Offer collateral
A secured loan can be 1.5–3 percentage points cheaper than an unsecured one.
Rates · October 2026
Education Loan Interest Rates for Abroad Studies
Rates depend more on your profile than on the lender's headline. Secured public-bank loans are usually cheapest, and unsecured NBFC loans cost the most. The ranges below are indicative for October 2026; your offer letter is what counts.
- Secured: ≈ 8.5%–10.5%
- Unsecured bank: ≈ 10%–12.5%
- NBFC: ≈ 10.5%–14%
- Compare total cost, not the headline rate
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Quick answer
Education Loan Interest Rates for Abroad Studies
In October 2026, secured education loans from public banks typically cost about 8.5%–10.5% a year (floating, repo-linked). Private banks charge about 9.5%–12.5%, NBFCs such as Credila, Avanse and Auxilo about 10.5%–14% for unsecured loans, and international lenders quote by profile. The university, collateral and the co-applicant's credit score change your rate the most.
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Indicative ranges
Interest rates by lender type (October 2026)
Indicative only; rates are floating at most Indian lenders and change with the RBI repo rate. Confirm on the lender's site.
Lower your rate
Six ways to get a lower rate
Pick a stronger co-applicant
Higher, steadier income and a 750+ CIBIL score reduce the lender's risk premium.
Get competing offers
NBFC spreads are negotiable. A written offer from one lender often lowers another's.
Pay interest during the course
Many banks give a concession (often 1%) if you service interest during the moratorium.
Check concessions
Some banks offer concessions for female students or existing customers — ask.
Mind the fees
A 1.5% processing fee adds the equivalent of 0.2–0.3% a year over a 10-year loan.
Floating vs fixed
Floating or fixed rate?
Most Indian education loans are floating: the rate is a benchmark (such as the bank's repo-linked lending rate) plus a spread. When the RBI cuts the repo rate your EMI falls, and when it raises the rate your EMI rises.
Fixed-rate loans, offered by some international lenders, keep the EMI steady but usually start higher. Under RBI rules, banks and NBFCs cannot charge foreclosure or prepayment penalties on floating-rate loans to individuals, so you can prepay a floating loan whenever you want.
FAQs
Frequently asked questions
Still have a question?
Ask a counsellor directly — we reply on WhatsApp during working hours (Mon–Sat, 9 AM–6 PM IST).
Public banks such as SBI and Bank of Baroda usually have the lowest rates for secured loans. For unsecured loans, the cheapest lender depends on your university and co-applicant, so compare 2–3 written offers.
Yes. Interest accrues from each disbursement. At most banks it is simple interest during the moratorium, added to the principal when EMIs start.
Yes. Interest on an education loan is deductible for up to 8 tax years under Section 129 of the Income-tax Act, 2025 (formerly Section 80E), under the old tax regime.
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More education loan guides
- How Much Education Loan Can I Get to Study Abroad?
- Is a Co-Applicant Mandatory for an Education Loan?
- Education Loan Without a Co-Applicant for Abroad Studies
- Education Loan Tax Benefit: Section 80E and Section 129
- Education Loan Moratorium Period Explained
- Margin Money in Education Loans: How Much You Pay
- Education Loan Documents List for Abroad Studies
- Education Loan Process for Abroad Studies
- Education Loan Disbursement Process
- All loan guides
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