What is a Canara Bank Interest Certificate?

A Canara Bank interest certificate is a document that mentions the interest paid on an education loan during a financial year. This certificate helps students and their families track loan payments and provides a clear breakdown of the interest paid, separated from the principal repayment. It is also an essential document for claiming tax benefits under Section 80E of the Income Tax Act.

Let us understand the parts of the Canara Bank Interest Certificate:

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  Total interest paid during the financial year.
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  Loan account details, such as the account number.
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  In some cases, the principal repayment amount may also be mentioned.

Beyond being a record of figures, the interest certificate offers a snapshot of your loan repayment progress.

Why Do You Need a Canara Bank Interest Certificate?

The Canara Bank interest certificate is essential for several reasons, especially for students studying abroad. Here’s why:

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  Claim Tax Benefits: Under Section 80E of the Income Tax Act, you can claim a tax deduction for the interest you paid on your education loan. This is beneficial for students and their co-borrowers (usually parents or guardians) as it helps them reduce their tax burden. You need this interest certificate to submit as proof to avail of tax deduction.

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  Transparency in Loan Repayment: The certificate clearly shows how much you have paid toward interest and principal. This helps you understand your financial commitments and plan repayments better.

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  Financial Proof: If you need to apply for further financial assistance, scholarships, or even refinance your loan, the interest certificate acts as proof of your payment history. It shows your financial discipline, which can help you secure better terms when it comes to other loans.

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  Budgeting and Financial Planning: With a clear record of your payments, you can plan your future installments or even make early repayments. This is especially helpful for students managing multiple expenses.

How to Get a Canara Bank Interest Certificate?

Getting your interest certificate from Canara Bank is simple. You have three main options:

Online Banking Portal:

Many students have asked, “How can I download my Canara bank interest certificate ?” The easiest way to get your interest certificate is through Canara Bank’s online banking platform. Here’s how:

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  Log in to your Canara Bank online banking account.
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  Go to the ‘Loans’ section and select your education loan account.
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  Look for the option to download or request an interest certificate.

This method is very convenient, especially for students living abroad, as it saves you from visiting a branch.

Mobile Banking Application:

You can get your interest certificate from Canara Bank’s mobile app. Please follow these steps:

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  Open the app and log in.
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  Navigate to the ‘Loans’ or ‘Statements’ section.
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  Find the option to generate and download your interest certificate.

Save the certificate in PDF format for future use.

Visit a Branch:

You can also get your interest certificate from the Canara Bank branch. Here are the steps you need to follow:

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  Visit the nearest Canara bank branch.
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  Fill out a request form for the interest certificate.
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  Specify the period for which you need the certificate.

Keep in mind that processing may take a few days, so plan accordingly if you need the certificate urgently.

Importance of Interest Certificate for Students Studying Abroad

If you are a student studying abroad, the Canara Bank interest certificate is an important document. Here is why:

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  Tax Deductions: As mentioned earlier, you or your co-borrower can claim deductions under Section 80E which will reduce your or your co-borrower’s financial burden by saving tax money.

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  Financial Tracking: It helps you and your family track loan repayments accurately, ensuring there are no missed payments or discrepancies.

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  Proof of Payment: For students applying for scholarships or further financial aid, this document is the required proof.

How GyanDhan Can Assist You 

When it comes to education loans, the entire process is complicated and time-consuming. Managing education loans can be very challenging, especially when you are studying abroad. GyanDhan is here to make things easier. We help students like you with the entire process from application to approval, and the best part is that the entire service is free of cost. All you need to do is check your loan eligibility here and one of our education loan counsellors will assist you with your education loan queries.

Frequently Asked Questions