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Education Loan Interest Rates

The published rate on an education loan matters less than what happens during the moratorium.

Education loan rate range
8 – 15% p.a.

Concessions of 0.5% for female students are common at PSU banks.

as of 2026-08-15· Lender rate cardsreported

Interest accrues through the study period, and where it is capitalised at the end, you begin repaying a principal larger than you borrowed.

By Nishit Kumar, Founder & Editor
Updated 17 August 2026

Beyond the table

Ask one question at sanction: is moratorium interest simple or capitalised? On a four-year course with a ₹20 lakh loan, the difference between servicing interest as it accrues and having it capitalised runs into several lakh rupees over the life of the loan. Many banks offer a rate concession of around 1% for servicing interest during the moratorium, which stacks on top of the direct saving.

Concessions for female students — commonly around half a percentage point at public sector banks — are standard but not always applied automatically. Ask.

Your numbers

₹50 L
₹10,000₹50,00,000₹20 Cr
18.5%36
120 years30
Monthly EMI
₹43,391
  • Principal48%
  • Interest52%
Principal
₹50,00,000
Total interest
₹54,13,879
Total payable
₹1,04,13,879
Interest as % of principal
108.28%
Growth over time
₹0₹27.3 L₹54.7 L₹82 L₹1.09 CrYr 1Yr 4Yr 7Yr 10Yr 13Yr 16Yr 19Yr 20
ValueAmount you put in

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) →
YearPrincipal paidInterest paidBalance
1₹99,511₹4,21,182₹49,00,489
2₹1,08,307₹4,12,387₹47,92,181
3₹1,17,881₹4,02,813₹46,74,300
4₹1,28,300₹3,92,394₹45,46,000
5₹1,39,641₹3,81,053₹44,06,359
6₹1,51,984₹3,68,710₹42,54,375
7₹1,65,418₹3,55,276₹40,88,957
8₹1,80,039₹3,40,655₹39,08,918
9₹1,95,953₹3,24,741₹37,12,965
10₹2,13,274₹3,07,420₹34,99,691
11₹2,32,125₹2,88,569₹32,67,566
12₹2,52,643₹2,68,051₹30,14,923
13₹2,74,974₹2,45,720₹27,39,949
14₹2,99,279₹2,21,415₹24,40,670
15₹3,25,733₹1,94,961₹21,14,937
16₹3,54,525₹1,66,169₹17,60,412
17₹3,85,862₹1,34,832₹13,74,550
18₹4,19,968₹1,00,726₹9,54,582
19₹4,57,090₹63,604₹4,97,492
20₹4,97,492₹23,202₹0

At ₹50,00,000 over 20 years, Bank of Baroda holds the lowest advertised floor on our board.

Only these figures travel with you.

See Bank of Baroda’s terms

Questions

Is education loan interest charged during the course?

Yes. Interest accrues from disbursal. What varies is whether you must pay it during the moratorium or whether it is added to the principal at the end. Servicing it during study is substantially cheaper and often earns a rate concession as well.

Do female students get a lower education loan rate?

Public sector banks commonly offer a concession of around 0.5% for female students. It is standard but not always applied automatically — ask for it explicitly at sanction.

Is there an interest subsidy on education loans?

Central interest subvention schemes exist for eligible students within defined income limits, and are administered through the participating banks and the Vidya Lakshmi portal. Terms are revised by notification, so check the current scheme details on the official portal.

Related reading

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. [1]Vidya Lakshmi — central education loan portal— Ministry of Education / NSDLPrimary
  2. [3]Home, personal, vehicle and education loan rate cards — August 2026— Lender published rate cardsas of 15 August 2026
Worth knowing.Rates, fees and terms change frequently and vary by applicant. Everything here is general information, not personalised advice. Confirm the current terms directly with the institution before you apply. How we research and rate.