The college admission season has begun in 2025, and the increasing spending of higher education is becoming a challenge for parents and students. Know the information of the cheapest education lending banks, including government banks like Union Bank of India, SBI, and Central Bank of India.
Today’s spending of higher education is increasing rapidly, and with the time of college admission coming to a close, the challenge of funding for studies is facing parents and students. Whether it is studying in India’s top institutions such as IIT, IIM, or foreign universities, education can cost millions. In such a situation, education loan is a great option to realize the dreams of students. But the question is, which bank is offering the cheapest education loan in 2025?
Why is education loan necessary?
The college admission season has started. Medical, engineering, management, and other professional course fees are steadily increasing in India. Apart from this, the cost of studying abroad is even higher, which includes tuition fees, living and travel expenses. In such a situation, education loans for good education not only reduce the economic burden, but also help students to focus on their careers without any financial concern.
Cheapest Education Loan Banks in 2025
1. Union Bank of India
Interest Rate: Loan amount starting at 8.1% per year.
Up to Rs 20 lakh (for studies in India), more amount is possible for foreign studies.
Subsidy schemes are also offered for economically weaker and minority community students. No collateral has to be given for loans up to 7.5 lakhs. There is a discount of up to 0.5% in the interest rate for girls.
2. State Bank of India (SBI)
Interest rate: starting at 8.15% per year.
Loan amount: up to Rs 20 lakh (without collateral), security is required for more amount.
This bank education loan offers long repayment period up to a maximum of 15 years. Easy application can be done through Vidya Lakshmi portal. Interest payments are facilitated during the moratorium period.
3. Central Bank of India
Interest rate: starting at 8.1% per year.
Loan amount: up to Rs 20 lakh.
Education loan of this bank does not incur any processing fees. Collateral-free loans get up to 7.5 lakhs. Special scheme is being run for Bank Mentional Institutions (IIT, IIM).
4. Bank of Baroda
Interest rate: starting at 9.15% per year
Loan amount: up to Rs 1.25 crore (with collateral).
There is no margin or processing fees for premium institutions such as IIM, IIT, NIFT. Online application and digital document submission complete the work. Special scheme is being run for foreign studies.
5. Bank of india
Interest rate: 8.95% to 9.75% per year.
Loan amount: up to Rs 30 lakh (BOI Star Vidya Lone).
No processing fees or hidden charges are levied. A repayment period of up to 15 years is provided by the bank. Special loan scheme is being run for premium courses (CA, MBA, MS).
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