Higher education is getting expensive in India and abroad. Whether you’re planning to study engineering, medicine, MBA, or even a niche foreign degree, arranging funds of ₹20–50 lakh has become the norm. Thankfully, several banks in India offer education loans up to ₹50 lakh with competitive interest rates, long repayment tenures, and even moratorium periods to ease the burden.
This blog gives you a complete breakdown of:
- Banks offering up to ₹50 lakh as education loans
- Lowest interest rates in 2025
- EMI calculation for ₹50 lakh
- Eligibility, required documents, and repayment tips
🎓 Why an Education Loan?
An education loan is a financial product offered by banks and NBFCs to support students’ tuition fees, accommodation, travel, books, laptops, and other academic-related expenses. You can use the loan for both domestic and international education.
It allows students to:
- Focus on academics without financial stress
- Build financial responsibility early
- Preserve family savings or investments
- Benefit from tax savings under Section 80E
🏦 Top Banks Offering ₹50 Lakh Education Loan (2025)
Here’s a list of banks offering education loans up to ₹50 lakh and their approximate interest rates for 2025:
| Bank Name | Max Loan (₹) | Interest Rate (per annum) | Tenure |
|---|---|---|---|
| State Bank of India (SBI) | ₹50 lakh+ | 8.15% – 9.50% | Up to 15 years |
| Bank of Baroda | ₹50 lakh | 8.40% – 10.00% | Up to 15 years |
| Punjab National Bank (PNB) | ₹50 lakh | 8.45% – 10.05% | Up to 15 years |
| ICICI Bank | ₹40–50 lakh | 9.85% – 11.00% | Up to 10 years |
| HDFC Credila | ₹50 lakh+ | 10.25% – 12.50% | Up to 12 years |
| Axis Bank | ₹50 lakh | 10.75% – 13.00% | Up to 15 years |
| IDFC First Bank | ₹50 lakh | 9.50% – 11.00% | Up to 12 years |
| Canara Bank | ₹50 lakh | 8.50% – 9.85% | Up to 15 years |
💡 Note: Interest rates are floating and may vary based on applicant’s academic profile, institution, co-applicant income, and loan amount.
🧮 How Much EMI for a ₹50 Lakh Education Loan?
Let’s assume you borrow ₹50,00,000 at 9% interest for a tenure of 15 years. Here’s a sample EMI calculation:
- Loan Amount: ₹50,00,000
- Interest Rate: 9% per annum
- Tenure: 15 years (180 months)
- Monthly EMI: ₹50,713 approx.
- Total Interest Payable: ₹41,28,000
- Total Payment: ₹91,28,000
If you choose a shorter tenure (10 years), EMI will be higher (~₹63,000/month), but total interest will be lower.
You can use EMI calculators offered by banks to get accurate values based on your interest rate and tenure.
📌 Key Features of Education Loans
- Loan Amount: ₹4 lakh to ₹50 lakh (can go up to ₹1 crore for foreign education)
- Collateral Requirement:
- Up to ₹7.5 lakh – No collateral in many cases
- ₹7.5 lakh+ – Usually requires property or third-party guarantor
- Moratorium Period: Course duration + 6 to 12 months grace before EMI starts
- Margin Money:
- Up to ₹4 lakh – No margin
- ₹4 lakh+ – Student/parent may need to contribute 5–15%
- Coverage:
- Tuition Fees
- Hostel & Food
- Travel (for overseas education)
- Exam Fees, Laptop, Books, Insurance
✅ Eligibility Criteria
To apply for a ₹50 lakh education loan:
- Nationality: Indian citizen
- Age: 18–35 years
- Must have a confirmed admission letter from a recognized institution
- Good academic record
- Parent or guardian as co-applicant with stable income
- For ₹7.5 lakh+, may need collateral or property document
📄 Documents Required
Student Documents:
- KYC (Aadhaar, PAN)
- Passport-size photos
- Admission letter from university/college
- Academic certificates (10th, 12th, UG)
- Fee structure from the institution
- Visa and passport (for studying abroad)
Co-applicant Documents:
- KYC
- Income proof (ITR, salary slip, Form 16)
- Employment proof
- Bank statements (last 6 months)
Collateral Documents (if applicable):
- Property ownership proof
- Valuation and title clearance certificate
💡 Tax Benefits – Section 80E
You can claim tax deduction on the interest paid on education loan under Section 80E of the Income Tax Act for up to 8 years. There’s no limit on the amount of deduction.
This is especially useful when you’re repaying loans for higher education abroad or long-duration degrees.
🧠 Tips to Get the Best Education Loan Deal
- Compare interest rates across banks
- Check for interest subsidy schemes (like Padho Pardesh or Central Scheme for Economically Weaker Sections)
- Ask for concession rates for top universities/IITs/IIMs
- Choose longer tenures to keep EMIs affordable
- Always opt for secure EMI moratorium in writing
- Start repaying interest during the moratorium if possible to reduce burden later
🌍 Studying Abroad? What You Should Know
Education loans for foreign studies typically cover:
- Airfare and travel expenses
- Tuition and accommodation
- Visa charges, insurance
- Currency exchange or forex margin
SBI, HDFC Credila, and Axis Bank are some of the leading players for overseas education loans, especially for countries like the US, UK, Canada, Australia, Germany, and Singapore.
📢 Final Words: Invest in Your Education, Not Just Expenses
Education is not just an expense; it’s an investment in your future. With top Indian banks offering loans of up to ₹50 lakh at affordable rates, higher studies are no longer out of reach — whether in India or abroad.
Before applying, do thorough research, compare interest rates, read the fine print on moratoriums and collateral, and plan your repayment smartly.
