11 Best Banks for Education Loan in India 2023 - Cash Flow (2023)

Let's check11 Best Education Loans in India.

Best banks for education loans in India


# 1. HDFC Bank Education Loan

11 Best Banks for Education Loan in India 2023 - Cash Flow (1)

Credit limit:make Rs. 150 lakhs

HDFC Bank provides education loans for studies in India and abroad. The maximum loan amount for studying in India is limited to Rs. 50 lakhs.

On the other hand, the entire study cost is covered by the study abroad loan, without an upper limit. But you must provide the bank with collateral in the form of a fixed deposit or real estate.

DiagramInterest rate
Education Loan for Indian Education9,55% do 13,25%
Education loan for foreign education9,55% do 13,25%

The loan is granted for a maximum period of 14 years (including moratorium) and is paid directly to the institution based on the fee structure.

HDFC Bank does not have a specific educational loan program for skill development courses. That is why they recommend a personal loan for skill development courses.


  • Lower interest rates
  • Fast processing


  • 1% loan servicing fee
  • Smaller loan amount to study in India

HDFC usually takes two to three days to process your loan application and disburse the loan amount.

Professional advice:If you have premiumsavings bank account,current accountor good long term banking relationship with HDFC then chances of approval are high.

#2. Axis Bank Education Loan

11 Best Banks for Education Loan in India 2023 - Cash Flow (2)

Maximum credit limit:up to 100% of total education costs

Education loans start with the IRS. 50,000. The upper limit depends on your needs and rights.

Axis funds education loan only for graduation or postgraduate studies for students who have secured at least 50% marks in HSC or Graduation.

Education loan amountInterest rate
Do Rs. 4 lakh15,20%
More than Rs. 4 lakhs to Rs. 7.5 lakhs14,70%
More than Rs. 7.5 lakhs13,70%

Axis Bank gives more preference to parent profile. The bank imposed on parents the obligation to prove a permanent source of income.


  • Fast processing of your loan application
  • Larger loan amount up to 100% of education costs
  • ZIL prepayment fees


  • Visoka kamata.
  • 24% annual default interest for late payment.

Professional advice."Before submitting the application, prepare photocopies - related to income and net assets.

Proofs are IT returns of last three years, copy of certificate from CA, sale agreement of property, FD and NSC certificate, bond statement or Demat. "

You might want to know aboutbest home loan bank in india.

#3. Union Bank of India Education Loan

11 Best Banks for Education Loan in India 2023 - Cash Flow (3)

Maximum approved loan for education:Need-based financing (max. SEK 150)

Union Bank of India has 4 different broad categories of education loan programs -

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  • Education Loan for Courses in India
  • Educational loan for courses abroad
  • Education Loan for Top Management and Technical Institutions (India)
  • Education Loan for Tier II Management and Technical Institutions (India)

Union Bank does not charge any education loan processing fees to Indian students, irrespective of the loan amount.

But he is lookinglife insuranceequivalent to the loan amount. So, you need to buy life insurance to get an education loan.

Education Loan ProgramInterest rate
Courses in Indiaup to 12.55% depending on the loan amount
Courses abroadup to 10.80% depending on the loan amount
For Top Management and Technical Institutions (India) Skill Development Coursesdo 10,80%
For Tier II Management and Technical Bodies (India)do 10,80%


  • There are no manipulative costs.
  • Lower interest rate
  • Preferential interest rate of 0.50% for female students


  • Slow processing and documentation process.
  • Compulsory purchase of life insurance

Professional advice:“Union Bank covers education loans under the Loan Guarantee Fund program. So you have to submit detailed information about all candidates like KYC documents, valid income proof, allotment letter and detailed fee structure.

If possible, open a savings or deposit account (FD or RD).

#4. IDBI Bank Loan for Education

11 Best Banks for Education Loan in India 2023 - Cash Flow (4)

Offered loan amount:Up to Rs. 20 Lakhs to study in India and Rs. 30 Lakhs for overseas education

If you are planning to get education loan for AICTE, UGC, ICMR and government approved courses, work oriented courses and technical diploma courses then you should check IDBI Bank Education Loan.

