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Canara Bank Education Loan
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Table of content
- Canara Bank Education Loan products for Abroad Studies
- Canara Bank Education Loan Product To Study In India
- Canara Bank Education Loan Eligibility Criteria
- Canara Bank Education loan Processing fee
- Documents Required for Canara Bank Education loan
- Canara Bank Education loan insurance
- Canara Bank Education Loan Margin Calculation
- How to apply for an education loan from Canara Bank?
- Why and How to transfer your education loan to Canara Bank?
- Canara Bank Education loan EMI calculation as per interest rate
- Canara Bank Education loan Repayment process
- Education loan interest subsidy schemes
- FAQ's
- Need Help? Ask Here!
Canara Bank education loan products offer financial assistance to students admitted to premier institutions in India and abroad for their higher studies. The education loan by Canara Bank is offered under the following products:
For abroad studies
- Scheme for pursuing a Master’s Degree
- Vidya Sagar Scheme
- Vidya Shakthi Scheme (Conditions Will Be Same As Vidya Sagar Scheme)
To study in India
- Vidya Sagar Scheme for India
- Vidya Turant
- Vidya Shakthi
- Vidya Sahay
- IBA Skill Loan Scheme
NOTE - Vidya Shakti for abroad is the same as the Vidya Sagar Scheme
Canara Bank Education Loan products for Abroad Studies
Canara Bank has three schemes for education in foreign countries. Loans for a Master’s Degree start from Rs 7. It ranges from 5 lakhs to 100 percent of the collateral value with the interest rates starting from 10 percent. 85% to 11. 35%, for tuition fees, living expenses, traveling, and medical bills. The Vidya Sagar Scheme provides loans of up to Rs. 7. 5 lakh without any guarantor and up to 100% of the pledged asset’s value with interest rates as low as 9%. 25%. The Vidya Shakti Scheme for disabled students offers up to Rs 7 lac for the student’s extra expenses. 5 lakhs without any guarantee, and the interest rates begin from 8%. 80%. All schemes are protected with a moratorium period of course duration plus one year and the repayment period for the loan is up to 15 years.
Scheme For Pursuing Master’s Degree
In the below table are the features offered by this scheme to pursue a master's degree abroad:
Loan Parameters |
Details |
Loan Limit |
|
Accepted co-applicant |
Parents or guardians |
|
|
Expenses Covered |
|
Loan Margin |
10% of the loan amount |
Moratorium Period |
Course duration + 1 year |
Repayment Duration |
Upto 15 years exculding moratorium period |
Eligible Courses |
Master's degree programs in the fields of Science, Technology, Engineering, and Management (STEM) from the top university |
Processing fee for scheme for pursuing Master’s degree
Value of Collateral |
Processing fee |
Less than 100% |
0.50% of sanctioned limit Max-Rs.20,000. |
100% & above |
0.50% of sanctioned limit Max-Rs.10,000. |
Vidya Sagar Scheme
In the below table are the details of the Vidya Sagar scheme offered by Canara Bank:
Loan Parameters |
Details |
Loan Limit |
|
Accepted co-applicant |
Parents, Parents in law, Siblings, Spouse |
Starts from 9.25% |
|
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
Up to 15 years after the moratorium period |
Vidya Shakti Scheme
This scheme is to provide financial assistance to persons with disabilities (PwD) so that they can fly abroad to pursue higher education.
Loan Parameters |
Details |
Loan Limit |
|
Accepted co-applicant |
Parents, Parents in law, Siblings, Spouse |
Starts from 8.80% |
|
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
Up to 15 years after the moratorium period |
Canara Bank Education Loan Product To Study In India
Some of the schemes for education loans by Canara Bank are available for students seeking education in India only. The Vidya Sagar Scheme offers credit facilities of up to Rs 7. 5 lakhs to even 100% of the value of the security thrown in by the borrower at an interest rate of 9.25 % for graduate and professional courses. The Vidya Turant Scheme provides a cash credit limit of up to Rs 40 lakhs without security, at an interest rate of 7.75%. The Vidya Shakthi Scheme helps students with disabilities, with a limit of Rs 7.5 lakhs without collateral. Under the Vidya Sahay Scheme, they get up to Rs 1 lakh for their seat selection. The IBA Skill Loan Scheme provides loans for skill courses up to Rupees one lakh 5 Lakhs without any loan margin and the tenure of the loan repayments can be from 1 to 7 years.
