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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 of Education Loans. ICICI Bank Education Loan allows students to begin their academic careers stress-free with low interest rates.  

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Interest Rates

ROI for abroad studiesSecuredUnsecured

Starting from

9.00%

10.25%

 

Engineering and Management Courses

 

ROI for Domestic studiesSecuredUnsecured

Select Domestic Institutes*

8.50%

9.25%

Others

9.00%

9.75%

 

*Select Domestic Institute list

 

 

Medical Courses

 

 

ROI for Domestic studiesSecuredUnsecured

All

8.75%

9.50%

 

All I-Group employees

 

CategorySecuredUnsecured

I-Group Employees

9.00%

10.00%

 

EXBT cases where the Applicant is working

 

Institute CategorySecuredUnsecured

ALL

8.99%

9.99%

Note*: Interest rates are starting from the mentioned rates and may vary as per applicable terms

 

Applicable courses:

 

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

Management courses - MBA or PGDM or PGP 

Medical courses - MD or MBBS or BDS or MDS

 

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

 

Education Loan Interest Rate Range (Period: January 2026 - March 2026)

Type of Credit

Minimum

Maximum

Mean

Education Loan -iSMART interest rates

9% per annum

13.00% per annum

10.54% per annum

 

 

Education Loan Interest Rate under Government Subsidy Scheme

 

Type of credit

Interest rate

Pricing for Education Loans under Credit Guarantee Fund scheme for Education Loan (CGFSEL)

10.95%*

Pradhan Mantri Vidyalakshmi (PMVidyalaxmi) Scheme

9.45%*

 

*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. Thus, making it easier to fund your higher studies and help you achieve your academic goals.

 

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

 

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Type of Fee/Charge Rate/Amount 
Processing Fee Up to 2% of the loan amount plus GST 
Administrative Charges ₹5,000 or 0.25% of the loan amount (whichever is lower) 
CERSAI Charges: For loan up to 5 lacs: Rs 50/- 
Non-refundable charges under the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) For loan above 5 Lacs: Rs 100/- 
Foreclosure or Prepayment Charges 1. NIL prepayment charges for EL under floating rate loans 
2. For facility with fixed rate loans at the time of prepayment: 
a. Fixed rate loans within 37 months from loan origination date-2% of amount being pre-paid 
b. Fixed rate loans post 37 months from loan origination date- NIL Outstanding amount at the time of loan prepayment 
Penal Charges 5% per annum on the overdue sum from the due date to the actual payment date 
Other penal charges, if any   
     a) Dishonor of Cheque/AD/NACH per transaction                                                   500 
     b) Non-Maintenance of Mode of Payment  charges (NMMP) if applicable 800 
Prepayment Charges                                                                                                                                         1.NIL prepayment charges under floating rate loans 
2. Prepayment charges under Fixed rate loans:
a) Fixed rate loans within 37 months from loan origination date- 2.00% of principle prepaid  (outstanding) 
b) Fixed rate loans post 37 months from loan origination date - NIL 
Charges for switching of loans from floating to fixed rate and vice versa a. For switch over from floating to fixed rate loans, then conversion charges be # 3,000/- 
b. For switch over from fixed rate loans to floating, below conversion charges will be applicable:  
i. Fixed rate tenure up to 37 months – 0.50% of the principle outstanding amount  
ii.Fixed rate tenure above 37 months – 2.00% of the principle outstanding amount 
Any other charges (please specify)   
Cash Transaction Charges  100  
Charges for Amortization Schedule  200 (For Physical copy)  
Charges for Duplicate No Objection / No Dues Certificate  250  
Charges for prepayment / foreclosure statement  200 (For Physical copy)  
Charges for Statement of Account  200 (For Physical copy)  
Charges for Revalidation of No Objection Certificate  250  
Loan Cancellation Charges – Digital and Non-Digital  2500  
Digital Lending – NIL Cancellation within Free Look / Cooling off period  -
Cancellation post cooling Period (15  days)& Before 1 EMI date (i.e. from  16th day till 1st   EMI  date) -
Charges for swapping of repayment mode  -
Loan / Property Document Retrieval charges  500  
Recovery Charges (if Applicable)  500  
Charges incurred in SARFAESI proceedings  At Actuals  
Charges incurred in sending different notices  At Actuals  
Enforcement charges  At Actuals  
Paper advertisement charges  At Actuals  
Repossession charges  At Actuals  
Security guard charges At Actuals  

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 helps keep the rates transparent and affordable. Such rates, coupled with flexible repayment options, help students focus on their studies without financial stress.

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. A 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.

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.

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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