Education Loan Interest Rates 2025 are a crucial topic for AP & Telangana students planning higher studies in India or abroad. Whether you are looking for a Study Abroad Loan Application or a Loan Facility for Online Courses, knowing the interest rates, eligibility, benefits, and repayment options will help you make the right decision.
In this guide, we will explore education loan interest rates in 2025, eligibility criteria, required documents, application process, benefits, EMI calculation, and a comparison of top bank rates. This is designed for students in Andhra Pradesh and Telangana, especially those aiming for high-value courses like MBA, Engineering, Medicine, and Overseas Education.
Overview
An education loan helps students cover tuition fees, living expenses, books, travel costs (for study abroad), and other academic-related charges. In 2025, banks and financial institutions in India are offering competitive education loan interest rates, often with a moratorium period until the completion of studies.
Eligibility
- Indian citizen with confirmed admission to a recognized institution.
- The course must be in India or abroad in a recognized university.
- Co-applicant (parent/guardian) with a stable income source.
- Age between 18–35 years for applicants.
Benefits of Education Loan
- Tax benefits under Section 80E of the Income Tax Act.
- Moratorium period until completion of studies.
- Flexible repayment tenure up to 15 years.
- Special schemes for female students.
- Coverage for tuition, hostel, and other expenses.
Top Bank Education Loan Interest Rates 2025
| Bank | Interest Rate (p.a.) | Loan Amount | Tenure |
|---|---|---|---|
| SBI | 8.30% – 9.20% | Up to ₹1.5 Cr | Up to 15 Years |
| HDFC Bank | 9.00% – 12.00% | Up to ₹40 Lakh | Up to 15 Years |
| Axis Bank | 8.50% – 10.50% | Up to ₹75 Lakh | Up to 15 Years |
| Canara Bank | 8.25% – 9.50% | Up to ₹40 Lakh | Up to 15 Years |
Different Banks’ Students’ Education Loan Benefits
| Bank | Typical Interest Rate (p.a.) | Loan Quantum (typical) | Notes |
|---|---|---|---|
| SBI (State Bank of India) |
7.50% p.a. onwards (scheme-dependent) | Varies — small to large; up to ₹1.5 Crore for select schemes | Rates shown on the SBI education loan page; different schemes have different start rates. |
| HDFC Bank | Starting ~10.50% p.a. (varies by scheme & applicant) | Up to ₹40 Lakh+ (scheme dependent) | Different rates for domestic vs foreign education; check the HDFC scheme page. |
| Axis Bank | Interest linked to MCLR (example MCLR ≈ 9%) — effective rates vary | Flexible — up to high limits for abroad studies | Axis publishes MCLR-based education loan info; final rate depends on spread. |
| Canara Bank (Vidya Turant / IBA schemes) |
Example: 7.10% p.a. (Vidya Turant / select schemes) — scheme-dependent | Varies; collateral-free up to certain limits (e.g., ₹7.5L) | Canara lists Vidya Turant and IBA model schemes with low starting rates. |
| PNB (Punjab National Bank) | Rates from ≈7.00%–7.85% (special schemes) to floating ranges ~9%+ depending on scheme | Varies by scheme (e.g., PNB Pratibha, PM Vidyalaxmi linked schemes) | PNB has special scheme rates (e.g., Pratibha) and scheme-linked subventions. |
| Bank of Baroda | Starting from ~8.15% p.a. (scheme-dependent) | Up to high limits (depends on scheme) | Baroda Scholar / Baroda Gyan schemes — check the official page for the exact rate. |
How to Apply for an Education Loan
- Research and compare banks offering competitive rates.
- Check eligibility and prepare necessary documents.
- Fill out the bank’s education loan application form online or offline.
- Submit documents for verification.
- The bank will sanction the loan upon approval.
Required Documents
- Admission letter from the institution.
- Mark sheets of previous academic qualifications.
- Identity proof (Aadhaar, PAN).
- Address proof.
- Income proof of the co-applicant.
- Bank account statements.
EMI Calculator for Education Loan Interest Rates
You can calculate your education loan EMI using this formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]
Where:
- P = Loan Amount
- R = Monthly Interest Rate
- N = Number of Monthly Installments
SBI Official Bank EMI Calculator
FAQ – Education Loan Interest Rates 2025
1. What is the minimum interest rate for education loans in 2025?
The minimum rate is around 8.25% p.a., depending on the bank and applicant profile.
2. Can I get a loan without collateral?
Yes, for amounts up to ₹7.5 lakh, many banks offer loans without collateral.
3. Are there special schemes for female students?
Yes, some banks offer 0.5% lower interest rates for female students.
Education loans in 2025 are more flexible and affordable than before, with low interest rates, tax benefits, and easy repayment options. Students should compare rates from different banks, understand the terms, and choose a plan that suits their needs.
Read also: Education Loan for Students in AP & Telangana
