Cheapest Education Loan: After CBSE 12th result, college fees becomes the biggest concern for lakhs of students and parents. In such a situation, many banks are offering education loans at low interest rates. By choosing the right bank, students can not only take advantage of low EMIs but can also avail tax savings. Know in which 5 banks loans for studies are available at the lowest interest…
Best Bank for Education Loan: Lakhs of students and their families are waiting for the CBSE 12th Result (CBSE 12th Result 2026). As soon as the results come, the cost of further studies also increases the worry. Private College Fees College fees become the biggest problem for many students and their families who dream of pursuing engineering, medical, management or studying abroad. In such a situation, education loan emerges as the biggest option, but if you do not choose the right bank, the EMI burden can increase significantly in the coming years. The good thing is that some banks are currently offering education loans at low interest rates, and you can also get the benefit of saving tax. Let us know which 5 banks are offering education loans at the lowest interest in May 2026.
SBI (State Bank of India)
If you are looking for a low interest and reliable bank, then SBI can be the best option. The bank is offering education loans to students at interest rates starting from around 6.90%. The special thing is that there is no processing fee on many loans up to Rs 7.5 lakh. The advantage of SBI is that its branches are present in almost every city and the benefits of government schemes are also easily available here. Students taking admission in IIT, NIT and big institutes have more chances of getting better offers.
PNB (Punjab National Bank)
Punjab National Bank is also among the big government banks that provide low interest rate education loans to students. The interest rate here starts from around 4% and can increase according to different courses and profiles. The special thing about this bank is that processing fees are not charged in many schemes. If the income of the parents is good and the student takes admission in a good college, then the chances of loan approval increases.
Bank of Baroda
Education loan of Bank of Baroda is also very cheap. The bank is offering loans at interest rates starting from around 6.85%. This bank offers many schemes for students studying in India as well as abroad. If a student takes admission in a top university, he can get the benefit of low interest and easy repayment. In many cases, processing fees are also not charged.
Canara Bank
Canara Bank education loan is considered good for students who want the security and low charges of a government bank. Here the interest rate can be around 7.25% to 10.10%. Low processing fees have been kept in many schemes of the bank. Apart from this, if the income of the co-applicant i.e. parents is good, then there can be relief in interest rate. The bank gives loans for both higher studies and professional courses.
IDFC FIRST Bank
If you need quick loan approval and prefer less paperwork, IDFC First Bank can be a good option. It is a private bank, hence its processing is considered quite fast. However, its interest rate may be slightly higher than that of government banks and processing fees may also be charged. Many students choose this bank for studies abroad or for large amount loans. Currently education loan in the bank starts at 9.50%.
Opportunity to save tax on education loan
Tax saving is also a big advantage of education loan. Tax exemption on loan interest can be availed under Section 80E of Income Tax. That is, when you start paying EMI after completion of studies, you can avail tax relief on the interest portion. Therefore, before taking a loan, consider not only the EMI but also the tax benefits.
Disclaimer: The information given in this article is for informational purposes only. The interest rates, processing fees and other terms and conditions of education loan may be changed by banks from time to time. The details given here are as per Bankbazaar.com updates on May 12, 2026. Before applying for a loan, please confirm the latest rates by visiting the official website of the concerned bank or contacting their branch. We are not associated with any bank nor do we guarantee any financial investment or loan. The decision to take a loan should be entirely that of the student and his/her parents. Before signing any financial document, read the terms and conditions carefully and take the help of a financial advisor.
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