Canara Bank is one of India’s premier nationalised banks. It has been a steadfast supporter of education, empowering students to pursue their academic dreams. With a rich history of over 117 years, Canara Bank is committed to providing comprehensive and accessible education loan schemes to help students from all walks of life to bridge the financial gap and achieve their educational aspirations.
Canara Bank – History
Renowned for its customer-centric approach, Canara Bank was established in July 1906 by the visionary and philanthropist, Shri Ammembal Subba Rao Pai, in Mangalore, a quaint port town in Karnataka. The Bank has traversed through diverse phases of growth over its century-long existence.
Its remarkable expansion, particularly after nationalisation in 1969, propelled Canara Bank to the status of a national-level player, boasting extensive geographical reach and diverse clientele segments. The 1980s marked a period of business diversification for the Bank.
In June 2006, Canara Bank celebrated a century of operations in the Indian banking industry, punctuating its journey with numerous significant milestones. Today, Canara Bank holds a prestigious position among Indian banks.
Beyond its role in commercial banking, Canara Bank has etched a unique legacy in various corporate social responsibilities.
It has actively contributed to national priorities, championed rural development, fostered rural self-employment through multiple training institutes, and taken the lead in fulfilling financial inclusion objectives.
The promotion of an inclusive growth strategy, now a fundamental tenet of the national policy agenda, is inherently embedded in the bank’s founding principles.
Canara Bank Education Loan Schemes
Canara Bank offers a diverse range of education loan schemes to cater to the varied needs of students across different academic levels and disciplines. These schemes include:
- IBA Skill Loan Scheme
- Vidya Sahay
- Vidya Turant
- IBA Model Education Loan Scheme
- Vidya Shakthi
- Education Loan Scheme for Pursuing Master’s Degree
Canara Bank Education Loan – IBA Skill Loan Scheme
Purpose: The IBA Skill Loan Scheme has been developed to support national initiatives aimed at skill development, helping individuals acquire new skills and improve their employment prospects.
Loan Amount: Students can secure need-based financing within the range of ₹5,000 to ₹1,50,000.
Eligible Courses: Courses offered by Training Institutes aligned with the National Skill Qualification Framework (NSQF) will be eligible for coverage under the scheme. There is no stipulated minimum course duration.
Security: Students are not required to provide any collateral or guarantors for the skill loan. The loan is secured through an assignment of their future income and is jointly granted with their parent or guardian. The loan is also covered by the Credit Guarantee Fund Scheme for Skill Development (CGFSSD).
Moratorium: Moratorium periods range from 6 months to 1 year, depending on the course duration:
Repayment Tenure: Repayment period ranges from 3 years to 7 years, depending upon the loan amount.
Eligibility: Student should be an Indian national.
Canara Bank Interest Rate:
- RLLR (Repo Linked Loan Rate)- 9.25%
- Credit Risk Premium Over RLLR- 1.60%
- Effective Rate of Interest under RLLR- 10.85%
Benefits:
- No requirement for collateral security
- NIL margin
- Lower rate of interest
- Reducing balance interest rate
- No prepayment penalty
- Quick processing and disbursement
Canara Bank Education Loan – Vidya Sahay
Purpose: This loan is designed to support underprivileged and deserving students facing financial constraints, specifically aiding them in covering the necessary down payment required by the Common Entrance Test (CET)/counselling authorities during the selection and counselling process.
Loan Amount: The maximum loan amount is ₹1 lakh, or the initial payment required by the CET authorities, whichever is less.
Interest: There is no interest charged on this loan.
Processing Fees: There are no processing fees associated with this loan.
Security: A parent or guardian must co-borrow the loan. No collateral is required.
Repayment: The loan must be repaid after the student has secured a regular education loan.
Benefits: The benefits include zero processing fees, absence of collateral requirements, a reduced interest rate, no prepayment penalties, expedited processing, and swift disbursement of funds.
