Canara Bank Education Loan For Abroad Studies

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.

The Canara Bank is one of the largest public sector banks that offers education loans to aspiring students. The bank provides education loans to students pursuing higher studies in India and abroad. The Canara Bank education loan for abroad studies covers various expenses, including tuition fees, living expenses, the purchase of study materials, and other expenses associated with studying abroad. 

The bank offers abroad education loans through various Canara Bank student loan schemes. The student loan schemes provided by Canara Bank include:

• New Education Loan Scheme for pursuing a Master’s Degree Abroad
• Vidya Sagar Scheme
• IBA model education loan
• IBA skill loan 
• Vidya Turant Education Loan (For Studies in India)
• Vidya Shakthi

The interest rate for a Canara Bank education loan for Study Abroad varies by scheme. However, the Canara Bank abroad education loan interest rates start from 8.25% to make overseas education more affordable for students. Keep reading to know more about the Canara Bank education loan for study abroad. The table below features the interest rates and loan amounts of various Canara Bank student loan schemes.

Now, let’s look at the Canara Bank student loan schemes for study abroad in detail.

Eligibility Criteria:

• Students holding Indian citizenship with a valid passport are eligible for this scheme.
• Students should have secured admission to a select top-ranking university, according to the bank.
• Students should have scored a minimum score in relevant competitive exams such as the SAT, ACT, GRE, and GMAT.

Expenses covered

• Tuition Fees
• Living Expenses
• Travel Expenses
• Medical Insurance, if applicable
• Purchase of equipment, books, instruments & uniforms
• Purchase of a Laptop or Computer

Acceptable collaterals

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

Eligibility Criteria:

Only students holding Indian citizenship are eligible for this scheme

(NRI students holding an Indian passport are eligible)

Expenses covered

• Purchase of equipment, books, instruments & uniforms
• Payment of the 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 the 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 the Course fee
• Purchase of equipment, uniforms, books & stationery
• Insurance Premium charges
• Travel Expenses
• Examination fees
• Cost of a computer or a Laptop

Eligibility Criteria

• The physical disability of the student should be at least 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 eligibility criteria for a Canara Bank education loan for study abroad vary by scheme. The following are the basic eligibility criteria to get a study abroad loan from Canara Bank.

1. Citizenship: The student and the co-applicant should be Indian citizens. NRI students with a valid Indian passport are also eligible.
2. Admission: The student should have secured admission at a recognized university abroad.
3. Academics: The student should have a minimum score in competitive exams such as the SAT, ACT, GRE, and GMAT, if applicable.
4. Collateral: To get a secured education loan from Canara Bank, the applicants should provide acceptable collateral according to the bank.

The list of documents required to get an education loan for abroad studies from Canara Bank is very long. Check out the list of mandatory documents to start your loan. Canara Bank education 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 assets & liabilities (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 the current and permanent residences 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 mark sheets 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
  • The last 2 years' 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 the bank’s format, containing information about a declaration from the co-applicant's side stating that other leftover 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, and 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

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 Canara Bank education loan process
• Go to the bank again to submit your necessary documents and get your Canara Bank 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 its 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 to process 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 with 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 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 out the common application form to get the process started.

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  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. You can also use a Loan Calculator to get a better understanding based on your required loan amount.