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Here's an explanation for how we make money. Student loans can be useful for filling financial gaps when scholarships, grants and other forms of aid fall short, but the money isn’t free. In addition to your principal balance (the amount you originally borrowed), student loans accumulate interest.  

All federal student loans for undergraduates currently have an interest rate of 6.53 percent for the 2024-25 school year, while unsubsidized and Direct PLUS loans for graduate students have interest rates of 8.08 percent or 9.08 percent, respectively. Private student loan interest rates range from roughly 4 percent to 17 percent and are based primarily on creditworthiness. 

Student loan interest rates determine how much money you’ll ultimately owe and will also influence your monthly payment. Calculate how much you need and compare interest rates before taking out a loan, to ensure your debt will be manageable once you graduate. State Bank of India: Best customized education loan with low interest rates. 

Punjab National Bank: Best for students in the OCI category, or born abroad but studying in India.

 ICICI Bank: Best for studies in reputed colleges and universities in Canada. 

 Bank of Baroda: Best in loans for child’s studies pursuing schooling from nursery to class XII. 

 Bank of India: Best in loans with nil processing fees and lower interest rates. 

 Bank of Maharashtra: Best in loans to get concessions on rate of interest for meritorious students.

 Central Bank of India: Best education loan for executives pursuing MBA from reputed management institutes. 

 State Bank of India 4.5 Forbes Advisor Interest Rate Range 8.30% to 11.50% Purpose Studies in India and foreign institutions.

 Loan Type Need-based term loan up to 15 years. State Bank of India Why We Picked It Pros & Cons Punjab National Bank 4.5 Forbes Advisor Interest Rate Range 8.55% to 11.25% Purpose For studies in India and abroad institutions. Loan Type Need-based term loan up to 15 years. Punjab National Bank Why We Picked It Pros & Cons Bank of Baroda 4.0 Forbes Advisor Interest Rate Range 9.10% to 12.45% Purpose For studies in recognised schools, colleges and universities. Loan Type Term loan need-based funding. 

Bank of Baroda Why We Picked It Pros & Cons ICICI Bank 4.0 Forbes Advisor Interest Rate Range 9.50% onwards Purpose For studies in recognised colleges and universities. Loan Type Term loan up to INR 1 crore for domestic, and INR 2 crore for international studies. 

ICICI Bank Why We Picked It Pros & Cons Bank of India 4.0 Forbes Advisor Interest Rate Range 8.25% to 11.60% Purpose For studies in recognised schools, colleges and universities. Loan Type Term loan need-based financing. 

Bank of India Why We Picked It Pros & Cons Bank of Maharashtra 4.0 Forbes Advisor Interest Rate Range 9.20% to 11.05% Purpose For studies in India and abroad. Loan Type Term loan up to INR 10 lakh in domestic and up to INR 20 lakh for abroad studies.

Bank of Maharashtra Why We Picked It Pros & Cons Central Bank of India 4.0 Forbes Advisor Interest Rate Range 8.30% to 11.25% Purpose For studies in recognised colleges, universities, and premier institutions. Loan Type Term loan up to INR 50 lakh.