Canara Bank Education Loan : Check Education Loan Schemes Available, Eligibility, Repayment Period

Students seeking higher education require education loans especially if they are from poor economic backgrounds. Canara Bank is a leading financial institution providing student education loans through various schemes. These educational loans from Canara Bank will help students and provide financial support for their higher education.

This Story also Contains

1. Canara Bank Educational Loans
2. #1. Canara Bank Vidya Turant Education Loan
3. #2. IBA Model Education Loan Scheme
4. #3. Canara Bank IBA Skill Loan Scheme
5. #4. Canara Bank Education Loan Scheme for Pursuing Master’s Degree
6. Documents Required for Canara Bank Education Loan

The objective of the Canara Bank education loans is to spread education among all and to assist the needy. Canara Bank education loan offers five types of loan schemes that students can avail of as per their needs. Read the article to learn more about the Canara Bank student loan, types of loans, application process, interest rates, etc.

Canara Bank Educational Loans

Students pursuing higher studies can avail of the Canara Bank study loans and get financial assistance. The rate of interest, loan application process, features of loans, eligibility criteria, benefits, required documents, etc., differ from scheme to scheme. Candidates applying for loans are advised to go through the important policies and guidelines provided by the Canara Bank and be careful while applying for education loans. Following are the types of education loans offered by Canara Bank.

Canara Bank Education Loan EMI Calculator

Interest Rates for Canara Bank Education Loan

The interest rates for retail lending schemes for Canara bank education loans are linked to the Fixed rate of interest and REPO Linked Lending Rate (RLLR). The rates of interest of all retail lending schemes of the bank will be 9.25% w.e.f November 12, 2024.

Types of Canara Bank Education Loans

• Vidya Turant

• IBA Model Education Loan Scheme

• Interest Subsidy Educational Loans

• IBA Skill Loan Scheme

• Education Loan Scheme for Pursuing Master's Degree

#1. Canara Bank Vidya Turant Education Loan

Vidya Turant aims to provide hassle-free education to students who acquire merit in their education and want to pursue higher studies in selected IITs/IIMs/IISc/ISB, and other prestigious institutions. All education loans under Canara Bank Vidya Turant are covered under the Central Scheme of Interest Subsidy (CSIS). These are subject to eligibility, as per income and other policies. The repayment tenure of the Vidya Turant education loan will be for a maximum of 15 years. It includes monthly instalments excluding the moratorium period (i.e., course period plus one year).

Vidya Turant Loan Eligibility

• Students must be a citizen of India.

• Candidates should have passed the previous qualifying examination and should be selected through an entrance test conducted by the competent authorities.

Canara Bank Vidya Turant Education Loan Quantum

Vidya Turant Loan Benefits

• High quantum of loan

• No prepayment penalty

• Offers loans to pursue higher studies

• No collateral security

• Reducing the balance interest rate

• NIL processing charges

• Lower rate of interest

#2. IBA Model Education Loan Scheme

Students can avail of the IBA Model Education Loan scheme where the eligible courses extend up to inland studies and abroad studies. The scheme is used on a need-based finance. Students may follow the loan quantum of submitting their Canara bank education loan applications either at the bank near their parent's residence or the bank near the educational institutions where they are studying. Repayment of the loan can be done in equated monthly instalments up to a maximum of 15 years excluding the moratorium period. The loan margin will be up to INR 4.00 lakhs, it is NIL and above INR 4.00 lakhs students have to follow the margin like

• Studies in India - 5%

• Studies abroad - 15%

Security for the IBA Model Education Loan Scheme

Eligibility for the IBA Model Education Loan Scheme

• Students should be a citizen of India

• NRI students should have a valid Indian Passport

IBA Model Education Loan Scheme Benefits

• Reducing the balance interest rate

• Lower rate of interest

• Quick processing and disbursement

• No collateral for a loan up to INR 7.5 LPA

• No prepayment penalty

#3. Canara Bank IBA Skill Loan Scheme

The National initiatives for skill development are managed by the IBA Skill Loan scheme. It supports the overall initiatives of the financial-based needs. Students who are applying for the IBA Skill loan scheme must have the eligibility criteria of being an Indian national. Applicants must follow the loan quantum and check out the need-based finance in the range of INR 5,000 to INR 1,50,000/-. The margin and processing charges for the Canara Bank IBA Skill Loan Scheme are NIL. The course eligibility is courses run by the training institutes aligned to the National Skill Qualification Framework. No minimum course duration.

IBA Skill Loan Security

• No collateral or third-party guarantee is required

• Student assignment of future income

• The loan is granted jointly to students along with their parent/guardian

• The loan will be covered under the CGFSSD (Credit Guarantee Fund Scheme for Skill Development)

IBA Skill Loan Repayment Tenure

Moratorium Period

IBA Skill Loan Scheme Benefits

• NIL Margin

• Reducing the balance interest rate

• No prepayment penalty

• Quick processing and disbursement

• No collateral security

• Lower rate of interest

#4. Canara Bank Education Loan Scheme for Pursuing Master’s Degree

The Educational Loan scheme aims to provide financial assistance to those who opt for abroad studies from top-ranking universities. Eligible courses would be master’s degrees in STEM (Science, Technical, Engineering, and Management). The margin is up to 10% of the loan amount. This may be brought year on year basis as and when disbursements are done on a pro-rata basis. Security must be the parent/guardian has to join as a co-borrower and student assignment would be considered as future income. Terms and conditions apply for the collateral security from a maximum of 100% to a minimum of 50%. Loan repayment can be in done equated monthly instalments. This may be up to a maximum of 15 years excluding the moratorium period.

Eligibility Criteria for Education Loan Scheme for Pursuing Master’s Degree

• Students must have an Indian National holding valid passport

• Candidates with minimum scores in ACT, GRE, SAT, and GMAT are eligible.

• They must have secured admission from the select institution

Education Loan Quantum for Pursuing Master’s Degree

Processing Charges

Benefits of Education Loan for Pursuing Master's Degree

• No prepayment penalty

• Minimum processing charges

• Reducing the balance interest rate

• Loan to pursue a master’s degree abroad

• High quantum of loan

• Quick processing and disbursement

• Lower rate of interest

Documents Required for Canara Bank Education Loan

• PAN card photocopy

• Proof of residence (Voter ID/ Aadhar Card/ Telephone Bill/ Passport/ Driver’s License/ Electricity Bill/ Business proof related to GST bills or others)

• Stipulated loan application with two passport-size photographs of the applicant or guarantor or co-applicants.

• Admission offer letter from institute/counselling letter for allotment of the institute

• Income proof for co-applicant/ guarantor (if any)

• KYC documents of the applicant/ co-applicants or guarantor

• Copy of land records

• Age proof of the applicant/ co-applicants

• Aadhar card

• PAN Card of parent/guardian joining as co-borrower

• Detailed fee structure of the course

• Proof of income/assets

• Class X marks memo and pass certificate

• Class XII marks memo and pass certificate

• Marksheet/ scorecard of qualifying entrance examination

• Graduation certificate or provisional degree (if applying to PG courses)

• Caste certificate

• Parent/guardian Aadhar card

• Any other documents as required by the bank