Eligibility: To be eligible, students must have participated in the Common Entrance Test conducted by their respective state governments (CBSE, IIT, and other all-India examinations) and earned selection for counselling. Additionally, the student must be an Indian national and have successfully cleared the preceding qualifying examination.
Canara Bank Interest Rates:
- RLLR – 9.25%
- Credit Risk Premium over RLLR – 2%
- Effective Rate of Interest under RLLR – 11.25%
Canara Bank Education Loan – IBA Model Education Loan Scheme
Loan Quantum: Students can obtain finance based on their specific needs.
Application Process: Students have the flexibility to submit their loan applications either at bank branches close to their parents’ residence or those near their educational institution.
Eligible Courses:
- Study in India: Graduation, post-graduation, 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.
- Study Abroad: Courses that lead to undergraduate, post-graduate/PhD, post-graduate diploma, etc., are eligible.
Margin:
- For loans up to ₹4 lakh, there is no margin requirement.
- For loans above ₹4 lakh, the margin requirement is 5% for studies in India and 15% for studies abroad.
Repayment:
- Candidates will repay their loan in equal monthly instalments for up to 15 years, not including the moratorium period (i.e. the duration of their course plus one year). There is no penalty for early repayment of the loan.
Eligible Expenses: The loan can be used to cover the following expenses:
- Tuition fees
- Examination, library, and laboratory fees
- Travel expenses for studies abroad
- Student borrower insurance premiums (if applicable)
- Caution deposits, building funds, and refundable deposits (as documented by the institution)
- Purchase of books, equipment, instruments, and uniforms
- Purchase of a computer if required for the course (at a reasonable cost)
- Other expenses related to completing the course (subject to a limit)
Management Quota:
Security: Assignment of future income of the student. Merit quota-
Benefits:
- No Collateral Required: Individuals don’t need to provide any property or assets as collateral for loans up to ₹7.50 lakh.
- Competitive Canara Bank Interest Rates: Enjoy lower interest rates compared to other lenders.
- Reducing Balance Interest: Pay interest on the remaining loan balance, making monthly payments more manageable.
- No Early Repayment Penalty: Individuals can repay their loan early without incurring any additional charges.
- Prompt Processing and Disbursement: Get the loan approved and disbursed quickly so that the applicants can focus more on their studies.
Eligibility:
- Student should be an Indian national.
- NRI students holding valid Indian passports.
Canara Bank Education Loan – Vidya Turant
Purpose: This loan is designed to provide financial assistance to meritorious students pursuing higher education in top-tier institutions, such as select IIMs, IITs, NITs, IISc, ISB (Hyderabad and Mohali), and other highly regarded institutions.
Margin: There is no margin requirement for this loan. (Scholarships or assistantships, if any, will be included in the margin.)
Processing Fees: There are no processing fees associated with this loan.
Security:
- Assignment of the student’s future income.
- No collateral is required for loans up to specified limits based on the institution.
Maximum Loan Amount without Collateral:
- ₹50.00 lakhs for Group “A” Institutes (e.g., Indian School of Business)
- ₹40.00 lakhs for Group “B” Institutes (e.g., IIMs and other premier institutions)
- ₹30.00 lakhs for Group “C” Institutes (e.g., IIITs and other premier institutions)
Repayment: The loan will be repaid in equal monthly installments for up to 15 years, excluding the moratorium period (the length of the course plus one year). There is no penalty for prepaying the loan.
Eligible Expenses: The loan can be used to cover the following expenses:
- Tuition fee
- Hostel or Boarding fee
- Examination, library, and laboratory fee
- Travel expenses or passage money for studies abroad
- Student borrower insurance premiums (if applicable)
- Caution deposits, building funds, or refundable deposits (as documented by the institution)
- Purchase of books, equipment, instruments, uniforms, and computers needed for pursuing the course
- Reasonable lodging and boarding charges if the student chooses or is required to stay in outside accommodation
- Other expenses necessary to complete the course, such as study tours, project work, thesis, etc.
