Canara Bank Education Loan – Benefits, Interest Rates and Scheme Details

Canara Bank education loan offer services to students for their every academic finance demand. In the times when Indian Education is becoming more expensive day-by-day, Canara Bank student loans cover maximum expenses for the students. Canara Bank education loan eligibility even includes Concessional Programs (diploma, ITI, etc.), Education Loan for Vocational Training, and Overseas Education Loans for Minorities. While other banks reject education loan applications for extremely low education loan amount, Canara Bank doesn’t. It also provides education loans for lesser loan amounts (as low as ₹20,000). Here we have enlisted complete details of Canara Bank Education Loan schemes from application to subsidy claim for your convenience.Colleges Admissions, Study Abroad, Login with user details, find Courses, Exams, Scholarships

Latest Update: Canara Bank Education Loan interest rates reduced by 0.50% in April 2019. Source: MCLR Press Release. Scroll down for more details.

Canara Bank Education Loan : Benefits

Premium Features of Canara Bank Education Loan

Maximum loan repayment tenure15 Years
Low loan amounts availableStarting from ₹20,000
High Loan Limits for Study AbroadLoans upto ₹3,600,000 (36 Lakhs)
Education loan subsidyPowered by 3 Government of India schemes
Special education loansHigher loan limits and lower interest rate for IIMs and IITs, etc.
Loans for CET StudentsCounselling fees and tuition fees loans


Canara Bank Education Loan Scheme Details

Education Loan TypeEducation Loan Information TypeParticulars of norms and conditions
IBA Model Education Loan scheme for pursuing higher studies in India and abroadEligible Courses
  • Graduation
  • Post-Graduation and onwards
  • Technical/Professional Courses
  • Certified by UGC/AICTE/IMC/etc.
Loan Amount
  • Studies in India: Max. ₹1,000,000 (10 Lakhs)
  • Study Abroad (outside India): ₹2,000,000 (20 Lakhs)
Margin payment
  • Upto Loan Amount ₹400,000 (4 Lakhs): NIL
  • Above Loan Amount ₹400,000 (4 Lakhs), studies in India: 5% (of loan disbursement)
  • Above Loan Amount ₹400,000 (4 Lakhs), study abroad: 15% (of loan disbursement)
  • Upto ₹400,000: NIL
  • ₹400,000 to ₹750,000: Third Party Guarantee
  • Above ₹750,000: 100% equivalent of Loan Amount or more
Loan Tenure/ Repayment duration
  • Upto ₹750,000: 10 years
  • Above ₹750,000: 15 years
Model Loan Scheme For Vocational Education And TrainingEligibility
  • Last Exam cleared (at least 10th class)
  • Secured Admission to Development courses
  • Course duration limit: 2 months to 3 years
  • Authorized and recognized institutions by AICTE/UGC/ etc.
Loan AmountLoan Tenure:

  • Up to 3 months: ₹20,000
  • 3 months to 6 months: ₹50,000
  • 6 months to 1 year: ₹75,000
  • Above 1 year to 3 years: ₹150,000
Margin PaymentNIL
  • No Collateral or Security
  • Parents necessary as Co-applicants
Repayment Duration/ Loan TenureCourse Duration: Loan tenure

  • Upto 3 months: Min. 2 years, Max 5 years
  • 3 months to 6 months: Min 2, Max 5 years
  • 6 months to 1 year: Min 2, Max 5 years
  • Above 1 year: Min 3, Max 7 years
Canara Bank Vidya TurantEligible Courses
  • Professional and technical courses at reputed institutions
  • IITs/IIMs/IIITs/ISB/IISc etc. (find list below)
Loan Amount
  • IIMs Applicants: ₹2,500,000 (25 Lakhs)
  • ISBs Applicants: ₹3,600,000 (36 Lakhs)
  • All other institutions from selected list: ₹2,000,000 (20 Lakhs)
Margin Payment
  • Upto Loan Amount ₹400,000 (4 Lakhs): NIL
  • Above ₹400,000: 5% (of loan disbursement)
  • No Security or Collateral
  • Parents should apply as co-applicant
  • Assignment of future income of applicant towards loan repayment
Repayment Duration/Loan Tenure
  • Upto 15 years
Canara Vidya Sahay Education Loan SchemeEligibility
  • CET (state or central) passed  Undergraduate/Graduate students
  • Students attending counselling for CETs
  • Must avail Education Loan for following education from Canara Bank
Loan Amount
  • ₹100,000 or Initial Institution payment (whichever is less)
  • All including fees covering first installment towards counselling-cum-admission fees
Margin Payment
  • NIL
  • NIL
Repayment Duration/Loan Tenure
  • From Education Loan Amount
  • Right after sanction of Education Loan as per above mentioned schemes

Study Abroad College Admissions LoginThe Canara Bank provides education loans on the basis of institution type and academic level of any applicant. Canara Bank Education Loans also cover various international admissions related expenses like examination fees (SAT exams, LSATS, GMAT, GRE, etc.), VISA processing fees, student insurance and more.

