Canara Bank Education Loan is a comprehensive financial solution that helps in empowering students to pursue their academic aspirations. The loan facility is tailored to meet the diverse needs of students and support them in a wide range of courses and educational pursuits. With competitive interest rates and flexible repayment options, Canara Bank Education Loan strives to make quality education accessible to all.
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Invest in your child's future:Give Your Child the Most Valuable Gift of Education
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A Canara Education Loan is a financial assistance program provided by Canara Bank to support students in funding their academic endeavours. This loan is designed to cover various educational expenses, offering competitive interest rates and flexible repayment plans. It aims to make quality education accessible by providing financial support for a wide range of courses, enabling students to pursue their academic goals with ease.
Canara Bank Education Loan Interest Rates 2025
Canara Bank Education Loan Scheme Name
Loan Amount Limit
Interest rate (in % p.a.)
Education Loan Scheme for Pursuing Master's Degree (from Top Universities of World)Â
≤ Rs.1 croreÂ
9.25% - 11.35%
IBA Model Education Loan Scheme Â
Need-based financing
Contact the bank Â
Vidya Sagar Scheme Â
≥ Rs. 7.50 lakhs
10.25% - 11.25%
IBA Skill Loan SchemeÂ
Rs. 5000 - Rs. 1.5 lakhs
9.25% - 10.75%
Vidya TurantÂ
≤ Rs.40 lakhs (on the basis of category of institutions)Â
8.60% - 11.35%
Vidya ShakthiÂ
Degree courses: ≤ Rs.7.5 lakhs
Vocational, certificate, diploma and skill loan: ≤ Rs.1.5 lakhs
9.25%Â
Vidya SahayÂ
≤ Rs.1 lakhÂ
11.25%Â
Details of Canara Bank Education Loan Schemes
Canara Bank Vidya Turant
The purpose of Canara Vidya Turant is to empower academic excellence by providing seamless education loans for top students at IIMs, IITs, NITs, IISc, ISB (Hyderabad & Mohali), and other acclaimed institutions.
Terms and Conditions
Values
Margin
NIL (Scholarship/assistantship included in margin)
To support PWD category students seeking education loans for specialized courses in India. For overseas studies, loans will adhere to IBA Model Education Loan/Skill Loan scheme guidelines.
Loan Quantum
Degree Courses: Up to Rs 7.50 lakhs
Vocational/Certificate/Diploma/Skill Loan Courses: Up to Rs 1.50 lakhs
Loans beyond these limits follow IBA's Model Education Loan scheme.
Loans up to Rs 7.50 lakhs are covered under the Credit Guarantee Fund Scheme For Education Loans (CGFSEL).
Repayment Tenure
Equated Monthly Installments (EMIs) up to 15 years (excluding the moratorium period) for general education loans
For skill development loans, 3 to 7 years depending on the loan quantum.
Eligibility under the CSIS Scheme
All Vidya Turant education loans are eligible for coverage under the Central Scheme of Interest Subsidy on Education Loans (CSIS), subject to income and other norms.
Investment
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Canara Bank IBA Skill Loan Scheme
Category
Details
Purpose
Skill Loan Scheme is designed to support national skill development initiatives.
Loan Quantum
Need-based financing ranges from Rs. 5,000 to Rs. 1,50,000.
Eligible Courses
Courses aligned with the National Skill Qualification Framework (NSQF) offered by Training Institutes are covered.
No minimum course duration is required.
Margin
NIL
Security
Assignment of the student's future income
Loan jointly granted with the parent/guardian
Covered under the Credit Guarantee Fund Scheme for Skill Development (CGFSSD)
No collateral or third-party guarantee is required
Moratorium
Moratorium period of 6 months to 1 year, depending on the course period
Moratorium Period:Â
Up to 1-year course: 6 months from course completion
Above 1 year course: 12 months from course completion.
Repayment Tenure
The repayment period is from 3 to 7 years, depending on the loan quantum.
