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 – Nil Above 4 lacs 5%
Security	Up to Rs. 4 lacs no collateral Rs. 4 Lacs to 7.5 Lacs – Third-party guarantee Above 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. 

Features of the Loan

The demand for higher education from a reputable college is increasing, which raises the likelihood of landing a well-paying job. An institution with a high ranking, on the other hand, is pricey due to its superior faculty and facilities. To overcome this, an Education Loan is essential in a student’s life!

Education loans assist students who have the ability and opportunity to succeed. The loan pays for their educational expenditures, such as tuition. The loan may be used to study in India or overseas. Canara Bank is always willing to assist students. Every student can apply for a Canara Bank education loan by meeting the eligibility requirements and providing the necessary documentation.

Offered Sub-Schemes

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

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

IBA Skill Loan Scheme-Education Loans

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

Purpose	Skill Loan Scheme has been developed to support the national initiatives for skill development.
Student Eligibility	Indian National
Eligible Courses	Courses run by Training Institutes aligned to National Skill Qualification Framework (NSQF) shall be covered by the Skill Loan. There is no minimum course duration.
Quantum of Finance	Need-based Finance in the range of Rs.5000 to Rs.1,50,000/-
Rate of Interest	Click Here for the latest ROI
Margin	Nil
Security	Assignment of future income of the student The loan is granted jointly with the parent/guardian of the student. The loan will be covered under the Credit Guarantee Fund Scheme for Skill Development (CGFSSD) No collateral or third-party guarantee is required
Moratorium	If the Course duration is up to 1 year: Moratorium is 6 months from the date of completion of the course. If the course duration is above 1 year: Moratorium is 12 months from the date of completion of the course.
Repayment	Loan amount up to Rs 50000: up to 3 years Loan amount above Rs 50000 and up to Rs 100000: up to 5 years Loan amount above Rs 100000: up to 7 years

Also Read: Loans to Study Abroad

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

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

Purpose	Payment of Course fee, Hostel/Boarding/Examination/Library& Laboratory fee and for Purchase of books, equipment, instruments, uniforms, computers if it is essential for completion of the course, Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts. Travel expenses/passage money for studies abroad. Any other expenses required to complete the course are subject to a ceiling.
Eligibility	Indian National NRI students holding valid Indian passports
Eligible courses	INLAND STUDIES: 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. Any courses leading to a degree/diploma from reputed Institutes/Colleges/Universities for studies in India. ABROAD STUDIES: Courses that lead to undergraduate, Post Graduation/Ph.D., Post Graduate  Diploma, etc are eligible.
Quantum of finance	Need-based finance Students may submit their loan applications either at the bank branches near the residence of their parents or bank branches near the educational institution where they are studying.
Margin	Up to Rs.4.00 Lakhs – Nil Above Rs.4.00 Lakhs –  Studies in India –  5%                                             Studies abroad   – 15%
Security	Assignment of future income of the student Merit Quota: Loan amount up to Rs.7.50 Lakhs:  No collateral Security, the loan will be covered under Credit Guarantee Fund Scheme for Education loans(CGFSEL) scheme subject to the conditions The loan is granted jointly with the parent/guardians of the student. Loan amount above Rs.7.50 Lakhs: Tangible Collateral security to cover at least 100% of the loan amount. The loan is granted jointly with the parent/guardians of the student. Management Quota: Loan amount up to Rs.4.00 Lakhs:  No collateral Security The loan is granted jointly with the parent/guardians of the student. Loan amount above Rs. 4.00 Lakhs: Tangible Collateral security to cover at least 100% of the loan amount The loan is granted jointly with the parent/guardians of the student.
Repayment	Repayment of the loan will be in equated monthly Installments up to a maximum of 15 years excluding the moratorium period ( i.e., course period plus one year).

