Pursuing higher education whether in India or abroad can be expensive. Fortunately, several Indian banks and financial institutions offer education loans with lowest interest rates to ease the financial burden. In this 2025 edition, we compare the best education loans in India with the lowest interest rates, along with key features, eligibility, and repayment options.
Top Education Loans in India with Lowest Interest Rates (2025)
| BANKS | Maximum loan amount | Margin | Maximum loan tenure | Collateral | Processing fee |
| State Bank of India Education Loan | Up to ₹7.50 lakh | NIL for loans of up to Rs.4 lakh | 15 years | NIL for loans up to Rs.7.5 lakh | NIL for loans up to Rs.20 lakh |
| Kotak Mahindra Bank Education Loan | Up to Rs.45 lakh without security | NIL | Up to 15 years | NIL for loans up to Rs.45 lakh | Up to 1.5% of the loan amount + taxes |
| Axis Bank Education Loan | Up to Rs.40 lakh without security | NIL for loans of up to Rs.4 lakh | 15 years | NIL for loans up to Rs.40 lakh | NIL for loans up to Rs.10 lakh |
| Punjab National Bank Education Loan | Need-based | NIL for loans of up to Rs.4 lakh (domestic courses) | Up to 15 years | NIL for loans up to Rs.7.5 lakh | ₹450 + GST (Documentation) ₹250 + GST (Security verification) |
| Canara Bank Education Loan | Need-based | NIL for loans up to Rs.4 lakh | Up to 15 years | NIL for loans up to Rs.7.5 lakh | NIL |
| Bank of Baroda Education Loan | Rs.125 lakh (Aviation and Medical courses) Rs.10 lakh (Other professional courses) | NIL for loans up to Rs.4 lakh | Up to 15 years | NIL for loans up to Rs.4 lakh | NIL |
Tips to Get the Best Interest Rate
Which Loan Should You Choose?
FAQ’S
Do education loans cover expenses beyond tuition fees
Yes. Most education loans cover:
Tuition fees
Hostel/mess charges
Books and laptops
Travel (for overseas education)
Exam, library, and lab fees
Can I apply for an education loan online?
Yes. Most banks and financial institutions now allow online application, document upload, and status tracking.
How long does it take to process an education loan?
Processing typically takes 7–15 working days, depending on document verification and the bank’s internal procedures.
Is a good academic record necessary to get a low-interest education loan?
Yes. A strong academic record, admission into a reputed institute, and parent’s credit profile can improve your chances for a lower rate.
What is the maximum loan amount I can get without collateral?
Most public sector banks offer up to ₹7.5 lakhs without collateral. Private banks or NBFCs may vary, often based on the institution and applicant’s profile.
How do I register on Vidya Lakshmi Portal?
Visit vidyalakshmi.co , click “Register”, and fill in your details like name, email, mobile number, and create a password. Then log in to complete your Common Education Loan Application Form (CELAF).