Loan Tenure
For a loan of up to Rs. 50,000: Up to 3 years
For loans above Rs. 50,000 and up to Rs. 1,00,000: Up to 5 years
For loans above Rs. 1,00,000: Up to 7 years.
Canara Bank IBA Model Education Loan Scheme
Category
Details
Loan Quantum
Need-based financing is available
Students can apply at bank branches near their parents' residence or the educational institution.
Eligible Courses
For Studies in India: Graduation, post-graduation, including technical/professional courses from recognized colleges/universities approved by UGC/Government, AICTE/Department of Electronics/IMC, autonomous institutions like IIM, IIT, etc. Any courses leading to a degree/diploma from reputed Institutes/Colleges/Universities for studies in India.Â
For Abroad Studies: Courses leading to undergraduate, post-graduation/Ph.D., Post Graduate Diploma, etc., are eligible.
Margin
Up to Rs. 4.00 Lakhs: Nil
Above Rs. 4.00 Lakhs (Studies in India): 5%
Above Rs. 4.00 Lakhs (Studies abroad): 15%.
Security
Assignment of the student's future income.Â
Merit Quota:
Up to Rs. 7.50 Lakhs: No collateral security, covered under Credit Guarantee Fund Scheme for Education Loans (CGFSEL) subject to conditions
Above Rs. 7.50 Lakhs: Tangible collateral security to cover at least 100% of the loan amount.
Management Quota:
Up to Rs. 4.00 Lakhs: No collateral security
Above Rs. 4.00 Lakhs: Tangible collateral security to cover at least 100% of the loan amount.
Repayment Tenure
Repayment in equated monthly installments up to a maximum of 15 years
It excludes the moratorium period (i.e., course period plus one year)
No prepayment penalty during the repayment period.
Expenses Considered for Loan
Course fee payable to college/school/hostel.
Examination/Library/Laboratory fee.
Travel expenses/passage money for studies abroad.
Insurance premium for the student borrower, if applicable.
Caution deposit, building fund/refundable deposit supported by institution bills/receipts.
Purchase of books/equipment/instruments/uniforms.
Purchase of a computer at a reasonable cost, if required, for course completion.
Any other expense required to complete the course is subject to a ceiling.
Canara Bank Vidya Sahay Scheme
Category
Details
Purpose
To support financially needy and meritorious students requiring assistance with the down payment for CET/counselling Authorities during selection/counselling.
Loan Quantum
The maximum eligible amount is Rs. 1 Lakh or the initial payment proposed by the CET Authorities, whichever is less.
Margin
NIL.
Processing Charges
NIL.
Security
Parent/guardian must join as a co-borrower
No collateral security is required
Repayment Tenure
The loan is to be repaid after the sanction of the regular education loan.
Education Loan Scheme for Pursuing Master's Degree (from Top Universities of the World)
Category
Details
Purpose
Educational loan scheme designed for pursuing studies abroad at select top-ranking universities.
Loan Quantum
The minimum loan amount is above Rs 7.50 lakhs
Maximum quantum depends on collateral coverage:Â
100% and above: Minimum Rs 7.50 lakh, Maximum uncapped (as per project cost)
Less than 100%: Maximum Rs 100 lakh.
Course Eligible
Master's degree in STEM (Science, Technical, Engineering, and Management) courses.
Margin
10% of the loan amount. (Margin may be brought in on a year-on-year basis as and when disbursements are made on a pro-rata basis)
Processing Charges
100% and above collateral coverage: 0.50% of the sanctioned limit with a maximum of Rs. 10,000
Less than 100% collateral coverage: 0.50% of the sanctioned limit with a maximum of Rs. 20,000.
Security
Assignment of future income of the student.
The parent/guardian must join as a co-borrower.
Collateral security from a maximum of 100% to a minimum of 50%, with some terms and conditions.
Repayment Tenure
Repayment of the loan in equated monthly installments up to a maximum of 15 years, excluding the moratorium period (i.e., course period plus one year)
For skill development loans, it takes 3 to 7 years, depending on the loan quantum.