Eligibility for CSIS Scheme: All education loans under Vidya Turant can be covered under the CSIS (Central Scheme of Interest Subsidy on Education Loans), subject to eligibility based on income and other criteria.
Loan Quantum:
Eligibility: Student should be an Indian national. Students should have cleared the previous qualifying exam and selected through Entrance Test conducted by Competent Authorities.
Benefits:
- Loan to Pursue Higher Studies
- NIL Processing Charges
- High Quantum of Loan
- No Collateral Security
- Lower Rate of Interest
- Reducing Balance Interest Rate
- No Prepayment Penalty
Canara Bank Interest Rate:
With co-borrower
- Repo Linked Lending Rate (RLLR) – 9.25
- Credit Risk Premium over RLLR- 0.00
- Effective Rate of Interest under RLLR- 9.25
Without co-borrower
- RLLR- 9.25
- Credit Risk Premium over RLLR- 0.60
- Effective Rate of Interest under RLLR- 9.85
Select Top 76 Premium Institutes
- RLLR- 9.25
- Credit Risk Premium over RLLR- -0.65
- Effective Rate of Interest under RLLR- 8.60
Canara Bank Education Loan – Vidya Shakthi
Purpose: To provide financial assistance to students with disabilities who need education loans to pursue specialized courses in India. For studies abroad, the guidelines of the IBA Model Education Loan or Skill Loan Scheme will apply.
Loan Amount: The loan amount will be based on the student’s needs, subject to the following maximum limits:
- Degree Courses: ₹7.50 lakh
- Vocational/Certificate/Diploma Courses/Skill Loan: ₹1.50 lakh
- Loans exceeding these limits will be sanctioned under the IBA’s Model Education Loan scheme.
Margin: No margin is required for loans up to ₹4.00 lakh. For loans above ₹4.00 lakh, a minimum margin of 5% is required. (Scholarships or assistantships, if any, will be included in the margin.)
Processing Fees: There are no processing fees, including the Vidya Lakshmi portal referral fee.
Security:
- Assignment of the student’s future income
- A parent or guardian must join as a co-borrower
- No collateral security is required for loans up to ₹7.5 lakh
- Loans up to ₹7.50 lakh will be covered under the Credit Guarantee Fund Scheme For Education Loans (CGFSEL) guarantee scheme.
Repayment Tenure:
- The loan will be repaid in equal monthly installments for up to 15 years, excluding the moratorium period (the length of the course plus one year).
- For skill development loans, the repayment tenure is 3 to 7 years, depending on the loan amount.
Eligibility for CSIS Scheme: All education loans under Vidya Turant can be covered under the CSIS (Central Scheme of Interest Subsidy on Education Loans), subject to eligibility based on income and other criteria.
Eligibility: Students should be an Indian national with physical disability to the extent of 40% or more.
Benefits:
- Loan to assist PWD category students
- NIL Processing Charges
- High Quantum of Loan
- No Collateral Security
- Lower Rate of Interest
- Reducing Balance Interest Rate
- No Prepayment Penalty
Canara Bank Interest Rate:
- RLLR- 9.25
- Credit Risk Premium over RLLR- 0.00
- Effective Rate of Interest under RLLR- 9.25
Canara Bank Education Loan – Scheme for Pursuing Masters Degree
Purpose: This education loan is designed to help students pursue Master’s degrees in STEM (Science, Technology, Engineering, and Management) fields at top-ranked universities abroad.
