Education is an excellent means of women empowerment, as well as, social development. In an era of stiff competition, this is where students are pursuing higher education whether in India or abroad, it is getting increasingly expensive and posing a challenge for many families to leverage support for their daughters educational aspirations. This is where education loans for girls with a low-rate of interest is impactful.
In recognition of supporting girls education, multiple development tools have been implemented by the Government of India, public sector banks, private lenders, and NBFCs, which benefit aspiring female students. Some of these benefits for female candidates include reduced interest rates (usually 0.5% – 1% concession for female candidates), longer tenure on repayment, the interest subsidy, and leniency on the application process. It’s an age where initiatives help female candidates access higher education, while encouraging more females to pursue professional courses, research, entrepreneurship or global opportunities without second-guessing their financial positioning.
The impact on implementing women empowerment in the form of affordable funding for girls is beyond contributing to the family, it contributes to gender equality, and collectively empowers the economic and social fabric of the nation. There is a multiplicity of options that are tailored for only female aspirants benefitting from schemes – Vidya Lakshmi Portal, SBI Scholar Loan Scheme, Canara Bank Vidya Turant, as well as any number of NBFC offerings.
In this blog, we’ll take a closer look at some of the most popular and reliable low-interest education loan schemes for girls in India, highlight their features, eligibility, benefits, and guide you on how to select the right loan to turn your educational dreams into reality.
Why education loans are important for girls in India?
Education loans are much more than financial assistance; they are a source of empowerment and independence and equity opportunity for all girls in India. For many years, too many talented young women in India have settled for less than their potential because of money, societal challenges, or simply that a girl’s pursuit of higher education is not prioritized. Education loans help stop this cycle and ensure that money should not be a barrier to knowledge, and career ambitions could be pursued.
Here are two examples of why education loans are so important to girls in India:
- Bridging Financial Gaps
Higher education comes with considerable costs including tuition, accommodation and miscellaneous costs in India or elsewhere. And with costs being what they are, education loans ensure that girls can afford higher studies more so in professional courses of study like medicine, engineering, law, and management.
- Encouraging Equal Opportunities
Many areas of India still experience forms of gender bias in education. While many banks and government schemes now provide female candidates with low-interest loans or concession loans, it encourages an environment that allows girls to have the same level of access to pursue education as boys and encourages inclusion.
- Reducing Dependency on Families
For many families, especially those in the middle class or rural areas, the very idea of being able to afford higher education is, at best, a challenge. The funding therefore opening to girls through education loans allows them to begin taking ownership of their education and lessen what can be significant reliance on parents to fund their education.
- Increasing Confidence and Independence
Education loans instill a sense of ownership and responsibility among young women. When they pay off the loan after graduation, they feel empowered and instill discipline when managing their finances, which prepares them for future responsibilities.
- Empowering Women with a Career
The availability of education loans enables girls to pursue professional degrees, international opportunities, and research programs that lead to good jobs. Not only will this ensure their financial independence, but they will also contribute to broad-based economic development in the country.
- Special Schemes for Women
Many Indian banks and NBFCs have certain positive influences for female borrowers, which can include interest rate discounts, longer tenure options for repayment, and significant government subsidies. All these can enhance the attractiveness and affordability of education loans for girls and could influence families to support their education.
Top Women-Specific Education Loan Schemes in India
To promote higher education and empower women, banks and financial institutions are launching specific education loan schemes for female students in India. These schemes generally offer lower interest rates, longer repayment periods, and flexible options to ensure quality education is reachable for female candidates. In India, here are some of the best female-focused education loan schemes:
1. SBI Scholar Loan Scheme (for Women)
- Provided by State Bank of India (SBI).
- Available for higher education in India and overseas.
- Assessed based upon the creditworthiness of the student/applicant.
- Includes fees for tuition, examination, library, travel, and living expenses.
- Interest Rate Concession: female candidates will be charged substantially lower interest rates than parallel loans funded to male students.
2. SBI Student Loan Scheme (with Concession for Girls)
- General student loan scheme, with special concession for female students.
- Loan amount not exceeding Rs.10 lakhs when studying in India and not exceeding Rs.20 lakhs when studying abroad.
- Repayment period (time given to repay with interest): 10–15 years (with options of repayments extended to longer but lesser amounts).
- Helps promote equality in potential for women to fulfill their education goals.
3. PNB Saraswati Education Loan Scheme
- Provided by Punjab National Bank (PNB).
- Emphasis is on female students, whether studying in India or overseas for higher levels of education.
- Interest concession of 0.50% for women-borrowers.
- Course fees, Hostel/Acadamic / Accommodation fees, travel for studies, and study material fees.
4. Bank of Baroda Women Education Loan
- Available for local and foreign courses.
