Top Education Loans for Indian Students: Compare, Apply, and Save Money

Studying abroad, or even in India, can be one of the most significant investments in your future. Tuition fees, accommodation, travel, and living expenses can add up faster than expected. That’s precisely where Education Loans for Indian Students play a life-changing role. 

But with so many banks and lenders offering different interest rates, margin money, and repayment terms, choosing the right loan can feel overwhelming. This guide breaks everything down simply, helping you compare options, apply smartly, and ultimately save money. 

Why Education Loans Matter Today? 

Higher education costs are rising everywhere. Whether you’re planning to study engineering in the US, management in the UK, or medicine in India, an education loan ensures you don’t pause your dreams because of finances. 

The best part? Most lenders today offer easy processing, flexible repayment, and even coverage for living expenses abroad. 

Top Education Loans for Indian Students 

Below are some of the most trusted and student-friendly loan options available: 

1. State Bank of India (SBI) Education Loan 

Why choose SBI?

SBI is one of the most trusted banks in India, especially among students planning higher education in India or abroad. Its education loan schemes are known for transparency, reasonable interest rates, and wide coverage of expenses, making it a preferred choice for thousands of Indian families. 

What makes SBI a great option? 

• Reliable & Government-backed: SBI is India’s largest public-sector bank, providing students and parents with a strong sense of security. 

• Lower interest rates: Interest rates are generally lower than those offered by many private banks and NBFCs, helping students reduce their repayment burden in the long run. 

• Flexible repayment options: Longer repayment tenure ensures EMI pressure remains manageable even after graduation. 

Highlights of SBI Education Loan 

• Loan Amount 

You can get up to ₹1.5 crore for overseas education, depending on the course, university, and financial profile. SBI offers higher loan amounts under premium schemes like SBI Global Ed-Vantage. 

• Interest Rate 

The interest rate usually ranges between 10% and 11%, depending on the specific scheme, loan amount, and whether you opt for RLLR-linked rates. Female students may also get a small interest concession under particular schemes. 

• Repayment Tenure 

SBI allows repayment for up to 15 years, excluding the moratorium period (course duration + 6–12 months). This long tenure ensures EMIs stay affordable. 

• Expenses Covered 

SBI education loans are designed to take care of almost all major study and living expenses, including: 

• Tuition fees 
• Travel and flight tickets 
• Laptop or study equipment 
• Examination, laboratory, and library fees 
• Hostel and accommodation charges 
• Living expenses and food 
• Insurance and visa fees (under some schemes)

2. HDFC Credila Education Loan 

Why choose HDFC Credila?

HDFC Credila is India’s first dedicated education loan company, which means its entire focus is on helping students fund their studies. Because it specialises in this segment, it offers customised loan solutions based on your course, university, and future earning potential, something many traditional banks cannot match. 

What makes HDFC Credila stand out? 

• Exclusive focus on education loans: Every product and process is built around student needs, making the experience smoother and faster. 
• Customised loan offerings: Credila analyses your chosen university, country, and program to offer personalised loan amounts and repayment options. 
• Quick processing time: Their specialised model helps students obtain sanction letters more quickly, a significant advantage for visa applications.

Highlights of HDFC Credila Education Loan 

• Loan Amount 

There is no fixed upper limit, which is especially helpful for students going to high-cost countries like the USA, UK, Canada, and Australia. Credila often finances the full cost of education, including living expenses. 

• Interest Rate 

Interest rates usually start from 11%–12%, depending on the profile, collateral, course, and destination country. Though slightly higher than public banks, their flexible approach offsets the higher cost for many students. 

• Collateral Requirement 

For higher loan amounts, collateral is typically required. This may include property, fixed deposits, or other approved securities. However, lower amounts may sometimes be sanctioned without collateral depending on the applicant’s profile. 

• Repayment Options 

HDFC Credila offers flexible EMI structures, including options to begin repayment after the course is completed. Many students choose partial EMIs during the course to reduce overall interest. 

3. Axis Bank Education Loan 

Why choose Axis Bank?

