Guide
Education Loan Interest Rate Guide
How lenders set education loan rates and the levers you can pull to secure a lower one.
How rates are set
Most education loans are floating-rate, benchmarked to the repo rate or the lender's MCLR plus a spread. The spread depends on your risk profile — institution, collateral and co-applicant.
Lowering your rate
You have more control than you think. These levers can meaningfully reduce your rate:
- Offer collateral for a secured loan
- Add a co-applicant with strong income and credit
- Choose a recognised, lender-approved institution
- Opt for a shorter tenure where affordable
Ready to fund your education?
Compare offers from 15+ banks and NBFCs in minutes. It's free, fast, and there's no obligation.