According to 2025 data, the total education loan credit amount in India hit the Rs 1.37 lakh crore mark. That shows that more students pursuing higher education in India and abroad are leaning on loans.
And in 2026, Indian students have more options than ever. In fact, there are 70+ lenders competing for your decision. But that also means more complexity in choosing the right lender.
On paper, most lenders look similar. All education loan interest rates seem competitive. Terms sound reasonable. And everyone around you has a “best bank” recommendation. But just knowing which bank provides education loans in India isn’t enough. You need to pick among the best education loan providers in India for your profile.
That’s exactly what this guide fixes, so you can stop searching for education loan providers in India and start making a decision.
Types of education loan providers in India
1. Public Sector Banks
Public sector banks are where most Indian students start, and for good reason. The interest rates are the lowest you’ll find. The government backing also means your university will recognize the loan without hesitation. But there’s a real cost to this advantage: plan for 3–6 weeks of processing and a mountain of paperwork. Your university will need to meet their institutional criteria, which isn’t always given.
State Bank of India (SBI)
SBI is the default choice for most students. If you have the time to wait and the patience for the paperwork, it’s the best choice.
For Study Abroad: The Global Ed-Vantage scheme caters specifically to international students. You can borrow up to ₹3 Cr with collateral, or ₹50 L if your university is on their QS-ranked list. Interest rates hover around 8.65%, and there’s no processing fee. Universities recognize SBI loans immediately because of the government backing.
For Domestic Education: Their standard scheme goes up to ₹10 L without collateral, or over ₹1 Cr with it. Interest rates fall between 8.15% and 10.15%, depending on what you’re studying and which institution you’ve chosen.
Bank of Baroda
If you’re applying to universities in the USA or UK, Baroda is worth your attention. Their Baroda Scholar scheme has a solid reputation in those markets, and that translates to faster approvals.
For Study Abroad: Loan limits go up to ₹80 L, with rates starting at 9.15%. Because the bank has worked with USA and UK universities for years, they process applications more quickly than you’d typically expect from a public sector bank.
For Domestic Education: Rates for Indian institutions are competitive—usually between 8.5% and 10.5%, depending on your course and the type of institution.
Also Read: Education Loans in India for Studying in Indian Universities
Union Bank of India
Union Bank doesn’t get the same attention as SBI or Baroda, but it’s a solid option. The application process is still largely handled at the branch level, though their digital services are improving.
For Study Abroad: Loans go up to ₹1.5 Cr with collateral, or ₹40 L without, starting at about 9.25% interest.
For Domestic Education: They’re flexible with Indian institutions, with rates generally between 8.25% and 10.5%.
2. Private Sector Banks
Private banks are the middle ground. They’re significantly faster than public banks and more flexible about which universities they’ll approve. Their digital platforms are actually user-friendly. The trade-off? Higher interest rates and lower limits on unsecured loans. If you need a loan quickly and can afford the extra cost, private banks are worth exploring.
ICICI Bank
ICICI has the smoothest process of any bank in this category. The application feels modern and actually doesn’t require endless back-and-forth.
For Study Abroad: You can borrow up to ₹2 Cr with collateral, or ₹1 Cr without (for select programs). Interest rates start around 10.5%. If speed matters to you, this is probably your best bet among private banks.
For Domestic Education: Loans go up to ₹50 L without collateral for Indian universities. Rates range from 9.5% to 11.5%, depending on your profile and the institution.
Axis Bank
Axis Bank is flexible, but their rates vary depending on which product you qualify for. Ask specifically about all your options, the best rate might not be their first offer.
For Study Abroad: Unsecured loans reach up to ₹75 L, though rates and terms depend on your specific situation and which product fits you best.
For Domestic Education: They offer education loans for Indian institutions with flexible repayment. Expect rates around 10% to 12.5%.
IDFC FIRST Bank
In engineering, data science, and STEM fields, IDFC FIRST often has better rates than the competition. It’s worth checking if you’re in these areas.
For Study Abroad: You can borrow up to ₹2 Cr with collateral, or ₹1 Cr without. They offer competitive rates for STEM graduates heading to the USA, so compare their terms if that applies to you.
For Domestic Education: They cover engineering, management, and professional courses, with rates typically between 9.5% and 11.5%.
3. NBFCs (Non-Banking Financial Companies)
NBFCs were built to do one thing: lend to students. That singular focus matters. They approve loans in 5–7 working days instead of several weeks. They’re more flexible about which universities they’ll fund. And they’ll lend larger amounts without collateral than most banks will. The cost of this speed and flexibility is real—you’ll pay 1–3% more in interest. For students racing against visa or admission deadlines, that extra cost is often worth it.
Credila
Credila has been around longer than any other education loan provider in India. That history matters, especially internationally, universities know and trust them.
For Study Abroad: They’ve funded over 2.26 lakh students across 5,200+ institutions in 64 countries. That track record makes a real difference when universities assess your loan. Unsecured loans begin at 11.25%, secured at 9.95%. A sanction letter typically takes 5–7 working days.
For Domestic Education: They’re equally fast with domestic loans. Secured rates start at 8.95%, unsecured from 10.5%.
Avanse
Avanse works with students whose profiles don’t fit the standard mold. If you have a borderline credit score, attended a non-premier institution, or are pursuing an unusual course, Avanse looks at the whole picture instead of just the numbers.
