Canara Bank Education Loan Options for India or Abroad Studies

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    Canara Bank Education Loan is a popular option for students who wish to take an education loan for their higher studies, in India or abroad. 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. Let us take an overview of education loans provided by Canara Bank and discuss its salient features in this blog. 

    Students who wish to take an education loan from Canara bank can take any of the following education loans - 

    1. IBA model education loan schemes for their higher education in India or abroad. This is the Canara Bank abroad education loan and it covers the course fee, accommodation fee, examination fee, library and laboratory fee of the program. It also covers the cost of essential equipment, uniforms, books, etc that are important for completing the program. The loan will also cover any caution deposit or building fund charged by the institution along with travel costs and other expenses that are essential for completing the course. 
    2. Vidya Turant, an education loan scheme for professional courses at premier institutes of India.
    Check Your Education Loan Eligibility Apply Here

    What is Canara Bank Education Loan Interest Rate? 

    Students can take the Vidya Sagar education loan up to 7.5 lakhs at an interest rate of 8.90%. Those who take the Vidya Sagar education loan for more than INR 7.5 lakhs have to pay an interest of 8.50%. Those who take the Vidya Turant scheme with a co-borrower have to pay an interest of 6.90% while those who take it without a co-borrower have to pay an interest of 7.50%. 

    What is the Margin Money on the Canara Bank Education Loan?

    Canara Bank does not charge any margin money for loans up to INR 4 lakhs. Students who take an education loan above INR 4 lakhs for studying in India have to pay a margin money of 5% while those who take it for studying abroad have to pay a margin money of 15%. 

    How much loans can be taken from the Canara Bank Education Loan?

    The IBA model education loan from Canara Bank is a need-based education loan. Students who apply for the Vidya Turant scheme and have gained admission in “A” category institutes can get a maximum loan amount of INR 40 lakhs. Those who take the Vidya Turant education loan for studying in ‘B’ category institutes will be eligible for a maximum loan amount of 25 lakhs. Students applying at other institutes are eligible for a maximum loan amount of INR 20 lakhs under the Vidya Turant scheme. 

    Check Your Education Loan Eligibility Click Here

    Salient features of Canara Bank education loan repayment

    Students who take the IBA model education loan or Vidya Turant loan from Canara Bank do not have to make any repayment during the study period. The moratorium period extends to one year after the program gets completed. Post the moratorium period, the students need to repay the loan amount in equated monthly installments in 15 years. 

    Overview of Canara Bank education loan

     Maximum Loan Amount 

    Up to INR 40 Lakhs

    Loan Tenure

    Up to 15 Years

    Interest Rate

    6.90% to 8.80% p.a.

    Moratorium Period

    One year after the course completion

    Margin Money

    Up to INR 4 Lakhs- Nil
    For more than INR 4 Lakhs- 15% for studying abroad and 5% for Indian college/university

    Eligibility

    The student should be an Indian citizen.
     Students should have secured admission to professional or technical courses in India or abroad. 

    What is the security required to be pledged for the Canara Bank education loan?

    Students who take an education loan up to INR 7.5 lakhs under the IBA scheme education loan from Canara bank and have got admission under the Merit quota do not have to pledge any security for the loan. Those who have gained admission under the merit quota and have taken the IBA scheme loan of more than INR 7.5 lakhs have to provide a tangible security of 100% of the loan amount. Those who get admission under the Management quota and apply for the IBA scheme education loan of up to INR 4 lakhs do not have to provide any security. However, those who take a loan of more than INR 4 lakhs for the IBA scheme under management quota have to pledge security of 100% of the loan amount. It should be noted that in all the above cases, the loan is granted jointly with the parent or guardian of the student. The bank also has a clause for assignment of future income of students under this scheme. 

    In the case of the Vidya Turant scheme, the student does not have to provide any security for taking loans up to the maximum amount set for each category of institutes. The bank has a clause for assignment of future income of students under this scheme. 

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    What are the documents required for a Canara Bank education loan?

    The exact documents needed for applying for the loan will vary from applicant to applicant. However, for Canara Bank education loan some common documents required are as follows:

    • Address proof 
    • 10th/12th mark sheet for undergraduate students and graduation mark sheet for Post Graduate students.
    • Proof of age 
    • Proof of family income such as ITR, pension certificate, salary certificate of parent or guardian.
    • Proof of admission or I20 from the college/university
    • Details of fee
    • In the case of secured loans, collateral documents 

    At what locations in India can a student avail of a Canara Bank education loan?

    An education loan from Canara Bank can be taken from any branch closest to your place of residence. 

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    Is Canara Bank education loan available for all types of degrees and disciplines?

    The IBA model education loan from Canara Bank is available for graduate, and post graduate courses in India or abroad. Courses that lead to a degree or diploma from Indian colleges that are accredited by relevant bodies such as UGC/Government, AICTE/Department of Electronics/IMC, autonomous institutions like IIM, IIT, etc are eligible for a loan under this scheme. 

    Students who wish to apply for a Canara Bank education loan online can get in touch with GyanDhan to get guidance on Canara Bank education loan procedure

    How can GyanDhan help you with your education loan?

    GyanDhan is India’s first education loan financing platform and helps students get the best education loan for studying in India or abroad from public and private banks as well as NBFCs. We have tie-ups with leading government, private lenders and help our students get the best deals on secured and unsecured education loans

    Our streamlined process assigns a dedicated loan counselor, who guides the student at every step of the loan application and sanction process. Students get all this and more for free. So why wait any longer? Get in touch with us now and make your dream of studying abroad become a reality. 

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