Key facts: Federal Bank vs SBI education loan
- Starting rate: Federal Bank 10.10%, SBI 9.40%. This is the lowest rate each loan provider advertises for an education loan, not the rate everyone is offered.
- Gap between starting rates: 0.7 percentage points between the lowest and the highest.
- Top of the published range: Federal Bank up to 13.50%, SBI up to 9.90%.
- Maximum tenure: SBI 15 years. Federal Bank does not state one in months or years.
- Type of loan provider: Federal Bank is a private bank; SBI is a public sector bank. Banks and NBFCs price floating rates differently.
- Official websites: federal.bank.in, sbi.bank.in.
- Pages checked: 5 official pages opened for this loan type.
- Loan types with a published rate: Federal Bank 7, SBI 6 (out of 8 we track).
- Last checked: 12 October 2026, on each loan provider's own website.
Who each loan provider suits on an education loan
Built only from figures the loan providers publish. It says where each one is ahead on paper, not who will approve you.
Where Federal Bank stands
No clear edge on the published figures we could compare for an education loan. Check the table below and the Key Fact Statement.
Pick SBI if you want
- The lower published starting rate (9.40%)
Federal Bank vs SBI education loan: rate, fees and tenure
Starting education loan rates as published: Federal Bank from 10.10% and SBI from 9.40%. SBI is lower at the starting rate, but the top of each range and your own credit profile decide what you are offered.
| Detail | Federal Bank | SBI |
|---|---|---|
| Published rate | 10.10% to 13.50% | Student Loan 9.40% (with collateral) / 9.90% (without collateral up to Rs 7.50 lakh); Scholar Loan 6.90% to 7.65% |
| Rate basis | floating, linked to RBI Repo Rate | Floating, linked to External Benchmark Rate (EBR 7.90% = Repo 5.25% + 2.65%) |
| Loan amount | Special Vidya Loan: Rs 10 lakhs (India), Rs 20 lakhs (abroad); Fed Scholars: Rs 20 lakhs | Student Loan: India up to Rs 50 lakh / Rs 75 lakh (medical, NIRF top-100), abroad up to Rs 7.50 lakh |
| Maximum tenure | Moratorium (course period + 1 year) plus 15 years | Up to 15 years after course period + 12-month repayment holiday |
| Processing fee | Fed Scholars: no processing fee | Student Loan: nil up to Rs 10 lakh; Rs 5,000 + GST for Rs 10-20 lakh |
| Eligibility (as published) | Indian national with admission to approved professional/technical course; vocational courses not eligible | Indian national with admission to eligible course in India/abroad; parent/guardian co-borrower |
| Other terms published |
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| Official source | federal.bank.in/education-and-career-loans federal.bank.in/loan-rate | sbi.bank.in/web/interest-rates/interest-rates/loan-schemes-interest-rates/education-loan-scheme sbi.bank.in/web/personal-banking/loans/education-loans/student-loan-scheme sbi.bank.in/web/personal-banking/loans/education-loans/scholar-loan-scheme |
Read the full guide: Education loan
What each loan provider publishes about its education loan
Federal Bank
Private bank · The Federal Bank Limited
- How the rate is set: floating, linked to RBI Repo Rate
- Eligibility as published: Indian national with admission to approved professional/technical course; vocational courses not eligible
- Covers tuition, hostel, exam, library, lab, books, travel abroad
- Fed Scholars: up to Rs 20 lakhs without collateral
- No security up to Rs 4 lakhs; guarantee/collateral above
- Fed Scholars: subsidy for eligible students
SBI
Public sector bank · State Bank of India
- How the rate is set: Floating, linked to External Benchmark Rate (EBR 7.90% = Repo 5.25% + 2.65%)
- Eligibility as published: Indian national with admission to eligible course in India/abroad; parent/guardian co-borrower
- Up to Rs 7.5 lakh needs only parent/guardian co-borrower; above that collateral
- Margin nil up to Rs 4 lakh; 5% (India) / 15% (abroad) above
- 0.50% rate concession for girl students on Student Loan
- Interest during course and moratorium added to principal
Before you apply for an education loan
- Tax benefit: Under the old tax regime, interest paid on an education loan is deductible under Section 80E with no upper limit, for up to eight years. Check with your tax adviser.
- Government schemes: Interest subsidy and guarantee schemes, such as PM-Vidyalaxmi, can lower the cost for eligible students. Ask the loan provider whether you qualify.
- What is covered: Tuition, hostel, exam fees, books and equipment are normally covered. Confirm the list before you apply.