Also Read: Education Loan without Collateral

Vidya Turant: Education Loan Scheme

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

Purpose	To provide hassle-free education loans to meritorious  students who are pursuing their higher studies in select institutions viz., Selected IIMs/IITs/NITs/IISc /ISB (Hyderabad & Mohali) and other reputed institutes
Student Eligibility	Indian National
Quantum of Finance	Category A Institute: Students of ISB, Hyderabad & Mohali Limit up to Rs50.00 lacs.Category B institute Students of IIMs. Limit up to Rs40.00 lacs. Category C institute: All other institutions other than A and B Limit up to Rs30.00 lacs.
Rate of interest	Click Here for the latest ROI
Margin	Up to Rs. 4.00 lakhs – Nil Loan above Rs. 4.00 lakhs –  5%.Scholarship/assistantship will be included in the margin
Security	No collateral Security up to limits for institutions designated category-wise ( i.e. For students of IIMs Limits  up to Rs 25.00 lacs,  For students of ISBs,  Limits up to Rs 40.00 lakhs, and for students of all other institutions Limits up to Rs 20.00 lakhs) Assignment of future income of the student Loan granted jointly with parent/guardian and student.
Upfront / Processing Fee	Nil
Repayment	Repayment of the loan will be in equated monthly Installments up to a maximum of 15 years excluding the moratorium period  ( i.e., course period plus one year).

Vidya Shakti: Education Loan

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

Purpose	To assist the PWD category students who need education loans for pursuing special device courses in India. Education loans for abroad studies will be as per the guidelines of the IBA Model Education loan/Skill loan scheme.
Student Eligibility	Students should be Indian Nationals with a physical disability to the extent of 40% or more.
Quantum of Finance	Need-based finance shall be considered subject to the following conditions. For degree Courses  : Max: Rs 7.5 lakhs Vocational/Certificate/Diploma courses/Skill loan: Max Rs 1.50 lakhs. Note: Loans beyond the limits mentioned above are to be sanctioned under IBA’s Model Education Loan scheme.
Rate of interest	Click Here for the latest ROI
Margin	Up to 4 lakhs: nil Above 4.00 lakhs: 5%. However, Scholarship/ assistantship if any, will be considered as margin.
Security	Assignment of future income of the student.No collateral Security up to a limit of Rs 7.5 lakhs. Loan granted jointly with parent/guardian and student. Loans up to a limit of Rs 7.50 lakhs sanctioned are to be invariably covered under the Credit Guarantee Fund Scheme For Education Loans (CGFSEL) guarantee scheme.
Upfront / Processing Fee	NIL Including the Vidya Lakshmi portal referral fee.
Repayment	Repayment of the loan will be in equated monthly Installments up to a maximum of 15 years excluding the moratorium period ( i.e., course period plus one year). For a skill development loan, 3 to 7 years depending upon the loan quantum.

Vidya Sahay: Education Loan Scheme

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

Purpose	To assist the needy and meritorious students who need the down payment to be made to the CET/counselling Authorities at the time of selection/counselling
Student Eligibility	Students who appeared in the common entrance tests conducted by respective state governments, CBSE, IIT, and other Indian examinations and selected for counselling. Indian National Students should have cleared the previous qualifying exam. Address and ID Proof to be provided at the time of sanction of Bridge Loans for complying with KYC norms
Quantum of Finance	The maximum eligible amount would be Rs.1 Lakh or the initial payment as proposed by the CET Authorities whichever is less.
Rate of interest	Click Here for the latest ROI
Margin	Nil
Security	Loan granted jointly with parent/guardian and student
Upfront / Processing Fee	Nil
Repayment	The loan is to be cleared after the sanction of a regular education loan.

