Education Loan

Canara Bank Education Loan Options for India or Abroad Studies

Canara Bank Education Loan Options for India or Abroad Studies

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Get the details of Canara Bank education loan for studies in India & abroad. Know about Canara Bank interest rate, margin money, repayment tenure, and more.

GyanDhan
Gurbani Kaur Suri
Updated on:  19 Feb 2024  | Reviewed By: 
Aman 
| 28.5K | 11  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, and it is now the fourth-largest public bank by assets.

An abroad aspirant must know about and explore the possibilities for Canara Bank education loans, which offer 100% coverage of the total education cost. The bank's education loan schemes have gained popularity 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 Your Education Loan Eligibility

Let us discuss each of the above mentioned scheme with other factors in details: 

1. 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.
 

Margin money

10%

Processing fees

Up to INR 20,000

Repayment tenure

15 years

Moratorium period

Course duration + 12 months

Accepted collateral

Residential property such as house or flat, Non - agricultural land, Fixed deposits, Government bonds

Accepted co-applicant

Parent/gaurdian


Eligibility criteria:

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

  • list items Students must be an Indian citizen.
  • list items Students must enroll in top 50 universities in the world.
  • list items Students must enroll in a master’s level STEM course

2. IBA model education loan scheme


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

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 schemes 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

Eligible courses for education loan in India:

  • list items Graduation, post graduation, including technical/professional courses from reputed colleges/universities approved by UGC/Government, AICTE/Department of Electronics/IMC, autonomous institutions like IIM, IIT, etc. 
  • list items Any courses leading to degree/diploma from reputed Institutes/Colleges/Universities for studies in India.  


Eligible courses for education loan for abroad:

Courses which lead to undergraduate, post graduate/PHD, diploma etc are eligible.

3. IBA skill loan scheme 


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

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/gaurdian


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 National Skill Qualification Framework (NSQF) are eligible for this scheme.  

4. Vidya Turant education loan scheme


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

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/gaurdian


Eligibility criteria:

  • list items 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. 

5. Vidya Shakthi education loan scheme 


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

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/gaurdian


Eligibility criteria:

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

6. Vidya Sahay education loan scheme 


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

Margin money

Nil

Processing fees

Nil

Repayment tenure

Loan is to be cleared after sanction of regular education loan.

Accepted co-applicant

Parent/gaurdian


Eligible courses:

  • list items The scheme caters to the needy and meritorious students who are in need of the down payment to be made to the CET/counseling Authorities at the time of selection / counseling.
  • list items Students who appeared in common entrance tests conducted by respective state governments, CBSE, IIT and such other all India examinations and selected for counseling are eligible.
  • list items Students who have cleared the previous qualifying exam.
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What are the documents required for Canara Bank education loan?  

If you are interested in appltying for an education loan through Canara Bank, you will need the following documents.

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 Passport
  • list items Past academic record. 10th standard mark sheet 12th standard mark sheet Under graduate result (semester-wise)  
  • list items 10th standard mark sheet
  • list items 12th standard mark sheet
  • list items Under graduate 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.  
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Note: Students who choose to prepay or partially prepay their education loans are given extra interest rate breaks on top of the standard rate.

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How to apply for Canara Bank abroad education loan?

To apply for an education loan at Canara bank, you are required to fulfill the following steps.

  • list items Make a visit to the nearby Canara Bank branch in your locality and inquire about the available student loan offerings.
  • 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, there are other leading public and private banks that 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.

Read also:

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Frequently asked questions

What is 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 2 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 Canara Bank education loan sanction letter?

After the bank has issued the disbursement letter, which remains valid for only six months, it is essential for the borrower 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 2 Cr as education loan under the Vidya Sagar education loan scheme. This education loan scheme provides finances for both studies abroad and India.

What is the interest rate of an abroad education loan in Canara Bank?

The interest rate abroad education loans at Canara Bank starts at 9.25%, but they 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, Vidya Shakthi scheme and 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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