Canara Bank Education Loan Interest Rates

The Canara Bank Education Loan Interest rates are very convenient for both domestic and overseas education. They have separate interest rates for all their education loan schemes. This helps students (applicants) and parents (co-applicants) to choose from various loan options. Students are also able to get special rates under various circumstances like admission-by-merit, minority subsidies etc.

The Canara Bank updates its MCLR Rates (basic education loan rates) on a half-yearly basis, and education loan interest rates as well. Details of both MCLR and Canara Bank Education Loan Interest Rate are:

Canara Bank Education Loan Interest Rate chart (latest April 2019)

Education Loan typeLoan Amount LimitsInterest Rate FormulaCurrent Interest Rate
IBA Model Education Loan scheme for pursuing higher studies in India and abroadUpto ₹400,000 (4 Lakhs)MCLR (1 Year) + 2.00%10.65%
₹400,000 (4 Lakhs) to ₹750,000 (7.5 Lakhs)MCLR (1 Year) + 2.00%10.65%
Above ₹750,000 (7.5 Lakhs)MCLR (1 year) + 1.80%10.45%
Model Loan Scheme For Vocational Education And TrainingAny Loan Amount as per guidelinesMCLR (1 Year) + 1.50%10.15%
Canara Vidya Sahay Education Loan SchemeAny Loan Amount upto ₹100,000 (1 Lakh)MCLR (1 Year) + 1.50%10.15%
Canara Bank Vidya TurantAny loan amount as per guidelinesMCLR (1 Year) +0.20%8.85%


Canara Bank Education Loan MCLR Rates (latest April 2019)

Canara Bank Education Loan TenureRespective MCLR Rates
1 Month8.20%
3 Month8.40%
6 Month8.50%
1 Year and above8.65%

Source: and internal Canara Bank Communication

Canara Bank Education Loan Interest Subsidy and Tax Benefits

Canara Bank provides standard CSIS (Central Sector Interest Subsidy) Scheme as enforced by Ministry of Human Resource Department, Government of India and Indian Banking Association. It also provides three other special schemes of education loan concessions as well.

The details of these education loan subsidy schemes are:

Canara Bank Education Loan Subsidy SchemeEligibility CriteriaBenefits
Central Sector Interest Subsidy
  • Family Income: max. ₹450,000 per annum
  • Education Loan Amount: max. ₹750,000 per annum
  • Collateral free education loan upto ₹750,000
  • Interest Compensation for EMIs paid during Course Duration +1 year or 6 months from employment/placement of applicant (Moratorium Period)
Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) – ACSIS
  • (Other Backward Castes) OBC or Economically Backward Classes (EBC) candidates
  • Students enrolled for Masters, M.Phil, Ph.D. programs in institutions outside India
  • Family Income EBCs: Max. ₹250,000 per annum
  • Family Income OBCs: Max. ₹600,000 per annum
  • Interest Compensation for EMIs paid during Course Duration +1 year or 6 months from employment/placement of applicant (Moratorium Period)
Padho Pardesh – Scheme of Interest Subsidy on Educational Loans for Overseas Studies for The Students
  • Minority Candidates of India pursuing study abroad
  • Students enrolled for Masters, M.Phil, Ph.D. programs in institutions outside India
  • Family Income: Max. ₹600,000 per annum
  • Interest Compensation for EMIs paid during Course Duration +1 year or 6 months from employment/placement of applicant (Moratorium Period)
  • Extra 1% interest subsidy offered for pre-payment (if and as provided by the respective bank)
Axis Bank Girl Students Education Loan Subsidy
  • Any female applicants for all education loan schemes
  • Concession of 0.50% on applicable Interest rates


Canara Bank Education Loan Schemes

Education Loan Schemes are majorly dependent on the institution type or the academic level of applicants. These schemes are:

Canara Bank Vidya Turant Scheme

Canara Bank Vidya Turant Scheme provides the students who’ve earned their seats by academic might into the prestigious institutions of India. Students of IITs/IIMs/ISBs/IIITs/Xavier’s etc. can avail these loans at lower interest rates. Students who’ve passed the requisite entrance tests and have a meritorious academic record may even get extra loan limits.

