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| Lowest Interest Rates for Student Loans in 2026 |
Top 5 Banks with the Lowest Interest Rates for Student Loans in 2026
Higher education is an investment in your future, but managing the finances to study in top-tier institutions domestically or abroad can be daunting. Securing an education loan with the lowest possible interest rate is crucial to keeping your long-term repayment costs down.
In 2026, the education loan interest rate in India typically ranges from 8.10% to 16% per annum, depending heavily on the lender, your academic profile, and whether you provide collateral. Generally, Public Sector Banks (PSBs) offer the most competitive rates tied to RBI benchmarks.
Here at Informer Owl, we have analysed the current market to bring you the top 5 banks offering the best education loan interest rates in India for 2026.
1. State Bank of India (SBI)
SBI remains the undisputed leader in providing the most affordable education loans in India. With schemes covering both domestic and international education, SBI is highly preferred by students aiming for premier institutes.
• Starting Interest Rate: From 8.15% p.a.
• Maximum Loan Amount: Up to ₹1.5 Crore (for overseas studies with collateral).
• Key Benefit: SBI offers a special 0.50% interest concession for female students.
• Best For: Students looking for the absolute lowest overall repayment cost.
2. Bank of Baroda (BoB)
Bank of Baroda offers incredibly balanced loan terms with highly competitive interest rates, particularly for students admitted to recognized premier institutions (like IITs and IIMs).
• Starting Interest Rate: From 8.40% p.a.
• Maximum Loan Amount: Up to ₹1.5 Crore.
• Key Benefit: Zero processing fees for premier domestic institutions and flexible repayment structures.
• Best For: Students with strong academic records seeking balanced loan terms.
3. Canara Bank
Canara Bank’s education loan schemes are known for their high loan limits and borrower-friendly moratorium periods. They offer robust financial support for both studies in India and abroad.
• Starting Interest Rate: From 8.45% p.a.
• Maximum Loan Amount: Up to ₹1.5 Crore.
• Key Benefit: Minimal processing fees and flexible extended repayment tenures.
• Best For: Students needing higher loan limits with collateral.
4. Punjab National Bank (PNB)
PNB is an excellent choice for students enrolling in specific professional, technical, and medical courses. They offer tailored schemes that provide financial relief to meritorious students.
• Starting Interest Rate: From 8.50% p.a.
• Maximum Loan Amount: Above ₹1 Crore.
• Key Benefit: Specialized concessions for top-performing students and course-specific schemes.
• Best For: Students pursuing specialized technical or medical degrees.
5. Bank of India (BOI) / ICICI Bank
Rounding out our top 5 is a tie between a public sector giant and a leading private bank, depending on your priority for speed versus cost.
• Bank of India: Starts from around 9.00% p.a. for secured loans. Excellent for students providing collateral who want traditional public bank security.
• ICICI Bank: Secured loans for premier domestic institutes start as low as 8.50% p.a., while unsecured loans for abroad studies start at 10.25% p.a..
• Best For: ICICI is ideal if you need faster approvals and digital processing, while BOI is better for traditional secured lending.
Quick Comparison of Top Education Loans (2026)
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(Note: Interest rates are subject to change based on RBI repo rates and individual bank policies. Always verify the latest rates on the official bank portals.)
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