The government pays 3% interest for eligible students. Collateral-free funding up to ₹10 lakh, and up to ₹1.5 crore for studies abroad.
Same loan amount. Same tenure. A PSU bank rate simply costs you less.
| Bank | Interest Rate | Monthly EMI (₹20.00 L, 10yr) | Total Interest | You Save |
|---|---|---|---|---|
| Bank of Baroda (via NITI) | 8.5% | ₹24,797 | ₹9.76 L | ₹5.37 L |
| Axis Bank | 11.5% | ₹28,119 | ₹13.74 L | ₹1.39 L |
| ICICI Bank | 11.75% | ₹28,406 | ₹14.09 L | ₹1.04 L |
| NBFC lenders | 12.5% | ₹29,275 | ₹15.13 L | Baseline |
For students admitted to India's top 860 institutes with family income under ₹8 lakh, the central government pays a 3% interest subvention on education loans up to ₹10 lakh during the moratorium period. Loans up to ₹7.5 lakh also get a 75% credit guarantee, which is why no collateral is needed. We file the subsidy application along with your loan so nothing gets missed.
The entire interest you pay on an education loan is deductible from taxable income under Section 80E for up to 8 years, with no maximum limit. For a family in the 30% slab paying ₹1.5 lakh interest a year, that is roughly ₹45,000 back annually.
Move the sliders to see your monthly EMI and how much a PSU rate saves you.
Monthly EMI
₹24,797
Total Interest
₹9.76 L
Total Payment
₹29.76 L
Four steps, mostly on WhatsApp.
Send us your requirement — loan type, amount, city. Takes 2 minutes.
We compare rates from 5+ PSU banks and share the best options within 15 minutes.
Send documents on WhatsApp. We verify and submit to the bank on your behalf.
48-72 hour approval. Money disbursed directly to you or your dealer.
NITI Financial Solutions is a loan facilitation service. We facilitate the loan application process between you and our partner banks. The final loan sanction, interest rate, and terms are determined by the respective bank based on their credit assessment.
