Canara Bank Education Loan

What is a Canara Bank Education Loan?

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 2024

Details of Canara Bank Education Loan Schemes

1. 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)
   Loan Amount Limit	Loan Category	Institutions	Maximum Eligible Limit
   	A	ISB, Hyderabad & Mohali	≤ Rs. 50 lakhs
   	B	IIMs (19), IITs (23), Symbiosis Groups (5), BITS (4), IIFT (2), IMI (1), IRMA (1), ISM (1), IMT (1), KJSIMSR (1), MDI (1), SPJINMR (1), NMIMS (1), RGIIM (1), XIM (1), XLRI (1), and others	≤  Rs 40 lakhs
   	C	All other institutions, excluding A and B (109)	≤  Rs 30 lakhs
   Processing Charges	NIL
   Security	Assignment of future income; No security up to specified limits for Group "A," "B," and "C" institutes
   Repayment Tenure	Up to 15 years in equated monthly installments (excluding the moratorium period)
   Prepayment Penalty	None during the repayment period
   Expenses Covered	Fee, examination/library/laboratory fee, travel expenses, insurance premium, caution deposit, books/equipment/uniforms, computer purchase, and other course-related expenses
   Eligibility under the CSIS Scheme	All Vidya Turant education loans can be covered under the CSIS scheme, subject to eligibility based on income and other norms.

2. Canara Bank Vidya Shakthi Scheme

   Category	Details
   Purpose	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.
   Margin	Up to Rs 4.00 lakhs: No margin Above Rs 4.00 lakhs: Minimum 5% margin (including scholarships/assistantships).
   Processing Charges	NIL, including Vidya Lakshmi portal referral fee.
   Security	Assignment of the student's future income Parent/guardian as Co-borrower No collateral security up to Rs 7.5 lakhs 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.

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3. 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:  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.

4. 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.  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.  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.

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5. 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.

6. 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:  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

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:

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:

• Essential Documents:

  • Application form: Filled and signed

  • Photos: Passport-size (2 copies)

  • ID proof: PAN card, Aadhaar, Voter ID (anyone)

  • Address proof: Aadhaar, Voter ID, driving license (anyone)

  • Date of birth proof: Birth certificate, school leaving certificate

  • Academic docs: Mark sheets, admission letter/call letter

• Additional (depending on the situation):

  • Fee schedule: Breakup of course costs

  • Income proof of co-applicant/guarantor: Salary slips, ITRs

  • Property documents: For loan amounts exceeding specific limits

How to Apply for a Canara Bank Education Loan?

The steps to apply for Canara Bank Education Loan Schemes are as follows:

1. Choose your application method:

   • Online: Visit Canara Bank's website and apply through their e-Beckon portal.

   • Offline: Head to your nearest Canara Bank branch and submit a physical application form.

2. Gather the required documents:

   • Duly filled application form

   • Passport-size photographs

   • Identity proof

   • Address proof

   • Date of birth proof

   • Birth certificate, school leaving certificate, etc.

   • Academic documents

3. Submit your application:

   • Online: Upload all documents and submit the application electronically.

   • Offline: Submit the completed form and documents at the bank branch.

4. Loan processing and disbursal:

   • The bank will verify your documents and assess your eligibility.

   • Once approved, the loan amount will be disbursed directly to the educational institution or credited to your account.

Conclusion

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.