Between studying in India and abroad, pursuing higher education levels almost always requires you to make a financial investment. For those who wish to study in another country, getting an education loan is now a major help. With banks and NBFCs offering competitive loans in 2025, picking the right education loan can greatly influence your time studying abroad.
Whether you are aiming for a study abroad education loan from a bank or an NBFC, it is essential to compare interest rates before making a decision. In this quick guide, we will share the lowest education loan interest rates in 2025. Let’s begin!
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As of 2025, securing the best 2025 student loan interest rates is crucial to managing the cost of studying. Here are some of the top banks offering the lowest study abroad education loan interest rate:
Bank | Interest Rate | Loan Amount |
Bank of Maharashtra | 7.60% | Up to INR 20 Lakhs |
Union Bank of India | Starting from 8.75% | Up to INR 1.5 Crores |
State Bank of India (SBI) | 9.15% – 9.65% | Up to INR 3 Crores |
Bank of Baroda (BOB) | 9.20% – 11.70% | Up to INR 1.5 Crores |
IDBI Bank | 10.45% – 10.95% | Up to INR 75 Lakhs |
Canara Bank | Floating: 8.75% – 10.85% | Up to INR 1 Crores |
Fixed: 8.75% – 11.60% | ||
Bank of India | Floating: RBLR + 1.50% – 1.70% presently 10.35% – 10.55% | Up to INR 1.5 Crores |
Fixed: 12.20% – 12.40% | ||
Sallie Mae | Starting from 3.45% | USD 175,000 |
As of 2025, several Non-Banking Financial Companies (NBFCs) in India offer study abroad loans with competitive interest rates. NBFCs often provide flexible terms, especially for students studying abroad with or without collateral. Here are some of the top NBFCs offering the lowest study abroad education loan interest rate:
Bank | Interest Rate | Loan Amount |
Prodigy Finance | Starting from 8.35% | Up to 2,20,000 USD or 100% of your expenses |
Tata Capital | 11% – 13.50% | Up to INR 2 Crore |
Avanse | 14.55% | Up to INR 1.25 Crore |
Auxilo | BLR 15.10% | 100% Financing |
Abe | Starting from 3.39% | USD 99,999 |
MPOWER Financing | Starting from 9.99% | USD 100,000 |
Earnest | Starting from 3.47% | Full Cost of Attendance |
Education loan interest rates vary for the same loan amount. Understanding the key factors can help you in securing the most affordable study abroad education loan.
Here are some tips to secure a low-interest education loan:
Maintain a Good Credit Score | Choose a Co-applicant with Strong Financials |
Opt for Secured Loans | Compare Multiple Lenders |
Provide Complete & Accurate Documentation | Negotiate Terms with Lender |
Banks typically charge between 8% to 12%, depending on your loan type (collateral or no-collateral). While NBFCs charge around 11% – 15% from students for their study abroad loan.
No, it is not possible to secure education loans with zero interest. However, according to your profile and financial conditions, you can opt for a loan with low interest rates.
NBFCs typically offer education loans ranging from INR 50,000 to INR 2 Crores, with repayment tenure of up to 12 to 15 years.
The processing fees may range from 0.5% to 2% of the loan amount. However, the fees and other charges vary based on the lender for education loans. Other hidden charges may include prepayment penalties, documentation fees, and insurance costs.
Yes, there are several online platforms to compare education loan interest rates. Nomad Credit offers a smart loan finder tool to match you with the best personalized options. It saves your time by showing competitive rates from multiple lenders in one place.
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