Eligible Courses: Master’s degrees in STEM fields
Margin: 10% of the loan amount
Security:
- Assignment of the student’s future income
- Parent/guardian must join as a co-borrower
- Collateral security from a minimum of 50% to a maximum of 100% of the loan amount (terms and conditions apply)
Loan Quantum: Minimum loan amount is above ₹7.50 lakh. Maximum quantum depends on the collateral coverage as follows:
Repayment Tenure: The loan will be repaid in equal monthly installments for up to 15 years, excluding the moratorium period (the length of the course plus one year)
Expenses Covered:
- 100% of tuition fees
- Travel expenses for studies abroad
- Living expenses for studies abroad
- Medical insurance premiums for the student borrower (if applicable)
Processing charges:
Eligibility:
- Indian nationals holding valid passport
- Student should have secured admission in the select institution
- Student with *minimum score in SAT, ACT, GMAT & GRE.
- The minimum competitive exam scores are stipulated as below:
- SAT – 1250 & above
- ACT – 26 & above
- GRE – 300 & above
- GMAT – 650 & above
Benefits:
- Minimal Processing Fees: Apply for student loans without worrying about hefty processing charges.
- Flexible Loan Amount: Borrow up to a substantial amount to cover all education expenses.
- Competitive Interest Rates: Enjoy lower interest rates compared to other lenders.
- Reducing Balance Interest: Pay interest on the remaining loan balance, making monthly payments more manageable.
- No Early Repayment Penalty: Repay the loan early without incurring any additional charges.
- Swift Processing and Disbursement: Get the loan approved and disbursed promptly so that the students can focus more on their studies.
Canara Bank Interest Rate:
Coll. Security 100% and above
- RLLR- 9.25
- Credit Risk Premium Over RLLR- 1.60
- Effective Rate of Interest under RLLR- 10.85
Coll. Security 75% and above (less than 100%)
- RLLR- 9.25
- Credit Risk Premium Over RLLR- 1.85
- Effective Rate of Interest under RLLR- 11.10
Coll. Security 50% and above (less than 75%)
- RLLR- 9.25
- Credit Risk Premium Over RLLR- 2.10
- Effective Rate of Interest under RLLR- 11.35
Documents Required for the Canara Bank Education Loan
The documents that need to be submitted while looking to avail an education loan from Canara Bank are listed below:
- Duly completed application form
- Passport-size photograph
- Identity proof like voter ID, Aadhaar card, driving license, passport, Permanent Account Number (PAN), etc.
- Address proof like an Aadhaar card, a driving license, a voter ID, etc.
- Proof of Date of Birth
- Academic marksheets and certificates (10th, 12th, subsequent exams if applicable)
- Admission letter or call letter from the institute.
Note:- The bank may ask students for other documents as well. Please contact the bank officials.
Benefits of Canara Bank Education Loans
Canara Bank education loans stand out from the crowd due to their numerous benefits, including the following:
- Competitive Canara Bank Interest Rates: Canara Bank offers attractive interest rates compared to other banks, ensuring that students’ education expenses remain manageable.
- Flexible Repayment Options: Canara Bank provides a range of flexible repayment options, allowing individuals to tailor their loan repayment plan to suit their financial requirements.
- Concessions for Girl Students: As a commitment to gender equality, Canara Bank offers special interest rate concessions for girl students, encouraging their higher education pursuit.
- Online Application Process: Canara Bank simplifies the loan application process by providing an online platform for students to apply seamlessly from the comfort of their homes.
How to Apply for Canara Bank Education Loan?
Application for Canara Bank education loan can be done online or in person. Interested applicants can visit the bank’s official website and follow the instructions to apply for a loan. Students can also pay a visit to a bank office and apply for an education loan programme.
In conclusion, Canara Bank has proven to be an ideal support for aspiring students across India, fostering a commitment to education that spans over a century. Through its diverse range of education loan schemes, such as the IBA Skill Loan Scheme, Vidya Sahay, IBA Model Education Loan Scheme, Vidya Turant, Vidya Shakthi, and Education Loan Scheme for Pursuing Masters Degree, the bank addresses the unique financial needs of students pursuing various courses and levels of education.
