Canara Bank Education Loan

Canara Bank Education Loan

Covering a varied range of educational opportunities, including vocational training and study abroad programs, Canara Bank offers several loan schemes that provide financial aid to meritorious students. Under the Canara Bank Education Loan, the bank offers many sub-scheme options aimed at a variety of educational needs. Starting from loan amounts as low as INR 20,000 and as high as INR 36,00,0000, the Canara Bank Education Loan is a comprehensive education support mechanism for those facing financial constraints in pursuing their dreams in higher studies. This blog aims to delineate the several sub-schemes under the Canara Bank Education Loan scheme along with their essential features such as eligibility requirements and offered loan amounts.

Maximum Loan Limit Rs. 40 Lacs +
Margin Up to 4 lacs – NilAbove 4 lacs 5%
Security Up to Rs. 4 lacs no collateralRs. 4 Lacs to 7.5 Lacs – Third-party guaranteeAbove Rs.7.5 Lacs – 100% loan amount tangible collateral 
Processing Fee Nil
Interest Rate 7 – 10 %
Loan Repayment 10 – 15 years

Canara Bank Education Loan

Canara Bank is one of the largest banks in India & owned by the Government of India established in 1906 & has its main headquarters in Bengaluru. Canara Bank Education Loan helps students to pursue higher education in India & abroad with interest rates ranging between 7 -9% & concession for female applicants. 

Offered Sub-Schemes

Canara Bank Education Loan operates the following five sub-schemes supporting the diverse phases of different educational programs.

  • IBA Model Education Loan Scheme for Pursuing Higher Studies in India and abroad
  • IBA Skill Loan Scheme-Education Loans
  • Vidya Turant-Education Loan Scheme
  • Vidya Shakti-Education Loan
  • Vidya Sahay-Education Loan Scheme

IBA Model Education Loan Scheme for Pursuing Higher Studies in India and Abroad

Objective: To provide general loan assistance to students for higher studies.

Eligibility Nationality: Indian
Courses in India: Undergraduate/postgraduate /technical/professional
courses including diploma and PhD from recognised colleges/institutions
in India.
Courses Abroad: Undergraduate/postgraduate/PhD/pg diploma etc.
Course fee/residence fee/exam fee/ library fee/books and
equipment fee/ computer (if necessary)/caution deposit/
travel funds/any other expense
Rate of
Up to 7.5 lakh: Ongoing one year MCLR+2%
More than 7.5 lakh: Ongoing one year MCLR+1.5%
Note: 0.5% concession to girl students and for prompt
repayment of interest during the period of moratorium.


Up to 7.5 lakh: No collateral security needed under
Credit Guarantee Fund Scheme for Education loan (CGFSEL)
More than 7.5 lakh: 100% of the loan amount
intangible collateral security.
In equal monthly instalments extending the maximum period
of 15 years excluding course period plus one year.

Also Read: Loans to Study Abroad

IBA Skill Loan Scheme

Objective: To provide loan assistance for skill-based courses.

Eligibility Nationality: Indian
National Skill Qualification Framework (NSQF)
affiliated courses
Course expenses from INR 5,000 to INR 1,50,000.
Rate of
Ongoing one year MCLR+1.5%
Collateral Collateral or guarantee from a third party is not required.
Up to INR 50,000: Max 3 years
INR 50,000 – INR 1,00,00: Max 5 years
More than INR 1,00,000: Max 7 years

Also Read: Education Loan without Collateral

Vidya Turant: Education Loan Scheme

Objective: To provide assistance to students who have obtained admission in top-tier institutes in India.

Eligibility Nationality: Indian
Students must be pursuing courses from: 
Category A institutes such as IIMs
Category B institutes: ISB Hyderabad and Mohali
Category C institutes: institutions mentioned in this list.
Loan Amount Category A: Max 25 lakhs
Category B: Max 40 lakhs
Category C: Max 20 lakhs
Rate of Interest Ongoing one-year MCLR (may vary)
Collateral Collateral security is not required
up to the amount assigned as loan above.
Repayment Period In equal monthly instalments extending the maximum
period of 15 years excluding course period plus one year.

Vidya Shakti: Education Loan

Objective: This scheme provides loan assistance to PwD students aspiring to pursue special devices courses in India and abroad.

Eligibility Nationality: Indian
Physical Disability: At least 40%
Courses: Special devices courses (skill development programs)
Degree courses
(undergraduate/postgraduate etc)
: Up to INR 7.5 lakhs
Certificate/Diploma/Vocational Skill Courses: Up to INR 1.5 lakhs
Rate of
Ongoing one-year MCLR (may vary)
Collateral Up to 7.5 lakh: No collateral security needed under Credit Guarantee
Fund Scheme for Education loan (CGFSEL).
Repayment Period In equal monthly instalments extending the maximum period
of 15 years excluding course period plus one year.
Note: Skill development loans have a repayment period of
3 to 7 years.

Vidya Sahay: Education Loan Scheme

Objective: To provide loan assistance to deserving students to pay down payment pf admission fees at the time of CET or similar counselling/selection for a wide range of programs.

Eligibility Nationality: Indian
Students selected for counselling after clearance of
national common entrance tests of institutions
such as IIT, CBSE, state etc institutions.
Loan Amount INR 1 lakh or proposed counselling fee whichever is less.
Rate of Interest Ongoing one year MCLR+2% (may vary)
Collateral Parent/guardian must be one of the co-loanees.
Repayment Period Must be cleared after the regular education loan has been

Canara Bank Education Loan Interest Rate

Canara Bank education loan interest rate depends upon the educational loan scheme you have availed from the bank. Here are all the Canara bank education loan schemes with their interest rate.

