Studying at a prestigious university abroad is a dream for many, but the costs can be prohibitive. Which is where education loans come in, which many students rely on. If you're going to start applying abroad from September, start exploring banks offering competitive interest rates on education loans to fund your studies.
Several banks provide special education loans for international studies, covering various expenses like tuition fees, living costs, and other essentials such as laptops, books, travel, and more.
When selecting a lender, students and parents should consider crucial factors such as the interest rate, processing time, loan tenure, repayment terms, and moratorium period, which typically includes the course duration plus 6-12 months.
Data from Bankbazaar.com reveals that for a Rs 50 lakh, 15-year education loan, the top 10 banks are offering interest rates ranging between 8.35 and 11.08 percent (as on July 9, 2025, per bank websites).
Punjab National Bank
Starting at 8.35 percent, the interest rate offered by this lender is the lowest of all. The equated monthly instalment (EMI) on a Rs 50 lakh loan for 15 years will work out to Rs 48,798.
Union Bank of India
Union Bank of India charges 8.50 percent interest on education loans. Here, the EMI on a Rs 50 lakh, 15-year loan will be Rs 49,237.
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State Bank of India
State Bank of India's interest rates start at 8.65 percent for such loans, and the EMI on a Rs 50 lakh, 15-year loan amounts to Rs 49,678.
Bank of Baroda
Bank of Baroda's interest rates on education loans start at 8.7 percent. Its EMI on a loan of Rs 50 lakh with a tenure of 15 years comes to Rs 49,825.
Indian Overseas Bank
Indian Overseas Bank's rates start at 8.75 percent; the EMI on a Rs 50 lakh, 15-year loan comes to Rs 49,947.
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Canara Bank
Canara Bank charges interest starting at 9.5 percent, and the EMI on an education loan of Rs 50 lakh for 15 years works out to Rs 52,211.
Central Bank of India
This bank's interest rates start from 10.05 percent. The EMI on Rs 50 lakh, 15-year loan will be Rs 53,883.
ICICI Bank
ICICI Bank's starts at 10.25 percent. Here, the EMI for a Rs 50 lakh, 15-year loan will be Rs 54,498.
Bank of India
Bank of India charges interest starting at 10.85 percent for education loans. The EMI on a loan of Rs 50 lakh with a tenure of seven years comes to Rs 56,630.
Axis Bank
Axis Bank's rates start at 11.08 percent; the EMI on a Rs 50 lakh, 15-year loan works out to Rs 57,081.
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