Axis Bank is known for its fast approvals and student-friendly loan policies, making it a popular choice for those in a hurry to secure funds for admissions or visa applications. With competitive interest rates and a higher approval rate, it has become one of the top private banks preferred by students going abroad. 

What makes Axis Bank a strong choice? 

• Quick processing: Axis is known for its streamlined, digital-first process, helping students receive sanction letters faster. 
• Higher approval rates: Many students studying in the UK, USA, Canada, and Australia prefer Axis Bank because of its flexible eligibility criteria. 
• Exhaustive coverage of expenses: It covers nearly all educational and living costs, reducing financial stress. 

Highlights of Axis Bank Education Loan 

• Loan Amount 

Axis Bank offers up to ₹75 lakh without collateral, making it one of the most generous private banks for unsecured education loans. With collateral, the loan amount can go even higher based on the property’s valuation and financial profile. 

• Interest Rate 

Interest rates typically range from 10.5% to 13%, depending on the course, university, applicant profile, and whether the loan is secured or unsecured. 

• Processing Time 

Axis Bank is known for quick approvals, which is extremely helpful for students with tight admission or visa deadlines. Many cases get sanctioned within just a few days. 

• Expenses Covered 

Axis Bank’s education loans cover a wide range of costs, including: 

• Tuition fees 
• Examination and lab charges 
• Accommodation and living expenses 
• Travel and visa-related costs (for some schemes) 
• Books, a laptop, and essential study materials

4. ICICI Bank Education Loan 

Why choose ICICI Bank?

ICICI Bank is widely chosen by students who value speed, convenience, and flexible loan offerings. The bank is known for its smooth digital processing and fast disbursal, making it ideal for students with tight admission deadlines.  

It is especially popular among those applying for STEM, management, and medical courses, thanks to its tailored loan solutions and competitive interest rates. 

What makes ICICI a reliable option? 

• Super-fast disbursal: ICICI is among the quickest private banks in issuing sanction letters and disbursing funds, often helping students meet urgent visa timelines. 
• Preferred for top global programs: Students heading for high-demand programs in the US, UK, Canada, Germany, and Australia often benefit from ICICI’s flexible evaluation criteria. 
• Easy documentation: For many recognised universities, ICICI provides simplified documentation and fast-track approval.

Highlights of ICICI Bank Education Loan 

• Loan Amount 

ICICI offers loans of up to ₹1 crore, making it suitable for high-cost programs such as MBAs, MS programs in STEM fields, and medical degrees abroad. Higher amounts may be considered with substantial collateral. 

• Interest Rate 

Interest rates typically range from 10.5% to 12.5%, depending on your academic profile, course, university, and whether the loan is secured or unsecured. 

• Repayment Tenure 

You get up to 10 years to repay the loan. Though the tenure is slightly shorter than public banks, ICICI offers flexible EMI plans based on future earning potential. 

• Minimal Documentation 

For selected top universities and programs, ICICI offers simplified paperwork, significantly reducing processing time. Students can also complete much of the application digitally. 

5. Bank of Baroda (BOB) Education Loan – Baroda Scholar Scheme 

Why choose Bank of Baroda?

The Baroda Scholar Scheme is one of the most affordable and trusted education loan options in India, especially for students aiming for top-ranked global universities. With competitive interest rates, long repayment tenures, and special benefits for girl students, BOB stands out as a strong alternative to other public and private banks. 

What makes BOB a great choice? 

• Lower interest rates: One of the most significant advantages of BOB is its comparatively low interest rates, making it budget-friendly for students and parents. 
• Ideal for reputable universities: The bank offers special consideration and easier processing for students admitted to globally recognised institutions. 
• Student-friendly policies: Longer repayment periods and concessions for female students make this scheme even more attractive. 

Highlights of the Baroda Scholar Scheme 

• Loan Amount 

Students can avail up to ₹60 lakh, depending on their course, university, and financial profile. This makes the scheme suitable for universities in the US, UK, Canada, Europe, and Australia. 

• Interest Rate 

Interest rates typically range from 9% to 10.5%, which is significantly lower than most private lenders. Rates vary by university category, collateral type, and borrower profile. 