IDBI bank also offers education loan for students who secure admission through management limit.

Repayment terms extend up to 15 years, but you must offer material security for an education loan amount of more than Rs. 7.5 lakhs.

Education Loan ProgramInterest rate
Education loan for non-professional coursesDo Rs. 7,5 lakh – 10,60%
More than Rs. 7.5 lakh - 11.10%
Education Loan for Vocational/Skill Development CoursesFor all amounts - 11%
Education loan for top educational institutions (including ISB)For all amounts – 9.10%


  • Lower interest rates on loans for the best institutes.
  • ZIL processing fees for studying in India.
  • ZIL enforcement fees


  • 1.33 times tangible collateral required for loan amount exceeding Rs.7.5 lakh
  • Slow loan processing.

Go for IDBI Bank for education loan if you are sure of getting admission in any of the top institutes and have adequate (1.33 times) collateral for easy approval.

#5. Loan for advanced education

11 Best Banks for Education Loan in India 2023 - Cash Flow (5)

Maximum loan amount:Based on needs with no upper limit. Minimum - Rs. 1 Lac to study in India.

Avanse Financial Services is an RBI regulated NBFC focused on providing affordable education loans to students in India.

Global PE Warburg Pincus owns 80% of Avanse. You can apply for all types of education loans with Avanse, like a loan for -

  • Studies in India
  • International studies
  • Professional courses
  • Tuition financing and even
  • Education loan for e-learning

Avanse provides up to 100% financing, fast processing and direct service.

Education Loan ProgramInterest rate
Educational loan for domestic and foreign studiesBase advance rate + spread.
Which can go up to 18%


  • Up to 100% of the loan amount
  • Less paperwork and fast processing
  • Educational loan and for e-learning


  • Visoka kamata
  • 1% - 2% manipulative fees
  • No prepayment for the first 6 months

You should use an Advance Education Loan if you have been denied a loan by private and public banks or want to finance e-learning courses.

Best banks for education loan in India to study abroad

#6. State Bank of India Education Loan

11 Best Banks for Education Loan in India 2023 - Cash Flow (6)

Maximum loan amount:make Rs. 1.5 crowns

SBI provides education loans up to Rs. 1.50 crore under the SBI Global Ed-Vantage study abroad program.

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The courses include vocational and technical courses, PG and graduate courses like MCA, MBA and MS from reputed university. Certification courses run by CIMA-London and CPA-US are also eligible for education credits.

SBI also offers one of the lowest interest rates for education loans in India.

The SBI Scholar Loan Scheme is exclusively for successful students who wish to pursue professional/technical courses at premier institutions such as IITs, IIMs and NITs.

Education Loan ProgramInterest rate
SBI student loan program11,15%
Program SBI Scholar Loan8,55% do 10,05%
SBI Skills Loan Program10,65%
SBI Global Ed vantage shema11,15%


  • 8.55% low interest rate on old IITs
  • NO handling charges up to 20 lakh
  • Various credit systems


  • High processing time
  • Margin of 15% for studies abroad

Professional advice: "A personal guarantee for your loan from a reputable person has an added advantage”.

#7. Punjab National Bank Education Loan

11 Best Banks for Education Loan in India 2023 - Cash Flow (7)

Maximum credit limit:There is no upper limit, it depends on the ability to repay and the margin

PNB Udaan is an exclusive loan program to support deserving students to pursue higher education abroad at renowned universities. Diploma (job oriented), PG (MCA, MS and MBA), CIMA, CPA and Diploma courses in Aviation, Pilot Training and Shipping are eligible for loan.

For domestic studies, Punjab National Bank offers many educational loans.

  • PNB Saraswati is a common model of IBA education loan for deserving students.
  • The PNB Prathibha program is designed for students who wish to pursue their studies at higher education institutions such as IITs, NITs and other top business schools.

For vocational and skill development courses you have the PNB Kaushal loan scheme.

