Canara Bank Abroad Education Loan

If students are planning to study abroad, Canara Bank has a number of education loan options to offer them, with flexible repayment terms, competitive interest rates, and specific loan schemes. The purpose of these loans is to help with basic expenses such as tuition, books and travel, accommodation, and the rest, enabling students to fund their education. Depending on your need for a smaller unsecured loan or a bigger loan with collateral Canara Bank has various schemes for everyone ranging from specific schemes for skill development and students with disabilities. These loans are structured with maximum convenience for students and their families as they are flexible with co-application and a simple application process.

 Schemes offered by Canara Bank for pursuing a Master’s Degree:

• Vidya Sagar Scheme
• IBA model education loan
• IBA skill loan 
• Vidya Turant education loan
• Vidya Shakthi

Eligibility Criteria:

Only students holding indian citizenship are eligible for this scheme

(NRI students holding an Indian passport are eligible)

Expenses covered

• Purchase of equipments, books, instruments & uniforms
• Payment of Course fee
• Travel Expenses
• Cautionary deposit cost
• Insurance Premium Expenses
• Purchase of a Laptop or computer
• Examination fees

Acceptable collaterals

• Liquid security - Fixed deposits, Govt. bonds, LIC policies
• Immovable property - Non-agricultural land, house, flat

Security

• For loan amounts greater than Rs 7.5 lacs - It is mandatory to pledge tangible collateral of 100% of the value of the loan amount required 
• For loans up to Rs 7.5 lacs - No collateral is required

Eligibility criteria:

• The student should be an Indian National.
• NRI Students holding a valid Indian passport.

Eligible courses:

• Undergraduate
• Post Graduation/PHD
• Post Graduate
• Diploma

For Merit Quota: 

For Management Quota :

Eligibility criteria:

• The student should be an Indian National

Course Eligibility 

• Courses run by Training Institutes aligned to the National Skill Qualification Framework (NSQF) are covered by the Skill Loan.

Eligibility criteria:

• The student should be an Indian National.
• Students should have cleared the previous qualifying exam and be selected through an Entrance Test conducted by Competent Authorities

Course Eligibility:

• All Education loans under Vidya Turant can be covered under the CSIS scheme (Central Scheme of Interest Subsidy on Education Loans), subject to eligibility, as per income & other norms

Through the Vidya Shakti scheme, Canara Bank offers financial aid to students with disabilities, so that they can pursue higher education abroad.

Expenses covered:

• Cautionary deposit charges
• Payment of Course fee
• Purchase of equipments, uniforms, books & stationery
• Insurance Premium charges
• Travel Expenses
• Examination fees
• Cost of computer or Laptop

Eligibility Criteria

• Physical disability of the student should at least be 40% and it must be verified by a responsible authority
  Only Indian students are eligible to get a loan under this scheme
• Processing fee for scheme-based Master’s degree through Canara Bank : 

The list of documents required to get abroad education loan from Canara Bank is very long, check out the list of mandatory documents to start your loan process:

• Section 1: Application form 
  • The hard copy of the online application form was filled out through the WeMakeScholars website with 2 passport-size photographs.
• Section 2: Basic documents for Applicant (student) and co-applicant and/or Guarantor
  •  Last 6 months bank account statements(Personal/ Salary). For co-applicants, it should show credited salary if salaried or business transactions of 1 year if self-employed.
  • Statement of personal asset & liability (assessed by the branch professional)
  • Proof of Residence – Electricity Bill/ Bank account statement/ Voter ID Card/  Passport/ Telephone Bill/ Ration card/ Aadhar card. (2 different proofs are required if current and permanent residence are not the same)
  • Proof of identity – PAN Card and Passport (of the student if going abroad)

Only self-attested documents will be accepted

• Section 3: Applicant's academic documents
  • Entrance exam scorecard - to study in India and abroad, accordingly
  • Education marksheets and qualifying certificates- 10th, 12th, Degree
  • Admission proof for the course (mentioning the total duration of the course)
  • Fee structure as provided by the university or college 
• Section 4: Income documents of Co-applicant

-If Salaried

• • Last 2 yrs' details according to Form 16
  • Company’s ID card
  • Latest salary slips (for the last 3 months)
  • Last 2 years ITR