Canara Bank’s education loans distinguish themselves with competitive interest rates, flexible repayment options, and special concessions for girl students, aligning with the bank’s commitment to promoting gender equality in education. The ease of the online application process exemplifies Canara Bank’s efforts to make education financing a seamless experience for students.
As Canara Bank continues to champion the cause of education, its education loan offerings remain a vital resource for students, bridging the financial gap and empowering them to realize their academic aspirations. With a legacy spanning over 117 years, Canara Bank’s commitment to education stands strong, ensuring that countless students can pursue their dreams and contribute meaningfully to society.
Contact Details
EPABX: 080- 22221581/582/0490/0491/1788/1789/1790/1984/1985/1986
Canara Bank, Head Office, Bangalore: 080- 22221581/582/0490/0491/1788/1789/1790/1984/1985/1986
Call Center: Toll-Free No. (24*7) 18001030
Non-Toll-Free Number (if calling from outside India): +91-80-22064232
Important Links
Apply Online for Canara Bank Education Loan Here
Vidya Turant Scheme: List of Approved Institutions and Designated Branches
Education Loan Scheme for Pursuing Masters Degree in Abroad from
Select Top Ranking Universities of World
Navigating Student Loans Forgiveness Programme: Strategies for Managing Education Loan
Navigating the Landscape of Education Loans in India
Education Loan EMI Calculator
Canara Bank Education Loan – Frequently Asked Questions
What is the maximum loan amount that one can avail under Canara Bank’s education loan schemes?
The maximum loan amount that one can avail under Canara Bank’s education loan schemes is ₹2 crore. This applies to both studies in India and abroad.
Can the education loan be used to cover expenses other than tuition fees, such as for accommodation and books?
Yes, Canara Bank’s education loan amount can be used to cover expenses other than tuition fees, such as accommodation and books. The bank will finance up to 100% of the total eligible expenses, which include:
- Tuition fees
- Examination fees
- Library fees
- Laboratory fees
- Hostel fees
- Travel expenses (for studies abroad)
- Living expenses (for studies abroad)
- Medical insurance premium (for studies abroad)
- Caution deposit, building fund, or refundable deposit
- Purchase of books and equipment
The specific expenses that are eligible for financing will depend on the individual course and institution. The bank will require documentation to support all eligible expenses.
Are there any special benefits or discounts for female students or economically weaker sections?
Yes, Canara Bank offers several special benefits and discounts for female students and economically weaker sections under its education loan schemes. These benefits include:
- Reduced Interest Rates: Female students are eligible for a 0.50% interest rate concession on all education loans.
- Margin Waiver: For loans up to ₹4 lakhs for studies in India, the margin requirement is waived off for female students.
- Canara Bank Interest Subsidy: Economically weaker section (EWS) students are eligible for an interest subsidy of 2% under the Pradhan Mantri Uchchatar Shiksha Protsahan Yojana (PM-USP) for studies in India.
- Scholarship Schemes: Canara Bank also partners with various organizations to offer scholarships to meritorious students from economically weaker sections.
What is the moratorium period while availing a loan under the IBA skill loan scheme?
The moratorium period for loans under the IBA Skill Loan Scheme varies depending on the duration of the courses.
- For courses that last up to one year, the moratorium period is six months.
- For courses that last longer than one year, the moratorium period is 12 months.
During the moratorium period, borrowers are not required to make any repayments on their loans. This allows them to focus on their studies and get established in their careers before they begin making loan payments.
What is the quantum of finance students can avail under the Vidya Turant scheme?
The maximum loan amount that students can avail under the Canara Bank Vidya Turant scheme varies depending on the institution they are attending.
- Students attending IIMs are eligible for a maximum loan amount of ₹40 lakh.
- Students attending ISB Hyderabad or Mohali are eligible for a maximum loan amount of ₹50 lakh.
- Students attending other institutions are eligible for a maximum loan amount of ₹30 lakh.
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