Canara Bank Education Loan - Eligibility Criteria, Interest Rates, and More

Established in 1906, Canara Bank, with its headquarters in Bengaluru, became a nationalized bank in 1969. After its merger with Syndicate Bank on 1st April 2020, it is now the fourth-largest public bank by assets. Canara Bank offers 100% coverage of the total education cost. The bank's education loan schemes are popular for their flexibility, competitive interest rates, and supportive terms.

Canara Bank Education Loan Schemes 

Canara Bank offers six education loan for India and abroad. These schemes cater to students who wish to pursue degree, diploma, skill-based and vocational courses. By providing financial assistance for higher education, these schemes empower students to pursue their dreams without being limited by financial barriers. There are various loan options available for students like the Canara Bank education loan without collateral and with collateral, skill-based education loan, and many more. Moreover, to get an idea of your loan EMI, you can use the Canara Bank education loan interest rate calculator available on their website to plan your repayments.

Canara Bank: Vidya Sagar Education Loan Scheme - Scheme for Pursuing Master’s Degree

The Vidya Sagar loan scheme offers financial assistance for education loans for studies in India and abroad. This education loan is intended to assist students in obtaining Master's degrees in STEM (Science, Technology, Engineering, and Management) fields at leading international universities.

Eligibility Criteria:

To apply for the scheme for pursuing a master’s degree, students must fulfill the following eligibility criteria:

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  Students must be an Indian citizen.
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  Students must enroll in the top 50 universities in the world.
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  Students must enroll in a master’s level STEM course.

Canara Bank Education Loan - IBA Model Education Loan Scheme 

The IBA model loan scheme by Canara Bank provides education loans for studies in India and abroad. It offers flexible repayment terms, low interest rates, and minimal documentation to support students.

Eligibility Criteria:

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  This scheme is eligible for students planning studies in India or abroad
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  Students must be an Indian citizen
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  NRI students holding a valid Indian passport
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  IBA Model Education Loan eligible courses (refer to table below)

Canara Bank Education Loan - IBA Skill Loan Scheme

The Canara Bank student loan - IBA Skill Loan Scheme provides financial support for skill development courses and vocational training. It aims to enhance employability by offering easy access to loans with flexible repayment options and minimal paperwork. This encourages students to go for skill-based courses without the stress of funds.

Eligibility Criteria:

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  Indian students who apply for skill-based courses in India are eligible for this scheme.
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  Courses run by training institutes aligned to the National Skill Qualification Framework (NSQF) are eligible for this scheme. 

Canara Bank Education Loan - Vidya Turant Education Loan Scheme

The Vidya Turant Canara Bank education loan scheme provides education loans to students of premier institutions in India at a concessional rate of interest. 

Eligibility Criteria:

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  The student must be an Indian citizen
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  Students must enroll in top selected Indian institutions of IIMs/IITs/NITs/IISc /ISB (Hyderabad & Mohali) and other reputed institutes.

Canara Bank Education Loan - Vidya Shakthi Education Loan Scheme

The Vidya Shakthi Canara Bank education loan scheme caters to students with disability for studies in India and abroad. This scheme covers both studies in India and abroad, with specific guidelines for each.

Eligibility Criteria:

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  Indian students with a physical disability to the extent of 40% or more are eligible.
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  To assist the PWD category students who need education loans to pursue the special devices courses in India. 
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  Education loans for abroad studies will be as per the guidelines of the IBA Model Education loan/Skill loan scheme.

Canara Bank Education Loan - Vidya Sahay Education Loan Scheme

The Vidya Sahay Canara Bank education loan scheme offers loans for studies in India.

Vidya Sahay Education Loan - Eligible Courses:

Features of Canara Bank Education Loan for Studies in India and Abroad

Below are some of the features of abroad education loan Canara Bank.

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  Purpose - Canara Bank education loan abroad are designed to provide financial support to Indian students pursuing higher education.

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  Loan Amount - Students can secure a loan amount of up to INR 10 lakh for studies in India and up to INR 20 lakh for overseas education.

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  Margin Money - Loans below INR 4 lakh do not require borrowers to pay margin money. However, a 5% contribution is required for loans above INR 4 lakh for India and a 15% contribution is required for loans above INR 4 lakh for abroad studies.

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  Repayment Terms - Loans up to INR 7.5 lakh require you to repay the loan within 10 years after completion of the course. However, a loan amount above INR 7.5 lakhs provides a 15-year repayment period. Moreover, no repayment is required during the course plus 6 months after completion.

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  Collateral & Security - Parents/guardians are accepted as the co-applicants and no security is required for loans up to INR 4 lakh. However, loans above INR 4 lakh may require collateral.

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  Processing Fees - There are no charges for loan processing.

Documents Required for Canara Bank Education Loan

Submit the below-listed Canara Bank education loan documents required -

Applicants documents:

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  Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
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  Education loan application form.
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  Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ Driving License/ Aadhaar card.
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  Past academic record.
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  Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
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  Proof of admission: admission letter (A conditional admission letter is also applicable).
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  Statement of expenses.
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  2 passport-size photographs.
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  Loan A/C statement of one year (if applicable)
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  Bank account statement of the student (if applicable)

Co-applicants documents:

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  Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
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  Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of Driving license/ Aadhaar card.
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  2 passport-size photographs.
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  Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).
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  If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
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  Legal documents of the collateral/ property documents.

Income proof for salaried co-applicant/guarantor:

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  Salary slips for the last 3 months.
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  Copy of Form 16 of the last 2 years or copy.
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  Bank account statement for the last 6 months (Salary account).
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  Brief statement of assets & liabilities of parent/ guardian/ other co-borrower.

Income proof for self-employed co-applicant/guarantor:

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  Business address proof.
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  Last 2 years IT returns ( If IT Payee).
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  TDS certificate (Form 16A, if applicable).
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  Certificate of qualification (for C.A./ doctor and other professionals).
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  Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
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  Bank account statement for the last 6 months.
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Note: Students who choose to prepay or partially prepay their education loans are given extra interest rate breaks on top of the standard rate.

Before applying for your education loan Canara Bank, it's important to estimate your monthly repayment with the Canara Bank education loan EMI calculator.

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How to Apply for Education Loan in Canara Bank?

To apply for a Canara Bank abroad education loan, applicants must fulfill the following steps.

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  Visit the nearby Canara Bank branch in your locality and inquire about the available student loan offerings.
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  Check the available Canara Bank education loan for abroad schemes and related education loan interest in Canara Bank.
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  Determine the most suitable loan product for your overseas education requirements, considering your eligibility and the coverage provided.
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  Obtain the list of documents required to initiate the loan application process.
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  Revisit the bank to present the necessary documents and commence the processing of your study abroad loan application.

Advantages of Canara Bank Education Loan

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  You can secure a loan with competitive interest rates.
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  The documentation process is simple and will help you with quick approval.
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  You can avail of zero charges for loan processing on certain schemes.
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  Quick loan sanction and direct fee payment to your institutions.
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  You can repay the loan early without extra costs.
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  You can also close the loan anytime without penalties.

If you do not fulfill the eligibility criteria of Canara Bank, other leading public and private banks provide education loans with and without collateral. Apart from banks, there are NBFCs as well that sanction abroad education loans within 7-10 days. One platform that can help you get an education loan for your studies abroad is GyanDhan. We are a leading education financing platform that offers a range of benefits over traditional methods. We are partnered with a wide network of banks and NBFCs, giving you a broader spectrum of loan options to choose from. To start your abroad education journey with us, check your loan eligibility and our team will take it forward from there.

Frequently Asked Questions