Education loan rates June 2026: Compare SBI, PNB, ICICI, HDFC and other banks before you apply

Higher education costs are continuously rising, making educational loans an essential financial tool for students seeking to pursue studies in India and abroad.

Such loans can be immensely beneficial for families and students who lack funds and are aiming to accomplish educational targets on their way to making a big impact in life.

Prominent public and private sector banks focus on filling the gap for students by offering affordable education loans at competitive interest rates.

The aim of availing an education loan should be to:

1. To get an education loan at the best possible interest rates based on the applicant's profile, repayment capacity, credit score and other factors.
2. To repay the borrowed education loan within the stipulated time, without missing any due dates or Equated Monthly Instalments (EMIs).

Let us look at the rates offered by prominent public sector banks and private sector banks.

Education loans interest rates June 2026

PUBLIC SECTOR BANKS

PRIVATE SECTOR BANKS

Data as on respective banks’ website on Jun 08, 2026; Loans above ₹7.5 lakh for studies abroad; Interest rates are indicative and may vary based on the applicant's profile, the specific loan amount, and the tenure. Compiled by BankBazaar.com.

Five factors to keep in mind before taking an education loan

1. Compare interest rates diligently: What you should not forget is that even minor differences in interest rates can significantly influence the total repayment amount over the complete education loan tenure.
2. Check repayment terms and moratorium: Understand the terms, conditions and repayment obligations that will be imposed on you and whether the banking institution provides a sufficient grace period upon course completion for the applicant to find a meaningful earning opportunity.
3. Review processing fees, charges and other expenses: All education loans come with several factors that cannot be overlooked, such as interest rates, hidden fees, prepayment charges, processing fees and other associated expenses. You should review them carefully before proceeding.
4. Assess and understand collateral requirements: Some loans may require collateral for security reasons. You should understand these terms clearly. Verify the conditions carefully and proceed with a fresh education loan after properly acknowledging these terms to avoid surprises later.
5. Evaluate future repayment capacity: Before you submit your education loan application, you must prudently analyse your own repayment potential and make sure that your loan repayment obligations remain manageable.

Borrowers should compare multiple lending institutions, review loan terms, their credit scores, current repayment capacity and associated terms before taking a loan.