Vidya Sagar Scheme
Check out all the features offered by the Vidya Sagar scheme for pursuing your higher studies abroad in the table below:
Loan Parameters |
Details |
Loan Limit |
|
Accepted co-applicant |
Parents, Parents in law, Siblings, Spouse |
Starts from 9.25% |
|
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
Up to 15 years after the moratorium period |
Eligible courses to study in India
- Graduate courses from prestigious educational institutions including professional and technical courses run by the Government, UGC, and approved institutions
- Course leading to diploma or degree from prestigious colleges, or universities in India
Vidya Turant Scheme
The information regarding the Vidya Turant Scheme is mentioned in the table provided below:
Loan Parameters |
Details |
Loan Limit |
|
Accepted co-applicant |
Parents, Parents-in-law, siblings, spouse |
One year MCLR of the bank, currently 7.75% |
|
Moratorium Period |
Course duration + one year |
Repayment Duration |
Up to 15 years after the moratorium period |
Processing fee under the Vidya Turant scheme
Processing on education loans by Canara Bank, under the Vidya Turant education loan scheme, is 0%, the bank does not charge any amount from students to process their education loan. However, if students take an education loan with collateral, then students might have to pay Rs 7,500 - Rs 10,000 as legal and valuation charges.
NOTE: The amount offered as an education loan is dependent on the college or university in which you are taking admission, top institutes are categorized into Category A, Category B, and Category C institutes.
Vidya Shakthi Scheme
This scheme is to provide financial assistance to persons with disabilities (PwD) so that they can fly abroad to pursue higher education.
Loan Parameters |
Details |
Loan Limit |
|
Accepted co-applicant |
Parents, Parents in law, Siblings, Spouse |
Interest rate |
One year MCLR of the bank, currently 7.75% |
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
Up to 15 years after the moratorium period |
Vidya Sahay Scheme
An overview of the features and information about the Vidya Turant Scheme are given below.
Loan Parameters |
Details |
Loan Limit |
Up to 1 lacs or as proposed under bank policy |
Expenses covered |
Downpayment for seat selection to take admission |
Accepted co-applicant |
Parents, Parents-in-law, Siblings, Spouse |
Interest rate |
One year MCLR + 2%, currently 9.75% |
Processing fees |
NIL |
IBA Skill Loan Scheme
The table below provides details about Canara Bank's IBA Skill Loan Scheme:
Loan Parameters |
Details |
Loan Limit |
Up to Rs 1.5 lacs |
Accepted co-applicant |
Parents/ Guardians |
Interest rate |
One year MCLR + 1.5%, currently 9.25% |
Loan Margin |
0 % |
Moratorium Period |
|
Repayment Duration |
|
Eligible courses under the IBA Skill Loan Scheme
Courses offered by Training Institutes, affiliated with the National Skill Qualification Framework (NSQF) are considered eligible. Also, there is no minimum course duration, declared.
Canara Bank Education Loan Eligibility Criteria
According to Canara Bank Education Loan Requirements:
- Applicant should be an Indian National
- Applicant should have received admission to a recognized university abroad, preferably to a professional or technical course
- For abroad studies applicant should have qualified any of the compititive exam like - SAT (score more than 1250), ACT (score more than 26), GRE (score more than 300), GMAT (score more than 650)
- Applicant should be ready to submit acceptable collateral
Canara Bank Education loan Processing fee
The processing fees charged on student loan in Canara Bank is around 1-2% of the sanctioned loan amount. However, the bank does not charge any processing fee for some of its student loan schemes like Vidya Turant scheme. But, if you are taking study loan with collateral then you will have to pay an additional amount of Rs 7500 - Rs 10,000 for legal and valuation reports.
