As per a study, the average cost of higher education in India has increased by approximately 175% in the last ten years with private institutions coming in first regarding the increased cost of education. Students who wish to study abroad bear all these costs and more.
Research indicates that Indian students pursuing education abroad currently spend an average of 45 lakhs a year on tuitions and other associated costs, hence, the need for educational loans for families.
There is a high need for education loans now and this makes it very important for the students and their parents to learn about the best education loan companies in the market.
This blog highlights some of the top education loan companies in India, covering public and private sector banks, as well as non-banking financial companies (NBFCs), that offer education loan solutions.
Top Public Sector Education Loan Companies in India
State Bank of India (SBI)
SBI is one of the most chosen by the students who wish to get an education loan particularly for studying overseas. Being one of the largest education loan companies in India, SBI provides:
- Loan Amounts: Up to INR 1.5 crores for overseas studies and up to 30 lakhs for in India.
- Interest Rates: Commences at 9.5% p.a.
- Repayment Terms: The repayment tenure is flexible, with a span of up to 15 years, including a moratorium period during which no repayment is required.
- Special Features: Ideal for students wishing to study abroad, including quick processing, zero prepayment penalty and restrictions.
Punjab National Bank (PNB)
PNB offers education loan products to help students who intend to study in India or abroad. As a government owned bank, it is a secure choice among public sector education loan companies.
- Loan Amounts: Up to INR 1.5 crore for overseas education, and up to 30 lakhs for domestic education.
- Interest Rates: Starting from 9.5% per annum.
- Special Features: The bank offers loans under the PNB Saraswati and PNB Udaan schemes, catering specifically to different educational needs.
Bank of Baroda
Another significant player in the public sector, Bank of Baroda, offers a competitive range of education loans, making it one of the top education loan companies for students pursuing higher education.
- Loan Amounts: Up to INR 1.5 crore for overseas education.
- Interest Rates: Starting from 9.5% per annum.
- Repayment Flexibility: Repayment Tenure of 10 to 15 years.
- Unique Feature: The Baroda Scholar Loan Scheme is intended for students aspiring to study abroad, offering low interest rates and minimal documentation.
Top Private Sector Education Loan Companies in India
Axis Bank
Axis Bank is another popular option among students aiming at acquiring educational loans. The bank has grown to be among the top education loan companies because of its student-friendly terms.
- Loan Amounts: Up to INR 1 crore.
- Interest Rates: Starting from 9.90 % per annum.
- Repayment Tenure: Up to 10 years with grace periods after completing the respective course.
- Unique Feature: Axis Bank offers low processing fees and quick loan approvals, making it easier for students to focus on their education rather than financial stress.
ICICI Bank
Another well-established player in education loan companies of India is ICICI Bank that offers a wide spectrum of education loan products for domestic as well as foreign students, thus making it a prominent contender in education loan industries.
- Loan Amounts: Up to INR 2 crore for international students.
- Interest Rates: Starting from 10.25%.
- Repayment Flexibility: ICICI offers flexibility for loan repayment extending up to 15 years.
- Unique Feature: The process of applying for a loan is easy with ICICI and it offers pre-approved loans to selected students depending on their academic performance.
Leading NBFC Education Loan Companies in India
HDFC Credila
HDFC Credila, focuses exclusively on education loans, making it one of the most specialized education loan companies in India.
- Loan Amounts: No upper limit for education loans, subject to the course and country of study.
- Interest Rates: Starting from 9.5%.
- Repayment Terms: Flexible repayment tenures up to 15 years.
- Unique Feature: Loans are sanctioned prior to admission approval and based on the test results of students, which makes it easier for them to provide universities abroad evidence of funds.
Avanse Financial Services
Avanse is another NBFC that offers various education loans for a wide range of courses which makes it one of the most versatile education loan companies.
- Loan Amounts: No upper limit
- Interest Rates: Starting from 10.5%.
- Processing Times: Quick loan turnaround time of 3 to 5 working days.
- Unique Feature: Avanse offers loan options based on student needs, including loans for unconventional courses. However, these are not funded by the bank.
Comparison of Key Features Among Top Education Loan Companies
Here’s a comparison of key features to help you choose the best education loan companies for your needs:
| Education Loan Company | Loan Amount | Interest Rates | Repayment Tenure |
| SBI | Up to INR 1.5 Cr | Starting from 9.5% | 5 to 15 years |
| PNB | Up to INR 1.5 Cr | Starting from 9.5% | 5 to 15 years |
| Axis Bank | Up to INR 75 Lakhs | Starting from 9.90% | 5 to 10 years |
| ICICI Bank | Up to INR 1 Cr | Starting from 10.25% | Up to 15 years |
| HDFC Credila | No upper limit | Starting from 9.5% | Up to 15 years |
| Avanse Financial Services | Up to INR 1 Cr | Starting from 10.5% | Up to 10 years |
Conclusion
Choosing the right education loan company can make all the difference in financing your higher education. It’s important to analyze the features, loan amounts, interest rates, and repayment alternatives offered by them.
For more detailed insights into education loans, check out our blog to help you navigate your options!
With EduFund, you can choose offers from 15+ lenders to help you secure the best loan options. Whether you’re studying in India or abroad, we’ve got you covered. Start planning your educational future today with EduFund!