PNB also has area-specific lending programs such as PNB Honhaar for students from Delhi and PNB Bihar Student credit card program to support students from Bihar. They have a special program with preferential interest for people with disabilities.

Even a program to help smaller communities study abroad through the Padho Pardesh scholarship program.

Education Loan ProgramInterest rate
Shema PNB Saraswatimake 12%
PNB Udaanmake 12%
PNB Prathibha8,55% do 10,50%
PNB Kauszal10,75%


  • Low return on investment
  • ZIL processing fees for studying in India
  • Wide range of education loan programs


  • Tedious paperwork and tracking
  • 15% margin on Rs. 4 varnish

PNB prefers those who already have a salary or pension account with them. The fee must be paid into the account for at least the last five years

#8. ICICI Bank Education Loan

11 Best Banks for Education Loan in India 2023 - Cash Flow (8)

Get the maximum loan amount– make Rs. 2 cry

ICICI Bank offers education loans up to Rs. 1 Crore to study in India and up to Rs. 2 million for studies on board.

One of the key benefits is that you don't need to hold any collateral for education loans up to Rs. 40 Lakhs (Unsecured Education Loans).

The main disadvantage of ICICI education loans is that the repayment period (moratorium) is limited to 6 months after the completion of the course, regardless of employment status.

Education Loan ProgramInterest rate
Educational loan for domestic and foreign studies9,50% – 15,85%


  • High loan amount
  • Less paperwork and fast processing
  • No margin up to Rs. 40 lakhs


  • Visoka kamata
  • Hidden fees

ICICI Bank prefers to provide high net worth education loans to parents.

If you have a net worth of more than Rs. 1 Crore, you can apply for an unsecured loan of up to Rs. 40 lakhs.

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#9. South Indian Bank Education Loan

11 Best Banks for Education Loan in India 2023 - Cash Flow (9)

Maximum loan amount –up to Rs. 1.5 Crores for global education

You can get overseas education loan from South Indian Bank (SIB) for pursuing regular UG/PG/PhD studies and diploma, skill development courses abroad for more than one year.

The SIB Global Education Program provides funding for tuition, exams, library and laboratory fees, travel expenses, hostel,health insuranceand book costs.

Professionals up to the age of 50 are eligible for credit, and SIB offers a 0.5 percent discount for borrowers.

Education Loan ProgramInterest rate
SIB Global Education Scheme (repo rate + 6.40% to 7.15%)12,90% – 13,65%


  • High loan amount up to 1.5 kroner
  • Includes diplomas and skill development courses
  • Maximum age of application up to 50 years


  • A high margin of 25% is required.
  • 100% of the collateral equal to the loan amount plus the required interest
  • SIB reimburses the costs of the course and accommodation within one year with proof

SIB looks for high net worth and adequate collateral when processing a global education loan

Best Education Bank Loan in India for Vocational Courses and Skill Upgrading.

#10. Canara Bank Education Loan

11 Best Banks for Education Loan in India 2023 - Cash Flow (10)

Maximum loan amount –Rs. 1.5 lakh for skill development. Need-based financing for others.

Canara Bank provides need based financing under "IBA Skill Loan Scheme" for vocational education and training.

The minimum and maximum amount you can receive is Rs. 5000 to Rs. 1.5 lakhs.

For other types of education loans, Canara Bank uses the IBA education loan model. The amount of credit you will receive depends on your needs and may be extended by the IRS. 40 Lakhs for top institutes like ISB-Hyderabad.

For students who wish to pursue professional courses at select premier institutions, they offer a maximum loan of up to Rs. 50 Lakhs under Vidya Turant Scheme.

Canara Bank does not have special programs for foreign undergraduates with a higher credit limit. Obtaining a larger loan amount (more than in the IBA model) is therefore very difficult.

They have an education loan of up to Rs. 1 Crore for Masters in STEM (Science, Technology, Engineering and Management courses).

