Key facts: Canara Bank vs SBI education loan
- Starting rate: Canara Bank 6.85%, SBI 9.40%. This is the lowest rate each loan provider advertises for an education loan, not the rate everyone is offered.
- Gap between starting rates: 2.55 percentage points between the lowest and the highest.
- Top of the published range: SBI up to 9.90%.
- Maximum tenure: Canara Bank 15 years, SBI 15 years.
- Type of loan provider: Canara Bank is a public sector bank; SBI is a public sector bank. Banks and NBFCs price floating rates differently.
- Official websites: canarabank.bank.in, sbi.bank.in.
- Pages checked: 4 official pages opened for this loan type.
- Loan types with a published rate: Canara Bank 3, SBI 6 (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 SBI 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 SBI education loan: rate, fees and tenure
Starting education loan rates as published: Canara Bank from 6.85% and SBI from 9.40%. 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 | SBI |
|---|---|---|
| Published rate | 6.85% p.a. (starts from 6.85%, T&C apply) - Vidya Turant | Student Loan 9.40% (with collateral) / 9.90% (without collateral up to Rs 7.50 lakh); Scholar Loan 6.90% to 7.65% |
| Rate basis | Reducing balance | Floating, linked to External Benchmark Rate (EBR 7.90% = Repo 5.25% + 2.65%) |
| Loan amount | Category A Rs. 50 lakh; B Rs. 40 lakh; C Rs. 30 lakh | Student Loan: India up to Rs 50 lakh / Rs 75 lakh (medical, NIRF top-100), abroad up to Rs 7.50 lakh |
| Maximum tenure | EMIs up to 15 years excl. moratorium (course + 1 year) | Up to 15 years after course period + 12-month repayment holiday |
| Processing fee | NIL (PM-Vidyalaxmi portal fee Rs. 200 + GST) | Student Loan: nil up to Rs 10 lakh; Rs 5,000 + GST for Rs 10-20 lakh |
| Prepayment / foreclosure | No prepayment penalty at any stage | Not published |
| Eligibility (as published) | Indian national with admission in eligible institution; co-borrower generally required | Indian national with admission to eligible course in India/abroad; parent/guardian co-borrower |
| Other terms published |
|
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| Official source | canarabank.bank.in/vidya-turant | sbi.bank.in/web/interest-rates/interest-rates/loan-schemes-interest-rates/education-loan-scheme sbi.bank.in/web/personal-banking/loans/education-loans/student-loan-scheme sbi.bank.in/web/personal-banking/loans/education-loans/scholar-loan-scheme |
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
SBI
Public sector bank · State Bank of India
- How the rate is set: Floating, linked to External Benchmark Rate (EBR 7.90% = Repo 5.25% + 2.65%)
- Eligibility as published: Indian national with admission to eligible course in India/abroad; parent/guardian co-borrower
- Up to Rs 7.5 lakh needs only parent/guardian co-borrower; above that collateral
- Margin nil up to Rs 4 lakh; 5% (India) / 15% (abroad) above
- 0.50% rate concession for girl students on Student Loan
- Interest during course and moratorium added to principal
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
- SBI: sbi.bank.in/web/interest-rates/interest-rates/loan-schemes-interest-r... sbi.bank.in/web/personal-banking/loans/education-loans/student-loan-s... sbi.bank.in/web/personal-banking/loans/education-loans/scholar-loan-s...
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More education loan comparisons
Canara Bank vs SBI: 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 SBI?
Canara Bank has the lower published starting education loan rate at 6.85%, against 9.40% at SBI. 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 SBI?
Canara Bank has the lower published starting education loan rate at 6.85%, against 9.40% at SBI. The published ranges run to SBI up to 9.90%, so the rate you are offered can sit well above the starting rate.
What is the education loan processing fee at Canara Bank and SBI?
Canara Bank: NIL (PM-Vidyalaxmi portal fee Rs. 200 + GST). SBI: Student Loan: nil up to Rs 10 lakh; Rs 5,000 + GST for Rs 10-20 lakh. 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 SBI?
Canara Bank: EMIs up to 15 years excl. moratorium (course + 1 year). SBI: Up to 15 years after course period + 12-month repayment holiday. A longer tenure lowers the EMI and raises the total interest.
Can I prepay or foreclose an education loan early at Canara Bank and SBI?
Canara Bank: No prepayment penalty at any stage. SBI: not published. 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 SBI?
Canara Bank: Category A Rs. 50 lakh; B Rs. 40 lakh; C Rs. 30 lakh. SBI: Student Loan: India up to Rs 50 lakh / Rs 75 lakh (medical, NIRF top-100), abroad up to Rs 7.50 lakh. 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 SBI?
Canara Bank: Indian national with admission in eligible institution; co-borrower generally required. SBI: Indian national with admission to eligible course in India/abroad; parent/guardian co-borrower. Each loan provider can ask for more documents once you apply.
Are Canara Bank and SBI regulated by the RBI?
Yes. Canara Bank is a public sector bank, SBI 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 SBI, 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.