Interest rate is the single biggest factor in your total loan cost. A 1% difference on a ₹40 lakh loan over 10 years means ₹2–3 lakh extra. Here is a complete, updated comparison of all major lenders for 2026.
Current Education Loan Interest Rates — May 2026
| Lender | Type | Interest Rate | Max Amount | Collateral |
|---|---|---|---|---|
| SBI Scholar Loan | PSB | 8.15% – 11.15% | ₹40L (India) / ₹1.5Cr | Above ₹7.5L |
| HDFC Credila | NBFC | 9.50% – 13.00% | No upper limit | Flexible |
| Avanse Financial | NBFC | 10.50% – 13.50% | ₹75L | Optional |
| Auxilo Finserve | NBFC | 10.00% – 14.00% | ₹75L | Not required |
| Axis Bank | PSB | 13.70% – 15.20% | ₹75L | Above ₹7.5L |
| Bank of Baroda | PSB | 9.70% – 12.75% | ₹80L | Above ₹7.5L |
| Canara Bank | PSB | 8.50% – 11.50% | ₹40L (India) / ₹1Cr | Above ₹7.5L |
* Rates are indicative and subject to change. Final rate depends on your profile, course, college, and co-applicant income. Contact us for your exact rate.
Fixed vs Floating Interest Rate — Which Should You Choose?
Floating rate (most common in India) — changes with the RBI repo rate. When RBI cuts rates, your EMI drops. When RBI hikes, EMI rises. Best in a falling rate environment like 2024–2026.
Fixed rate — rare in education loans. Predictable EMIs, but typically 0.5–1.5% higher than floating to start. Best if you want certainty.
Our recommendation: Go floating for education loans. India is in a rate-softening cycle. HDFC Credila and Avanse both offer floating rates linked to their benchmark lending rates.
How to Get the Lowest Rate on Your Education Loan
- ✅ High CIBIL score co-applicant (750+) — can reduce rate by 0.5–1%
- ✅ Collateral — secured loans are always cheaper than unsecured
- ✅ Top-ranked university — IIT, IIM, QS top-500 colleges get preferential rates
- ✅ Apply through a DSA like StudyCapital — we negotiate rates on your behalf across 8+ lenders simultaneously
- ✅ Section 80E deduction — interest paid is fully tax-deductible for up to 8 years