Pursuing higher education—whether in India or abroad—is a dream for many Indian students. But that dream often comes with a hefty price tag. The good news? An education loan for Indian students with low EMI can help make that dream affordable. Whether you’re planning to study engineering, medicine, MBA, or a course abroad, this guide will help you find the most student-friendly education loans with manageable EMIs.
Why Low EMI Education Loans Matter
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Many students hesitate to take loans due to the fear of high EMIs after graduation. But with interest subsidies, flexible tenures, and income-based repayment options now available, finding a student loan with low EMI in India is easier than ever. Whether you’re a first-time borrower or looking for loans without collateral, this guide gives you all the insights.
Best Education Loan in India 2025
Here are top banks and NBFCs offering competitive rates and flexible repayment:
| Bank/NBFC | Interest Rate (p.a.) | Loan Amount | Processing Fee |
|---|---|---|---|
| SBI Scholar Loan | 8.15% – 10.5% | Up to INR 40 lakh | NIL to Rs. 10,000 |
| HDFC Credila | 9.5% – 12.5% | Custom-based | 1% of loan amount |
| Axis Bank | 9.75% – 13% | Up to INR 40 lakh | Up to 1% |
| Bank of Baroda | 8.85% – 11.5% | INR 7.5 lakh–Above | NIL to Rs. 10,000 |
| Avanse | 11% – 13.5% | Flexible | Depends on amount |
Education Loan EMI Calculator: Plan Before You Borrow
Use EMI calculators to:
- Estimate your monthly burden
- Compare loan offers
- Adjust tenure to fit your budget
For example:
- Loan: INR 10 lakh
- Interest Rate: 9%
- Tenure: 7 years
EMI: ~INR 16,100/month
Government Education Loan for Students in India
1. Vidya Lakshmi Portal
- Central portal for applying to multiple banks
- Track applications online
2. Credit Guarantee Fund for Education Loans (CGFSEL)
- No collateral needed up to INR 7.5 lakh
- Backed by Indian government
3. Dr. Ambedkar Interest Subsidy Scheme
- For OBC/EWS students pursuing master’s courses abroad
4. Padho Pardesh Scheme
- Interest subsidy for minority students studying abroad (status varies post-2023)
Education Loan for Abroad Studies India
Abroad studies often need higher loan amounts and longer repayment terms:
- HDFC Credila, Avanse, and Axis Bank specialize in international education loans
- Covers tuition, living, travel, laptop, insurance, exam fees
Loan amounts can go up to INR 75 lakh and more for top universities
Education Loan Without Collateral India
Ideal for students going to top-tier institutions:
- SBI Scholar Loan (IITs, IIMs, NITs)
- HDFC Credila (case-by-case)
- Avanse (based on co-borrower income)
Loan amounts: Up to INR 7.5 lakh without collateral in many banks
Education Loan for MBA in India
MBA loans usually come with special features:
- Higher loan amounts (up to INR 40 lakh)
- EMI moratorium until course + 6 months
- Pre-approved offers for students of IIMs, XLRI, SPJIMR, ISB
Student Loan with Low Interest Rate India
Tips to get the lowest rate:
- Apply through Vidya Lakshmi Portal
- Maintain good academic performance
- Choose shorter tenure if possible
- Apply with strong co-applicant (earning parent/guardian)
Education Loan for Engineering Students India
Banks like SBI, BOB, and Canara Bank offer specialized loans:
- Interest subsidy under MHRD schemes
- No prepayment penalty
- No collateral needed for reputed colleges
Tax Benefit on Education Loan in India
Under Section 80E:
- Entire interest paid on education loan is tax-deductible
- No upper limit
- Deduction allowed for up to 8 years post repayment starts
Education Loan Interest Subsidy Scheme India
Subsidy schemes you should explore:
- Central Scheme for Interest Subsidy (CSIS)
- State-wise scholarships linked to education loans
Eligibility often based on:
- Annual family income (< INR 4.5 lakh)
- Type of institution and course
Education Loan Repayment After Study
Most banks offer a moratorium:
- Course duration + 6 months to 1 year
- Interest may accrue during this period
- Option to start partial interest payments during study
Repayment period: 5 to 15 years
Online Apply for Education Loan India
You can now apply completely online via:
- Vidya Lakshmi Portal
- Bank websites (SBI, Axis, ICICI)
- NBFC platforms like HDFC Credila, Avanse, InCred
Ensure you have:
- Admission proof
- KYC documents
- Co-applicant income documents
Best Bank for Education Loan in India
Top picks based on interest + approval speed:
- SBI: Best for government schemes
- HDFC Credila: For abroad and customized plans
- Axis Bank: Good for top Indian colleges
- Bank of Baroda: Affordable interest + fast disbursal
Real-World Story: Priya’s Experience
Priya, a student from Hyderabad, got admission in a top US university. Through the Vidya Lakshmi Portal, she received approval from SBI for a loan of INR 30 lakh at 9.2% with a 15-year tenure. She opted for a moratorium period during the course. Today, she’s comfortably repaying an EMI of INR 28,700 after getting a job in the U.S.
FAQs
What is the lowest EMI for education loan in India? It depends on amount and tenure, but longer tenures and subsidies can reduce EMI to as low as INR 3,000/month for smaller loans.
Is collateral required for all education loans? No. Loans under INR 7.5 lakh or to top institutes often don’t require collateral.
When does EMI start on education loans? Typically after the moratorium—course duration plus 6–12 months.
Are there tax benefits on education loans? Yes, under Section 80E for interest paid during repayment.
Can I get a loan for studying abroad without collateral? Yes, but only with strong co-applicant income and good university admission.
Conclusion: Make Education Affordable with the Right Loan
An education loan for Indian students with low EMI is not just about affordability—it’s about making your academic dreams a reality without financial strain. Choose wisely, plan smartly, and use tools like EMI calculators, subsidy schemes, and co-borrower support to ease the burden.
The right loan today is your ladder to a brighter tomorrow.