Which Bank is Best for Education Loan in India? Should you take an education loan?

Education Loan: Many Indian students want to study abroad to receive a high-quality education. The best means to pay for the cost of studying abroad are generally considered to be education loans, whether in India or elsewhere in the world. Given the rising number of outbound students, several banks offer low-interest education loans for studies overseas. If you’re looking for one for yourself, you can discover a detailed blog with a list of the top education loans in India here.

List of Education Loans

Name of BankInterest Rate for Indian UniversitiesInterest Rate for Study Abroad
Axis Bank13.70%13.70%
Bank of Baroda7.70%8.35%
Bank of India9.05%9.05%
Canara Bank8.50%8.50%
Central Bank of India8.50%8.50%
Federal Bank10.65%10.65%
IDBI Bank6.90%8.40%
Indian Overseas Bank10.65%10.65%
Panjab National Bank7.05%8.80%
State Bank of India7.00%8.80%
UCO Bank9.30%9.30%
Union Bank of India8.40%8.05%

Should you take an Education Loan?

Education Loan Eligibility Criteria


> Indian citizens

> Non-Indian Residents (NRIs)

> Overseas Citizens of India (OCI)

> Persons of Indian Origin (PIOs)

> Students born to Indian parents abroad and wish to study in India


> Undergraduate programs

> Postgraduate programs

> Doctoral courses and PhDs

> Certificate courses of 6 months or longer duration

> Job-oriented courses

> Technical/diploma/professional courses


> Recognized institutions and government colleges

> Private institutes aided by government

> Professional institutions

> International colleges and universities


> Collateral-free loans up to Rs.7.5 lakh from leading lenders

> Collateral-free loans up to Rs.40 lakh for select courses/institutions from select lenders

Acceptable collateral: Residential or commercial property or plot, fixed deposits, insurance

Loan amount: Up to Rs.1 crore

Document Required for Education Loan

> Admission letter from the educational institution

> Marksheets (previous education – school/college)

> Age proof

> ID proof

> Address proof

> Signature proof

> Salary slips

> Recent bank account statements

> ITR with the income computation

> Audited balance sheet

> Recent bank statements

> Proof of turnover (service tax return/sales receipt)

> Completed application form with signature

> Latest passport-size photographs

> Appropriate Visa for studies abroad

How to Apply for Education Loan Online or Offline

Education Loan can be applied in 2 ways. One is Online and the other is offline.

Online method

Step 1: The simplest and most practical method of applying is this one. There are two ways to submit an online application. The first is a simple online application form that you fill out, attach the required paperwork, and submit.

Step 2: The second scenario is where you apply by submitting all the necessary information, and the lender contacts you to go through the loan’s terms before moving forward with the application.

Offline method

Step 1: Visit a Branch: You can apply for a loan in person by going to your local branch with the required paperwork, speaking with a representative about the terms of the loan, filling out the application, and submitting it.

Step 2: Call the Lender: If you’re interested, you may either call the lender or ask for a callback. After that, you can discuss the loan’s terms and submit an application.

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