, I’m looking for a non-collateral educational loan, and also my joint borrower (father) is going to retire before my course completes. can you please suggest me a bank in my situation.

  2. I wanted to know the best loan to apply for UG study in India (loan is upto 7.1L), so could you recommend the best banks to choose from?

    Thank you!

    • First, you should contact your existing bank, if any of the bank at which your parents have an existing good relationship. They will process your loan quickly.

      Else check HDFC Bank’s Education loan for your needs

        • Global Ed-vantage education loan provided by SBI is for studies abroad in full-time regular courses. The loan amount is up to Rs. 1.5 Cr and should cover the MD course costs.

          The bank (SBI) would take only one education loan application at a time.

          If you simultaneously apply at any other bank then you need to disclose your existing loan. And that will be considered while processing at the other bank.

          If you already have an existing Global Ed-vantage loan with prompt repayment then SBI might consider for another loan in case the course cost rises by some unforeseen reason. But the maximum loan amount will be restricted to 1.5 Cr minus the outstanding loan amount. Sanction would be hard and you may be asked for additional collateral.

      • I am planning to do MS in Abroad.Which bank is best to get Education Loan and also please describe the prospectus Details on Bank

        • The amount of loan differs from bank to bank. The foreign education loans offered by banks are up to Rs. 1.5 Cr by SBI, Up to 1Cr by ICICI Bank and need-based by PNB.

          You need to first check the University Fees and living expenses from where you intend to get your MS. The cost of which vastly differs from state to state in the US and also from country to country globally.

          Most of the banks cover – Tuition fees, living expenses like accommodation cost, food expenses, caution money, health insurance, flight travel ticket and self aid like field trips, books and laptops.

          You can check with the financing bank for the details of costs covered for a foreign education loan

  3. i had applied for aeducation loan fromHdfc credila of Rs.60 lacs for my doctor daughter giving flat of Rs44lacs as collateral security.Butit was rejected.No reason given.I and my wife were coborrowers.It appears that HDFC has gone on basis of Cibil score.But we have no outstanding loans except loan/ overdraft against fixed deposits.Kindly guide how to go in for education loan from another institute/ bank


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