Education Loan ProgramInterest rate
Educational loan for master's studies abroad at a selected, top-rated university10,85% – 11,35%
Scheme based on IBA10,65%
Shema Vidya Sagara10,85% – 11,25%
Vidya Turant9,25% – 9,85%


  • Low interest rate under the Vidya Turant program
  • Low handling fees.
  • Discount of 0.50% ROI for female students.


  • Low loan amount
  • Tedious paperwork when processing loans.

Professional advice:Your loan application can be processed quickly if you offer collateral that covers 100% of the loan amount.

Best Education Bank Loan in India for School Fee

#11. Bank of Baroda Education Loan

11 Best Banks for Education Loan in India 2023 - Cash Flow (11)

Maximum credit limit:Rs. 4 lakhs for school fees. Up to 150 lakhs for other education loans.

Bank of Baroda provides education loans for school education from Kindergarten to 12th Std under the Baroda Vidya scheme. This program helps economically backward students to get basic education in a reputable school.

The maximum loan amount is PLN 1,000. 4 lakhs and the loan should be repaid in 12 installments. Bank of Baroda does not charge processing fees for any of its educational programs.

Other education loans include Baroda Gyan (up to 125 lakh) for higher education in India, Baroda Scholar (up to 150 lakh) for study abroad.

Education Loan ProgramInterest rate
Baroda Gyan (program IBA)11,05% – 11,15%
Baroda Vidya12,50%
Scholar of Baroda10.40% to 11.15% (institutional)
Education loan for the best institutions9.15% to 10.20% (depending on the institution and amount)
Skills Loan Program.10,65%


  • Competitive interest rate.
  • A good selection of educational loan products.
  • There is no handling fee.


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  • Slow processing of loan applications.

Professional advice: "A personal guarantee from an existing valued client helps you apply for a loan.

Factors Involved in Approving Best Education Loan in India 2023

# 1. CIBIL result

The first step should be to check the CIBIL score and make sure that the report is error-free.

“A good CIBIL report with a score of 700+ is a ticket for a loan application.

If you or your co-applicant do not have a good CIBIL score, the bank may reject your loan application.

#2. Eligibility for study and university

Only accredited vocational, technical and UG/PG courses from recognized universities (approved by UGC/AICTE) are eligible.

So, before applying for a student loan, you should check the type of study and the university.

In the case of vocational courses, additionally check the Bank's offer of educational loans.

For example, you cannot take education credit for a beautician course from XYZ Wedding Institute.

Diploma in beautician is not a professional course and the institute conducting the course is also not recognized by UGC and AICTE.

#3. Eligible educational expenses

All costs listed in the fee structure are not included in bank financing.

For example, the price of a school bus ticket is not included in the calculation of eligible expenses. But the cost of traveling abroad to the place where the university is taken into account.

Banks take into account the costs that are necessary to complete the course in order to obtain the loan amount.

#4. Professional advice

Get a detailed fee structure from the university, broken down by spending data, and submit it with your loan application.

#5. Co-borrower/personal guarantor

In the case of a minor student, you and your spouse will be co-borrowers.

In the case of a large student, each parent with a source of income will become a joint borrower.

If the loan amount exceeds 100,000 4 lakhs, the Bank will insist on a third party guarantee, which is a guarantee from a reputable person who is not related to you.

"If you properly disclose your net worth with supporting documentation at the time of application, the Bank may consider waiving the third party guarantee clause."

#6. Tangible security

If you are looking for a loan of 1000 PLN. 7.5 lakh and above, you have to secure the loan by providing collateral. Collateral should be tangible assets such as FD bonds, LIC bonds, NSC bonds, shares, debentures and real estate.

"List your collateral clearly and prepare photocopies of all supporting documents relating to the collateral."

#7. Annual leave for repayment

You have two options for paying off your education loan. One of them is the repayment of the installment after completing the course and employment.

Another is to pay monthly interest and receive holiday installments for the principal until you complete the course.

Leave is granted up to one year after graduation or up to six months after starting work, whichever comes first.

"In the loan application, you must state that you are ready to pay the monthly interest and provide a source of income. This will show your intention to repay the education loan.


