ENGINEERING EDUCATION LOAN

Engineering Education Loan

Engineering Education Loan

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Education Loan Interest Rates in 2025: A Complete Comparison

Introduction
As education costs continue to rise, especially for professional degrees like Engineering Education Loan, medicine, and management, education loans have become a vital financial tool for students across India. Choosing the right loan, however, depends significantly on one key factor: the interest rate. Even a small difference in the rate can greatly impact the total repayment amount and the EMIs a student or parent has to bear over the years.

In 2025, both public and private banks, as well as NBFCs (Non-Banking Financial Companies), are offering education loans with varied interest rates based on student profiles, loan amounts, and the institution’s reputation. This article provides a complete comparison of education loan interest rates in 2025 to help you make the most informed decision before applying.

Education Loan Interest Rates (2025) – Quick Comparison




































































Bank/NBFC Interest Rate (Approx.) Girl Student Concession Collateral-Free Limit Max Loan (India)
SBI 8.50% – 9.15% 0.50% ₹7.5 lakh ₹20 lakh
Canara Bank 8.85% – 9.35% 0.50% ₹7.5 lakh ₹10 lakh
Bank of Baroda 8.65% – 9.15% 0.50% ₹7.5 lakh ₹20 lakh
Punjab copyright 9.00% – 9.75% 0.50% ₹7.5 lakh ₹15–20 lakh
ICICI Bank 10.50% –12.00% Case-by-case Limited ₹20+ lakh
Axis Bank 10.75% –13.00% Custom offers Limited ₹30+ lakh
HDFC Credila (NBFC) 11.00% – 13.50% Profile-based Yes (with conditions) No cap (profile-based)
InCred (NBFC) 12.00% –14.00% Yes (on case basis) Yes ₹40+ lakh

Factors Influencing Interest Rates

  1. Type of institution (IIT/NIT vs. private college)

  2. Academic performance and entrance exam ranks.

  3. Co-applicant’s income and credit score

  4. Loan amount and collateral

  5. Repayment plan and tenure

  6. Subsidy eligibility (e.g., Central Sector Interest Subsidy)


Tips for Getting Lower Interest Rates




    • Apply through the Vidya Lakshmi Portal for Engineering Education Loan government-linked bank loans

    • Maintain good academic records and choose a reputed institution.s

    • Choose shorter repayment tenures if financially possible.e



 

  • Compare at least 3–4 lenders before finalizing.


 

Public vs Private Lenders – Interest Rate View


 

  • Public Banks (SBI, Canara, BoB):
     Lower rates
     Subsidy support
     Slower processing



  • Private Banks/NBFCs (ICICI, HDFC Credila):
     Faster, flexible service
     Higher interest rates
     Limited subsidy support


 

Conclusion
In 2025, Engineering Education Loan interest rates in India range widely from 8.5% to over 13%, depending on the lender and student profile. While public sector banks offer lower and more stable rates with subsidy benefits, private lenders and NBFCs provide faster and more flexible options, albeit at higher costs.

To make the best choice, assess your loan amount needs, repayment capacity, course type, and eligibility for government subsidies. A careful comparison now can save you thousands of rupees over the loan tenure and make your education journey more financially comfortable.

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