Education Loan Interest Rates 2026: Bank-by-Bank Comparison
Compare what India’s major banks charge on education loans, see who is cheapest, and understand what moves your rate.
Quick Answer
In 2026, education loan rates range from about 6.85% to 16% p.a. Public sector banks (SBI, Union, Central, PNB) are cheapest at roughly 7%–10.5%; private banks and NBFCs charge more. Most rates are floating, linked to the repo rate (currently 5.25%), and female students usually get a 0.5% concession.
Bank-wise interest rate comparison
| Bank | Type | Indicative Rate (p.a.)* |
|---|---|---|
| SBI | Public | ~7.15%–10.45% |
| PNB | Public | ~4.00%–10.10% |
| Bank of Baroda | Public | ~8.80% onwards |
| Canara Bank | Public | ~8% onwards |
| Union Bank | Public | ~7.10% onwards |
| HDFC Credila | NBFC | Profile-based (~10%+) |
| ICICI Bank | Private | ~9.00%–13.00% |
| Axis Bank | Private | ~9.5% onwards |
*Indicative starting rates as of mid-2026, from publicly available data. Not an offer; verify with the lender.
Public vs private vs NBFC
- Public sector banks — lowest rates, longer tenures, government-scheme backing; slower processing.
- Private banks — faster, more digital, but pricier; good for premier institutes.
- NBFCs (Credila, Avanse, Propelld) — fastest, often collateral-free and merit-based, at the highest rates.
What affects your interest rate
- Loan amount & collateral — secured loans price lower than unsecured.
- Institute ranking — premier institutes (IIT/IIM/NIT/AIIMS) get special lower rates.
- Co-applicant credit score — a 700+ score earns better pricing.
- Domestic vs abroad — overseas loans usually carry slightly higher rates.
- Concessions — 0.5% for girl students; up to 1% for servicing interest during study.
Fixed vs floating rates
A fixed rate keeps your EMI constant. A floating rate — the norm for most public banks — is tied to the EBLR/repo or MCLR and moves with RBI policy. With the repo at 5.25% in 2026, floating education loans remain relatively affordable, but budget for possible increases over a 10–15 year tenure.
See how the rate changes your EMI.
EMI Calculator →Lower your effective rate
- Use government schemes — PM Vidyalaxmi caps the rate at EBLR + 0.5% and adds a 3% subvention for eligible families.
- Service interest during the moratorium for an extra concession.
- Pledge collateral to move from an unsecured to a secured (cheaper) loan.
- Compare and consider a balance transfer if a better rate appears.
Frequently asked questions
Which is the cheapest education loan in 2026?
Public sector banks like SBI, Union and PNB, with starting rates near 7%, plus a 0.5% girl-student concession.
Will my rate change during the loan?
If it's floating, yes — it tracks the repo/EBLR. Fixed-rate loans stay constant.
Are NBFC rates negotiable?
Often, based on your profile, institute and collateral. Compare offers before committing. See best education loans.
More in this series
Disclaimer: Interest rates are indicative, compiled from publicly available data as of June 2026, and change frequently. Verify the current rate with the bank before applying. Educational content, not financial advice.