- Gives interest rate discounts only for female students.
- Flexible repayment period up to 15 years.
- Applicable for professional, technical and vocational courses.
5. Canara Bank Vidya Turant Loan Scheme (for Women)
- For students wishing to pursue higher studies in reputed institutions.
- 0.50% concession in the interest rate to only the female applicant.
- Submitting details of their institution’s admission with the lowest possible delay along with canara bank’s documents for approval.
- Takes care of all aspects, from tuition, accommodation, textbooks and travel.
6. HDFC Credila Education Loan (Special Benefits for Girls)
- India’s first dedicated education loan company.
- Provides customized loan plans along with interest rate concession for girl students.
- There is no upper limit on the loan. It will depend on the institution’s stature.
- Flexible repayment options and tax benefits under Section 80E.
7. Central Government’s Interest Subsidy Scheme for Women
- Applicable to education loans taken under the Model Education Loan Scheme by IBA.
- Provides full interest subsidy during the moratorium period (course duration + 1 year) for economically weaker women students.
- Encourages families from weaker sections to support girls’ higher education.
Comparison of Women Education Loan Schemes
When it comes to funding higher studies, several government banks and private financial institutions in India offer women-centric education loan schemes with special benefits like concessional interest rates, reduced collateral requirements, and flexible repayment options. Below is a quick comparison of some of the most popular women-specific education loan schemes available in 2025:
| Scheme/Bank | Loan Amount | Interest Rate (for girls) | Collateral Requirement | Repayment Tenure | Special Benefits for Girls |
|---|---|---|---|---|---|
| SBI Scholar Loan Scheme for Girls | Up to Rs.40 lakh (India), Rs.1.5 crore (abroad) | ~8.55% p.a. (0.50% concession for girls) | Collateral-free up to Rs.7.5 lakh | Up to 15 years | Interest concession + Coverage of top institutes in India & abroad |
| PNB Udaan (for Higher Studies Abroad) | Up to Rs.1.5 crore | ~9% p.a. (0.50% concession for female students) | Collateral-free up to Rs.7.5 lakh | Up to 15 years | Special focus on foreign education + moratorium period available |
| Bank of Baroda Baroda Gyan Scheme | Up to Rs.80 lakh (India), Rs.1.5 crore (abroad) | ~8.75% p.a. (0.50% concession for girls) | Collateral-free up to Rs.7.5 lakh | Up to 15 years | Covers wide range of institutions, additional concession for prompt repayment |
| Canara Bank Vidya Turant | Up to Rs.40 lakh (India), Rs.1.5 crore (abroad) | ~8.85% p.a. (0.50% concession for girls) | Collateral required above Rs.7.5 lakh | Up to 15 years | Fast-track loan sanction for reputed institutions |
| HDFC Credila (Private NBFC) | Customised loans up to Rs.50 lakh | ~11% p.a. (concession for female students varies) | Mostly collateral required | Flexible (up to 15 years) | Quick processing + tailored repayment options for girls |
FAQs: Low-Interest Education Loans for Girls in India
Q. Do girls get lower interest rates on education loans in India?
A. Many banks and NBFCs offer concessions for female borrowers. Generally, the interest rates will be lower by 0.25% to 0.50% when compared to normal education loan rates.
Q. Which banks in India offer special education loan schemes for girls?
A. Banks like SBI (SBI Student Loan Scheme for Girls), Bank of Baroda, Punjab National Bank (PNB Saraswati), and Canara Bank offer special interest concessions for female students.
Q. Is collateral required for women-specific education loans?
A. For students borrowing up to Rs.7.5 lakh, most banks offer education loans without the need for collateral. For loans above this limit the requirement is based on the policies of the bank.
Q. Can girl students apply for overseas education loans with these schemes?
A. Most of the women-specific education loan schemes have features for domestic and overseas higher education students including tuition fees, living expenses and travel.
Q. What is the maximum loan amount available under girl-specific education loan schemes?
A. The banks generally lend between Rs.10–20 lakh with no collateral and higher amounts with collateral security (up to Rs.1.5 crore on occassions).
Q. Are there any tax benefits for girls taking education loans?
A. In accordance with Section 80E of the Income Tax Act, interest paid on an education loan can be claimed under tax deduction regardless of gender.
Q. Do NBFCs also provide low-interest education loans for girls?
A. NBFCs such as HDFC Credila or Avanse, personalize education loans according to the applicant’s possible repayment ability while providing abilities to female applicants.
Q. How can girl students apply for these special schemes?
A. Student applicants can apply on their own through the original lender’s website, Vidya Lakshmi portal, or bank branches on ground. We suggest woman applicants make a comparison of interest rates and terms before borrowing.