ENGINEERING EDUCATION LOAN

Engineering Education Loan

Engineering Education Loan

Blog Article

Best Low-Interest Student Loans for Engineering in India

Introduction
Engineering is one of the most sought-after professional courses in India, with lakhs of students enrolling in B.Tech and B.E. programs each year. However, the rising cost of education—including tuition fees, books, equipment, hostel charges, and living expenses—makes financial support essential for many families. Engineering Education Loan offers a viable solution, and choosing a low-interest student loan can significantly reduce the burden of repayment in the future.

In 2025, several public sector banks and government-supported schemes will offer student loans with competitive interest rates, making quality engineering education more affordable. 

Top 5 Low-Interest Education Loans for Engineering Students

1. State Bank of India (SBI) – Student Loan Scheme



  • Interest Rate: ~8.5% – 9.15%

  • Concession: 0.50% for girl students

  • Loan Limit: ₹7.5 lakh (without collateral), up to ₹20 lakh (with collateral)

  • Repayment Period: 15 years

  • Other Benefits:



    • No processing fee

    • Eligible for CSIS (Central Sector Interest Subsidy)

    • Available on Vidya Lakshmi Portal




Why Choose SBI: Engineering Education Loan India’s most trusted public bank with widespread rural and urban coverage.

2. Bank of Baroda – Baroda Gyan Scheme



  • Interest Rate: 8.65% – 9.15%

  • Repayment Period: Up to 15 years

  • Highlights:

    • Pre-approved loans for selected institutions




Why Choose BoB: Full coverage with competitive rates and reliable customer service.

3. Canara Bank – IBA Model Education Loan Scheme



  • Interest Rate: 8.85% – 9.35%

  • Concession: 0.50% for female and economically weaker students

  • Collateral-Free: Up to ₹7.5 lakh

  • Eligibility: Must be enrolled in AICTE-approved programs


Why Choose Canara: Ideal for rural students and socially disadvantaged groups.

4. Punjab copyright (PNB) – Saraswati Education Loan




    • Interest Rate: 9.00% – 9.75%

    • Collateral-Free: Up to ₹7.5 lakh



 

  • Special Features:


 


    • Covers all academic and non-academic expenses

    • Repayment begins after the course + 1 year.



Why Choose PNB: Good for students looking for flexible repayment options.

5. Indian Overseas Bank (IOB) – Vidya Jyoti Scheme




    • Interest Rate: Around 8.65% – 9.25%

    • Loan Limit: Up to ₹30 lakh



 

  • Features:


 


    • Subsidy available for eligible students



Why Choose IOB: Excellent for South Indian students, especially from Tamil Nadu.

Pro Tips to Get Low-Interest Student Loans



  • Apply early through the Vidya Lakshmi Portal

  • Maintain a strong academic record and choose a reputed institution.s

  • Consider female-specific concessions and category-based benefits.

  • Keep documentation complete and transparent.


Conclusion
For engineering students in India, choosing a low-interest Engineering Education Loan can ease the financial stress during and after college. Banks like SBI, Bank of Baroda, Canara Bank, PNB, and IOB offer some of the lowest interest rates and most student-friendly terms in 2025. 

Before deciding, compare loan options, check eligibility for concessions, & understand repayment obligations. A well-chosen loan today can fuel your academic dreams without putting a heavy load on your future.

Report this page