Expenses Considered
100% finance on tuition fees
Travel expenses/passage money for studies abroad
Living expenses for studies abroad. - Medical insurance premium for the student borrower, if applicable
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What are the Benefits of the Canara Bank Education Loan?
The key benefits of the Canara Education Loan facility are listed below:
Competitive Interest Rates: Enjoy lower rates compared to other lenders, making your education investment more manageable.
No Collateral Required: Loans up to Rs. 7.5 lakhs do not need any property or assets as security, freeing up your family finances.
Reducing Balance Interest: Pay interest only on the remaining loan amount, making monthly payments lighter over time.
No Prepayment Penalty: Repay your loan early without incurring any extra charges, offering flexibility and potential savings.
Faster Processing and Disbursement: Get your loan approved and funds released quickly so you can focus on your studies without delay.
Central Scheme of Interest Subsidy (CSIS) Eligibility: Depending on your income and course, avail of government subsidy to ease your interest burden.
Nil Processing Fees: Save money on application charges, making Canara Bank a more cost-effective option.
Multiple Loan Schemes: Choose from various plans tailored to different education levels and needs, ensuring a perfect fit for your goals.
Prompt Customer Support: Benefit from Canara Bank's helpful staff and resources to guide you through the loan process.
What are the Fees and Charges for Canara Bank Education Loan?
The Canara Bank student loan fees and charges are listed in the table below:
Fee/Charge
Description
Applicable To
Processing Fee
Nil
All loans
Prepayment Penalty
Nil
All loans
Margin on loan amount
Varies depending on course (mostly Nil or 5-15%)
Based on the IBA Model Scheme and loan amount
Guarantor/co-applicant charges
Applicable if required (varies based on bank's discretion)
Not applicable in all cases
Late payment charges
2% per month on the outstanding balance
This applies to delayed payments
CIBIL reporting charges
Nominal annual fee for credit score maintenance
All borrowers
What are the Documents Required for the Canara Bank Education Loan?
The list of documents to apply for a Canara Bank education loan is mentioned below:
The Canara Bank student Loan stands as a reliable financial solution for aspiring students, offering competitive interest rates, flexible repayment options, and a streamlined application process. As a trusted financial institution, Canara Bank's Education Loan contributes to the realization of educational dreams by easing the financial burden on students and their families.
FAQ's
Does Canara Bank provide education loans?
Yes, Canara Bank does provide education loans for both studies in India and abroad. Here are some specific schemes offered by Canara Bank:
Vidya Turant
IBA Model Education Loan Scheme
Skill Development Loan
Which bank is the best for education loans?
Here are 5 banks in India consistently considered top options:
State Bank of India (SBI)
Punjab National Bank (PNB)
Canara Bank
ICICI Bank
HDFC Bank
Who is eligible for the Vidya Sagar scheme education loan subsidy?
The Vidya Sagar Scheme is a category within the Central Sector Interest Subsidy Scheme (CSIS) offered by the Government of India. Here's who is eligible for the CSIS/Vidya Sagar scheme education loan subsidy:
Indian nationals
Annual gross parental/family income up to Rs. 4.5 lakhs
Pursuing professional/technical courses in India
A loan taken under the Model Education Loan Scheme of the Indian Banks Association (IBA)
Can I get a Rs. 45 lakh education loan from Canara Bank?
Yes, you can get Rs. 45 lakh Canara Bank education loan, depending on the following conditions:
For higher studies in India, the maximum loan amount under the Vidya Turant scheme varies depending on the institution's ranking:
Group A institutes (e.g., IIMs): Rs. 50 lakhs
Group B institutes (e.g., other premier institutes): Rs. 40 lakhs
Group C institutes: Rs. 30 lakhs
The loan must be for a course at an institution recognized by the relevant authorities (e.g., UGC, AICTE, MCI) for the CSIS subsidy to apply.
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