Top Banks Offering the Best Education Loan Interest Rates in 2025

As of May 2025, several banks in India are offering competitive interest rates on education loans, catering to students pursuing higher education both domestically and abroad. Here's an overview of some of the top banks providing education loans with attractive interest rates:

🏦 Top Banks Offering the Best Education Loan Interest Rates in 2025
Bank Interest Rate (p.a.) Key Highlights
Bank of India 8.25% Offers the lowest interest rate with its Star Vidya Loan scheme.
Indian Bank 8.60% Competitive rates for both domestic and international studies.
Union Bank of India 8.60% Similar to Indian Bank, providing attractive rates for education loans.
Bank of Baroda 9.45% Offers loans for studies in India and abroad with reasonable interest rates.
Canara Bank 10.25% Provides education loans with competitive rates for various courses.
State Bank of India 10.15% Offers various schemes with interest rates starting from 10.15% p.a. for education loans.
ICICI Bank Repo + 3.75% Interest rates linked to the repo rate, offering flexibility.
Axis Bank MCLR + 1% Interest rates based on the Marginal Cost of Funds-based Lending Rate (MCLR).

💡 Tips for Choosing the Right Education Loan
Compare Interest Rates: Different banks offer varying interest rates. It's essential to compare them to find the most affordable option.

Consider Processing Fees: Some banks charge processing fees, which can add to the overall cost of the loan.

Check for Concessions: Certain banks offer interest rate concessions for female students or for loans exceeding specific amounts.

Evaluate Repayment Terms: Understand the moratorium period, repayment tenure, and EMI structure before finalizing the loan.

Assess Collateral Requirements: Some banks may require collateral for higher loan amounts, while others may offer unsecured loans up to a certain limit.

If you need assistance comparing specific loan offers or understanding eligibility criteria, feel free to ask!