Education Loan Interest Rates in 2025 – At a Glance
Interest rates for education loans in 2025 vary based on factors like course type, collateral, lender, and location (India or abroad). Here's a general snapshot:
| Loan Type | Interest Rate (2025) |
|---|---|
| Domestic (India) | 8.50% – 11.00% p.a. |
| Abroad (International Studies) | 10.00% – 13.00% p.a. |
| With Collateral | Lower by 1–2% |
| Without Collateral | Higher, due to added risk |
| Government Schemes (Vidya Lakshmi, etc.) | Subsidized or 6.5% – 9% |
What Affects Your Education Loan Interest Rate?
🎓 Course Type – Professional, UG, PG, or vocational
🌍 Study Location – India vs. abroad
🏦 Lender – Public bank, private bank, NBFC, or fintech
💼 Co-applicant's Income – Stable income improves rates
💳 Credit Score (CIBIL) – Both yours and co-applicant’s matter
🏠 Collateral Offered – Property, FD, etc. can reduce interest
📉 Government Subsidy Eligibility – SC/ST/OBC or income-based schemes
Fixed vs. Floating Interest Rates
| Type | Pros | Cons |
|---|---|---|
| Fixed | EMI is predictable | Slightly higher than floating |
| Floating | May reduce over time | EMI may increase unexpectedly |
Vizzve Tip: What to Look for
Don’t just look at the interest rate. Also check:
Processing fee
Moratorium period (grace before repayment)
Repayment tenure
Prepayment penalties
Margin money requirements
Education Loan Partners at Vizzve
SBI Scholar Loans
HDFC Credila
ICICI Bank
Axis Bank
NBFCs offering no-collateral loans
Fintech players for quick disbursal and minimal paperwork
Why Apply for an Education Loan via Vizzve?
✅ Compare interest rates in one place
🎯 Match with lenders based on your course & profile
📱 100% digital application process
🧾 No hidden charges or surprise terms
📞 Dedicated support throughout the study period
FAQs
Q1. What is the average interest rate for abroad studies in 2025?
Around 10.5% – 13%, depending on the lender and country.
Q2. Do interest rates differ for male and female students?
Yes. Many banks offer 0.5% concession for girl students.
Q3. Can I get 0% interest education loans?
Only under rare subsidy schemes like CSIS for EWS categories.
Q4. When does interest start accruing?
Usually from loan disbursement, but repayment begins after the moratorium period (course + 6–12 months).
Published on : 23rd July
Published by : SMITA
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