Which interest rates do public and private lenders in India charge on education loans for my studies abroad?
Public sector banks typically offer floating rates starting from about 8.15% per year on secured study abroad loans, while private lenders and NBFCs charge around 10.25% to 13.50%. Rates vary by lender, collateral and profile, so confirm with the lender.
Public sector banks typically offer floating education loan rates of 8.15% onwards (SBI Global Ed-Vantage, study abroad) per year, while private lenders and NBFCs charge around 10.25% to 13.50%. Your exact rate depends on your collateral and profile.
Rates and Limits by Lender Type
| Lender type | Interest rate (per year) | Typical maximum sanction |
|---|---|---|
| Public sector banks | 8.15% onwards (SBI Global Ed-Vantage, study abroad) floating | INR 1.5 crore to 3 crore with physical collateral |
| Private lenders and NBFCs | 10.25% to 13.50% | INR 50 lakh to 75 lakh without collateral |
Other Terms to Compare
- Moratorium: full course duration plus 6 to 12 months before EMIs start.
- Margin money: 0% for premier global universities, 10% to 15% for other foreign institutions.
- Tax: interest is deductible under Section 80E for up to 8 years, and TCS rules on foreign remittances can change, so confirm the current rate and threshold with your bank.
My Advice
Do not pick a loan on rate alone. Compare the sanction limit, moratorium, margin money and processing terms, and check the lender's official page for the current rate before you apply.
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