Canara Bank Education Loan 2026
Canara Bank follows the IBA Model Education Loan Scheme for most students and offers Vidya Turant, a fully collateral-free loan for students at premier institutes. Interest rate 6.85% – 10.10%, loan Vidya Turant: Category A up to ₹50 lakh, B ₹40 lakh, C ₹30 lakh; IBA Model scheme need-based, tenure Up to 15 years excluding the moratorium.
Rates as of Scheme page updated 30 Sep 2026 · Checked 30 September 2026Canara Bank Education Loan at a glance
- 6.85% for premier institutes with no collateral
- No prepayment penalty
- Nil processing fee on Vidya Turant
- Premier pricing only for listed institutes
- Non-premier rates up to about 10.10%
Canara Bank education loan interest rate & charges
| Feature | Canara Bank |
|---|---|
| Interest rate | 6.85% – 10.10% |
| Rate details | Vidya Turant for premier institutes 6.85% p.a. (official). Other schemes range about 7.25% – 10.10% (BankBazaar). Canara’s repo-linked RLLR is 8.00% (effective 12 Mar 2026). |
| Processing fee | Vidya Turant: nil (PM-Vidyalaxmi portal fee ₹200 + GST); Master’s-abroad scheme 0.50% (capped at ₹10,000 – ₹20,000) |
| Loan amount | Vidya Turant: Category A up to ₹50 lakh, B ₹40 lakh, C ₹30 lakh; IBA Model scheme need-based |
| Tenure | Up to 15 years excluding the moratorium |
| Prepayment / foreclosure | No prepayment penalty |
| Collateral-free limit | IBA Model scheme: ₹7.5 lakh (CGFSEL cover); Vidya Turant: fully collateral-free |
| Moratorium | Course + 1 year |
| Margin | IBA Model: nil up to ₹4 lakh; 5% (India) / 15% (abroad) above. Vidya Turant: nil |
| Concessions | Lower rate for girl students (amount not stated) |
Special schemes & features
Collateral-free loans for premier institutes (Cat A/B/C) from 6.85%, applied through the PM-Vidyalaxmi portal
Standard scheme for India and abroad, collateral-free up to ₹7.5 lakh
For postgraduate study abroad; 0.50% processing fee
Source: www.canarabank.bank.in, Scheme page updated 30 Sep 2026. Rates are indicative; your rate depends on your profile. Always check the Key Facts Statement (KFS) for the APR before signing.
EMI at Canara Bank’s rates
| Loan amount | EMI @ 6.85% | EMI @ 8.48% | EMI @ 10.10% |
|---|---|---|---|
| ₹5,00,000 | ₹5,767 | ₹6,194 | ₹6,635 |
| ₹10,00,000 | ₹11,534 | ₹12,388 | ₹13,271 |
| ₹25,00,000 | ₹28,834 | ₹30,970 | ₹33,176 |
Tenure 10 years, reducing-balance method. Total interest on ₹10,00,000 at 6.85%: ₹3,84,042.
Canara Bank education loan EMI calculator
Eligibility
- Indian national (some lenders also lend to NRI/OCI students)
- Confirmed admission to a recognised course in India or abroad, usually through an entrance test or merit-based selection
- Parent or guardian as co-borrower (spouse or parents-in-law for married students)
- Satisfactory credit history of the co-borrower; income matters more for larger or unsecured loans
- Collateral for loans above ₹7.5 lakh under the IBA model scheme (higher collateral-free limits for premier institutes)
- Margin money (your own contribution) of 5% for India or 15% for abroad on loans above ₹4 lakh
Documents required
- Student and co-borrower KYC: PAN, Aadhaar, passport (for abroad), photographs
- Admission letter and official fee schedule of the institute
- Marksheets of Class 10, 12, graduation and entrance-test scorecards
- Co-borrower income proof: salary slips / Form 16 or ITR for 2 years, 6 months’ bank statements
- Collateral papers for secured loans: title deed, encumbrance certificate, valuation and legal reports
- For studies abroad: I-20 / CAS / CoE or offer letter, visa (at disbursal), cost estimate, GRE/GMAT/IELTS/TOEFL scores
How to apply for Canara Bank Education Loan
- Shortlist lendersCompare rate, collateral-free limit, margin and moratorium for your institute — premier institutes get much better terms.