But WeMakeScholars does not charge anything from students, being a government-funded initiative, all our premium services related to loan sanctioning are totally free of cost. Reach out to your financial officer at WeMakeScholars, to start your loan process
Documents Required for Canara Bank Education loan
There is a long list of documents required for a study loan in Canara Bank, to process the loan, check out the list of mandatory documents here:
Section 1: Canara Bank education loan application form
-Application for student loan along with two passport-size photos (online copy generated by WeMakeScholars is acceptable)
Section 2: Basic documents for Applicant (student) and co-applicant and/or Guarantor
- Identification proof –PAN Card and passport in case the student is going abroad
- Residence proof - Passport/ Ration card/ Voter ID Card/ Bank account statement/ Telephone bill/ Aadhar card (two proofs if the present and current addresses are different).
- Current six-month bank statement (Salary or personal account). In case the co-signer is self-employed, the statement should show one year's worth of transactions.
- Statement of Personal Assets and Liabilities.
Each document must be self-attested.
Section 3: Applicant's academic documents
- Academic certificates and credentials (10th, 12th, and degree)
- Entrance exam scorecard
- Admission proof for the course (mentioning the total duration of the course)
- Fee structure as given by the college or university
Section 4: Income documents of the Co-Borrower If the co-borrower is Salaried
- Employers ID card
- Recent salary slips (for the last 3 months)
- Form 16 of the last 2 years.
- ITR of last 2 yrs
If the co-borrower is Self-employed
- Last 3 yrs balance sheet and Profit & Loss account (only if self-employed)
- ITR of last 3 yrs
- Address proof of business
The list of documents is different for each state. The complete document checklist will provide you with a state-specific collateral documents list.
Canara Bank Education loan insurance
The study loan insurance charges for Canara bank are around 1-2% of the loan. We recommend students take the loan insurance because then, in case of any unprecedented situation, resulting even in the death of the applicant, the responsibility to repay the outstanding loan will be of the insurance company, not the parents or co-borrower of the loan.
Canara Bank Education Loan Margin Calculation
To Study in India
Loan Amount |
Loan Margin |
Loan amount below 4 lacs |
0% |
Loan amount above 4 lacs |
5% |
To Study Abroad
Loan Parameters |
Details |
Loan amount below 4 lacs |
0% |
Loan amount above 4 lacs |
15% |
How to apply for an education loan from Canara Bank?
Offline application process
- Go to the Canara bank branch and enquire about the loan products
- Decide and select the best student loan product according to your eligibility and fill out the loan form
- Ask for the list of required documents to start your loan process
- Visit the bank again just to submit your documents and finally start your loan process
Online Application process via WeMakeScholars
Step 1: Fill out the online education loan form for Canara Bank
Step 2: Upon receiving a callback from your financial officer, provide all the required information, to get your loan profile analyzed
Step 3: Compare and choose your lender from all the lender options as per your eligibility and loan policies
Step 4: Upload your documents on the WeMakeScholars secure document portal, as per the documents checklist shared by your financial officer
Step 5: Your file will be logged in, after document submission. You will receive a confirmation of loan sanctioning within 2-6 days from private banks and within 15-20 days from Govt. banks.
Step 6: You can sign the loan agreement, after the sanction, and collect your sanction letter.
Why and How to transfer your education loan to Canara Bank?
Transferring your education loan to Canara Bank has benefits like lower interest rates, better repayment plans, and student-friendly terms. Here's how to do it:
- Get proof of your outstanding loan from your current lender.
- Talk to your WeMakeScholars financial officer about transferring your loan.
- Submit the necessary documents to Canara Bank as per your financial officer's checklist.
- Once approved, your existing loan shifts to Canara Bank, and you follow their repayment conditions.
Canara Bank Education loan EMI calculation as per interest rate
Canara Bank does have its own loan EMI calculator which is available on its website. But we suggest you use the WeMakeScholars loan EMI calculator because it offers the following advantages:
- Strategic advantage - After getting an idea from the repayment statistics, you can plan and organize your EMI repayment strategy accordingly.
