Key facts: Canara Bank vs Punjab National Bank education loan
- Starting rate: Canara Bank 6.85%, Punjab National Bank 7.85%. This is the lowest rate each loan provider advertises for an education loan, not the rate everyone is offered.
- Gap between starting rates: 1 percentage points between the lowest and the highest.
- Top of the published range: Punjab National Bank up to 9%.
- Maximum tenure: Canara Bank 15 years, Punjab National Bank 15 years.
- Type of loan provider: Canara Bank is a public sector bank; Punjab National Bank is a public sector bank. Banks and NBFCs price floating rates differently.
- Official websites: canarabank.bank.in, pnb.bank.in.
- Pages checked: 3 official pages opened for this loan type.
- Loan types with a published rate: Canara Bank 3, Punjab National Bank 5 (out of 8 we track).
- Last checked: 12 October 2026, on each loan provider's own website.
Who each loan provider suits on an education loan
Built only from figures the loan providers publish. It says where each one is ahead on paper, not who will approve you.
Pick Canara Bank if you want
- The lower published starting rate (6.85%)
- The most complete published terms for this loan (5 of 5 details)
Where Punjab National Bank stands
No clear edge on the published figures we could compare for an education loan. Check the table below and the Key Fact Statement.
Canara Bank vs Punjab National Bank education loan: rate, fees and tenure
Starting education loan rates as published: Canara Bank from 6.85% and Punjab National Bank from 7.85%. Canara Bank is lower at the starting rate, but the top of each range and your own credit profile decide what you are offered.
| Detail | Canara Bank | Punjab National Bank |
|---|---|---|
| Published rate | 6.85% p.a. (starts from 6.85%, T&C apply) - Vidya Turant | 7.85% to 9.00% p.a. (Digi Education, PM Vidyalaxmi, Pratibha 7.85% |
| Rate basis | Reducing balance | Not published |
| Loan amount | Category A Rs. 50 lakh; B Rs. 40 lakh; C Rs. 30 lakh | Need based (subject to margin guidelines) |
| Maximum tenure | EMIs up to 15 years excl. moratorium (course + 1 year) | Up to 15 years (Saraswati) |
| Processing fee | NIL (PM-Vidyalaxmi portal fee Rs. 200 + GST) | Not published |
| Prepayment / foreclosure | No prepayment penalty at any stage | Nil (Saraswati) |
| Eligibility (as published) | Indian national with admission in eligible institution; co-borrower generally required | Resident Indian with admission to recognized Indian higher education course after 10+2 via entrance/merit |
| Other terms published |
|
|
| Official source | canarabank.bank.in/vidya-turant | pnb.bank.in/pnbsaraswatiloan.html pnb.bank.in/downloadprocess.aspx |
Read the full guide: Education loan
What each loan provider publishes about its education loan
Canara Bank
Public sector bank · Canara Bank
- How the rate is set: Reducing balance
- Eligibility as published: Indian national with admission in eligible institution; co-borrower generally required
- No collateral or guarantor
- No margin
- CSIS interest subsidy for loans up to Rs. 10 lakh
- Not available for studying abroad
Punjab National Bank
Public sector bank · Punjab National Bank
- Eligibility as published: Resident Indian with admission to recognized Indian higher education course after 10+2 via entrance/merit
- Margin nil up to Rs 4 lakh; 5% above
- No tangible security up to Rs 7.50 lakh; parent/guardian joint borrower
- Moratorium: course period + 1 year
- Covers fees, hostel, books, equipment, computer
Before you apply for an education loan
- Tax benefit: Under the old tax regime, interest paid on an education loan is deductible under Section 80E with no upper limit, for up to eight years. Check with your tax adviser.
- Government schemes: Interest subsidy and guarantee schemes, such as PM-Vidyalaxmi, can lower the cost for eligible students. Ask the loan provider whether you qualify.
- What is covered: Tuition, hostel, exam fees, books and equipment are normally covered. Confirm the list before you apply.
- Co-applicant: A parent or guardian usually applies with the student. Their income and credit score are assessed along with the admission.
RBI requires every loan provider to hand you a Key Fact Statement before you sign. It shows the rate, every fee, the APR and the total you will repay.
