Canara Bank Education Loan

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:

Processing fee for scheme for pursuing Master’s degree

Vidya Sagar Scheme

In the below table are the details of the Vidya Sagar scheme offered by Canara Bank:

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.

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:

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:

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.

Vidya Sahay Scheme 

An overview of the features and information about the Vidya Turant Scheme are given below.

IBA Skill Loan Scheme

The table below provides details about Canara Bank's IBA Skill Loan Scheme:

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.

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.

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.

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:

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. 

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.