Whether you’re a college student planning to study in India, an international student eyeing a prestigious university abroad, or a parent looking to support your child’s dreams—education loans in 2025 are more flexible, accessible, and varied than ever before. With tuition fees skyrocketing and living costs adding up, securing the best education loan in India has become a crucial part of academic planning.
In this comprehensive guide, we’ll walk you through the top education loan plans in 2025, compare education loan interest rates, explore options for student loans for study abroad, and help you navigate with tools like a study loan calculator.
Why Education Loans Matter More Than Ever in 2025
In 2025, the demand for higher education has surged across the globe. From AI-driven careers to sustainability sciences, students are pursuing specialized programs in India and abroad. However, rising costs pose a challenge.
That’s where education loans step in—not just as financial aids, but as investments in your future.
Benefits of Education Loans:
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Access to quality education regardless of financial background
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Tax benefits under Section 80E of the Income Tax Act
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Flexible repayment options
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Moratorium periods (repayment starts after course completion)
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Global recognition for top banks and NBFCs
Key Factors to Consider Before Choosing an Education Loan
Before diving into loan options, here are a few crucial elements to compare:
| Feature | Description |
|---|---|
| Interest Rate | Lower the better! Look for floating vs fixed rates |
| Loan Amount | Does it cover tuition, living expenses, travel, etc.? |
| Processing Time | Faster approvals = less stress |
| Collateral | Some loans are unsecured (no collateral) |
| Repayment Terms | Look for flexibility and longer tenure |
| Co-applicant Requirement | Most loans need a parent/guardian as co-borrower |
Tip: Always use a study loan calculator to simulate EMI payments and understand long-term costs.
Top 7 Education Loan Plans in 2025 (India + Abroad)
Here’s a curated list of the best education loans in India for both domestic and international study in 2025:
1. SBI Global Ed-Vantage Scheme
One of the most popular choices for students planning to study abroad.
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Loan Amount: Up to ₹1.5 Crore
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Interest Rate: Starting from 9.55% p.a.
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Collateral: Mandatory for loans above ₹7.5 lakh
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Moratorium: Course period + 6 months
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Repayment Tenure: Up to 15 years
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Who It’s Best For: Indian students aiming for top universities in the US, UK, Canada, etc.
✅ Use SBI’s study loan calculator to estimate monthly EMIs based on your course and destination.
2. HDFC Credila Education Loan
India’s first dedicated education loan company with highly personalized services.
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Loan Amount: No upper limit (depends on course & university)
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Interest Rate: Starting from 11% p.a. (flexible & custom)
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Collateral: Optional (based on profile)
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Repayment Tenure: Up to 12 years
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Special Feature: Pre-approval before admission
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Great For: Student loan for study abroad, especially in STEM and MBA programs
3. Axis Bank Education Loan
Offers loans for both domestic and international education.
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Loan Amount: Up to ₹75 Lakh (India) and ₹1 Crore (abroad)
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Interest Rate: Starting from 13.7% p.a.
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Collateral: Required above ₹40 lakh
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Processing Time: Fast track with digital documentation
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Standout Feature: Flexible co-applicant and repayment structure
4. ICICI Bank Education Loan
A convenient and popular choice for urban students.
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Loan Amount: ₹10 lakh (India) / ₹1 Crore (abroad)
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Interest Rate: Starting from 11.5% p.a.
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Collateral: Required above ₹20 lakh
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Repayment Tenure: 10 years
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Bonus: No margin money required
Use their study loan calculator for a transparent breakdown of your financial commitment.
5. Bank of Baroda – Baroda Scholar
A public-sector gem with student-friendly terms.
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Loan Amount: Up to ₹80 lakh
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Interest Rate: Starting from 9.25% p.a.
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Collateral: Required above ₹7.5 lakh
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Moratorium: Course period + 1 year
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Perks: Special rates for top-ranked global institutions
6. Avanse Financial Services
A new-age NBFC focused solely on education loans.
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Loan Amount: Custom up to full cost of education
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Interest Rate: Between 11%–14% p.a.
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Features: Covers living, travel, laptop, exam fees
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Collateral: Optional
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Ideal For: Niche courses, short-term certifications, and international students
7. InCred Education Loan
Tailor-made loans with a tech-driven approach.
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Loan Amount: ₹2 lakh to ₹1 Cr
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Interest Rate: From 11.75% p.a.
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Collateral: Depends on loan profile
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Specialization: Overseas education + test prep financing
Special Focus: Student Loan for Study Abroad
Studying abroad can be life-changing—but also pricey! Here’s how to find the best student loan for study abroad in 2025:
Recommended Providers:
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HDFC Credila – Custom loans for US, UK, Germany, etc.
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Avanse – Loans even for short-term diplomas and art schools
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SBI Global Ed-Vantage – High loan limit, low rates for top global universities
What To Look For:
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Loans that cover living expenses, travel, and insurance
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Tie-ups with universities for faster approval
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Visa-friendly repayment conditions
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Moratorium periods to give you breathing room
How to Use a Study Loan Calculator
A study loan calculator helps you simulate:
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EMI (Equated Monthly Installments)
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Total interest payable
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Loan tenure flexibility
Input Parameters:
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Loan amount
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Interest rate
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Repayment period
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Moratorium duration
➡️ You can try calculators on SBI, ICICI, and HDFC Credila websites to plan your loan journey smartly.
Real-Life Example: Raj’s Journey to Harvard
Raj, an engineering graduate from Mumbai, got into Harvard Business School. His parents had savings but not enough to fund the full course.
Using the study loan calculator on SBI’s portal, Raj calculated:
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Total loan needed: ₹60 lakh
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EMI post-study: ₹63,000/month for 10 years
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He applied through SBI Global Ed-Vantage and got approval in 10 days.
Raj is now thriving and has begun repaying his loan thanks to his high-paying consulting job in Boston.
Moral? The right education loan plan can bridge the gap between ambition and reality.
Tips to Get Your Education Loan Approved Faster
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Start early: 4–6 months before admission
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Prepare documents: Admission letter, co-applicant income, identity proofs, academic transcripts
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Maintain good credit: A good CIBIL score helps
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Choose the right lender: NBFCs are quicker, but banks may offer better rates
Final Thoughts: Navigating the Future with the Right Loan
In 2025, your academic dreams don’t have to wait for financial miracles. With so many student loan options for study abroad and domestic education, the key is comparing wisely, using a study loan calculator, and choosing based on your course and career goals.
Whether you’re headed to IIT, Oxford, or a design school in Milan—the best education loan in India is the one that aligns with your aspirations, financial background, and repayment comfort.
Have Questions?
Drop your queries in the comments or share this guide with a friend who’s exploring college admissions this year. Let’s build a future where no dream goes unfunded.