Understanding Education Loan Interest Rates in India for 2025

Overview of Education Loan Interest Rates

If you are contemplating taking an education loan for yourself or your family, it's essential to be aware of the interest rates offered by both private and public banks across the nation.

Education Loan Interest Rates 2025: With the current economic climate, the cost of living is on the rise. Families are investing significant amounts in fundamental needs such as education and healthcare. The expenses associated with education are escalating in both metropolitan and rural areas, with school fees reaching substantial amounts. The costs for higher education, particularly in engineering and other degree programs, are also soaring, especially in private institutions.

In light of these rising costs, many families turn to education loans from banks to support their children's academic pursuits. Understanding the interest rates from various banks can assist you in selecting the most suitable option and help you avoid potential financial pitfalls.

Interest Rates from Different Banks

The State Bank of India (SBI), recognized as the largest public sector bank in the country, provides student loans with interest rates ranging from 7.15% to 10.15%. HDFC Bank, the leading private sector bank, offers education loans with rates between 9% and 10.25%. It's important to note that the interest rates from both banks are influenced by the specific course of study and the loan amount, along with other criteria. Securing admission to a reputable college can expedite the loan approval process.

Punjab National Bank (PNB) also provides education loans, starting with interest rates around 8.55%. Similarly, Bank of Baroda (BOB) offers loans with rates ranging from 7.10% to 9.95%. Canara Bank's education loan interest rates fall between 7.10% and 10.35%.