One app for all your study abroad needs
Opting for education abroad is a significant step toward achieving your successful career. However, the tuition fees, accommodation costs, and travel can be substantial. Canara Bank offers education loans to help cover these expenses, with a competitive interest rate to make global education accessible.
This blog guide covers the Canara Bank personal loan interest rate for studying abroad, eligibility criteria, loan features, and the application process to help you make the best financial decisions.
This Blog Includes:
What is the Canara Bank Personal Loan Interest Rate for Studying Abroad?
The Canara Bank personal loan interest rate for studying abroad is a critical factor in determining the affordability of an education loan. These education loan interest rates are linked to the bank’s Repo-Linked Lending Rate (RLLR), ensuring transparency and alignment with market trends.
The Canara Bank personal loan interest rates are competitive, starting at 8.55% for secured loans, depending on the loan scheme and collateral provided. Here is an overview:
| Loan Scheme | Interest Rate (p.a.) | Collateral Requirement |
| IBA Model Education Loan Scheme | 8.55%–12.5% | No collateral for personal or education loans up to INR 7.5 lakhs; above INR 7.5 lakhs requires collateral. |
| Education Loan for Postgraduate Programs Abroad | 8.55%–10.85% | Minimum 50% collateral; 100% for loans above INR 100 lakhs |
| Vidya Turant Scheme (Premier Institutes) | 8.60%–9.35% | No collateral for loans up to INR 40–50 lakhs, depending on the institute |
- Rate Factors: Interest rates on Canra bank personal loans for education vary based on loan amount, collateral coverage, and the applicant’s credit profile.
- Concessions: Female applicants receive a 0.50% interest rate concession, reducing the overall cost.
- Moratorium Period: Simple interest is charged during the moratorium period (course duration plus up to one year), with regular interest applied thereafter.
- Rate Updates: Verify the latest Canara Bank personal loan interest rate for studying abroad on the official Canara Bank website, as rates are subject to change.
Also Read:
- Bank of Baroda Personal Loan Interest Rate
- Education Loan Interest Rate Trends 2025: Will Studying Abroad Get Cheaper or Costlier?
Eligibility Criteria for Canara Bank Personal Loan
Qualifying for the eligibility requirements is essential for securing a Canara Bank personal loan for studying overseas. The bank ensures that applicants have the academic merit and financial backing to pursue international education successfully.
- Nationality: Applicant must be a citizen of India or hold an Indian passport that is currently valid
- Admission: Applicant must secure admission in a recognized institution abroad through an entrance test or with merit. For non-entrance-based admissions, a minimum of 60% marks in the last qualifying exam is required.
- Course Type: Courses available for eligibility include bachelor’s, master’s, doctoral programs, and diploma programs, preferably in technical or professional fields.
- Co-Applicant: A co-applicant may be a guardian or spouse with a minimum CIBIL score of 600, and stable income is typically required. Please note that Canara Bank interest rates may increase if a candidate goes for a personal loan with a low CIBIL score.
- Competitive Exams: For certain schemes, qualifying scores in exams like SAT (>1250), ACT (>26), GRE (>300), or GMAT (>650) are necessary.
How to Apply for a Canara Bank Personal Loan
Applying for a Canara Bank personal loan is a straightforward process, designed to minimize delays and ensure quick access to funds. Follow these steps to secure a loan with the Canara Bank personal loan interest rate for studying abroad.
- Visit a Branch or Apply Online: Start by visiting a Canara Bank branch or accessing the Vidyalakshmi Portal or Canara Bank’s e-Beckon portal.
- Choose the Loan Scheme: Select the appropriate scheme (e.g., IBA Model or Master’s Degree Abroad) based on your course and institution.
- Gather Documents: Prepare the following:
- A loan application form with two passport-size photographs.
- KYC documents (i.e., PAN Card, Aadhar Card, Passport, etc.) for the candidate and the candidate’s co-applicant.
- Proof of admission (institution’s offer letter).
- Academic records (mark sheets of last qualifying exams).
- Income proof of co-applicant (salary slips, ITR, or business statements).
- Collateral documents (if applicable, e.g., property papers).
- Submit Application: Submit the application and documents online or at a branch.
- Loan Sanction and Disbursement: Upon verification, the bank issues a sanction letter, and funds are disbursed directly to the institution or the student’s account.
Tips to Maximize Your Education Loan Benefits
To make the most of a Canara Bank Education Loan, consider these practical tips to optimize costs and streamline the process.
- Compare Loan Schemes: Evaluate the IBA Model and Master’s Degree schemes to choose the one with the lowest Canara Bank personal loan interest rate for studying abroad.
- Apply Early: Submit your application well in advance to avoid delays in fund disbursement.
- Leverage Subsidies: Check eligibility for schemes like CSIS or Vidya Sagar to reduce interest costs.
- Provide Accurate Documents: Ensure all documents are clear and authentic to expedite processing.
- Plan Repayments: Opt for early repayments if possible to reduce interest costs, as there are no prepayment penalties.
Also Read:
Funding education abroad is a significant investment, and Canara Bank’s education loans provide a reliable solution with competitive interest rates & flexible terms. The Canara Bank personal loan interest rate for studying abroad, starting at 8.55%, ensures affordability, while comprehensive coverage and government subsidies make it accessible to a wide range of applicants.
FAQ
The interest rate for Canara Bank education loans for studying abroad starts at 8.55% p.a. and varies based on the loan scheme, collateral, and credit profile.
Canara Bank’s personal loan interest rates for an INR 10 lakh loan range from 9.95% to 16.15% p.a., depending on the scheme, credit score, and repayment capacity. For education loans, rates start at 8.55% p.a. with collateral.
The best bank for a personal loan depends on your needs. Canara Bank offers competitive rates (9.95%–16.15% p.a.) and flexible tenures up to 7 years. HDFC, Axis, and ICICI provide instant loans with similar rates but faster disbursal for pre-approved customers. Compare rates, fees, and eligibility for the best fit.
Canara Bank offers personal loans up to a limit of INR 10 lakh for general schemes like Canara Budget and up to a limit of INR 30 lakh for select salaried individuals under the Canara Budget Prime scheme. Education loans for studying abroad can exceed INR 100 lakh with 100% collateral. Limits depend on income and repayment capacity.
Eligible applicants for the Canara Bank education loan for international studies must be Indian citizens with confirmed admission to a recognized institution abroad through entrance or merit tests. A minimum of 60% marks in the last qualifying exam is required for non-entrance-based admissions, and a co-applicant with a CIBIL score of 600 or higher is typically needed.
Candidates can apply by visiting a Canara Bank branch, using the Vidya Lakshmi Portal, or the Canara Bank e-Beckon portal. Submit the loan application form, KYC documents, proof of admission, academic records, co-applicant income proof, and collateral documents (if applicable).
The moratorium period includes the course duration plus up to one year. During this period, simple interest is charged, and regular interest applies once repayment begins.
Yes, female applicants receive a 0.50% interest rate concession on the Canara Bank education loan, which lowers the overall loan cost.
Evaluate all study abroad options with Leverage Edu. Stay tuned with Leverage Live classes and realise your dream of studying in your dream country.
60,000+ students trusted us with their dreams. Take the first step today!