Rates
Education loan interest rates
Indicative starting rates across our partner lenders, and what determines the rate you'll be offered.
| Lender | Type | Interest from | Max amount | Collateral-free | Processing fee |
|---|---|---|---|---|---|
| State Bank of IndiaGovernment schemes & low rates | Bank | 8.55% | ₹1.5 Cr | Up to ₹7.5 L | Nil–0.5% |
| HDFC CredilaStudy-abroad specialist | NBFC | 9.50% | ₹1.5 Cr | Up to ₹75 L | 1–1.5% |
| Avanse Financial ServicesFast digital approvals | NBFC | 9.75% | ₹1 Cr+ | Up to ₹50 L | 1–2% |
| Auxilo FinserveFlexible abroad financing | NBFC | 10.00% | ₹1 Cr+ | Up to ₹40 L | 1–2% |
| Prodigy FinanceNo collateral, no co-applicant | NBFC | 10.50% | Full cost | No co-signer needed | 2.5–4% |
| ICICI BankWide branch network | Bank | 9.25% | ₹1 Cr | Up to ₹20 L | 0.5–1% |
| Axis BankQuick sanction letters | Bank | 9.30% | ₹75 L | Up to ₹40 L | 0.75% |
| Bank of BarodaBaroda Scholar for abroad | Bank | 8.85% | ₹1.5 Cr | Up to ₹7.5 L | Nil–0.5% |
| IDFC FIRST BankDigital-first experience | Bank | 9.50% | ₹1 Cr | Up to ₹50 L | 1% |
| InCred FinanceProfile-based underwriting | NBFC | 10.25% | ₹1 Cr | Up to ₹40 L | 1–2% |
Rates are indicative starting points, set by each lender and subject to change. This is not a loan offer.
What affects your rate
Four key factors
Institution & course
Premier universities and high-return courses attract lower rates.
Collateral
Secured loans carry meaningfully lower rates than unsecured ones.
Co-applicant profile
A strong income and credit score reduce the perceived risk.
Loan amount & tenure
Larger amounts and longer tenures can shift the applicable rate.
FAQs
Interest rate FAQs
What is a good education loan interest rate?
For secured loans, rates from around 8.5%–10% p.a. are competitive. Unsecured loans typically range higher, from roughly 10%–13% p.a., depending on your profile.
Are education loan rates fixed or floating?
Most education loans are floating-rate, linked to a benchmark (like the repo rate or lender's MCLR) plus a spread. Some lenders offer fixed-rate options.
Can I reduce my interest rate?
Yes — offering collateral, adding a strong co-applicant, choosing a shorter tenure, and paying simple interest during the moratorium can all lower your effective cost.
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