If you are looking for a larger amount of study abroad loan, you can consider applying with SBI (Rs. 1.5 Crores).

But if you are looking for quick processing and a higher amount, you can apply for an education loan with ICICI Bank (up to 2 million rupees).



Which bank gives lowest interest rate for education loan in India 2023? ›

Summary: Best Education Loan in April 2023
CompanyForbes Advisor RatingInterest Rate Range
Punjab National Bank4.58.55% to 11.25%
Bank of Baroda4.09.10% to 12.45%
ICICI Bank4.09.50% onwards
Bank of India4.08.25% to 11.60%
1 more row

Which bank in India gives best education loan? ›

Best Education Loan in India 2023
S.No.Best Education Loan in India
1.Punjab National Bank Education Loan
2.SBI Education Loan
3.Axis Bank Education Loan
4.Bank of Baroda Education Loan
1 more row

What will student loan interest rates be in 2023? ›

Direct Loan Interest Rates for 2023-2024
Loan Type10-Year Treasury Note High YieldFixed Interest Rate
Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduate Students3.448%5.50%
Direct Unsubsidized Loans for Graduate and Professional Students3.448%7.05%
1 more row
May 16, 2023

Which bank is best for education loan abroad? ›

Best Abroad Education Loans Schemes in 2023
  1. The State Bank of India: SBI Global Ed-Vantage Scheme. ...
  2. The Bank of Baroda: Baroda Scholar Scheme. ...
  3. The Punjab National Bank: PNB Udaan Scheme. ...
  4. Canara Bank: IBA Model Loan Product For Higher Studies Abroad.
May 23, 2023

Which bank approves fastest education loan? ›

Bank of Baroda offers various education loans at attractive interest rates with repayment tenure of up to 15 years. No collateral needs to be provided for education loans of up to Rs. 40.00 lakh for the identified premier institutes.

Can I get 1 crore education loan in India? ›

Students can avail of a loan of up to INR 1.5 crore and have to repay it within 15 years. The borrowers need to provide collateral to secure this loan and will have to start repayment after 6 months of completion of the course.

Which bank provides cheapest education loan in India? ›

If you are looking for an educational loan at lower interest rates, then you may consider applying to banks like the State Bank of India, Punjab National Bank, Bank of Baroda, Union Bank of India, Central Bank of India etc.

Which private bank is best for education loan without collateral? ›

Top Lenders to Apply for Education Loan without Collateral

Some prominent lenders include: Public banks like SBI, Bank of Baroda, etc offer applicants with a loan of upto 7.5 Lakhs without collateral. Private banks like Axis Bank, ICICI Bank, HDFC, etc offer students a loan amount upto 40 lakhs without collateral.

Which is fastest education loan in India? ›

No education loans are not interest-free. The fastest education loan in India is provided by the Bank of Baroda. The loan is processed in the Bank of Baroda within 15 days.

Will loan rates go down in 2023? ›

We expect that 30-year mortgage rates will end 2023 at 5.2%,” the organization noted in its forecast commentary. It since has walked back its forecast slightly but still sees rates dipping below 6%, to 5.6%, by the end of the year.

Will interest rates go down in 2023 or 2024? ›

These organizations predict that mortgage rates will decline through the first quarter of 2024. Fannie Mae, Mortgage Bankers Association and National Association of Realtors expect mortgage rates to drop through the first quarter of 2024, by half a percentage point to about nine-tenths of a percentage point.

Will student loan rates go up in 2023? ›

The interest rate on direct undergraduate federal student loans — which are determined by Congress each year — will increase to 5.5% from 4.99% for loans disbursed on or after July 1, 2023, an Education Department spokesperson confirmed.

Is it better to take education loan from India or abroad? ›

Indian lenders can offer higher loan amounts than international lenders because they have a better understanding of the cost of education in India/ Abroad.

Can I get a student loan to study in USA? ›

Student loans are available to students planning to study overseas. International student loans are available to non-US citizens studying at a college or university in the United States.

