Education Loan Interest Rates — All Banks 2026
| Bank | Interest Rate | Max Loan | Max Tenure | Moratorium |
|---|---|---|---|---|
| SBI Scholar Loan | 8.15% p.a. | ₹1.5 Crore | 15 years | Course + 1 year |
| Canara Bank Vidya Turant | 8.85% p.a. | ₹40 Lakh | 15 years | Course + 1 year |
| Bank of Baroda Baroda Vidya | 9.70% p.a. | ₹80 Lakh | 15 years | Course + 1 year |
| ICICI Bank Education Loan | 10.50% p.a. | ₹1 Crore | 10 years | Course + 6 months |
| HDFC Credila | 11.00% p.a. | No limit | 15 years | Course + 6 months |
| Axis Bank Education Loan | 13.70% p.a. | ₹75 Lakh | 15 years | Course + 1 year |
| Punjab National Bank | 9.25% p.a. | ₹20 Lakh | 15 years | Course + 1 year |
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Education Loan EMI Table — ₹5 Lakh to ₹50 Lakh
| Loan Amount | 5 Years @ 8.15% | 10 Years @ 8.15% | 15 Years @ 8.15% |
|---|---|---|---|
| ₹5,00,000 | ₹10,173/mo | ₹6,109/mo | ₹4,836/mo |
| ₹10,00,000 | ₹20,346/mo | ₹12,218/mo | ₹9,671/mo |
| ₹20,00,000 | ₹40,692/mo | ₹24,436/mo | ₹19,343/mo |
| ₹30,00,000 | ₹61,038/mo | ₹36,654/mo | ₹29,014/mo |
| ₹50,00,000 | ₹1,01,730/mo | ₹61,090/mo | ₹48,357/mo |
What is a Moratorium Period in Education Loan?
A moratorium period is a repayment holiday given to education loan borrowers. During this period — which typically covers the entire course duration plus 6 months to 1 year after graduation — you are NOT required to pay EMI.
However, interest continues to accrue during moratorium. You can either:
- Pay interest during moratorium — reduces total repayment burden significantly
- Let interest accumulate — gets added to principal, increasing your EMI after moratorium
Education Loan Tax Benefits — Section 80E
The entire interest paid on education loan is tax deductible under Section 80E — with NO upper limit! This is available for 8 consecutive years starting from the year you begin repayment.
| Feature | Section 80E Details |
|---|---|
| Deduction | 100% of interest paid (no upper limit) |
| Duration | 8 consecutive years from repayment start |
| Who can claim | Individual borrower OR parent/spouse |
| Principal deduction | Not available under 80E |
| Courses covered | Higher education in India or abroad |
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Study Loan vs Personal Loan — Which is Better?
| Feature | Education Loan | Personal Loan |
|---|---|---|
| Interest Rate | 8-14% p.a. | 12-24% p.a. |
| Moratorium Period | ✅ Course + 6-12 months | ❌ No moratorium |
| Tax Benefit | ✅ 80E — full interest deduction | ❌ No tax benefit |
| Collateral | Required above ₹7.5L (most banks) | Not required |
| Max Amount | Up to ₹1.5 Crore (abroad) | Typically up to ₹50L |
| Verdict | Education Loan wins in every parameter for education purpose | |
Frequently Asked Questions
What is the maximum education loan I can get in India? +
SBI gives up to ₹1.5 Crore for abroad studies and ₹40 Lakh for India without collateral. HDFC Credila has no upper limit for top colleges. For premier institutions like IIMs, IITs — banks offer up to ₹50 Lakh without collateral.
Do I need collateral for education loan? +
Loans up to ₹4 Lakh: No collateral needed. ₹4-7.5 Lakh: Third-party guarantee required. Above ₹7.5 Lakh: Tangible collateral like property required. Some banks waive collateral for IIT/IIM/NIT students.
Can I claim tax benefit on education loan for my child? +
Yes! Under Section 80E, either the student or parent/spouse who took the loan can claim the full interest deduction. The deduction is available for 8 consecutive years from the year repayment starts.
What happens if I can't repay education loan after graduation? +
Contact your bank immediately. Most banks offer restructuring, additional moratorium during job search (6-12 months), or income-based repayment options. Defaulting on education loan damages CIBIL score significantly.
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