- Apply online or via PM-VidyalaxmiApply on the bank’s website, at a branch or through the PM-Vidyalaxmi portal (pmvidyalaxmi.co.in) for participating banks.
- Submit documentsAdmission letter, fee schedule, academic records, KYC and co-borrower income proof; collateral papers if needed.
- Sanction & KFSCheck the sanction letter and Key Facts Statement for APR, moratorium terms and margin before signing.
- DisbursalFees are paid directly to the institution term by term; living and other costs are released in tranches.
Canara Bank vs other lenders
| Lender | Rate | Processing fee | Tenure | EMI on ₹10,00,000 |
|---|---|---|---|---|
| Union Bank Education Loan | 6.75% – 10.00% | Not published in the sources checked — ask the branch | Up to 15 years after the moratorium | ₹11,482 |
| Bank of Baroda Education Loan | 6.85% – 9.90% | Nil up to ₹7.5 lakh and for premier institutes in India; studies abroad 1% (max ₹10,000), refunded for premier institutes; ₹8,500 per property mortgaged | Up to 120 EMIs (loans up to ₹7.5 lakh) or 180 EMIs (above ₹7.5 lakh) after the moratorium | ₹11,534 |
| Canara Bank Education Loan | 6.85% – 10.10% | Vidya Turant: nil (PM-Vidyalaxmi portal fee ₹200 + GST); Master’s-abroad scheme 0.50% (capped at ₹10,000 – ₹20,000) | Up to 15 years excluding the moratorium | ₹11,534 |
| SBI Education Loan | 6.90% – 9.90% | Student Loan: nil up to ₹10 lakh, ₹5,000 + GST for ₹10–20 lakh, 0.50% (max ₹25,000) above ₹20 lakh. Scholar Loan: nil. Global Ed-Vantage: 0.50% (min ₹10,000, max ₹50,000) + GST | Up to 15 years after the moratorium | ₹11,559 |
| Bank of India Education Loan | 7.00% – 9.80% | Studies in India: nil (portal fee ₹100 + GST); studies abroad: ₹5,000 (aggregator) | 15 years from start of repayment | ₹11,611 |
| PNB Education Loan | 8.10% – 11.25% | About 1% for study-abroad loans (aggregator); India loans as per PNB’s service-charge schedule | Up to 15 years | ₹12,186 |
| Credila Education Loan | 8.95% – 13.00% | 0.5% – 1% of the loan + GST | Up to 14 years | ₹12,641 |
| HDFC Bank Education Loan | 9.00% – 14.10% | Studies in India: 1% of loan or ₹1,000, whichever is higher; studies abroad: 1.5% + taxes | Up to 10 years for loans up to ₹7.5 lakh; up to 15 years above | ₹12,668 |
Frequently asked questions
What is the Canara Bank Education Loan education loan interest rate?
Canara Bank education loan rates start at 6.85% and go up to 10.10% p.a. (as of Scheme page updated 30 Sep 2026). The rate you get depends on your credit score, income and loan details.
What is the EMI for ₹10,00,000 from Canara Bank?
At 6.85% for 10 years the EMI is about ₹11,534, with total interest of ₹3,84,042.
What is the processing fee?
Canara Bank: Vidya Turant: nil (PM-Vidyalaxmi portal fee ₹200 + GST); Master’s-abroad scheme 0.50% (capped at ₹10,000 – ₹20,000). GST at 18% applies on fees.
What is the maximum tenure?
Canara Bank: Up to 15 years excluding the moratorium.
Can I prepay or foreclose the loan?
Canara Bank: No prepayment penalty.
Information compiled from the lender’s published rates and reputable aggregators for comparison only. FinancePortal is not affiliated with Canara Bank Education Loan. Terms change — confirm with the lender.