Which Bank has lowest interest rate on international education loan? ›

Compare Education Loan Interest Rates to Study Abroad
BankSecured Loan Interest RateUnsecured Loan Interest Rate
Axis Bank9.9%10.4 - 11.25%
ICICI Bank9.5%10.4 - 11.25%
IDFC First BankNA11 - 12.5%
7 more rows

Which private bank is best for education loan? ›

11 Best Banks for Education Loan in India 2023
  • #1. HDFC Bank Education Loan.
  • #2. Axis Bank Education Loan.
  • #3. Union Bank of India Education Loan.
  • #4. IDBI Bank Education Loan.
  • #5. Avanse Education Loan.
  • #6. State Bank of India Education Loan.
  • #7. Punjab National Bank Education Loan.
  • #8. ICICI Bank Education Loan.
Apr 6, 2023

Can I get 40 lakhs education loan in India? ›

In the case of an unsecured education loan the amount can go upto 50 Lakhs INR while in the case of a secured education loan, the amount can go upto 85% of the collateral pledged.

Who holds the most student loans? ›

Most student loans — about 92%, according to a December 2021 report by MeasureOne, an academic data firm — are owned by the U.S. Department of Education.

Can an Indian take education loan in USA? ›

Education Loan For Studies in the USA

The loan will be disbursed in India in Indian Rupees wherever required by student. Repayments of the loan to be made by the borrower in Indian Rupees only.

Can I get 20 lakhs education loan without collateral in India? ›

Education loan without collateral or non-collateral education loan is taken without putting any collateral as a gaurantee to the lender. That means applicants can take a loan without any security such as house, land or anything. Students can take up to 50 Lakhs for their education.

Can I get 60 lakh education loan in India? ›

Axis Bank India offers education loans at attractive interest rates for a loan amount ranging from Rs 50,000 to Rs 75 lakh.

Is education loan tax free in India? ›

The interest you pay on an education loan is entirely tax-free for eight years, as you can claim tax deductions against it. However, this is applicable only for the interest amount paid, not the entire loan amount.

What is the maximum interest rate for education loan in India? ›

The interest rates will be floating for entire period of loan
Loan LimitEBREffective Interest Rate
Above Rs. 7.50 lacs & Upto Rs 1.5 Cr9.15%11.15%
Concession0.50% concession for students availing of SBI Rinn Raksha or any other existing life policy assigned in favour of our Bank
1 more row

Is education loan worth it in India? ›

You will save on a lot of interest. Tax Benefits:You can avail of tax benefits under Section 80E of the Income Tax Act on the interest you pay on your educational loan. To be eligible for this deduction, your loan should be taken from an Indian scheduled bank or a gazetted financial institution.

What are 3 common types of private student loans? ›

There are many types of private student loans, including degree-specific loans, international student loans, and bad credit loans.

How to avoid private student loans? ›

How to avoid student loans — before attending college
  1. Start or amp up your saving now.
  2. Consider shortening your route to a degree.
  3. Include inexpensive colleges on your college list.
  4. File your FAFSA and seek out grants.
  5. Apply for school, private scholarships too.
  6. Negotiate your financial aid package.

Is it better to take a loan from a private Bank to pay for college tuition? ›

Unlike federal student loans, private loans typically don't come with benefits like income-driven repayment plans and loan forgiveness options — which is why it's best to apply for federal student loans first.

How to get education loan easily in India? ›

Checklist of Documents to be submitted along-with duly filled Loan Application Form
  1. Mark sheet of 10th, 12th, Graduation (if applicable), Entrance Exam Result.
  2. Proof of admission to course [ Offer Letter/ Admission Letter/ ID card if available]
  3. Schedule of expenses for course.

How much salary required for education loan in India? ›

Income Amount

Individuals earning at least INR 30,000 per month are considered eligible to be named as education loan co-applicants. Lenders do consider individuals who earn lesser monthly salaries as co-applicants. However, INR 30,000 is the recommended minimum monthly salary.