Features of Vidya Turant Scheme:

  • High value education loans: upto ₹3,600,000 (36 Lakhs)
  • High loan tenure: Upto 15 years
  • Low interest rates: MCLR + 0.20% only
  • Loan expenses cover project fees, research expenses, even thesis writing expenses among other standard academic costs
The Canara Bank College List and Institution Chart for this Vidya Turant Scheme is below:
S. No.Name of College/University/InstitutionCanara Bank Nearest Circle Office
1Indian Institute of Management, AhmedabadAHMEDABAD
2Indian Institute of Management, BangaloreBANGALORE
3Indian Institute of Management, IndoreBHOPAL
4Indian Institute of Management, KozhikodeTRIVANDRUM
5Indian Institute of Management, KolkataKOLKATA
6Indian Institute of Management, LucknowLUCKNOW
7Indian Institute Management, RanchiRANCHI
8Indian Institute Management, TrichyMADURAI
9Indian Institute Management, RohtakKARNAL
10Indian Institute Management, UdaipurJAIPUR
11Indian Institute Management, KashipurDELHI
12Indian Institute Management, RaipurBHOPAL
13Indian Institute of Management, Mananwala, Amritsar.CHANDIGARH
14Indian School Of Business, Mohali, Sector 8A, SAS Nagar, Mohali – 140 306CHANDIGARH
15Indian School Of Business, HyderabadHYDERABAD
16Rajiv Gandhi Indian Institute of Management, ShillongGUWAHATI
18IIT, RoorkeeDELHI
21IIT, KharagpurDURGAPUR
26Indian Institute of Technology,

Bhilai, Chhattisgarh

32NIT, KurukshetraKARNAL
33NIT, DurgapurKOLKATA
35NIT,  Karnataka, SurathkalMANGALORE
38NIT, JamshedpurDELHI
39NIT, TiruchirappalliMADURAI
41Motilal Nehru National Institute of Technology, AllahabadLUCKNOW
42Visvesvaraya National Institute of Technology, NagpurPUNE
43Xavier Institute Of Management, BhubaneswarBHUBANESWAR
44Faculty Of Management Studies(FMS)DELHI
45Management Development Institute(MDI)KARNAL
46Institute Of Management Technology-IMTDELHI
47S. P.Jain Institute Of Management and Research, Mumbai – 400 058MUMBAI
48Jamnalal Bajaj Institute Of Management Studies(JBIMS), Reclaimation, MumbaiMUMBAI
49K.J.Somaiya Institute Of Management Studies And ResearchMUMBAI
50Symbiosis Institute Of Business Management(SIBM), PunePUNE
51Symbiosis Centre for Management and Human Resource Development (SCMHRD)PUNE
52Xavier Labour Relations Institute (XLRI)RANCHI
53Narsee Monjee Institute Of Management Studies (NMIMS),  Mumbai – 400 056MUMBAI
55International Management Institute (IMI), DelhiDELHI
57Indian School of Mines (ISM), DhanbadRANCHI
58Indian Institute of Foreign Trade, New Delhi  DELHI
60Shailesh J Mehta Institute of Management, MumbaiMUMBAI
61Indian Institute of Sciences  (IISc), BangaloreBANGALORE
62S.V. National Institute of Technology, SuratAHMEDABAD
63Maulana Azad National Institute of TechnologyBHOPAL
64Dr. B.R. Ambedkar National Institute of Technology, JalandharCHANDIGARH



65Malaviya National Institute of Technology, JaipurJAIPUR
66Birla institute of Technology,Mesra,RanchiRANCHI
67MICA ( Mudra Institute of Communications, Ahmedabad)AHMEDABAD
68A: NID ( National Institute of Design , Gandhinagar)AHMEDABAD
B: NID (National Institute of Design,Ahmedabad)AHMEDABAD
69Institute of Management, NIRMA University. AhmedabadAHMEDABAD
70IIT, Hyderabad, TelanganaHYDERABAD
71National Institute of Foundry and Forge Technology (NIFFT), Ranchi, JharkhandRANCHI
72IIT, Jodhpur, RajasthanJAIPUR
73LN  Mittal Institute of

Information &  Technology University, Jaipur

74International Management

Institute (IMI),Kolkata, West Bengal

75T. A. Pai Management Institute (TAPMI), Manipal , KarnatakaMANGALORE
76Indian Institute of Information Technology(IIIT), Allahabad,LUCKNOW
77Indian Institute of Technology

