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Education Loan Interest Rates

 

To manage the cost of higher education, students need to understand the interest rates, fees and repayment plans. ICICI Bank Education Loan allows students to begin their academic careers stress-free with low interest rates. 

 

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Interest Rates

  • Engineering and Management Courses

     

Institute Category Loan Amount Secured Unsecured

Select Domestic Institutes*

     (No cap)

9.00%

9.75%

Others

>=₹15 lakh

9.25%

10.25%

 

*Select Domestic Institute list

 

  • Medical Courses

     

Institute category Loan Amount Secured Unsecured

All Institutes

>=₹20 lakh

9.25%

10.25%

 

  • Applicable courses

     

Engineering courses - B.Tech / M.Tech / B.E. 

Management courses - MBA / PGDM / PGP 

Medical courses - MD / MBBS / BDS / MDS

 

*Applicable for all regular Undergraduate / Postgraduate courses in Medical and Engineering - and to all regular Postgraduate courses in Management

 

Interest Rate Range (Period: July 2025 - September 2025)

Type of Credit

Minimum

Maximum

Mean

Education Loan -iSMART interest rates

10.25% p.a.

14.00% p.a.

11.27% p.a.

 

Interest Rate under Government Subsidy Scheme

 

 

Type of credit

Interest rate

Under Credit Guarantee Fund Scheme for Education Loan (CGFSEL)

11.20%*

Under Pradhan Mantri Vidyalakshmi Scheme (PMVidyalaxmi)

9.70%*

 

*Linked to I-EBLR (External Benchmark Lending Rate)

 

Fees and Service Charges for Education Loan

ICICI Bank offers Education Loans with low interest rates, minimal fees, flexible terms and a transparent process - , making it easier for you to fund your higher studies and helps to achieve your academic goals.

 

Here are some important charges related to an Education Loan from ICICI Bank:

 

Type of Fee/Charge

Rate/Amount

Processing Fee

Up to 2% of the loan amount + GST

Administrative Charges

₹5,000 or 0.25% of the loan amount (whichever is lower)

CERSAI Charges:

Non-refundable charges under the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI)

₹100 (non-refundable)

Foreclosure / Prepayment Charges

Nil (for eligible loans)

Penal Charges

 

5% p.a. on the overdue amount (from the due date to the actual payment date)

Education Loan Interest Rates FAQs

How does Education Loan interest work?

ICICI Bank offers competitive interest rates that are linked to the current market rates. This ensures transparency and affordabillity. Such rates, coupled with flexible repayment options, help students focus on their studies without financial burden.

Are there any tax benefits that can be availed on an Education Loan?

Yes, you can get tax benefits on the interest you pay on your Education Loan under Section 80E of the Income Tax Act (old tax regime). You can reduce your taxable income by the interest amount paid that financial year and thus save on tax. It is a smart way to ease the financial load while repaying your loan. 

What is the current Education Loan interest rate at ICICI Bank?

ICICI Bank offers competitive Education Loan interest rates, which depend on factors like loan amount, borrower profile and the course being applied for. You can check the latest rates in the Education Loan interest rate section of our website.

 

How are Education Loan rates determined?

Education Loan rates depend on factors like the loan amount, course type, repayment period, the applicant’s academic background and the credit history of the applicant and / or co-applicant or guarantor. Few loans have fixed rates, while others may change with time (floating rates).

Are interest rates lower for premier institutions?

Yes, ICICI Bank may offer low-interest Student Loans for courses at premier educational institutes. Make sure that you provide all the documents supporting your admission so that the Bank can verify them and approve the loan with a lower interest rate. 

Does ICICI Bank offer low-interest Education Loans?

Yes, ICICI Bank offers low-interest Education Loan options, especially for students with strong academic records or those studying at top-ranking colleges and universities.

How can I calculate my Education Loan interest?

You can use ICICI Bank’s Education Loan interest calculator online. You need to enter your loan amount, tenure and interest rate to get a quick estimate of your EMIs and payable interest.

What are the benefits of Education Loans with low interest rates?

Low interest rates mean a lower total repayment amount. This makes your Education Loan much easier to manage in the long run.

How do ICICI Bank’s Education Loan interest rates compare to others?

ICICI Bank offers competitive Education Loan interest rates. Additionally, you also get perks like flexible repayment, tax benefits and loans for courses in India as well as abroad. 

Can my Education Loan interest rate be reduced after disbursement?

Yes, in some cases. If your repayments are timely or if ICICI Bank revises its Education Loan interest rate structure, you might have to pay interest at a lower rate. Keep checking the Bank’s website regularly. 

Are ICICI Bank’s Education Loan interest rates better compared to others?

ICICI Bank offers competitive Education Loan interest rates. Additionally, you also get perks like flexible repayment, tax benefits and loans for courses in India as well as abroad. 

What is Education Loan interest rate?

Education Loan interest rate is the percentage of the principal amount you pay on the money borrowed from the Bank for funding your studies (Education Loan).

What is the average interest rate for an Education Loan?

The average Education Loan interest rate in India is around 11.27% per annum with banks like ICICI Bank offering rates that may depend on the applicant’s credit profile, course and academic record.

Can I negotiate the Education Loan interest rate with the lender?

There can be a chance of negotiation for a low-interest Education Loan with the Bank when you have a good credit score or history, a co-applicant or secured collateral.

How does the Education Loan interest rate affect my loan repayment?

A higher Education Loan interest may imply larger EMIs and total repayment. Choosing a lower rate can help reduce your repayment burden over time.

Can I switch to a different interest rate type during the loan tenure?

Yes, ICICI Bank allows you to switch between fixed and floating interest rates but a small conversion fee may apply. Check with the Bank before the rate conversion. 

 

Do Education Loan interest rates vary for different courses?

Yes, Education Loan interest rates can differ based on the course type, institution or study location since overseas courses often have higher rates.

 

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