Best Education Loans
Public sector banks are materially cheaper than NBFCs on education loans, and for study in India they should be the first call — but they are slower and stricter on collateral, which is why families under an admission deadline end up at an NBFC paying several points more.
PSU banks at the lower end; NBFCs and overseas-focused lenders higher.
Start the bank process before the offer letter arrives, not after.
PSU banks at the lower end; NBFCs and overseas-focused lenders higher.
Beyond the table
Compare on total cost across the full life of the loan, including the moratorium. Interest accrues during the study period whether or not you pay it, and a lower rate with a longer moratorium can cost more overall than a slightly higher rate where you service interest from the start. Where the family can afford it, paying the interest during study is the single most effective saving available on this product.
Section 80E allows a deduction for the entire interest paid, with no cap, for up to eight years — but only under the old tax regime. For a large overseas loan that is a meaningful benefit, and it is one of the few remaining reasons a young earner might rationally stay on the old regime. Run both regimes before assuming.
Your numbers
- Principal48%
- Interest52%
- Principal
- ₹50,00,000
- Total interest
- ₹54,13,879
- Total payable
- ₹1,04,13,879
- Interest as % of principal
- 108.28%
What this means.Over 20 years you repay more in interest than you borrowed. Cutting the tenure or prepaying early changes this sharply.
View the full breakdown (20 rows) →
At ₹50,00,000 over 20 years, Bank of Baroda holds the lowest advertised floor on our board.
Only these figures travel with you.
Questions
Which bank is best for an education loan?
For study in India, public sector banks are generally cheapest, particularly under the schemes routed through the Vidya Lakshmi portal. For overseas study at large ticket sizes, specialist NBFCs are faster and more flexible on collateral, and price accordingly.
Do I need collateral for an education loan?
Loans up to ₹7.5 lakh can be covered under the Credit Guarantee Fund Scheme for Education Loans without collateral, subject to the scheme terms. Above that, banks typically require security, while some NBFCs lend unsecured at a higher rate against a co-applicant's income.
When does repayment start on an education loan?
After the moratorium, which normally covers the course period plus six to twelve months. Interest accrues during that period regardless — servicing it while studying materially reduces the total repaid.
Related reading
HDFC Bank Vehicle Loan Interest Rates 2026: New & Used Car EMI Comparison
Drive your dream car! HDFC Bank offers new car loans from 8.15% p.a. & used car loans from 13.75% p.…
17 Jun 2026SBI Savings Account Interest Rate 2026: Types, Benefits & How to Open
Secure your future with an SBI Savings Account! Learn about the 2.50% p.a. interest rate, daily calc…
17 Jun 2026NSC Interest Rate 2026: Current 7.7% Returns, Tax Benefits & Calculator
Secure your future with NSC! Earn 7.7% fixed returns, enjoy tax benefits under 80C, and guarantee yo…
17 Jun 2026HDFC Bank Interest Rates 2026: FD, RD, Savings & Loan Rates in India
Secure your future! HDFC Bank FDs offer up to 7.10% for seniors in March 2026. Discover all FD, RD, …
17 Jun 2026
Sources
Every figure on this page is traced to the document it came from. Where a claim rests on a regulator or an institution’s own rate card, that is the link below — not a summary of it.
- [1]Vidya Lakshmi — central education loan portal— Ministry of Education / NSDLPrimary
- [2]Section 80E — deduction for interest on education loan— Income Tax Department, Government of IndiaPrimary