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Canara Bank Education Loan Interest Rates

Canara Bank Education Loan Interest Rate

by Ankur Gupta
Reading Time: 4 minutes

Canara Bank Education Loan Schemes cover education loan expenses of students for professional, technical and developmental courses in Indian and overseas institutions. The education loans provide options to get loan for sum as low as ₹20,000 to as high as ₹3,600,000. Students can also avail the Canara Bank education loan interest rates subsidy options from Canara Bank based on their regional and community backgrounds. Canara Bank now also provide benefits of no/low margin payments and no processing fees options for education loans as well.

Students can plan their education loans by acquiring correct and latest information about Canara Bank Education Loan interest rates and MCLR or Base Rates. After checking the eligibility for education loan schemes and interest subsidy, students can arrange for Education Loan Repayment as well. Details of Canara Bank Education Loan interest rates are mentioned below.

Canara Bank Education Loan Interest Rates

Canara Education Loan Interest rates are based on the kind of educational institution the applicant (student) is studying at. Some education loans are also dependent on the level of education, the applicant is pursuing. Interest rates with respect to the Canara Bank Education Loan Schemes are:


Canara Bank Education Loan Interest Rates (Current: December 2018)

Education Loan type Loan Amount Limits Interest Rate Formula Current Interest Rate
IBA Model Education Loan scheme for pursuing higher studies in India and abroad Upto ₹4 Lakhs MCLR (1 Year) + 2.00% 10.70%
₹4 Lakhs to ₹7.5 Lakhs MCLR (1 Year) + 2.00% 10.70%
Above ₹7.5 Lakhs MCLR (1 year) + 1.80% 10.50%
Model Loan Scheme For Vocational Education And Training Any Loan Amount as per guidelines MCLR (1 Year) + 1.50% 10.20%
Canara Vidya Sahay Education Loan Scheme Upto ₹1 Lakh MCLR (1 Year) + 1.50% 10.20%
Canara Bank Vidya Turant Any loan amount as per guidelines MCLR (1 Year) +0.20% 8.90%

Most Education Loans interest rates in India are calculated by fixed formulas of MCLR (Marginal Cost of fund based Lending Rates). These MCLR Rates are changed on a monthly basis by RBI and banks modulate their education loan interest rates every 6 months based on these changes. Canara Bank education loan interest rates are settled in terms of fixed percentage addition to changing MCLR Rates so that students can themselves be aware about the latest interest Rates.

Canara Bank Education Loan Interest MCLR Rates (Latest: November 2018)

Education Loan Tenure Respective MCLR Rates
Overnight 8.25%
1 Month 8.25%
3 Month 8.45%
6 Month 8.55%
1 Year and above 8.70%

Source: RBI.org and Canara Bank internal sources

Canara Bank Education Loan Interest Rate Subsidies

Canara Bank in close coordination of Government interest subsidy schemes is able to provide students with maximum benefits for education loan services. These subsidy schemes are also usable along with scholarships and national fellowships which students are able to get by their merit. The benefits and details of all the Canara Bank education loan interest rate subsidy schemes are:

Central Sector Interest Subsidy

Provided by: Ministry of Human Resource and Development, Govt. of India

Canara Bank as nodal bank for administering the scheme

Applicable for:

  1. Canara Bank IBA Model Education Loan scheme
  2. Vidya Sahay Canara Bank Education Loan
  3. Canara Bank Education Loan: Vidya Turant

Eligible Candidates:

  • Indian students pursuing professional/technical education.
  • Family income not more than ₹4.5 Lakhs

Canara Bank Education Loan Interest rates benefits:

  • Collateral Free Education Loan up to ₹7.5 Lakhs (750000)
  • Total interest subsidy on education loan for the course duration

Dr. Ambedkar Central Scheme of Interest Subsidy on Education Loan for Overseas Studies

Provided by: Ministry of Social Justice and Empowerment, Government of India

Canara Bank as nodal bank for administering the scheme

Applicable for: Canara Bank IBA Model Education Loan scheme

Eligible Candidates:

  • Overseas students of india, studying at recognized universities/colleges/institutions
  • Master’s or above enrolled students
  • Students belonging to OBC (Other Backward Classes) or EBC (Economically Backward Class)
  • Maximum family income OBC: ₹6 Lakhs; Maximum family income EBC: ₹2 Lakhs

Canara Bank Education Loan Interest rates benefits:

  • Complete interest subsidy for the duration of course
  • Students would need to commit their salary post course completion towards the repayment of education loan installments

Padho Pardesh – Scheme of Interest Subsidy on Educational Loans for Overseas Studies

Provided by: Ministry of Minority Affairs, Government of India

Canara Bank as nodal bank for administering the scheme for international education.

Applicable for: Canara Bank IBA Model Education Loan scheme

Eligible Candidates:

  • Students enrolled in Master’s programs or above in international universities/colleges/institutions outside India
  • Students from minority communities (like Parsi, Jain etc.)
  • Maximum family income: ₹6 Lakhs

Canara Bank education loan interest rates benefits:

  • Complete interest subsidy for the duration of course
  • Students would need to commit their salary post course completion towards the repayment of education loan installments

Canara Bank Education Loan: How to Apply for Interest Rates Subsidy?

All students applying for education loans from Canara Bank are automatically considered for these education loan interest subsidy schemes. Still, in order to confirm their candidature for students should refer to the respective branch of Canara Bank to get these subsidies.

Canara Bank Education Loan benefits and other details

Education Loans in India come with limitations of minimum loan amount. Students who need smaller education loan amounts for their academic fees can apply for Canara Bank education loans. Here the education loans start at as low as ₹20,000. The Canara Bank education loan interest rates are also comparatively convenient than prominent banking institutions of India (in some cases half of other education loans). Students can also adjust the margin payment of their education loan with Indian and International scholarships. Canara bank allows this facility of scholarship adjustable loans and that helps students lower their financial concerns.

To know more about Scholarship Adjustable Loans students can refer to the Scholarships and Education Loan experts. Canara bank also allows students to apply online for their education loan by using Vidyalakshmi Education Loan Portal; which helps them increase their chances of getting education loan. To find more details about how to increase the chances of getting an education loan with vidyalakshmi portal, you can read ‘Vidyalakshmi Portal: Education Loan and Scholarships for Indian Students’. Happy Learning!

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