Terms used on this page
Plain meanings of the terms this comparison uses.
Starting rate: The lowest rate a loan provider advertises for a product. Most borrowers are offered a higher rate, because the final rate depends on credit score, income, employer and loan amount.
APR: Annual percentage rate. It adds the processing fee and other charges to the interest rate, so it shows the yearly cost of the loan better than the interest rate alone.
Key Fact Statement: A short summary the loan provider gives you before you sign. It lists the interest rate, every fee, the APR and the total amount you will repay. RBI requires it for retail loans.
Floating rate and repo rate: A floating rate moves with a benchmark, and for banks that is usually the RBI repo rate, the rate at which RBI lends to banks. A fixed rate stays the same for the period you agree.
Processing fee: A one-time charge for handling the application. It is usually a percentage of the loan amount plus GST, and it is often deducted before the money reaches you.
Credit score: A number from 300 to 900 that shows how you have repaid past loans and cards. A higher score usually gets you a lower rate.
Sources and last check
Every figure above is read from the loan provider's own website and was checked on 12 October 2026. A blank means the page does not show that figure, and we never estimate one.
- Canara Bank: canarabank.bank.in/vidya-turant
- Punjab National Bank: pnb.bank.in/pnbsaraswatiloan.html pnb.bank.in/downloadprocess.aspx?fid=E2re2I3i3yXux5sfy5umlw%3D%3D
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More education loan comparisons
Canara Bank vs Punjab National Bank: every loan type on one page · All education loan comparisons · Education loan guide · Education loan EMI calculator
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Frequently asked questions
Which is better for an education loan: Canara Bank or Punjab National Bank?
Canara Bank has the lower published starting education loan rate at 6.85%, against 7.85% at Punjab National Bank. Rate is only one part of the cost, so also compare the processing fee, the prepayment terms and the total repayable amount in the Key Fact Statement.
Which has the lower education loan interest rate: Canara Bank or Punjab National Bank?
Canara Bank has the lower published starting education loan rate at 6.85%, against 7.85% at Punjab National Bank. The published ranges run to Punjab National Bank up to 9%, so the rate you are offered can sit well above the starting rate.
What is the education loan processing fee at Canara Bank and Punjab National Bank?
Canara Bank: NIL (PM-Vidyalaxmi portal fee Rs. 200 + GST). Punjab National Bank: not published. Fees can change, so confirm the amount in rupees, with GST, before you accept.
What is the maximum education loan tenure at Canara Bank and Punjab National Bank?
Canara Bank: EMIs up to 15 years excl. moratorium (course + 1 year). Punjab National Bank: Up to 15 years (Saraswati). A longer tenure lowers the EMI and raises the total interest.
Can I prepay or foreclose an education loan early at Canara Bank and Punjab National Bank?
Canara Bank: No prepayment penalty at any stage. Punjab National Bank: Nil (Saraswati). Ask whether the rate on your loan is fixed or floating, because the charges depend on it.
How much education loan can I get from Canara Bank and Punjab National Bank?
Canara Bank: Category A Rs. 50 lakh; B Rs. 40 lakh; C Rs. 30 lakh. Punjab National Bank: Need based (subject to margin guidelines). The amount you are offered depends on your income, credit profile and the security you give.
Who is eligible for an education loan at Canara Bank and Punjab National Bank?
Canara Bank: Indian national with admission in eligible institution; co-borrower generally required. Punjab National Bank: Resident Indian with admission to recognized Indian higher education course after 10+2 via entrance/merit. Each loan provider can ask for more documents once you apply.
Are Canara Bank and Punjab National Bank regulated by the RBI?
Yes. Canara Bank is a public sector bank, Punjab National Bank is a public sector bank, and all lend under RBI rules, including the requirement to give you a Key Fact Statement before you sign.
Where do these education loan figures come from?
From the official pages of Canara Bank and Punjab National Bank, opened and checked on 12 October 2026. The sources are listed at the bottom of this page. We show a blank where a loan provider does not publish a figure, and we do not estimate one.
KhatuLoans is not a loan provider and is not paid by the loan providers named here to rank them. Rates, fees and eligibility change; always confirm with the loan provider. Read our editorial policy and how we make money.