Which Bank Gives the Lowest Interest Rate for Study Abroad Loans?

Pursuing higher education overseas is a dream for many Indian students—but financing that dream often starts with one crucial question: which bank gives the lowest interest rate for study abroad loans? With multiple public and private banks offering overseas education loans, choosing the right lender can save you lakhs of rupees over time.

In this guide, we break down Indian bank abroad education loan interest rate, eligibility, and benefits offered by top Indian banks so you can make a confident, informed decision.

Understanding Overseas Education Loan Interest Rates

An overseas education loan typically covers tuition fees, living expenses, travel, books, and insurance. Interest rates depend on several factors, including:

• Type of bank (public vs private)
• Collateral availability
• Loan amount
• University ranking and country of study
• Applicant’s academic profile and co-applicant income

Public sector banks generally offer lower interest rates, while private banks provide faster processing and flexible terms.

SBI Bank Overseas Education Loan: Lowest Interest Rates Among PSU Banks

While searching for the lowest possible rate for an education loan to study abroad, SBI Bank Overseas Education Loan is often one of the top options considered by the students.

Key Highlights:

• Interest rates from approximately 9.15% per annum.
• Reduce processing fees
• Moratorium in course + 12 months
• Special concessions to female students
• Accepted by Most Foreign Universities

SBI loans are suitable for students who have got a place in a top institution and are in a position to pledge collateral and are interested in a long-term option.

Bank of India Study Abroad Loan: Affordable & Student-Friendly

The Bank of India Study Abroad Loan is another popular choice among public sector banks.

Why choose Bank of India?

• Interest rates of approximately 9.35% per annum.
• Loan Options for Financing Tuition and Living Costs
• Repayment term that’s
• Less cost of interest as compared to the cost of borrowing from the private

For students looking for a balance between budget and dependability, Bank of India stands as a very credible contender.

Bank of Maharashtra Foreign Education Loan: Competitive PSU Option

The foreign education loan by the Bank of Maharashtra will suit students pursuing higher studies in the US, UK, Canada, and Europe.

Key Benefits:

• Interest rates close to 9.45% p.a.
• Longer repayment period
• Interest concessions during moratorium
• Trusted public banking framework

It’s a good option for students who want stable interest rates with government-backed security.

Axis Bank Study Abroad Education Loan: Speed & Flexibility

In case faster approvals are considered more important than Saving of Marginal Interest, Axis

Bank Study Abroad Education Loan could be preferable

What Axis Bank offers:

• Type of bank (public vs private)
• Collateral availability
• Loan amount
• University ranking and country of study
• Applicant’s academic profile and co-applicant income

Public sector banks generally offer lower interest rates, while private banks provide faster processing and flexible terms.

SBI Bank Overseas Education Loan: Lowest Interest Rates Among PSU Banks

When students search for the lowest interest rate study abroad education loan, SBI Bank Overseas Education Loan often tops the list.

Key Highlights:

• Interest rates starting from ~9.15% p.a.
• Lower processing fees
• Moratorium during course + 12 months
• Special concessions for female students
• Accepted by most foreign universities

SBI is ideal for students admitted to top-tier institutions who can provide collateral and prefer long-term affordability.

Bank of India Study Abroad Loan: Affordable & Student-Friendly

The Bank of India Study Abroad Loan is another widely sought loan scheme offered by public sector banks.

Why choose Bank of India?

• Interest Rates from approximately 9.35% p.a.
• Loan coverage for tuition and living costs
• Flexible loan repayment term
• Flexible
• Lower interest burden compared to private lenders

For students looking for an affordable yet reliable option, Bank of India is still one of the strong contenders.

Bank of Maharashtra Foreign Education Loan: Competitive PSU Option

The Bank of Maharashtra foreign education loan is well-suited for students planning higher studies in the US, UK, Canada, or Europe.

Key Benefits:

• Interest rates close to 9.45% p.a.
• Longer repayment period
• Interest concessions during moratorium
• Trusted public banking framework

It’s a good option for students who want stable interest rates with government-backed security.

Axis Bank Study Abroad Education Loan: Speed & Flexibility

If the time taken for approval has been of utmost importance to the borrower and the savings in interest rates are marginal, then the Axis Bank study abroad education loan would seem attractive to the

What Axis Bank offers:

• Interest rates beginning from approximately ~11.25% p.a
• Faster processing speed
• Higher amounts of loans to top universities
• Minimal paperwork

Axis Bank is preferable to students who have a good academic record or are making applications just prior to visa deadlines.

Comparing Indian Bank Abroad Education Loan Interest Rates

Bank Name

Approx. Interest Rate

Best For

SBI

~9.15%

Lowest cost, long-term savings

Bank of India

~9.35%

Affordable PSU alternative

Bank of Maharashtra

~9.45%

Stable repayment options

Axis Bank

~11.25%

Fast processing & flexibility

Note: Actual Indian bank abroad education loan interest rates may vary based on profile, collateral, and market conditions.

So, Which Bank Gives the Lowest Interest Rate for Study Abroad Loans?

If your priority is lowest interest rate, SBI Bank Overseas Education Loan currently offers the most competitive option among Indian banks. However, the "best" loan isn’t just about interest—it’s about approval chances, timelines, and long-term repayment comfort.

That’s where expert guidance makes all the difference.

Why Compare Education Loans with Nomad Credit?

Choosing the right study abroad education loan can be overwhelming—but you don’t have to do it alone.

Nomad Credit helps you:

• Compare multiple banks in one place
• Access both public & private lenders
• Improve approval chances with expert support
• Save time, money, and stress

With personalized assistance and transparent guidance, Nomad Credit ensures you secure the best overseas education loan tailored to your goals.

Conclusion: Find the Right Overseas Education Loan with Confidence

While SBI, Bank of India, and Bank of Maharashtra offer the lowest interest rates for study abroad loans, the ideal lender depends on your academic profile, collateral availability, and urgency.

Instead of guessing or visiting multiple banks, let Nomad Credit simplify the process—helping you compare lenders, understand real costs, and move one step closer to your global education dream.

I craft clear and engaging content to guide students through their study abroad journey, covering admissions, visas, and global education opportunities.