Education loans in India cover tuition, accommodation, travel, and other study-related expenses. In 2026, with costs of foreign education easily crossing ₹50 lakh, understanding your options is critical.
Types of Education Loans
- Domestic education loan — up to ₹10L, collateral-free below ₹7.5L
- Foreign education loan — up to ₹1.5 Cr with property collateral
- Career development loan — professional courses, certifications
Interest Rates 2026
Public sector banks: 8.5–11% (with government subsidies possible). Private banks: 10–14%. NBFCs: 12–18%. Many government schemes offer 0–4% for SC/ST/OBC students.
Moratorium Period
The biggest advantage: you don't repay during study period + 6–12 months after graduation. EMI starts only after you find a job.
Best Lenders
SBI Student Loan (8.5%), Bank of Baroda Baroda Vidya (9%), HDFC Credila (10.5–13%), Avanse Financial (11–14% for foreign universities).