-If Self-employed

• • Business address proof
  • Last 3 years Profit & Loss account and balance sheet (only if self-employed)
  • Last 3 years ITR
• Section 5: Other Documents
  • Notarized Joint affidavit with the co-applicant and student as per bank’s format containing information about a declaration from the co-applicant’s side stating that leftover other expenses, apart from the loan amount will be paid by them (our financial officer will provide detailed information)
• Section 6: Additional docs (if applicable)
  • Payments made previously in the last 6 months, if any
  • Loan account statements of any pending loans in the past 1 year
  • Gap certificate if the students had a break in studies (This is done on a stamp paper) 
• Section 7: Collateral documents (Optional)
  • Applicable for students taking education loans with collateral. Each state has different document requirements, our financial officer will provide you with a specific document checklist for your state.
  • You can submit your documents to the bank or directly upload them on the WeMakeScholars documents portal online to quickly start your education loan application process. To get your documents checklist ask for a callback or fill out the common application form

Students can choose to return their school loans even sooner by considering the following repayment schemes; nonetheless, the typical payback length for abroad education loans received from Canara bank is 15 years after the moratorium period finishes.

• Shorter repayment period
• Transferring their education loan
• Pre-payment or part payment

NOTE: Students who choose to prepay or partially prepay their education loans are given extra interest rate breaks on top of the standard rate.

suppose, a student takes an education loan of say Rs 40 lacs at a 10% rate of interest for 15 years of duration to study abroad. Let's assume a scenario where the student is not making any payment during the moratorium period, Then the student will have to pay a total interest of 51,39,517 rupees. 

 After every EMI you will be informed about your loan repayment cycle by the lender's side. You can also use a Loan Calculator to get a better understanding based on your required loan amount. 

Offline application process

• Visit the Canara bank’s branch near your home and ask for the student loan products
• As per your eligibility and coverage decide the best loan product for your abroad education needs
• Get the documents checklist to start the loan process
• Go to the bank again to submit your necessary documents and get your abroad education loan process started

Online Application process via WeMakeScholars

• Step 1: Fill out the abroad education loan form online for Canara bank 
• Step 2: Give your loan details upon receiving a callback from your financial officer
• Step 3: From the suggested lender options, choose your lender and inform your financial officer.
• Step 4: Upload your documents online on the WeMakeScholars document portal, as per the shared documents checklist
• Step 5: After submitting your papers the bank will log your loan profile in their system. You will receive a confirmation regarding the same.
• Step 6: Sign and collect your education loan sanction letter, once the loan is approved.

The loan sanctioning process will not be this easy if you visit the banks and try processing your abroad education loan from Canara Bank directly. You will certainly encounter the following issues:

• Too much documentation
• Insufficient information regarding loan schemes
• Numerous visits to the bank
• Improper customer service
• Delay in processing
• No specific document checklist

With WeMakeScholars you get:

• Minimal Processing time - WeMakeScholars financial officers have the capability to get your education loan sanctioned within 15-20 days from government banks and within 7 days from private banks & NBFCs, which is almost 50% less than the usual processing time
• Expert guidance - Your financial officer will guide you through the complete education loan process, as per your loan profile analysis, to choose the best lender according to your eligibility and bank policies.
• End-to-end support - We will be available at your service, even after getting your loan sanctioned, till the last repayment of your EMI to provide you help in the disbursement and repayment process.
• Support for negotiations - Whenever feasible, we go above and beyond to bargain on your behalf with the bankers and lenders team on the interest rate and loan terms.
• Better Interest rates - Banks offer special interest rate discounts of 0.5% to 2% on the usual interest rate for the students processing their education loan with WeMakeScholars
• Free-of-cost services - All of our prime loan sanctioning services are free for all students because we are a government-funded program backed by the IT Ministry under the Digital India Campaign.
• Digitized application process - The online education loan process and WeMakeScholars online documents portal empower students with the power of digitalization and reduce the stress of going multiple times to the bank, thus reducing the loan processing time by 50%.
• Cashback offer - A cashback of Rs 3,000 could be won by you, at the time of your loan disbursement 

Apply for your abroad education loan in Canara Bank through WeMakeScholars, Request a callback or fill the common application form to get the process started.