Education Loan 2026: 8 Banks With the Lowest Interest for Students
Find the lowest interest rates for education loans in India for 2026.
Securing an education loan is a key step for many students pursuing higher education. Interest rates significantly impact the total repayment amount. This report details eight banks offering competitive education loan interest rates for 2026.
01State Bank of India (SBI)Interest Rate: ~8.50% p.a.
State Bank of India is a major public sector bank in India. It offers education loans for various courses, both domestic and international. Loan amounts and repayment terms vary based on the course and collateral.
02Bank of BarodaInterest Rate: ~8.65% p.a.
Bank of Baroda provides education loans under its Baroda Scholar and Baroda Gyan schemes. These schemes cover tuition fees, accommodation, and other study-related expenses. Interest rates are often linked to the bank’s MCLR.
03Union Bank of IndiaInterest Rate: ~8.70% p.a.
Union Bank of India offers education loans for professional and technical courses in India and abroad. The bank provides flexible repayment options, including a moratorium period. Collateral requirements depend on the loan amount.
04Punjab National Bank (PNB)Interest Rate: ~8.75% p.a.
Punjab National Bank’s PNB Saraswati and PNB Pratibha schemes cater to students seeking higher education. They cover all sorts of expenses, including books and equipment. The bank offers concessions for female students.
05Canara BankInterest Rate: ~8.80% p.a.
Canara Bank provides education loans with competitive interest rates for both undergraduate and postgraduate studies. The loan covers tuition fees, hostel fees, and examination fees. Repayment typically begins after the course completion and a grace period.
06HDFC BankInterest Rate: ~9.25% p.a.
HDFC Bank offers education loans for various courses, including those for vocational training and executive management. The bank provides quick processing and doorstep service. Interest rates are generally floating and linked to the bank’s benchmark.
07ICICI BankInterest Rate: ~9.50% p.a.
ICICI Bank provides education loans for higher studies in India and abroad. They offer customized solutions based on the student’s profile and course. The bank also provides tax benefits under Section 80E of the Income Tax Act.
08Axis BankInterest Rate: ~9.70% p.a.
Axis Bank offers education loans for a wide range of courses, including professional and technical programs. The bank provides flexible repayment tenures and quick disbursal. Collateral may be required for higher loan amounts.
Find the Best Education Loan for Your Future
Compare interest rates, eligibility criteria, and repayment options from leading banks. Make an informed decision for your academic journey.
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