(IIT) Gandhinagar, Gujarat

78Bharathidasan Institute of Management, TiruchirappalliMADURAI
79Indian Institute of Technology(IIT), IndoreBHOPAL
80Indian Institute of Technology(IIT), PalakkadTRIVANDRUM

Colleges Admissions, Study Abroad, Login with user details, find Courses, Exams, ScholarshipsCanara Bank IBA Model Education Loan scheme for pursuing higher studies in India and abroad

Students who wish to pursue higher education from institutions other than listed premier institutions; can avail this Canara Bank IBA Model Loan Scheme. This scheme provides education loan to students pursuing technical and professional courses (graduation/post-graduation and above) from UGC/AICTE/IMC etc. approved institutions.

Features of Canara Bank IBA Model Education Loan scheme for pursuing higher studies in India and abroad

  • No Processing Fees
  • Low Margin payment: Nil for loans below ₹400,000
  • High Education Loan tenure: 15 years
  • Special Loan Interest Concession for Girls: 0.50%

Model Loan Scheme for Vocational Education and Training

Students pursuing non-professional, developmental courses can avail the Canara Bank education loan with this scheme. These schemes provide education loan services to students from diploma/certificate and degree courses approved by Indian Government/Regulatory bodies. The eligibility criteria for this Canara Bank Education loan is relaxed to accommodate the high entry barrier of education for these courses. Students also enjoy a relatively longer repayment period with this loan scheme.

Features of Model Loan Scheme for Vocational Education and Training

  • Low Loan Amount available: as low as ₹20,000
  • High repayment tenure: as high as 7 years for education loans of ₹150,000
  • Collateral and Guarantee free loans
  • No need for income after education assignment to cover for loan installments
  • Easy processing, low turn-around time: takes only days

Canara Bank Vidya Sahay Education Loan

Students who clear entrance examinations; generally have to deposit high counselling fees during admission process. Such students are not eligible for any education loan as they are not enrolled for any course yet. In such cases, students have to self-pay the counselling fees for blocking their seats. Canara Bank Education loan (Vidya Sahay) covers the interests of such students.

Canara Bank Vidya Sahay Education Loan helps such students with a loan sum upto ₹100,000 (1 Lakh) to attend and secure their counselling seats.

Some features of Vidya Sahay Canara Bank Education Loan

  • Easy processing: 1 to 2 days of turn-around time
  • No Margin Payment
  • Lowest Interest rates for short term loans
  • Less documentation: only ID proofs and KYC Forms required
  • No Processing Fees

Canara Bank Education Loan – How to Apply?

Students can either chose to apply for the education loan online or offline at the bank branch. Every Canara Bank Education Loan is also enlisted on Government’s Vidyalakshmi Portal for easier application. The detailed procedure for both online and offline application are:

Canara Bank Education Loan Offline Application Process

  • Visit the Canara Bank Branch Locator online
  • Search for your nearest branch by entering your current location
  • Collect the required identification documents, academic records and financial proofs (collateral/bank statements/Form 16/IT returns as applicable)
  • Visit the Branch and apply for the Canara bank Education Loan by filling up the education loan application form

Canara Bank Education Loan Online Application process

  • Visit the official website of Canara Bank for Education Loan
  • Scroll down to the section which enlists the Canara Bank ‘banking/borrow/invest/insurance’ tabs
  • Select the option ‘Educational Loan’ from ‘Borrow’ tab. It’ll lead you to ‘Vidyalakshmi Education Loan Website’
  • Register with your email address and mobile number. Confirm your signup from registration email
  • Login and fill you CELAF (Common Education Loan Application Form)
  • Search for Canara Bank Education Loan Scheme from the ‘Search Education Loan’ option
  • Apply for the requisite Canara Bank Education Loan

Canara Bank Education Loan – Other options and Scholarship Adjustments

Scholarships can also be another elegant option to fund education for students. Students remain unaware about scholarships and lose their opportunities. Scholarships for International education are also adjustable with education loans. The margin payment of education loans can be paid with scholarship sum which helps applicants reduce the education loan burden. Students can find scholarship that can adjust education loans on government websites like National Scholarship Portal which list only government schemes. They can also chose to apply for scholarships from Buddy4Study as well.

Canara Bank with its detailed and transparent procedures has come up as a well trusted education loan provider in India. Students looking for services which meet the extreme demands like low interest rates and high education loan tenure chose Canara bank as their financial partner. For more details on Canara Bank education loans and to get a study abroad loan at negotiated interest rates get in touch with education loan experts at Buddy4Study.