Studying in a foreign country is exciting, but managing finances can feel overwhelming. That’s where Spoctree comes in. We help students and parents compare Education Loans from top lenders and find the lowest Education Loan interest rate in India. Let’s learn what an Education Loan interest rate is, what affects it, and how to find the best option for your needs.
What is an Education Loan Interest Rate?
An Education Loan interest rate is the extra cost you pay on top of the amount you borrow from a bank or financial institution. It’s shown as a percentage and can be either fixed (unchanging) or floating (adjusting with market changes). A lower interest rate means a more affordable loan in the long run. That’s why it’s important to compare offers and pick an education loan with the lowest Education Loan interest rate.
Factors That Influence Your Education Loan Interest Rate
Here are a few things that can affect the interest rate on your Education Loan:
- Credit Score: A good credit score can help you secure a lower interest rate.
- Co-applicant’s Profile: Their income and credit history also matter.
- Collateral: If you provide property or fixed deposits as security, you may be eligible for a lower interest rate.
- Loan Amount & Tenure: Higher loan amounts or longer tenures may result in a higher interest rate.
- University & Country: Loans for top universities or safer countries may have lower rates.
- Your Relationship with the Lender: If you already have an account with the bank, you may be eligible for better terms.
Abroad Education Loan Interest Rate by Public Sector Banks
Public sector banks are often the first choice for students looking for affordable Abroad Education Loans. They usually offer the lowest Education Loan interest rate in India, especially for secured loans. These banks also offer longer repayment periods and provide special rates for students attending top universities. However, the paperwork may take longer than at private banks or NBFCs.
Here’s a quick look at interest rates offered by major public sector banks:
| Bank Name | Secured Loan Interest Rate | Unsecured Loan Interest Rate | Max Loan Amount |
| State Bank of India | 11.15% | 11.15% | ₹1.5 Cr (Secured), ₹7.5 L (Unsecured) |
| Bank of Baroda | 10.40% – 10.75% | 11.15% | ₹1.5 Cr (Listed), ₹7.5 L (Unsecured) |
| Bank of India | 11.85% | NA | ₹20 L (Listed Unis), ₹7.5 L (Others) |
| Union Bank of India | 10.80% – 11.40% | 9.55% – 9.80% | ₹1.5 Cr (Secured), ₹40 L (Unsecured) |
| Bank of Maharashtra | 10.20% | 9.45% – 10.45% | ₹1.5 Cr (Secured), ₹7.5 L (Unsecured) |
| Saraswat Bank | 10% – 10.5% | NA | ₹1.5 Cr (Secured) |
Abroad Education Loan Interest Rates by Private Banks
Private sector banks offer fast processing, digital documentation, and flexible repayment options. Although their rates may be slightly higher than those of public banks, they are still competitive and often come with better service. Many private banks offer unsecured loans of up to ₹1 Crore based on your credit history or relationship with the bank.
Here are the top private banks and their interest rates:
| Bank Name | Secured Loan Interest Rate | Unsecured Loan Interest Rate | Max Loan Amount |
| ICICI Bank | 9.85% – 11% | 10.85% – 13% | ₹1.5 Cr (Secured), ₹1 Cr (Unsecured) |
| Axis Bank | 10% – 10.5% | 10.5% – 12% | ₹1.5 Cr (Secured), ₹80 L (Unsecured) |
| IDFC First Bank | 10.5% – 11% | 10.75% – 12.5% | ₹80 L (Secured), ₹60 L (Unsecured) |
Also Read: Best Education Loan in India for Study Abroad: Compare and Choose!
Comparison Table: Lowest Abroad Education Loan Interest Rates in India
Finding the lowest Education Loan interest rate in India can save you lakhs over the repayment period. Below is a comparison across public banks, private banks, NBFCs, and international lenders. This table will help you identify which lender offers the best deal based on your specific needs—whether secured or unsecured, with a high or low loan amount, and with fast processing, among other factors.
| Lender | Type | Lowest Secured Rate | Lowest Unsecured Rate | Max Loan Amount |
| Union Bank | Public | 10.80% | 9.55% | ₹1.5 Cr / ₹40 L (Unsecured) |
| Bank of Maharashtra | Public | 10.20% | 9.45% | ₹1.5 Cr / ₹7.5 L |
| ICICI Bank | Private | 9.85% | 10.85% | ₹1.5 Cr / ₹1 Cr |
| HDFC Credila | NBFC | 10.5% | 11.5% | ₹80 L / ₹60 L |
| MPower Finance | Int’l | NA | 11.99% | ₹85 L (Unsecured Only) |
| Prodigy Finance | Int’l | NA | 12% | ₹85 L (Unsecured Only) |
Use Spoctree’s loan comparison tool to filter by interest rate, funding amount, collateral, and loan term—all in one place!
Tips to Get the Lowest Possible Interest Rate on an Education Loan
To make sure you get the lowest Education Loan interest rate in India, here are a few smart tips:
- Maintain a Strong Credit Score – aim for a score of 750 or higher, if possible.
- Choose a Co-Applicant with Good Credit And Stable Income.
- Offer Collateral (like property or FD) to reduce risk for lenders.
- Apply to Top-Ranked Universities – some banks offer better rates for students attending these institutions.
- Go for Public Sector Banks for lower rates if you're okay with more paperwork.
- Compare Lenders on Spoctree to avoid missing a better deal.
- Negotiate if You’re Already a Customer of the bank.
Being well-prepared increases your chances of getting approved quickly, and with better terms.
Also Read: Types of Abroad Education Loans for Abroad Studies
Conclusion
Choosing the right abroad Education Loan is a key step toward your global study journey. With numerous lenders offering varying terms, it’s essential to compare them wisely. Spoctree helps you explore all your options in one place—whether you’re looking for the lowest Education Loan interest rate or a hassle-free process. Use our tools and expert guidance to make a confident, cost-saving decision today.
