Canara Bank Education Loan

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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. 

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
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 Course duration up to 1 year: Moratorium is 6 months from the date of completion of the course.
If 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 5years
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 subject to a ceiling.
Eligibility Indian National
NRI students holding valid Indian passport
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 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 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, 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 provide assistance to students who have obtained admission in 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 devices courses in India and abroad.

Purpose To assist the PWD category students who are in need of education loans for pursuing the special devices 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 an Indian National 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 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 counseling/selection for a wide range of programs.

Purpose To assist 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
Student eligibility Students who appeared in the common entrance tests conducted by respective state governments, CBSE, IIT, and other Indian examinations and selected for counseling. 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 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 sanction of regular education loan.

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.

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 (on the basis of 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 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
  • 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 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 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 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 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 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 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.

FAQs

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.

Can education loans be transferred from one bank to another?

It is entirely possible to transfer your existing education loan from one bank to another and profit financially as a result. Aside from lowering your interest rate, you may also be able to obtain a larger loan. However, before you rush into it, you should weigh all of the benefits and drawbacks of such a debt transfer. Before you decide to switch your education loan, consider the processing fees, education loan interest rate, and other charges to determine whether your final outflow will be less or more.

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 counselors 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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2 comments
  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.

  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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