Canara Bank Education Loan Interest Rate: Check All Details Here

Canara Bank Education Loan

Canara Bank is one of the leading public sector banks in India. The bank provides education loans to study abroad in line with the RBI guidelines. You can get a collateral-free loan of up to INR 7.5 lakhs from Canara Bank for study abroad. Also, if you want to foreclose your loan then you don’t need to pay any prepayment charges. The interest rate on the Canara Bank Education loan starts from 11.25% under the IBA Model Education Loan Scheme. The students apply for Canara Bank Education Loan through Vidya Lakshmi Portal as well. Let’s check all the details about the interest rate for Canara Bank Education Loan.

Also Read: Check all the major RBI Guidelines on Education Loan in this blog

Canara Bank Education Loan to Study Abroad: Interest Rate

The interest rate charged by Canara Bank for study abroad education loans ranges between 9.25% to 11.25%. The interest rate may be more than stated due to the changes in the repo rate by the Reserve Bank of India. Check the table below for Canara Bank Education Loan Interest Rate:

Loan SchemeRLLR Credit Risk Premium over RLLREffective Rate of Interest under RLLR
Vidya Sagar Scheme9.25%Up to INR 7.5 lakhs- 2.0%
Above INR 7.5 lakhs0 1.60%
Up to INR 7.5 lakhs- 11.25%
Above INR 7.5 lakhs- 10.85% 
Vidya Turant Scheme9.25%0.60% if applying without co-borrower
Select Top 76 Premium Institutes: -0.65%
9.25% (with co-borrower) and 9.85% (without co-borrower)
Select Top 76 Premium Institutes: 8.60%
New Education Loan Scheme for Pursuing Master’s Degree Abroad from Select Top Ranking Universities of the World9.25%Collateral  Security 100% & above- 1.60%
Collateral Security 75% & above (less than 100%): 1.85%
Collateral Security 50% & above (less than 75%): 2.10%
Collateral Security 100% & above- 10.85%
Collateral  Security 75% & above (less than 100%): 11.10%
Collateral Security 50% & above (less than 75%): 11.35%

Factors Affecting Education Loan Interest Rate

There are a lot of factors which affect the interest rates of education loans or any other type of loan. Loans are mostly affected by fluctuations in the Repo Rate. This is used by the Reserve Bank of India to control inflation. The RBI increase the repo rate as this acts as a disincentive for banks to borrow from RBI.  This will ultimately reduce the money supply in the economy which helps in controlling inflation.

  • The RLLR i.e. Repo Linked Lending Rate is decided based on the ongoing Repo Rate set by the RBI
  • In rising inflation, the interest rates are increased by the banks
  • If you have taken an education loan on a fluctuating interest rate, then it may increase if the inflation is high.

Also Read: Check the latest RBI Guidelines on Credit Reports for lenders and credit record companies.  

Important Guidelines

Canara Bank Education Loan interest rates are affordable and cheap as compared to a lot of private banks and NBFCs. You can easily get a study abroad loan from the bank and you don’t have to pledge any collateral up to INR 7.5 lakhs. However, always read the entire terms and conditions before applying for the loan.

  • Always try to get a secure loan as it comes with a low rate of interest
  • Read all the terms and conditions and choose the repayment period as per your convenience.
  • Check the important policies like moratorium period, processing fee, education loan insurance etc. 
  • Choose a fixed rate of interest if available in the scheme as floating rates of interest are subject to change every quarter. 


Which is better the floating rate of interest or fixed interest rate?

Both the category of interest rates have their advantages and disadvantages. However, a fixed interest rate is better as it will not increase under any circumstances. 

What is the interest rate for the Canara Bank Education Loan?

The interest rate for the Canara Bank Education Loan starts from 9.25%. However, this may change based on the RLLR applied by the bank. 

How to apply for a Canara Bank Education Loan?

You can apply for Canara Bank Education Loan by visiting the nearest branch or through online mode. 

How repo rate affect the education loan interest rate?

The RBI increase the repo rate to control the inflation. Due to this, the banks may increase interest rates to control the borrowings. In this way, the loans are affected by the repo rate. 

Canara Bank education loan interest rates are decided as per the guidelines provided by the Reserve Bank of India. Read all the terms and conditions properly before applying for the loan. 

To know more about the loan application process, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience. 

Related Blogs
How to Apply for Vidya Lakshmi Education Loan through YONO App
How to Apply for Education Loan Refinance
All about Education Loan Refinancing

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About Shekhar Suman

Shekhar is a versatile writer with a passion for sharing knowledge and creativity. With expertise in crafting informative blogs on study abroad and finance, Shekhar helps readers navigate the complexities of education and financial planning. Most of his writings blend the practicality of finance and the beauty of language, making a meaningful impact in both spheres. Beyond his professional pursuits, he finds solace in the writing Shayari.

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