AU Small Finance Education Loan Interest Rate 2026
Last updated:
Quick Answer
AU Small Finance Bank education loan rates range from 10.5–15% p.a.. Loans up to ₹7.5 lakh do not require collateral. Interest is eligible for Section 80E deduction.
AU Small Finance Education Loan Rate — Rates at a Glance
| India studies (up to ₹7.5 lakh) | 10.5% p.a.(No collateral required) |
| India studies (above ₹7.5 lakh) | 11.00% p.a.(Collateral required) |
| Abroad studies (up to ₹7.5 lakh) | 11.00% p.a. |
| Abroad studies (above ₹7.5 lakh) | 15% p.a.(Collateral required) |
| Moratorium period | Course duration + 6–12 months |
| Maximum tenure | 15 years |
Rates are indicative as of 2026-04-07. Verify with AU Small Finance Bank official website before investing.
Key Things to Know
- 1Loan up to ₹7.5 lakh without collateral; higher amounts need security
- 2Moratorium period: course duration + 6 months (repayment starts after)
- 3Section 80E: 100% tax deduction on interest for 8 years
- 4Competitive rates starting at 10.5% p.a.
- 5Coverage includes tuition, hostel, books, equipment, and study tours
- 6Government subsidy schemes (CSIS) available for economically weaker sections
Calculate Your Returns
Monthly EMI
₹8,678
Total Interest
₹10,82,776
Total Payment
₹20,82,776
Amortization Schedule (Yearly)
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹19,902 | ₹84,236 | ₹9,80,098 |
| 2 | ₹21,661 | ₹82,477 | ₹9,58,436 |
| 3 | ₹23,576 | ₹80,563 | ₹9,34,860 |
| 4 | ₹25,660 | ₹78,479 | ₹9,09,200 |
| 5 | ₹27,928 | ₹76,211 | ₹8,81,272 |
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Frequently Asked Questions
What is AU Small Finance education loan interest rate?
AU Small Finance Bank education loan rates start at 10.5% p.a. for domestic studies and go up to 15% p.a. for abroad studies with collateral.
Is AU Small Finance education loan covered under 80E?
Yes, interest paid on education loans from AU Small Finance qualifies for Section 80E deduction for up to 8 years from the year repayment begins. The deduction has no upper limit.
Can I get AU Small Finance education loan without collateral?
Yes, AU Small Finance Bank offers education loans up to ₹7.5 lakh without collateral. Amounts above ₹7.5 lakh require tangible security like property.
When does repayment start for AU Small Finance education loan?
Repayment begins 6–12 months after course completion or immediately after getting a job, whichever is earlier. During the moratorium, only simple interest accrues.