• Repayment Tenure 

BOB offers a repayment period of up to 15 years, excluding the moratorium period (course duration + 1 year). This longer tenure keeps EMIs manageable after graduation. 

• Special Benefits for Girl Students 

BOB provides additional interest concessions for female students, helping reduce overall loan costs and encouraging women to pursue higher education abroad. 

6. Government Education Loan Schemes (Subsidised) 

Government-backed education loan schemes are a lifeline for students from lower-income families who want to pursue higher education in India or abroad. These schemes reduce the financial burden by offering interest subsidies, making education loans more affordable and accessible. 

Why consider government schemes?

Suppose your family falls within specific income brackets. In that case, you may qualify for interest subsidies, meaning the government pays the interest for you during the moratorium period (the course duration plus any extra months). These schemes are designed to ensure money never becomes a barrier to your dream education. 

Major Government Subsidised Schemes 

1. Central Sector Interest Subsidy Scheme (CSIS) 

This is one of the most widely used government schemes for students belonging to economically weaker sections. 

Who is eligible? 

• Students whose family income is up to ₹4.5 lakh per year. 
• Applicable only for education loans taken from scheduled banks under the IBA Model Education Loan Scheme.

What does it offer? 

• 100% interest subsidy during the moratorium period. 
• Students need to pay interest only after the course completion + grace period.

7. Padho Pardesh Scheme (for minority students studying abroad)

Note: The scheme’s status may vary, as it has undergone changes and may not be active in all banks. 

Who is eligible? 

• Students from minority communities (as per government definition). 
• Annual family income is usually up to ₹6 lakh. 

What does it offer? 

• Full interest subsidy during the moratorium period. 
• Encourages students from minority backgrounds to pursue international education. 

Key Benefits of Government Subsidised Schemes 

• Reduced Interest Burden
  A significant portion of interest is handled by the government, significantly reducing the total repayment amount. 
• No Interest During Moratorium
  You don’t pay any interest while studying, and during the grace period, this is a huge financial relief for families. 
• Supports Students from Economically Weaker Backgrounds
  These schemes ensure equal education opportunities for deserving students, regardless of financial challenges. 

Smart Tips to Save Money on Education Loans 

Choosing the right loan is only the first step; the real smart move is learning how to save money throughout the process. Here’s how you can make your education loan more affordable: 

1. Compare interest rates across banks 

Different banks offer different rates, processing fees, and benefits. Comparing them helps you choose the most cost-effective option rather than settling for the first loan you come across. 

2. Check for government subsidies 

Schemes like CSIS (Central Sector Interest Subsidy) or other minority- or low-income subsidies can significantly reduce your interest burden. If you qualify, you could save a lot over the life of the loan. 

3. Borrow only what you truly need 

It’s tempting to take a higher loan amount “just in case,” but remember, interest is charged on every rupee. Calculate your actual expenses and avoid unnecessary borrowing. 

4. Pick a shorter repayment tenure if possible 

A shorter tenure may mean a slightly higher EMI, but you’ll save a big chunk on total interest. It’s one of the simplest ways to make your loan cheaper in the long run. 

5. Apply early to avoid delays 

Last-minute applications can create panic and limit your choices. Applying early ensures you have enough time to compare banks, arrange documents, and secure the best possible interest rate. 

Making Smarter Choices for Your Education Loan 

Finding the best Education Loans for Indian Students doesn’t have to feel overwhelming. With proper research, guidance, and a clear understanding of your financial needs, you can secure a loan that empowers your educational journey rather than complicating it. Always compare interest rates, check eligibility for subsidies, and evaluate repayment terms before committing; minor differences today can create a significant impact later. 

Remember, choosing a loan is more than just borrowing money; it’s about investing in your future with confidence and clarity. So, take your time, stay informed, and pick up a loan that supports your goals without adding unnecessary pressure. 

And suppose you ever feel stuck or need personalised help in choosing the right loan, the best university, or even the right study-abroad destination. In that case, Shuraa Education is here to guide you at every step with expert support. 

Contact us today!
Call: +91 9319998925
Email: edusagar@shuraaeducation.com