Pursuing higher education in India or abroad can be expensive. An education loan helps students cover tuition fees, accommodation, travel, and other study-related expenses without putting pressure on their families.
In 2025, Indian banks, NBFCs, and government schemes are offering low interest education loans, no-collateral options, and flexible repayment plans. But which loan is best for you?
This guide covers:
✔ Types of education loans in India
✔ Best banks, NBFCs, and government schemes
✔ Interest rates, eligibility, and documents
✔ Tips to get the lowest EMI education loan
✅ Types of Education Loans
1. Education Loan for Abroad Studies
- Covers tuition, hostel, travel, and living expenses.
- Popular destinations: USA, UK, Canada, Australia, Germany.
- Loan amounts up to ₹1.5 crore (varies by bank).
👉 Best for students planning international education.
2. Education Loan Without Collateral
- Some banks & NBFCs provide study loans without property security.
- Usually up to ₹7.5 lakh for Indian studies and ₹20–₹30 lakh for abroad.
- Approval depends on co-applicant’s income & CIBIL score.
👉 Best for students from middle-class families without assets.
3. Government Education Loan Schemes
- Vidya Lakshmi Portal – Single-window platform for applying to multiple banks.
- Padho Pardesh Scheme – Interest subsidy for minority students studying abroad.
- Central Sector Interest Subsidy Scheme – For students from low-income families.
👉 Best for subsidized interest rates and easier access.
4. Top Education Loan Apps & NBFCs
- HDFC Credila – Specializes in abroad education loans.
- InCred – Flexible repayment & no collateral for select students.
- Avanse Financial Services – Tailored study abroad loans.
👉 Best for fast approval & flexible loan terms.
✅ Best Banks for Education Loans in India (2025)
| Bank | Loan Amount | Interest Rate (p.a.) | Tenure | Special Features |
|---|---|---|---|---|
| SBI Student Loan | Up to ₹1.5 crore | 8.30% onwards | Up to 15 years | No processing fee for study in India |
| HDFC Bank | ₹50,000 – ₹20 lakh | 9% onwards | Up to 15 years | Special plans for study abroad |
| ICICI Bank | ₹50,000 – ₹1 crore | 9.25% onwards | Up to 10 years | Quick disbursal for pre-approved students |
| Axis Bank | Up to ₹75 lakh | 9% onwards | Up to 15 years | No collateral up to ₹40 lakh |
| Punjab National Bank (PNB Udaan) | ₹7.5 lakh – ₹1 crore | 8.5% onwards | Up to 15 years | Designed for study abroad |
| Canara Bank (Vidya Turant) | Up to ₹20 lakh | 8.75% onwards | Up to 15 years | Quick approval for reputed institutions |
✅ Education Loan Eligibility Criteria
- Age: 18–35 years (student), co-applicant (parent/guardian) required.
- Admission: Confirmed admission in India or abroad.
- CIBIL Score: Co-applicant score 700+ preferred.
- Course: Professional, technical, or recognized degree/diploma courses.
✅ Documents Required
- Aadhaar & PAN card (student + co-applicant)
- Admission letter from institution
- Previous academic records
- Co-applicant’s income proof (salary slip/ITR)
- Passport & visa (for abroad studies)
✅ How to Reduce EMI on Education Loans
✔ Apply through government schemes for interest subsidies.
✔ Maintain a good CIBIL score (for co-applicant).
✔ Choose banks offering moratorium period (repayment starts after studies).
✔ Compare processing fees & hidden charges.
✔ Consider balance transfer option later for lower rates.
✅ FAQs
1. Which bank gives the lowest education loan interest rate in 2025?
SBI and PNB are among the banks offering loans starting at 8.3% p.a.
2. Can I get an education loan without collateral?
Yes, up to ₹7.5 lakh in India and higher amounts abroad, based on co-applicant’s profile.
3. What is the maximum tenure for education loans in India?
Up to 15 years, with a moratorium period during study.
4. Can NBFCs provide abroad study loans?
Yes, lenders like HDFC Credila, InCred, and Avanse specialize in study abroad loans.
✅ Conclusion
An education loan is the best way to fund your academic dreams without financial stress. If you’re studying abroad, choose SBI, HDFC Credila, or Axis Bank. If you need a no-collateral option, NBFCs and PNB are good choices. And for maximum savings, always check government subsidy schemes.