Canadian Dollar Exchange RateStudent Line of Credit Interest Rate
A student line of credit interest rate is typically a variable rate based on the prime rate similar to interest rates of other line of credit products.
Canadian Banks student lines of credit interest rates are variable rates based on the prime rate but will vary based on a number of factors.
For example RBC offers prime plus 1% for student lines of credit for their most creditworthy customers (Sept 3, 2011 – posted rate on their website).
BMO offer prime plus 2% for student lines of credit (Sept 3, 2011 – posted rate on their website)
Most of the other major Canadian banks offer prime plus 1% – 11% on student lines of credit.
Many of the Canadian banks won’t post their student lines of credit online or discuss the student line of credit interest rate over the phone. They want to establish the interest rate based on the customer relationship and have you speak to a loans officer in person at a branch.
Rates for the a Student Line of Credit are determined by a number of factors, including the Bank of Canada prime lending rate, the amount credit granted, whether or not the loan is secured, if you have a co-borrower(s) and by the borrower’s credit rating.