For Study Abroad: You can borrow up to ₹75 L without collateral, with rates from 10% to 13%. Their assessment goes deeper than credit scores.
For Domestic Education: They lend flexibly for Indian institutions, even if your background isn’t textbook. Rates typically run 9.5% to 12.5%.
4. International Lenders
International lenders solve a very specific problem: they primarily serve students pursuing education abroad. No collateral, no Indian co-applicant, no Indian credit score and you still need funding. They assess you on your future earning potential rather than your family’s current financial situation. For students in that position, they’re not just an option; they’re often the only option. Sai Sree Meka, a GradRight student, described exactly this moment:
“I didn’t know I had an option to get a loan until I learnt of Prodigy from my financial adviser on GradRight…. I thought I had zero options.”
However, the education loan interest rates they charge are meaningfully higher than other education loan providers in India and repayment happens in foreign currency which introduces exchange rate risk.
Prodigy Finance
Prodigy Finance offers unsecured loans up to USD 220,000 without collateral or co-applicants. Interest rates are roughly 11–14% APR. This works best if you’re attending an Ivy League or top-20 global university and studying management, engineering, or STEM.
MPOWER Financing
MPOWER Financing covers 400+ USA universities and lends up to USD 100,000. Interest rates run 13–16% APR.
Also Read: Best Education Loans in India in 2026
Quick Summary of Education Loan Providers in India
A snapshot of key lenders, their offerings, and what sets them apart for study abroad financing:
| Lender | Type | Unsecured Limit (Domestic/Abroad) | Secured Limit (Domestic/Abroad) | Interest Rate (Domestic/Abroad) | Processing Time |
| SBI | Public Bank | ₹10 L / ₹50 L | ₹1 Cr+ / ₹3 Cr | 8.15%–10.15% / 8.65%–10.65% | 3–6 weeks |
| Bank of Baroda | Public Bank | ₹40 L / ₹40 L | ₹80 L / ₹80 L | 8.5%–10.5% / 9.15%–11% | 3–5 weeks |
| Union Bank of India | Public Bank | ₹40 L / ₹40 L | ₹1.5 Cr / ₹1.5 Cr | 8.25%–10.5% / 9.25%–11% | 3–5 weeks |
| ICICI Bank | Private Bank | ₹50 L / ₹1 Cr | ₹1 Cr / ₹2 Cr | 9.5%–11.5% / 10.5%–13% | 1–2 weeks |
| Axis Bank | Private Bank | ₹75 L / ₹75 L | Varies | 10%–12.5% / 11%–13.5% | 1–2 weeks |
| IDFC FIRST Bank | Private Bank | ₹50 L / ₹1 Cr | ₹1 Cr / ₹2 Cr | 9.5%–11.5% / 10%–13% | 1–2 weeks |
| Credila | NBFC | ₹80 L / ₹80 L | ₹1.5 Cr+ / ₹1.5 Cr+ | 8.95%–10.5% / 9.95%–12% | 5–7 days |
| Avanse | NBFC | ₹75 L / ₹75 L | ₹1.25 Cr / ₹1.25 Cr | 9.5%–12.5% / 10%–13% | 5–7 days |
| Prodigy Finance | International | N/A / USD 220,000 | N/A | N/A / 11%–14% APR | 1–2 weeks |
| MPOWER Financing | International | N/A / USD 100,000 | N/A | N/A / 13%–16% APR | 1–2 weeks |
Note: Education loan interest rates are indicative and actual offers depend on your profile, co-applicant, course, institution tier, and university ranking.
Making the right choice
When choosing an education loan provider in India, here’s what most students get wrong: they pick a lender based on just one factor, which is usually either the interest rate, the brand, or because their family already banks there.
The smartest move is to compare two or three lenders side by side, not their advertised rates, but the actual offer letters in your name, for your loan amount and program.
Key differences to consider between domestic and study abroad education loan:
- Processing time: Domestic loans may take slightly longer due to institution verification, while study abroad loans depend on university admission documentation.
- Interest rates: Domestic education loans generally carry lower rates than study abroad loans.
- Loan amount: Both pathways have different unsecured and secured limits depending on the lender and institution tier.
- Collateral requirements: Domestic loans from PSBs may require collateral for larger amounts; study abroad loans vary by lender.
- Disbursement method: Domestic loans are typically disbursed directly to the institution; study abroad loans may be disbursed semester-wise or as a lump sum.
Irrespective of your higher education destination, the team at GradRight aims to help you sort your finances with ease. The best part is that instead of the usual way where you apply to multiple lenders and hoping for a good deal, we flip the script.
Here’s how our CEO, Aman Singh, defines the process:
“… a student comes in the platform and says, I have gotten admittance from University X and I need X amount of money as loans, here is where I have studied, here is my GRE score, and so on and so forth. It’s around 20-30 data points and the profile goes to our 15+ partner banks, and they see the profile and say, ‘well, here is what I can offer’, and they get to see each other bidding on the student.”
Over 200,000 students have used our platform to compare offers from 15+ education loan providers in India in one place. If you are exploring options, don’t just base your decision on the information you find online. Get real offers with GradRight and compare them, with full information, not guesswork. If you have any questions email those to us at hello@gradright.com
