Education Loan in India 2026 — Lowest Rates, Eligibility and Best Banks
Education loans can be the most tax-efficient loan in India — interest is fully deductible under Section 80E with no upper limit.
Current Education Loan Rates (April 2026)
| Lender | Rate | Max Loan | Collateral-Free Up To |
|---|---|---|---|
| Canara Vidhya Turant | 6.60% p.a. | ₹40 L | Required above ₹7.5L |
| PNB Pratibha (IIT/IIM) | 8.45% p.a. | ₹20 L | ₹7.5 L |
| Bank of Baroda | 8.50% p.a. | ₹20 L | ₹7.5 L |
| Indian Bank (Premier) | 8.60% p.a. | ₹20 L | ₹7.5 L |
| SBI Scholar | 10.25–10.50% p.a. | ₹20 L | ₹7.5 L |
| HDFC Credila | 9–13.86% p.a. | ₹20 L | Varies |
| Avanse (Abroad) | 10–16.50% p.a. | ₹40 L | Varies |
Under the PM Vidyalakshmi scheme, PSU banks offer collateral-free loans up to ₹7.5 lakh for students at government-recognised institutions.