When applying for a loan, students should try to get the best interest rate for their profile and make sure they pay back their EMIs on time.
Education Loan: There is a big update for students. Higher education is becoming more and more expensive these days. As a result, school loans are becoming an essential source of funding for students hoping to attend esteemed local and foreign universities. Families and students that are struggling financially but still want to do great things in life might greatly benefit from these loans.
Prominent governmental and private institutions are providing low-interest education loans to address this need. When applying for a loan, students should try to get the best interest rate for their profile and make sure they pay back their EMIs on time. You can plan your loan using the most recent interest rates that banks have disclosed for June 2026.
Government banks offer very reasonable interest rates
Public sector banks have competitive rates if you’re thinking about taking out an education loan. Punjab National Bank (PNB) presently offers the lowest education loan rate, starting at 8.10%, according to statistics from bank websites for June 2026. Next is State Bank of India (SBI), the biggest public sector bank in the nation, which offers loans at 8.90%. Student loans from Union Bank and Canara Bank have an interest rate of 9.25%. The interest rate on education loans offered by Bank of Baroda is 10.25%. These rates, which were compiled by BankBazaar.com, are representative for loans over Rs 7.5 lakh for study abroad.
Latest loan rates in private banks
Private sector banks offer slightly higher interest rates than public sector banks. Among private banks, ICICI Bank leads the pack, offering education loans at 9.00%. IDFC First Bank offers loans at 9.50%, and IDBI Bank at 9.90%. Axis Bank offers this rate at 10.81%. HDFC Bank, the largest private sector bank, offers the highest education loan interest rate at 12.50%. These rates vary depending on the applicant’s profile, loan amount, and term.
Compare interest rates carefully before taking a loan
Before applying for an education loan, there are a few important things to keep in mind. The first step is to closely compare the interest rates of all banks. Even a small difference in interest rates can have a significant impact on the total amount you will repay over the life of your loan. Therefore, always choose the bank that offers the most affordable rate to avoid incurring a large debt burden in the future.
Understand the repayment terms and moratorium period
Before taking out a loan, you should thoroughly understand the bank’s repayment terms and moratorium period. You should also ensure that the bank gives you sufficient time to find a job and earn money after completing your course. You should also carefully review other loan-related costs, such as processing fees, hidden charges, and prepayment charges. Anticipating these costs can help prevent problems later.