- 100% accuracy - The calculator is specially designed to consider every factor while calculating. Therefore it gives 100% accurate results
- Detailed Explanation - You get a separate division of interest amount and the principal amount deducted from your EMI, along with the semester-wise division of disbursement.
- No cost - The education loan EMI calculator is free of cost, just like all other services of WeMakeScholars.
Canara Bank Education loan Repayment process
The loan repayment process in Canara Bank can last up to 15 years, as that is the maximum repayment period for an educational loan taken from Canara Bank.
Suppose a student has applied to take a loan of Rs 30 lacs without collateral at a 12% interest rate and decides to pay back the loan in 10 years, then their amortization schedule will look like the following table:
Repayment cycle |
EMI |
Interest portion |
Principal portion |
Loan Outstanding |
Start of loan EMI |
42897 |
24507 |
18390 |
3441407 |
End of year 1 |
42897 |
23022 |
19874 |
3230318 |
End of Year 2 |
42897 |
21265 |
21631 |
2980555 |
End of Year 3 |
42897 |
19353 |
23543 |
2708715 |
End of Year 4 |
42897 |
17273 |
25624 |
2412847 |
End of Year 5 |
42897 |
15008 |
27889 |
2090828 |
End of Year 6 |
42897 |
12542 |
30354 |
1740344 |
End of Year 7 |
42897 |
9859 |
33037 |
1358881 |
End of Year 8 |
42897 |
6939 |
35957 |
943700 |
End of Year 9 |
42897 |
3761 |
39136 |
491821 |
End of Year 10 |
42897 |
302 |
42595 |
0 |
However, students can opt to repay their loan earlier, by applying the following methods:
- Opting for shorter repayment periods (as done in the above example)
- Considering transferring your study loan
- Part repayment or Prepayment
Tip: While repaying your outstanding loan amount, keep a little extra amount with the last EMI cheque, because if in case the branch manager closes your loan the next day, there shouldn’t be any additional outstanding amount.
Education loan interest subsidy schemes
Dr. Ambedkar Interest subsidy scheme for OBC and EBC students
The Ministry of Social Justice and Empowerment launched the scheme for students belonging to EBC and OBC sections of the society, to give rebates on their interest payable within the moratorium period.
Eligibility criteria for Dr. Ambedkar Interest subsidy scheme for OBC and EBC students
- Admission must be secured by the student in masters. M.Phil, or PhD courses abroad
- Family income of the student should not be more than Rs 8 lacs per annum for EBC category and OBC category
- Caste certificate is mandatory for students belonging to OBC category.
- Loan taken from scheduled banks as per the Indian Banking Association guidelines are only acceptable
Benefit: Interest payable in moratorium period of the loan will be waived off.
Padho Pardesh Scheme
The Ministry of Minority Affairs launched the scheme to benefit study abroad aspirants of EWS communities.
Eligibility criteria for Padho Pardesh Scheme
- Loan must be taken from scheduled banks as per the IBA guidelines.
- Students must take admission in courses like masters, Phd, or M.Phil
- Certificate of income approved by the government is mandatory
- Students family income should necessarily be less than Rs 6 lacs annually
Note: Padho Pardesh scheme has been discontinued by the government of India after 31st March 2022. But the eligible students will continue to get benefitted from the scheme if they have registered before 1st April 2022.
Central Scheme for Interest Subsidy (CSIS)
The MHRD, now the Ministry of Education, introduced the programme to provide interest waivers on student loans taken out by those from the EWS portion of society.
CSIS eligibility requirements
- Students need documentation from the EWS sector of society proving their membership.
- Students must be accepted into authorized study programmes solely in India.
- The student's family's annual income should not be more than Rs. 4.5 lacs.
Benefit: As part of the programme, qualifying students who borrowed money to study in India during the moratorium period are exempt from paying interest on their loans.
FAQs:
-
What is the interest rate offered on an education loan by Canara bank?
-
How does the Canara bank emi calculator work?
-
What is the processing fee for an education loan in Canara bank?
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