How can I repay my education loan faster in India? ›

6 Best Tips to Repay Your Student Loan Early
  1. Choose the right repayment plan.
  2. Opt for a shorter loan tenure.
  3. Set up automatic payments.
  4. Pay off interest during the moratorium.
  5. Make extra payments towards your loan.
Nov 10, 2022

How high will bank interest rates go in 2023? ›

With rising federal funds rates comes an increase in savings interest rates. Federal Reserve Board members and Federal Reserve Bank presidents predict the federal funds rate will reach between 3.9% and 4.9% in 2023.

How high will interest rates be in 2023? ›

So far in 2023, the Fed raised rates 0.25 percentage points twice. If they hike rates at the May meeting, it is likely to be another 0.25% jump, meaning interest rates will have increased by 0.75% in 2023, up to 5.25%.

Will interest go up again in 2023? ›

The mortgage interest rate forecast for June 2023 is for rates to continue to rise as inflationary pressures persist and the economy remains surprisingly resilient. The mortgage market is in a defensive position as it ponders whether the Federal Reserve will need to hike rates more aggressively to quash inflation.

What will interest rates be in 2025? ›

The predictions made by the various analysts and banks provide insight into what the financial markets anticipate for interest rates over the next few years. Based on recent data, Trading Economics predicts a rise to 5% in 2023 before falling back down to 4.25% in 2024 and 3.25% in 2025.

What is the 2023 average student loan debt? ›

In a January 2023 report, their analysis showed that the average debt per borrower was over $37,000 for federal student loans and nearly $55,000 for private loans.

What is the forecast for student loan rates? ›

Current student loan interest rates
Academic yearUndergraduateGraduate
6 more rows
May 16, 2023

Why is it so hard to pay off student loans? ›

If you're wondering, why do student loans take so long to pay off? Capitalized interest may be the culprit. Complicating the issue is the fact that borrowers who opt for an income-driven repayment plan after graduating may not be earning enough to keep up with the total interest accrued.

Is it better to take student loan in India or USA? ›

Interest rate-

In case you avail the loan from the US bank there is always an issue of INR to US dollar conversion rate and vice versa. It is always better to take an education loan from Indian lenders as then there is no hassle of the exchange rate, conversion rate etc. public banks like PNB, SBI etc.

Can NRI get student loan in India? ›

Need based finance to meet the expenses will be considered taking into account margins norms. There is no restriction on maximum amount of loan that can be sanctioned under the education loan scheme. For NRI students Maximum quantum Rs.20 Lakhs & Rs.30 Lakhs for premium institutes.

Why education loan is costly in India? ›

Personal loans and student loans are considered as unsecured debt. Any funds loaned under these products are not guaranteed by any collateral. Whereas home loans and car loans are secured loans. This is the reason that private banks do not indulge much in education loans.

How much is a student loan in USA? ›

If you are an undergraduate student, the maximum amount you can borrow each year in Direct Subsidized Loans and Direct Unsubsidized Loans ranges from $5,500 to $12,500 per year, depending on what year you are in school and your dependency status.

How much loan should I take to study in USA? ›

Taking the average, cost of an MS degree at private universities in the USA ranges from USD 25,000 to USD 50,000 per year (approximately INR 17 lakhs - 35 lakhs in Indian currency).

Who is eligible for student loan in USA? ›

Anyone who is enrolled in a degree, certificate, or other approved program at an eligible school and is a U.S. citizen or eligible non-citizen. In addition, in most cases, borrowers must have a high school diploma or equivalency.

Which bank has lowest interest rate on education loan in India 2023? ›

Compare Top Education Loan Offers 2023
Name of BankInterest Rate (p.a.)
SBI8.50% onwards
Axis Bank13.70% to 15.20%
Bank of Baroda11.05% to 11.15%
HDFC BankPreferential rates as per the college or the university
3 more rows

Which foreign bank gives highest interest rate? ›

Foreign Banks Fixed Deposit Rates
Bank NameInterest Rates for Tenure 1-2 yearsInterest Rates for Tenure 3-5 years
Standard Chartered Bank7.25%% - 7.35%6.75%
HSBC Bank4.00% - 4.25%4.25% - 7.50%
Deutsche Bank7.00% - 7.50%7.75% - 7.00%
DBS Bank6.25% - 7.25%6.50%
7 more rows

Which government bank gives education loan with lowest interest rate? ›

Central Bank of India provides education loans for students in India and abroad. The lowest interest rate provided by the Central Bank of India is 6.85%.

