Canara Bank Education Loan
Education Loan

Canara Bank Education Loan - Eligibility Criteria, Interest Rates, and More

Canara Bank Education Loan - Eligibility Criteria, Interest Rates, and More

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Canara Bank Education Loan - Exploring Canara Bank education loan schemes, their eligibility criteria, benefits, interest rates, and more.

GyanDhan
Gurbani Kaur Suri
Updated on:  30 Aug 2024  | Reviewed By:  Aman  | 33.4K | 19  min read

Established in 1906, Canara Bank, with its headquarters in Bengaluru, became a nationalized bank in 1969. Post its merger with Syndicate Bank on 1st April 2020, it is now the fourth-largest public bank by assets. Canara Bank offers 100% coverage of the total education cost. The bank's education loan schemes are popular for their flexibility, competitive interest rates, and supportive terms.

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Canara Bank Education Loan Schemes 

Canara Bank offers six education loan for India and abroad. These schemes cater to students who wish to pursue degree, diploma, skill-based and vocational courses. By providing financial assistance for higher education, these schemes empower students to pursue their dreams without being limited by financial barriers.

Scheme Interest Rates

Vidya Sagar education loan

9.25% - 11.35%

IBA model education loan

9.25% - 11.25%

IBA skill loan 

9.25% - 10.75%

Vidya Turant education loan

8.60% - 9.85%

Vidya Shakthi

9.25 - 11.25%

 

Check loan eligibility for study abroad

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Canara Bank: Vidya Sagar Education Loan Scheme - Scheme for Pursuing Master’s Degree

The Vidya Sagar loan scheme offers financial assistance for education loans for studies in India and abroad. This education loan is intended to assist students in obtaining Master's degrees in STEM (Science, Technology, Engineering, and Management) fields at leading international universities.

Feature Description

Loan amount

Collateral Based Loans - Up to INR 1 Cr
Non - Collateral Loans - Up to INR 7.5 Lakh

Margin money

10%

Processing fees

Less than 100% coverage loans: Up to INR 20,000

100% coverage loans: Up to INR 10,000

Repayment tenure

15 years

Moratorium period

Course duration + 12 months

Accepted collateral

Residential property such as houses or flats, Non - agricultural land, Fixed deposits, Government bonds

Accepted co-applicant

Parent/guardian

 

Eligibility Criteria:

To apply for the scheme for pursuing a master’s degree, students must fulfill the following eligibility criteria:

  • list items Students must be an Indian citizen.
  • list items Students must enroll in the top 50 universities in the world.
  • list items Students must enroll in a master’s level STEM course.
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Canara Bank Education Loan - IBA Model Education Loan Scheme 

The IBA model loan scheme by Canara Bank provides education loans for studies in India and abroad.

Feature Description

Loan amount

Need-based finance

Margin money

5% - 15%

Repayment tenure

15 years

Moratorium period

Course duration + 12 months

Accepted collateral

No collateral required for loans upto INR 7.5 Lakh
Residential property such as house or flat, Non - agricultural land, Fixed deposits, Government bonds

Accepted co-applicant

Parent/gaurdian

 

Eligibility Criteria:

  • list items This scheme is eligible for students planning studies in India or abroad
  • list items Students must be an Indian citizen
  • list items NRI students holding a valid Indian passport
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IBA Model Education Loan - Eligible Course

India Abroad

Graduation, post-graduation courses approved by UGC/Government, AICTE/Department of Electronics/IMC, autonomous institutions like IIM, IIT, etc. 

Courses that lead to undergraduate, postgraduate/PhD, diploma, etc are eligible.

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Canara Bank Education Loan - IBA Skill Loan Scheme

The IBA skill loan scheme by the Canara Bank provides education loans for studies in India.

Feature Description

Loan amount

INR 5000 - INR 1,50,000

Margin money

Nil

Repayment tenure

3 - 7 years

Moratorium period

Course duration + 6 or 12 months

Accepted collateral

No collateral or third-party guarantee is required

Accepted co-applicant

Parent/guardian

 

Eligibility Criteria:

  • list items Indian students who apply for skill-based courses in India are eligible for this scheme.
  • list items Courses run by training institutes aligned to the National Skill Qualification Framework (NSQF) are eligible for this scheme. 

 

EMI calculator

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Canara Bank Education Loan - Vidya Turant Education Loan Scheme

The Vidya Turant Canara Bank education loan scheme provides education loans for studies in India.

Feature Description

Loan amount

List A: INR 50 Lakh
List B: INR 40 Lakh
List C: INR 30 Lakh

Margin money

Nil

Repayment tenure

15 years

Moratorium period

Course duration + 12 months

Processing fees

Nil

Accepted collateral

No collateral required

Accepted co-applicant

Parent/guardian

 

Eligibility Criteria:

  • list items The student must be an Indian citizen
  • list items Students must enroll in top selected Indian institutions of IIMs/IITs/NITs/IISc /ISB (Hyderabad & Mohali) and other reputed institutes.
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Canara Bank Education Loan - Vidya Shakthi Education Loan Scheme

The Vidya Shakthi Canara Bank education loan scheme caters to students with disability for studies in India and abroad.

