Canara Bank Education Loan

Interest Rate	Grace Period	Margin Money
9.25% – 12.10%	Course Period + 1 Year	15%

Table of Contents:

1. Types of Canara Bank Education Loan
2. Canara Bank Abroad Education Loan
3. Canara Bank Education Loan Interest Rate
4. Documents Required for Education Loan in Canara Bank
5. Frequently Asked Questions

Have you decided to study abroad? You’ve filled out all your application forms and await the next steps. However, when it comes to managing your expenses, you might be wondering how to do it. 

This is where an education loan comes in. Canara Bank education loan offers students a financial aid package that helps ease the burden of studying abroad.

Types of Canara Bank Education Loan

Canara Bank offers various education loans for students studying in India and abroad. The multiple types of Canara Bank education loans are as follows:

Type of Loan	Features
IBA Model Education Loan Scheme	Education Loans for studies in India and Abroad No collateral for loans upto INR 7.50 lakhs Lower rate of interest Loan tenure up to 15 years
Education Loan Scheme for Pursuing Masters Degrees	Education Loans for Masters degrees in Abroad High quantum of loans with low rates of interest The minimum loan amount is INR 7.50 lakhs Eligible courses are Master’s degree under STEM courses 100% finance on tuition fees
IBA Skill Loan Scheme	No collateral security with low rates of interest Need-based financing from INR 5 thousand – INR 7.50 lakhs No margin and processing charges
Vidya Turant	Education loan to pursue higher studies No collateral and security-free loans for students of premier institutions in India High quantum of loans with low rates of interest No margin, processing, documentation, pre-payment or pre-closure charges

Canara Bank Abroad Education Loan

Canara Bank offers two types of education loans for abroad studies: the IBA Model Education Loan Scheme and the Education Loan Scheme for Pursuing Master’s Degree. The details are as follows:

IBA Model Education Loan Scheme

Particulars	Details
Loan Amount	Merit Quota: Minimum INR 7.50 Lakhs Management Quota: Minimum INR 4 Lakhs
Repayment	Through EMI for up to 15 years
Tax Benefit	Under section 80 (E)
Eligible Courses	Courses that lead to undergraduate, Post Graduation/PHD, Post Graduate Diploma, etc
Expenses Considered for Loan	Fees payable to College / School / Hostel Examination / Library / Laboratory Fee Travel expenses / Passage money Insurance premium (if applicable) Caution deposit, building fund/refundable deposit supported by Institution bills/receipts Purchase of books/equipment/instruments/uniform Purchase of computer, if required for the course Any other expense required to complete the course
Security – Merit Quota	Up to INR 7.50 lakhs – No collateral security, the loan will be covered under CGFSEL, and the loan is granted jointly with the parent/guardian Above INR 7.50 lakhs – Tangible collateral security to cover at least 100% of the loan amount, and the loan is granted jointly with the parent/guardian
Security – Management Quota	Up to INR 4 lakhs – Loan is granted jointly with the parent/guardian and tangible collateral security to cover at least 50% of the loan amount Above INR 4 lakhs – Tangible collateral security to cover at least 100% of the loan amount, and the loan is granted jointly with the parent/guardian

Education Loan Scheme for Pursuing Masters Degrees

Particulars	Details
Loan Amount	Minimum: INR 7.50 Lakhs Maximum: If collateral coverage is 100% and above, the minimum is INR 7.50 lakhs, and the maximum is no limit; if collateral coverage is less than 100%, the maximum amount is INR 100 lakhs
Repayment	Through EMI for up to 15 years
Eligible Courses	Master’s Degree in STEM (Science, Technical, Engineering, and Management) courses
Margin	10% of the loan amount
Processing Charges	If collateral coverage is 100% and above – 0.50% of the sanctioned limit (max ₹10,000) If collateral coverage is less than 100% – 0.50% of the sanctioned limit (max ₹20,000)
Security	Assignment of future income of the student The co-borrower must be a parent/guardian Collateral security min 50% – max 100%
Expenses Considered for Loan	100% tuition fees Travel/passage money Living expenses Medical insurance premium (if applicable)

Canara Bank Education Loan Interest Rate

Canara Bank offers various education loan schemes with interest rates that vary based on the loan amount. The Canara Bank education loan interest rate is as follows:

Loan Details	RLLR	Credit Risk Premium over RLLR	Effective Rate of Interest under RLLR
Collateral security 100% and above	9.25%	1.60%	11.60%
Collateral security 75% and above	9.25%	1.85%	11.85%
Collateral security 50% & above (less than 75%)	9.25%	2.10%	12.10%

Documents Required for Education Loan in Canara Bank

Canara Bank education loan helps cover tuition fees, accommodation, books, travel, and other educational expenses. These documents help the bank assess your profile and academic records. The documents required for an education loan in Canara Bank are: 

• Loan application with 2 passport-size photographs of applicant / Co-applicants or guarantor
• KYC documents of applicant / Co-applicants or guarantor
• Identity proof (PAN CARD/Driver’s License/Voter ID /Passport/ Aadhar Card etc.)
• Address proof (Driver’s License/Voter ID/Passport / Aadhar Card / Electricity Bill/Telephone Bill, etc., /Business Proof related to GST and others.)
• Age proof of applicant / co-applicant
• PAN card (photocopy)
• Proof of admission and schedule of expenses for the course
• Marksheet of last qualifying examination
• Proof of income/assets (if any)
• Income proof for Co-applicant / guarantor (if any)
• Copy of land records (for IBA Model Education Loan Scheme)
• Any other documents as required by the bank

Frequently Asked Questions

How can I calculate my EMI for a Canara Bank education loan?

You can use Canara Bank’s education loan EMI calculator by entering the loan amount, interest rate, and tenure. The calculator will show your monthly EMI, total interest, and repayment amount, which will help you plan your finances.

How do you apply for an education loan at Canara Bank?

You can apply online through the Vidya Lakshmi Portal or visit a Canara Bank branch with the required documents. To save you time, you can connect with Nomad Credit’s experts. They will provide you with a free consultation and assist you in making your loan application process easier.

Does Canara Bank have a list of approved colleges for education loans?

Yes, Canara Bank offers education loans for courses at recognized colleges and universities in India and abroad. The bank has a list of approved institutions on its website.

What are the Canara Bank education loan eligibility criteria?

To be eligible, you must be an Indian citizen, have secured admission to a recognized institution, and be pursuing an approved course. A collateral may be required based on the loan amount.

What is the Canara Bank education loan subsidy?

Canara Bank offers interest subsidies on education loans under the Central Government’s Interest Subsidy Scheme for economically weaker students. The eligibility criteria include family income limits.