Canara Bank Education Loan

5 (100%) 1 vote

canara bank education loanCanara Bank is one amongst the many government banks in India providing secured education loans to individuals having different funding requirements. Get to know all about the various Canara Bank education loan details here. You will get the complete information about the various Canara bank education loan schemes, interest rates, repayment terms, etc.

Canara Bank Education Loan Details

The Canara Bank has introduced education loan schemes to suit the financial needs of individuals coming from all backgrounds. Out of all the Canara bank student loan schemes, the IBA model loan product for higher education in India and abroad is one of their most sought-after products. The below table will give you complete information regarding this Canara bank education loan product, followed by the rest of the products.

Canara Bank Education Loan: IBA Model Loan Product For Higher Studies in India and Abroad

IBA Model Loan Product For Higher Studies in India and Abroad  Salient Features
Canara bank education loan ROI Up to INR 7.5 Lakhs : 10.40%INR 7.5 Lakhs & above: 9.90%
Maximum Loan Amount Need-based financing For studies in India: Rs.10 LakhsFor abroad studies: Rs. 20 Lakhs
Eligible Courses Undergraduate (Bachelors), Postgraduate(Masters), PhD, PG-Diploma Courses, etc.
Student Eligibility Student must be an Indian National
Loan Tenure 15 years
Moratorium period duration Course period, plus one year.
Loan Margin For loan of upto Rs.4 Lakhs: Nil
For loan amounts above Rs. 4 Lakhs –Study in India: 5%Abroad Studies : 15%
Security Assignment of future income of the studentLoan is granted jointly with the parent/Guardians of the student.Loan amount up to Rs.7.50 Lakhs :

No collateral Security,  loan will be covered under Credit Guarantee Fund Scheme for Education loans(CGFSEL) scheme subject to the conditions

Loan amount above Rs. 7.50 Lakhs:

Tangible Collateral security to cover at least 100% of the loan amount

Processing Fees Nil

 

Canara Bank Education Loan – IBA SKILL LOAN SCHEME 

IBA Skill Loan Scheme Salient Features
Product Description Skill loan scheme to support national initiatives for skill development
Canara bank education loan ROI 9.9% (MCLR + 1.50%)
Eligible courses Courses run by Training Institutes aligned to National Skill Qualification Framework (NSQF) shall be covered by the Skill Loan. There is no minimum course duration.
Maximum AvailableLoan Need-based finance in the range of Rs.5000 to Rs. 1,50,000.
Loan Margin Nil
Loan repayment tenure Loan amount up to Rs 50000: up to 3 yearsLoan amount above Rs 50000 and up to Rs 100000: up to 5yearsLoan amount above Rs 100000: up to 7 years
Moratorium period If Course duration up to 1 year: Moratorium  is 6 months from the date of completion of course.If course duration is above 1 year: Moratorium is 12 months from the date of completion of course.
Security Assignment of future income of the studentLoan is granted jointly with the parent/Guardian of the student.The loan will be covered under the Credit Guarantee Fund scheme for Skill Development (CGFSSD)

No collateral or third party guarantee is required

 

The financial team of WeMakeScholars works in close quarters with most of the government banks in India, thus helping a lot of students get their abroad education loans on time.

Canara Bank Education Loan – The Vidya Turant Education Loan to Study in India

Vidya Turant Education Loan Salient Features
Product Description This education loan aims to provide hassle free education loan to meritorious  students who are pursuing their higher studies in select institutions viz., Selected IIMs/IITs/NITs/IISc /ISB (Hyderabad & Mohali) and other reputed institutes
Canara Bank Education Loan Rate of Interest 8.40% (Ongoing MCLR)
Loan Tenure 15 years
Moratorium Period Course duration, plus one year
Loan Margin Upto Rs.4 Lakhs: NilAbove Rs.4 Lakhs: 5%
Processing fees Nil
Loan Repayment EMI payment to begin on the completion of moratorium period.

