Many students want to pursue graduation in streams like B.Tech, BBA, or BCA after completing their 12th grade. However, financial constraints often force them to opt for degrees like B.A, B.Com, or B.Sc, which have relatively lower recognition in India. If you, too, are unable to enroll in your desired university or course due to financial reasons, there’s no need to worry.
Education Loan: Overview Table
| Loan Providers | Government Banks, Private Banks, NBFCs |
|---|---|
| Loan Amount | Based on course fees and additional expenses |
| Interest Rate | 8.50% – 12.00% (Govt. Banks), 10.49% – 19.50% (Private Banks) |
| Who is Eligible? | Students who have completed 12th grade and wish to pursue higher education |
| Loan Application Process | Visit Bank, Apply via Bank’s Website, or Apply via Vidyalakshmi Portal |
| Repayment Start Date | One year after course completion |
| Essential Documents | Admission Letter, Identity Proof, Address Proof, Academic Certificates |
| Laptop Loan Included? | Yes, but it must be mentioned in the application |
How to Get an Education Loan?
Education loans are available for students who wish to pursue higher education after the 12th grade. These loans are provided by both government and private banks. To apply for an education loan, you must submit specific documents.
Loan up to ₹5 Lakh from the comfort of your home 100% secure
Required Documents for Education Loan
- Identity Proof – Aadhaar Card, PAN Card
- Address Proof – Aadhaar Card, Electricity Bill, Ration Card, Passport (any one)
- Academic Documents – 10th & 12th Marksheet, Admission Letter from University
- Income Proof (for co-applicant) – Salary Slip, ITR, Bank Statement
- Guarantor Documents (if required) – ID Proof, Address Proof, Income Proof
- Loan Application Form
- Collateral Documents (if required) – Property Papers, Fixed Deposit Receipts
- Bank Statement – Last 6 months
- Fee Structure – From the university or college
- Passport-size Photographs – Recent photos of applicant & co-applicant
Note: If you don’t have a specific document, visit your bank and ask the manager for an alternative document that can be accepted.
Eligibility Criteria for Education Loan
- The applicant must be at least 18 years old.
- All required documents must be provided.
- The student must have passed the 12th grade or completed a diploma.
- Education loans are not available for online or distance learning courses.
Best Education Loan Interest Rates in 2025
Many students find it difficult to decide which bank offers the best education loan with the lowest interest rates. Below is a list of banks and their respective education loan interest rates:
| Bank/Loan Institution | Interest Rate (Per Annum) |
|---|---|
| IndusInd Bank | 10.49% onwards |
| HDFC Bank | 10.85% onwards |
| ICICI Bank | 10.85% onwards |
| Kotak Mahindra Bank | 10.99% onwards |
| IDFC First Bank | 10.99% onwards |
| Aditya Birla Finance | 10.99% onwards |
| L&T Finance | 11.00% onwards |
| Axis Bank | 11.25% onwards |
| Tata Capital | 11.99% onwards |
| Federal Bank | 12.00% – 19.50% |
Note: Interest rates change based on market conditions, RBI guidelines, and bank policies. Always check the bank’s official website for the latest rates before applying.
Top 10 Government Banks & Their Education Loan Interest Rates (2025)
| Bank Name | Interest Rate (Per Annum) |
|---|---|
| State Bank of India (SBI) | 8.50% – 10.30% |
| Central Bank of India | 8.50% – 9.90% |
| Canara Bank | 8.50% – 9.40% |
| Punjab National Bank (PNB) | 8.60% – 9.50% |
| Indian Bank | 8.65% – 9.95% |
| Union Bank of India | 8.70% – 10.00% |
| UCO Bank | 8.70% – 10.20% |
| Bank of Baroda (BOB) | 8.75% – 10.25% |
| Bank of India (BOI) | 8.75% – 10.10% |
| IDBI Bank | 8.85% – 10.50% |
Step-by-Step Guide to Apply for an Education Loan Online
There are three ways to apply for an education loan:
- By visiting the bank branch
- Through the bank’s official website
- Using the Vidyalakshmi Portal
Applying via Vidyalakshmi Portal
- Visit the official Vidyalakshmi website.
- If you are a new user, register by providing your mobile number and email ID.
- After registration, you will receive a User ID and Password.
- Log in using your credentials.
- Once logged in, the Vidyalakshmi Dashboard will appear.
- Click on Loan Application Form and fill in all required details.
- Upload the necessary documents and submit the application.
- After submission, your dashboard will update with your loan application status.
- Click on Search for Loan Scheme and choose the bank you wish to apply to.
- Select the bank branch where you want to apply.
- You can apply to multiple banks simultaneously using the same application form.