Education Loan: Rates, Eligibility, Schemes and LNMIIT Loans

An education loan pays for college fees, hostel, books and travel, and repayment usually starts a year after the course ends. SBI needs no collateral up to ₹7.5 lakh, and PM Vidyalaxmi loans need no collateral or guarantor for merit admissions to listed institutions. LNMIIT Jaipur students can use the bank-loan sheet on the institute’s fee portal.

Key facts

Rates are floating and linked to each bank’s external benchmark, which follows the RBI repo rate (5.25% now; the next MPC meeting is 5 to 7 October 2026). For other banks, see education loan interest rates.

Education loan for LNMIIT Jaipur

The LNM Institute of Information Technology (LNMIIT) posts education loan details on its fee portal, erp.lnmiit.ac.in/onlinechallan, for the 2026-27 session. The “Download Bank Loan Details” sheet compares loans from SBI, Bank of Baroda, Canara Bank, Punjab National Bank and Union Bank of India. It names a contact person at each bank.

That sheet is dated 17 July 2025, so its interest rates are more than a year old. Use it for the bank contacts and the broad terms. All five banks on it show repayment over 15 years, a moratorium of one year after the course and no prepayment penalty. Take current rates from each bank’s own page.

1. Download the bank loan sheet from the LNMIIT fee portal and call the listed bank contact.
2. Ask the bank for the fee structure and bonafide letter format it needs, and get them from LNMIIT.
3. Check whether LNMIIT is on the QHEI list on pmvidyalaxmi.co.in. We did not find it in PNB’s list updated on 4 September 2026. If it is not listed, PM Vidyalaxmi terms do not apply and a regular student loan scheme does.
4. Apply on pmvidyalaxmi.co.in or at the bank branch.
5. After sanction, ask the bank to pay LNMIIT by RTGS or NEFT to ICICI Bank, IFSC ICIC0000106. The account number is THELNM followed by your roll number (for example, THELNM17UEC001).
6. Pay within the fee window. For 2026-27 it ran from 6 to 17 July 2026 without late fee, so give the bank enough lead time next semester.

Who is eligible

• An Indian student with confirmed admission to a recognised course in India or abroad.
• Admission through an entrance test or merit process. PM Vidyalaxmi excludes management and NRI quota seats.
• A parent or guardian as co-borrower. The co-borrower’s income and credit history affect the rate and amount.
• Collateral for larger loans, depending on the scheme and bank.

Government schemes that lower the cost

The Ministry of Education says the PM Vidyalaxmi portal has run since 25 February 2025. Up to 21 July 2026, lenders sanctioned 1,12,817 loans worth ₹15,634.78 crore under the scheme. The interest subvention reaches you through the PM-Vidyalaxmi Digital Rupee app and is then credited to your loan account. From the second year it continues only if your academic progress is satisfactory.

How to apply

1. Get your admission letter and the institute’s fee schedule.
2. Register on pmvidyalaxmi.co.in with your Aadhaar details and fill in the common education loan application.
3. Choose the bank or banks you want to apply to, or apply directly at a bank branch.
4. Upload KYC for you and your co-borrower, mark sheets, the admission letter, fee details, and the co-borrower’s income proof.
5. Apply for interest subvention on the same portal if your family income qualifies.
6. Track the application on the portal and respond to bank queries.
7. Sign the loan agreement after sanction. The bank pays fees directly to the institution, semester by semester.

Fees, repayment and tax benefit

SBI charges no processing fee up to ₹10 lakh. Above that it charges ₹5,000 plus GST up to ₹20 lakh, and 0.50% (maximum ₹25,000) plus GST beyond ₹20 lakh. Margin is nil up to ₹4 lakh. Above that, you fund 5% of the cost for study in India and 15% for study abroad.

Interest runs during the moratorium on most loans. Paying that interest while you study stops it from being added to your principal. Use the EMI calculator to see the monthly payment once repayment starts.

From tax year 2026-27, Section 129 of the Income-tax Act, 2025 replaces Section 80E. It allows a deduction for the interest you pay on a higher education loan, with no upper limit, for up to eight years. The loan must be for you or a relative, taken from a bank or approved institution. The deduction is not available under the new tax regime. More detail is on the education loan tax benefit page.

Frequently asked questions

Does LNMIIT have an education loan tie-up?

LNMIIT’s fee portal lists education loan contacts and terms at SBI, Bank of Baroda, Canara Bank, PNB and Union Bank of India. The sheet is dated July 2025, so confirm rates with the bank.

How do I pay LNMIIT fees from an education loan?

Ask your bank to transfer the fee by RTGS or NEFT to ICICI Bank (IFSC ICIC0000106), with the account number set to THELNM plus your roll number.

How much education loan can I get without collateral?

Up to ₹7.5 lakh at SBI under its Student Loan scheme. Under PM Vidyalaxmi, the loan can cover the full course cost with no collateral or guarantor.

What is the SBI education loan interest rate now?

From 9 June 2026, the SBI Student Loan is 9.90% without collateral and 9.40% with collateral. SBI’s PM Vidyalaxmi loans run from 6.90% to 8.40%.

When does education loan repayment start?

At SBI, repayment starts one year after the course ends, and the loan is repaid over up to 15 years.

Can I claim tax benefit on education loan interest in the new regime?

No. The deduction for education loan interest is available only if you choose the old tax regime.

Sources

• PM-Vidyalaxmi Portal for Higher Education Loans — PIB, Ministry of Education, 27 Jul 2026 (checked 17 Sep 2026)
• PM Vidyalaxmi Scheme — PIB, 29 Jul 2026 (checked 17 Sep 2026)
• Education loan schemes, rate of interest — State Bank of India (checked 17 Sep 2026)
• SBI Student Loan Scheme — State Bank of India (checked 17 Sep 2026)
• List of QHEIs eligible under PM Vidyalaxmi — Punjab National Bank (checked 17 Sep 2026)
• Fee payment and education loan schemes, 2026-27 — LNMIIT (checked 17 Sep 2026)
• LNMIIT student education loan sheet — LNMIIT (checked 17 Sep 2026)
• Section 129, Income-tax Act, 2025 — Income Tax Department (checked 17 Sep 2026)