Interest Rate

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

Scheme Name	Maximum Loan Amount	Interest rate (p.a.)
IBA Model Education Loan Scheme	Need-based finance	Contact the bank
IBA Skill Loan Scheme	Rs. 5000 to Rs.1.5 lakh	8.40%
Vidya Turant	Up to Rs.40 lakh (based on the category of institutions)	6.90% – 7.50%
Vidya Shakti	Degree courses – Up to Rs.7.5 lakh Vocational, certificate, diploma, and skill loan – Up to Rs.1.5 lakh	6.90%
Vidya Sahay	Up to Rs.1 lakh	8.90%

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

Loan Processing Fee

Canara Bank charges processing fees on school loans that range between 1-2% of the loan amount approved. However, for some of its education loan plans, like the Vidya Turant scheme, the bank does not impose a processing fee. But, if you are taking out an education loan with collateral, you will be required to pay an additional cost ranging from Rs 7500 to Rs 10,000 for legal and valuation studies.

However, we offer our premium services relating to school loan sanctioning completely free of charge. To begin the process of obtaining an education loan, contact your financial officer at Leverage Edu.

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
• Offer Letter
• Income proof of the guarantor
• Collateral Security documents
• GRE/IELTS/TOEFL/GMAT Score
• 10th and 12th exam mark sheets

Canara Bank Education Loan – Apply Online

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 out 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 the Offline Bank of Baroda Education Loan Form

Canara Bank Education Loan EMI 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/-, the Rate of interest is 8 & loan terms are 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 the Complete List

Canara Bank Education Loan Moratorium

To take the edge off people from Covid -19 crisis, the RBI announced a Moratorium period that helps reduce the burden of debt services. During the period of the Moratorium, no one has to pay all instalments/ EMIs. The repayment will start on its own after the period of the 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 of this feature in Canara bank education loans at any time. 

Subsidy

Every individual no matter what section of society they belong to has a right to education & avail of all available financial assistance. To support the Economically Weaker Sections of Society, the Government of India launched an interest subsidy scheme. Under this students after class 12 can pursue any technical courses and professional courses from recognized institutes in India.  Under the period of the 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 incomes. 6 Lacs (OBC) Rs. 2 Lacs ( EBC)  Higher education from abroad
Padho Pardesh – Scheme of Interest Subsidy on Educational Loans	For minority Communities Higher education from abroad Maximum family income Rs. 6 Lacs

Loan Repayment Process

Canara Bank’s education loan payback process can run up to 15 years, as that is the maximum repayment length for a Canara Bank educational loan.

If a student applies for an education loan of Rs 30 lacs without collateral at 12% interest and agrees to repay the loan in 10 years, their amortisation plan will look like this:

Repayment cycle	EMI	Interest portion	Principal portion	Loan Outstanding
Start of loan EMI	42897	24507	18390	3441407
End of year 1	42897	23022	19874	3230318
End of Year 2	42897	21265	21631	2980555
End of Year 3	42897	19353	23543	2708715
End of Year 4	42897	17273	25624	2412847
End of Year 5	42897	15008	27889	2090828
End of Year 6	42897	12542	30354	1740344
End of Year 7	42897	9859	33037	1358881
End of Year 8	42897	6939	35957	943700
End of Year 9	42897	3761	39136	491821
End of Year 10	42897	302	42595	0

Students can, however, choose to repay their college loans sooner by using the following methods:

• Choosing shorter repayment terms (as done in the above example)
• Transfer your education loan
• Part repayment or prepayment

Pro Tip: When repaying your outstanding loan amount, keep a little more money with the last EMI payment, so that if the branch manager ends your loan the next day, there will be no extra money owed.

Other Funding Options

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

• Inspire Scholarship
• DCE Scholarship
• Canara Bank Scholarship
• Moma Scholarship
• MHRD Scholarship
• JK Scholarship
• Santoor Scholarship
• Punjab Scholarship
• Indira Gandhi Single Girl Child Scholarship
• Ishan Uday Scholarship
• Oasis Scholarship
• Dr Ambedkar Scholarship
• NEC Scholarship
• Aditya Birla Scholarship
• Vidyasiri Scholarship
• GP Birla Scholarship
• Abdul Kalam Scholarship
• Siksha Abhiyan Scholarship
• HDFC Scholarship

FAQs

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 an 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.