Which bank takes lowest interest on education loan? ›

Bank of India
Education Loan SchemesInterest Rates (p.a.)
Bank of India Star Vidya Loan9.20%
Bank of India Star Education Loan10.95% to 11.75%
Bank of India Education Loan Abroad10.95% to 11.75%

Where will bank interest rates be in 2023? ›

Federal Reserve Board members and Federal Reserve Bank presidents predict the federal funds rate will reach between 3.9% and 4.9% in 2023.

What is the rate of interest in 2023 in India? ›

FD Interest Rates 2023

FD interest rates in India offered by SBI and PNB banks are as high as 7.00% p.a. In addition, top private banks like HDFC and ICICI are providing a maximum FD rate of interest of 7.10% p.a. The leading Unity Small Finance Bank is offering one of the best FD interest rate of 9.00% p.a.

Which bank is best for education loan without collateral? ›

Top Lenders to Apply for Education Loan without Collateral

Some prominent lenders include: Public banks like SBI, Bank of Baroda, etc offer applicants with a loan of upto 7.5 Lakhs without collateral. Private banks like Axis Bank, ICICI Bank, HDFC, etc offer students a loan amount upto 40 lakhs without collateral.

Which student loan doesn t gain interest? ›

Subsidized Loans are loans for undergraduate students with financial need, as determined by your cost of attendance minus expected family contribution and other financial aid (such as grants or scholarships). Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods.

How to get the lowest interest rate on a student loan? ›

Here are some of the top ways to lower your interest rate on student loans.
  1. Set up automatic payments. ...
  2. Look for other discounts. ...
  3. Negotiate with your lender. ...
  4. Refinance your student loans. ...
  5. Get a co-signer. ...
  6. Build your credit.

Are student loans still 0% interest? ›

In this case, your payments would be suspended from April 15, 2022, through the end of the payment pause. The interest rate on your loans will stay at 0% throughout this period. Interest on your loan builds up while you're in school.

Which student loan has the highest interest rate? ›

Learn more about private student loans

If you're still borrowing for your education, the federal student loan interest rate for undergraduates is 4.99% for the 2022-23 school year. Federal rates for unsubsidized graduate student loans and parent loans are higher — 6.54% and 7.54%, respectively.

What will interest rates be in 2023 and 2024? ›

The Fed penciled in a 5-5.25 percent peak interest rate for 2023, after which officials see rates falling to 4.25-4.5 percent by the end of 2024.

Will interest rates come back down in 2023? ›

How High Will Mortgage Rates Go in 2023? While rates climbed slightly higher over the past month, as experts had predicted they would, analysts expect a modest decline ahead. Fannie Mae, for example, forecasts a drop to 6% in the fourth quarter. Here are some factors that will affect rates in 2023.

Will interest rates go down in 2023 in India? ›

Morgan Stanley's report titled 'India Economics - Macro Indicators Chartbook: Growth Sustains Momentum; Macro stability in Check', co-authored by Upasana Chachra and Bani Gambhir, states that the interest rates are expected to remain stable throughout 2023, with any shallow rate cut cycle starting from the first ...

How high will interest rates go by the end of 2023? ›

So far in 2023, the Fed raised rates 0.25 percentage points twice. If they hike rates at the May meeting, it is likely to be another 0.25% jump, meaning interest rates will have increased by 0.75% in 2023, up to 5.25%.

What is the interest rate forecast for India in 2024? ›

The benchmark repo rate is currently at 6.5% and the estimate for a quarter-point cut in January-March 2024 compares with a previous projection of a 50 basis point reduction. The rates could be lowered again in the following quarter, bringing the levels to 6%.


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