Loan Interest Rate
IBA Model Education Loan (India & abroad) Up to 7.5 Lakh: ongoing One Year MCLR+2.00 %
Above 7.5 Lakh: ongoing One Year  MCLR+1.50 %
IBA Skill Loan Scheme On-going One Year MCLR+1.50%
Vidya Turant Skill Education Loan Scheme Ongoing One year  MCLR + (Rate of Interest will change)
Vidya Shakthi Education Loan Scheme Ongoing One year  MCLR + (Rate of Interest will change)
Vidya Sahay Education Loan Scheme Ongoing One year MCLR+2.00%

Check out Loans by Government
Education Loan by Delhi Government
Education Loan Scheme by Narendra Modi
Education Loan for Abroad Studies by Indian Government

Canara Bank Education Loan Documents Required

For applying for an education loan there are some important documents required. Here is the list of documents required:

  • Address proof
  • Identification card
  • Application form
  • Passport-size photographs
  • Admission Letter
  • Income proof of the guarantor
  • Collateral Security documents
  • 10th and 12th exam mark sheets

Canara Bank Education Loan Online Apply

If you want to apply for a Canara Bank education loan online, here is a stepwise procedure to apply for a Canara Bank Education Loan. You can also fill the Bank of Baroda Education Loan Form offline as well. 

  • Visit the official website of the bank of Baroda.
  • Click on Loans & select the education loan from the drop-down menu.
  • Click on the “Apply Now” option.
  • You will be redirected to a new page & you can start filling in all the required details.
  • Submit the Canara Bank Education Loan Form. 

Click Here for Offline Bank of Baroda Education Loan Form

Canara Bank Education Loan Calculator

Before applying for a Canara bank education loan, it is important to calculate the monthly payment that the applicant has to pay after the course completion every month. You can calculate your monthly payment. For example, if your loan amount is Rs.10,00,000/-, Rate of interest is 8 & loan terms 12 your monthly payment will be Rs.10,825/- 
Click Here for the Bank of Baroda Education Loan Calculator

College List

Your institution determines the amount of loan you can avail of. Institutions of A category Loan  Limit is up to Rs 25 lacs, B category loan limit is Rs 40 lacs & institutions that aren’t in the category A & B are in the C category & loan limit is  Rs 20 lacs. Here are the top institutions under different categories.

Category A Category B Category C
Indian Institute of Management, Ahmedabad
Indian Institute of Management, Banglore 
Indian Institute of Management, Indore
Indian Institute of Management, Kozhikode 
Indian Institute of Management, Kolkata 
Indian Institute of Management, Lucknow 
Indian Institute of Management, Ranchi 
Indian Institute Management, Rohtak 
Indian Institute Management, Trichy 
Indian Institute Management, Udaipur
Indian School of Business, Mohali, Sector 8A, SAS Nagar, Mohali
Indian School of Business, Hyderabad
Rajiv Gandhi Indian Institute of Management, Shillong
IIT Madras 
IIT Roorkee 
IIT Guwahati 
IIT Delhi 
IIT Kanpur 
IIT Patna 
IIT Mumbai 
NIT Srinagar 
NIT Kurukshetra

Click Here to Check Out Complete List

Canara Bank Education Loan Moratorium

To take the edge off from people from Covid -19 crisis, the RBI announced a Moratorium that helps reduce the burden of debt services. During the period of Moratorium, no one has to pay all installments/ EMIs. The repayment will start on its own after the period of Moratorium is over. However, the amount of remaining EMIs & numbers of EMIs will change. The moratorium does not mean not a waiver, it is simply deferred EMI payment. You can still avail this feature in Canara bank education loans at any time. 


Every individual no matter what section of society they belong to have a right to education & avail all available financial assistance. To support the Economically Weaker Sections of the Society, the Government of India launched an interest subsidy scheme. Under this students after class 12 can pursue any technical and professional courses from recognized institutes in India.  Under the period of moratorium, a full subsidy is available. The other two subsidies are mentioned in the table below

Dr. Ambedkar Central Sector Scheme of Interest Subsidy For OBC & EBC Maximum family incomeRs. 6 Lacs (OBC)Rs. 2 Lacs ( EBC) 
Higher education from abroad
Padho Pardesh – Scheme of Interest Subsidy on Educational Loans For minority CommunitiesHigher education from abroadMaximum family income Rs. 6 Lacs

Also Read:

Other Funding Options

You can also look for several scholarship options such as HDFC ScholarshipCanara Bank Scholarship and Inspire Scholarship amongst others. that provide funding for studies in India and abroad. These have been given a run-down below.


Can I get an education loan without collateral?

Loans up to Rs. 4 lacs don’t require any collateral.

How to pay an education loan in Canara bank?

Repayment begins after the course completion & employment begins within the period of 6 months to a year. You can pay the education loan online & avoid delay in payment otherwise you will be charged a penalty.

Which bank has the lowest interest rate on education loans?

PNB, SBI, HDFC has the lowest interest rate on education loans.

Hence, Canara Bank Education Loan is a financial assistance scheme that provides monetary backing for students aspiring to pursue higher studies in India or abroad. Before applying for education loan, it becomes important to get expert advice and for this, you can always get in touch with our counsellors at Leverage Edu who will apply you choose the right education loan that can support your dream course without the constant worries of repayment or interests.

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  1. I have taken education loan from DCC Bank Sangli in the year 2017. Can I get interest subsidy asper above circular? Please reply.

    1. Hi Vithoba!

      Please feel free to connect with our experts at 1800572000 for any queries related to education loans. Hope this helps. Best of luck.

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