StudyLoanReality

Education loan interest rate abroad: what to check

Last checked 27 October 2026

Short answer

On these two bank pages, a floating rate is linked to a benchmark plus a spread set by the bank. It can change. The figures below are dated official examples, not a quote for your loan. No lender is paid or ranked.

Bank of Baroda: Baroda Scholar

Checked 27 October 2026.

  • Floating, linked to BRLLR. Premier: BRLLR plus 0.55 percent.
  • Non-premier: BRLLR plus 2.00 percent up to Rs 7.5 lakh; BRLLR plus 1.05 percent above Rs 7.5 lakh.
  • Canada, non-premier, above Rs 7.5 lakh: BRLLR plus 2.55 percent.
  • No absolute rate shown because the current BRLLR has not been verified.

No absolute rate shown because the current BRLLR is not verified here.

The bank page FAQ separately mentions a starting rate of BRLLR plus 1.75 percent. This differs from the scheme spreads above. Confirm the applicable spread and current BRLLR with the bank.

State Bank of India: Global Ed-Vantage

Checked 27 October 2026.

  • Floating rates effective 15 October 2026, linked to the External Benchmark Rate (repo plus spread). Checked 27 October 2026.
  • With collateral, above Rs 7.50 lakh to Rs 3.00 crore: 9.65 percent. Takeover, above Rs 10 lakh with collateral: 9.65 percent.
  • Select institutions: without collateral, above Rs 7.50 lakh to Rs 50 lakh: 9.65 percent; with collateral, above Rs 7.50 lakh to Rs 3.00 crore: 9.15 percent; takeover, above Rs 10 lakh: 9.15 to 9.65 percent.
  • 0.50 percent concession for girl students in the general band. For select institutions, no additional concession for girl students.
  • EBR = repo rate 5.50 percent plus spread 2.65 percent = 8.15 percent, as stated on the rates page checked 27 October 2026. Confirm the applicable final rate in writing.

The scheme body says above Rs 7.50 lakh up to Rs 3.00 crore while its heading says above Rs 20 lakh. Confirm your scheme limit and institution category with SBI in writing.

How the rate is built

SBI states EBR = repo rate plus spread. Its page checked 27 October 2026 lists repo 5.50 percent plus spread 2.65 percent, making EBR 8.15 percent. The EBR is not the final product rate. Bank of Baroda uses BRLLR plus its stated spread; we have not verified the current BRLLR.

Both examples are floating. Ask whether your offer is floating or fixed, and get the benchmark, spread, reset timing and any rate cap in writing. Do not assume an advertised category applies to your course.

Bank of Baroda separates premier and non-premier institutions. SBI separates select institutions and collateral categories. Ask the bank to confirm your institution category. SBI states a 0.50 percent girl-student concession in the general band, but no additional concession for select institutions.

SBI's scheme page checked 27 October 2026 states simple interest during the course plus moratorium. Accrued moratorium interest is added to principal, so an unpaid balance grows before EMI starts. Repayment begins 6 months after course completion; a job delay is not a promise of extra time.

EMI illustration, not a quote

Rs 30 lakh repaid over 10 years at 9 to 10 percent gives an EMI range of Rs 38,003 to Rs 39,645. This comparison starts with Rs 30 lakh at repayment, with no added moratorium interest, fees or rate changes. These chosen rates illustrate the maths, not bank offers. Calculated for this guide on 27 October 2026.

  • 9 percent: EMI Rs 38,003; total repaid Rs 45,60,328.
  • 9.5 percent: EMI Rs 38,819; total repaid Rs 46,58,312.
  • 10 percent: EMI Rs 39,645; total repaid Rs 47,57,427.

Use the calculator to include your own course and grace period and interest-payment choice. Read how moratorium interest works.

What a 0.5 percentage-point difference costs

For the same illustration, raising the rate from 9 to 9.5 percent or from 9.5 to 10 percent adds about Rs 817 to Rs 826 per month. Over the 10-year repayment period, it adds about Rs 97,984 to Rs 99,114. Illustration calculated 27 October 2026, not a quote; actual floating-rate changes and accrued interest alter the result.

Questions to ask the bank

  1. What loan amount can I get for my university and course, and which costs are covered?
  2. How much margin money must my family pay, and when must we pay it?
  3. What collateral, guarantees and co-applicant responsibilities are required?
  4. What is the current benchmark, spread and final interest rate, and when can it change?
  5. How long is the moratorium, and what happens to interest during that period?
  6. When does EMI start, and what repayment period applies to my loan?
  7. What processing, legal, valuation, tax and other charges apply, and which are refundable?
  8. How is the loan disbursed, and what happens to repayment if my first job is delayed?
  9. Is the rate floating or fixed, what is the benchmark and spread, how often is it reset, is there a rate cap?
  10. Does interest accrue during moratorium and is it capitalised?

Read the dated lender terms and confirm all answers with the bank in writing.

Frequently asked questions

What makes up a floating education loan rate?

These bank pages link rates to a benchmark and spread. SBI states EBR is repo plus spread. Bank of Baroda links Baroda Scholar to BRLLR plus the stated spread. A floating rate can change; confirm your written terms.

What SBI rates were checked?

Checked 27 October 2026, effective 15 October 2026: the general collateral band is 9.65 percent. Select institutions have 9.65 percent without collateral and 9.15 percent with collateral. Takeover terms differ by band. Confirm your category with SBI.

What EBR does SBI state?

The rates page checked 27 October 2026 states repo 5.50 percent plus spread 2.65 percent equals EBR 8.15 percent. This is the benchmark, not automatically your final loan rate.

Is there a girl-student concession?

SBI states a 0.50 percent concession for girl students in the general band. Its select-institution section says no additional concession for girl students. Confirm which section applies to your loan.

Why is no absolute Bank of Baroda rate shown?

The current BRLLR is not verified here. The scheme lists spreads over BRLLR and its FAQ gives a different starting spread. Ask the bank for the applicable benchmark, spread and final rate in writing.

Does interest stop during the SBI moratorium?

No. The SBI scheme page checked 27 October 2026 states simple interest during the course plus moratorium and says accrued moratorium interest is added to principal. Repayment starts 6 months after course completion.

Sources

General information, not financial advice. Rates and terms can change. No approval, visa or salary is promised.

Back to the calculator