- Co-applicant: A parent or guardian usually applies with the student. Their income and credit score are assessed along with the admission.
RBI requires every loan provider to hand you a Key Fact Statement before you sign. It shows the rate, every fee, the APR and the total you will repay.
Terms used on this page
Plain meanings of the terms this comparison uses.
Starting rate: The lowest rate a loan provider advertises for a product. Most borrowers are offered a higher rate, because the final rate depends on credit score, income, employer and loan amount.
APR: Annual percentage rate. It adds the processing fee and other charges to the interest rate, so it shows the yearly cost of the loan better than the interest rate alone.
Key Fact Statement: A short summary the loan provider gives you before you sign. It lists the interest rate, every fee, the APR and the total amount you will repay. RBI requires it for retail loans.
Floating rate and repo rate: A floating rate moves with a benchmark, and for banks that is usually the RBI repo rate, the rate at which RBI lends to banks. A fixed rate stays the same for the period you agree.
Processing fee: A one-time charge for handling the application. It is usually a percentage of the loan amount plus GST, and it is often deducted before the money reaches you.
Credit score: A number from 300 to 900 that shows how you have repaid past loans and cards. A higher score usually gets you a lower rate.
Sources and last check
Every figure above is read from the loan provider's own website and was checked on 12 October 2026. A blank means the page does not show that figure, and we never estimate one.
- Federal Bank: federal.bank.in/education-and-career-loans federal.bank.in/loan-rate
- SBI: sbi.bank.in/web/interest-rates/interest-rates/loan-schemes-interest-r... sbi.bank.in/web/personal-banking/loans/education-loans/student-loan-s... sbi.bank.in/web/personal-banking/loans/education-loans/scholar-loan-s...
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More education loan comparisons
Federal Bank vs SBI: every loan type on one page · All education loan comparisons · Education loan guide · Education loan EMI calculator
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Frequently asked questions
Which is better for an education loan: Federal Bank or SBI?
SBI has the lower published starting education loan rate at 9.40%, against 10.10% at Federal Bank. Rate is only one part of the cost, so also compare the processing fee, the prepayment terms and the total repayable amount in the Key Fact Statement.
Which has the lower education loan interest rate: Federal Bank or SBI?
SBI has the lower published starting education loan rate at 9.40%, against 10.10% at Federal Bank. The published ranges run to Federal Bank up to 13.50% and SBI up to 9.90%, so the rate you are offered can sit well above the starting rate.
What is the education loan processing fee at Federal Bank and SBI?
Federal Bank: Fed Scholars: no processing fee. SBI: Student Loan: nil up to Rs 10 lakh; Rs 5,000 + GST for Rs 10-20 lakh. Fees can change, so confirm the amount in rupees, with GST, before you accept.
What is the maximum education loan tenure at Federal Bank and SBI?
Federal Bank: Moratorium (course period + 1 year) plus 15 years. SBI: Up to 15 years after course period + 12-month repayment holiday. A longer tenure lowers the EMI and raises the total interest.
Can I prepay or foreclose an education loan early at Federal Bank and SBI?
Federal Bank: not published. SBI: not published. Ask whether the rate on your loan is fixed or floating, because the charges depend on it.
How much education loan can I get from Federal Bank and SBI?
Federal Bank: Special Vidya Loan: Rs 10 lakhs (India), Rs 20 lakhs (abroad); Fed Scholars: Rs 20 lakhs. SBI: Student Loan: India up to Rs 50 lakh / Rs 75 lakh (medical, NIRF top-100), abroad up to Rs 7.50 lakh. The amount you are offered depends on your income, credit profile and the security you give.
Who is eligible for an education loan at Federal Bank and SBI?
Federal Bank: Indian national with admission to approved professional/technical course; vocational courses not eligible. SBI: Indian national with admission to eligible course in India/abroad; parent/guardian co-borrower. Each loan provider can ask for more documents once you apply.
Are Federal Bank and SBI regulated by the RBI?
Yes. Federal Bank is a private bank, SBI is a public sector bank, and all lend under RBI rules, including the requirement to give you a Key Fact Statement before you sign.
Where do these education loan figures come from?
From the official pages of Federal Bank and SBI, opened and checked on 12 October 2026. The sources are listed at the bottom of this page. We show a blank where a loan provider does not publish a figure, and we do not estimate one.
KhatuLoans is not a loan provider and is not paid by the loan providers named here to rank them. Rates, fees and eligibility change; always confirm with the loan provider. Read our editorial policy and how we make money.