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

  • 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 for all regular Postgraduate courses in Management

 

Interest rate range for Education Loan for the period between July 2025 and Sept 2025

Type of credit

Minimum

Maximum

Mean

Education Loan -iSMART interest rates

10.25% per annum

14.00% per annum

11.27% per annum

 

Interest Rate for Government subsidy scheme

 

 

Type of credit

Interest rate

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

11.20%*

Pradhan Mantri Vidyalakshmi (PMVidyalaxmi) Scheme

9.70%*

 

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

 

Education Loan: Fees & Service Charges 

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:

 

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:

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

₹ 100

Foreclosure / Prepayment Charges

No Charges (for eligible loans)

Penal Charges

 

5% per annum on the overdue sum from the due date to the actual payment date

FAQs on Education Loan Interest Rates

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 attractive 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’s 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 many 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. Some 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?

In some cases, yes. 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. Stay updated by keeping a check on the Bank’s website. 

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