Feature Description

Loan amount

Degree courses - INR 7.5 Lakh

Vocational, diploma courses - INR 1.5 Lakh

Interest rate

9.25%

Margin money

0 - 5%

Repayment tenure

3 - 7 years

Moratorium period

Course duration + 12 months

Processing fees

Nil

Accepted collateral

No collateral required

Accepted co-applicant

Parent/guardian

 

Eligibility Criteria:

  • list items Indian students with a physical disability to the extent of 40% or more are eligible.
  • list items To assist the PWD category students who need education loans to pursue the special devices courses in India. 
  • list items Education loans for abroad studies will be as per the guidelines of the IBA Model Education loan/Skill loan scheme.
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Canara Bank Education Loan - Vidya Sahay Education Loan Scheme

The Vidya Sahay Canara Bank education loan scheme offers loans for studies in India.

Feature Description 

Loan amount

Up to INR 1 Lakh

Margin money

Nil

Processing fees

Nil

Repayment tenure

The loan is to be cleared after the sanction of a regular education loan.

Accepted co-applicant

Parent/guardian

 

Vidya Sahay Education Loan - Eligible Courses

Eligible Courses 

Meritorious students who require a down payment to be made to the CET/counseling Authorities at the time of selection/counseling.

Students who appeared in common entrance tests conducted by respective state governments, CBSE, IIT, and other all-India examinations and selected for counseling are eligible.

Students who have cleared the previous qualifying exam.

 

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Documents Required for Canara Bank Education Loan

Submit the below-listed Canara Bank education loan documents required - 

 

Applicants documents

  • list items Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
  • list items Education loan application form.
  • list items Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ Driving License/ Aadhaar card.
  • list items Past academic record.
  • list items
    10th standard mark sheet
  • list items
    12th standard mark sheet
  • list items
    Undergraduate result (semester-wise)
  • list items Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
  • list items Proof of admission: admission letter (A conditional admission letter is also applicable).
  • list items Statement of expenses.
  • list items 2 passport-size photographs.
  • list items Loan A/C statement of one year (if applicable)
  • list items Bank account statement of the student (if applicable)

 

Co-applicants documents

  • list items Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
  • list items Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of Driving license/ Aadhaar card.
  • list items 2 passport-size photographs.
  • list items Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).
  • list items If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
  • list items Legal documents of the collateral/ property documents.

 

Income proof for salaried co-applicant/guarantor

  • list items Salary slips for the last 3 months.
  • list items Copy of Form 16 of the last 2 years or copy.
  • list items Bank account statement for the last 6 months (Salary account).
  • list items Brief statement of assets & liabilities of parent/ guardian/ other co-borrower.

 

Income proof for self-employed co-applicant/guarantor

  • list items Business address proof.
  • list items Last 2 years IT returns ( If IT Payee).
  • list items TDS certificate (Form 16A, if applicable).
  • list items Certificate of qualification (for C.A./ doctor and other professionals).
  • list items Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
  • list items Bank account statement for the last 6 months.

 

Note: Students who choose to prepay or partially prepay their education loans are given extra interest rate breaks on top of the standard rate.

Before applying for your education loan Canara Bank, it's important to estimate your monthly repayment with the Canara Bank education loan EMI calculator.

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How to Apply Education Loan in Canara Bank?

To apply for a Canara Bank abroad education loan, applicants must fulfill the following steps.

  • list items Visit the nearby Canara Bank branch in your locality and inquire about the available student loan offerings.
  • list items Check the available Canara Bank education loan for abroad schemes and related education loan interest in Canara Bank.
  • list items Determine the most suitable loan product for your overseas education requirements, considering your eligibility and the coverage provided.
  • list items Obtain the list of documents required to initiate the loan application process.
  • list items Revisit the bank to present the necessary documents and commence the processing of your study abroad loan application.

 

However, if you do not fulfill the eligibility criteria of Canara Bank, other leading public and private banks provide education loans with and without collateral. Apart from banks, there are NBFCs as well that sanction abroad education loans within 7-10 days. One platform that can help you get an education loan for your studies abroad is GyanDhan. We are a leading education financing platform that offers a range of benefits over traditional methods. We are partnered with a wide network of banks and NBFCs, giving you a broader spectrum of loan options to choose from. To start your abroad education journey with us, check your loan eligibility and our team will take it forward from there.

 

Scholarships

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Frequently Asked Questions

What is the Canara Bank education loan Vidyasagar scheme?
 

The Vidyasagar scheme is an education loan offering financing for master's degrees. This initiative allows students to secure loans of up to INR 1 cr, and it extends its support for educational pursuits both within India and abroad.

What is the IBA model education loan scheme Canara Bank?
 

The IBA model education loan scheme offers need-based finance for both India and abroad. Under this scheme, students who apply for skill-based courses in India are eligible for this scheme.

What is the validity of the Canara Bank education loan sanction letter?
 

After the bank has issued the disbursement letter, which remains valid for only six months, the borrower needs to commence the disbursement process promptly. It's crucial to avoid adopting a relaxed attitude upon receiving your sanction letter, as this can result in last-minute panic and rush when it comes to paying the tuition fees.

What is the maximum amount of education loan in Canara Bank?
 

The Canara Bank offers up to INR 1 Cr as an education loan under the Vidya Sagar education loan scheme. This education loan scheme provides finances for both studies abroad and in India.

What is the Canara Bank education loan interest rate?
 

The Canara bank education loan interest rate starts at 9.25%, but it may vary depending on the specific loan scheme that a student is applying for.

What education loan scheme is relevant for abroad studies only?
 

Under the Vidya Sagar scheme, the Vidya Shakthi scheme, and the IBA model loan scheme provide education loan schemes for studies abroad.

What is the maximum time to repay a Canara bank education loan?
 

The maximum time to repay an education loan by Canara Bank is up to 15 years for studies in India and abroad.

Check Your Education Loan Eligibility


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