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Federal Bank vs Kotak Mahindra Bank Education Loan
Federal Bank advertises the lower starting rate (9.75% vs 11%). On ₹20 lakh over 10 years that is about ₹1,67,514 less interest, or ₹1,396 less per month, at the starting rates.
| Federal Bank | Kotak | |
|---|---|---|
| Starting interest rate | 9.75% | 11% |
| EMI for ₹20 lakh, 10 years | ₹26,154 | ₹27,550 |
| Total interest | ₹11,38,486 | ₹13,06,000 |
| Processing fee | Not stated | Not stated |
| Prepayment | Not stated | Not stated |
| Maximum tenure | - | - |
Source: Federal Bank official page, checked 2 November 2026.
Source: Kotak Mahindra Bank official page, checked 2 November 2026.
These figures use the bank's advertised starting rate. Most borrowers are offered a higher rate depending on credit score, income and loan size, so treat the result as a best case.
Frequently asked questions
Which is cheaper, Federal Bank or Kotak education loan?
Federal Bank advertises the lower starting rate (9.75% vs 11%). On ₹20 lakh over 10 years that is about ₹1,67,514 less interest, or ₹1,396 less per month, at the starting rates. Your actual rate may differ from the starting rate.