 

Canara Bank Education Loan:  VIDYA SHAKTHI – EDUCATION LOAN SCHEME GUIDELINES

 

Vidya Shakthi Education Loan Salient Features
Product Description To assist the PWD category students who are in need of education loan for pursuing the special devices courses in India. Education loans for studies abroad will be as per the guidelines of IBA Model Education loan/Skill loan  scheme.
Canara Bank Education Loan ROI Ongoing one year MCLR: 8.40%
Student Eligibility Indian National
Maximum Loan Amount Need based finance will be provided.For degree courses: Rs.7.5 LakhsVocational/Certificate/Diploma courses/Skill loan  : Max Rs 1.50 lakhs.

 

Loan Margin For loans up to Rs.4 Lakhs: NilFor loans above Rs.4 Lakhs: 5%Scholarship/assistantship will be considered as loan margin.
Loan repayment EMI payment of loan to begin once the moratorium period ends
Moratorium period Course period, plus one year
Processing Fee Nil
Loan Tenure 15 years

 

Canara Bank Education Loan: VIDYA SAHAY

The Vidya Sahay Education Loan Scheme Salient Features
Product Description To assist the needy and meritorious students who are in need of the down payment to be made to the CET/counseling Authorities at the time of selection / counseling
Canara Bank education loan interest rate Ongoing MCLR + 2% 10.40%
Loan Margin Nil
Processing fees Nil
Maximum Loan Amount Up to Rs.1,00,000 or initial payment as proposed by the CET Authorities, whichever is less.  
Loan Repayment Repayment to start after the first disbursement of the education loan

abroad education loan

Canara Bank Education Loan Interest Rate

The Canara Bank education loan interest rate keeps varying depending on the MCLR. The MCLR (Marginal Cost of Funds Based Lending Rate) is a benchmark lending rate used by banks all over India to decide their education loan interest rate. The ongoing MCLR declared for Canara Bank education loan interest rate is 8.40%. The interest rates of all the Canara Bank education loan schemes are decided based on this MCLR.

For Canara bank abroad education loan, the ongoing ROI varies, depending on the Canara bank education loan schemes. The Canara bank education loan interest rates for the different education loan schemes are listed in the above tables. You may refer to them for information regarding the same.The Canara Bank education loan interest rates for female candidates come with a 0.5% waiver for all the education loan schemes.

Now get to know more about how much EMI you would need to pay towards your Canara Bank education loan by using the Canara bank education loan EMI calculator available on the main website of Canara Bank.

Read more about Education loan interest subsidy: Government schemes

 

Canara Bank Education Loan Margin

It is common knowledge that not all government banks help fund 100 percent of the total expenses of a candidate’s higher studies. Every bank sets a loan margin for all collateral-based abroad education loan schemes. Loan margin essentially refers to the percentage of contribution made by loan applicants towards the total expenses of their higher studies course abroad.

Canara Bank has set the loan margin at 15% for abroad education loans. This means that candidates will be required to contribute 15% of their total expenses and the remaining 85% will be funded by the Canara bank student loan scheme for abroad studies.

 

Canara Bank Education Loan Documents   

Given below is a list of Canara Bank education loan documents to be submitted by students who have applied for an education loan in Canara Bank. 

General documents to be submitted by students/loan applicants:

  1. Duly filled Canara bank education loan application form.
  2. 2 Passport size photographs.
  3. Passport: compulsory for education loan for abroad studies.
  4. Identity Proof: Pan Card, voter ID card.
  5. Address proof: Aadhar card, Driving licence, a recent copy of telephone bill, electricity bill, water bill, piped gas bill, etc.
  6. Academic mark sheets of 10th, 12th, Undergraduate Degree (if applicable)
  7. Eligibility test scorecard: SAT/GRE/GMAT/TOEFL/IELTS scorecards.
  8. University ranking printout. To get the correct university ranking, contact our team.
  9. Admit letter from the university.

Documents to be submitted by co-applicants/guarantors:

  1. Identity Proof like PAN card, Passport, voter ID card.
  2. Address proof like an Aadhar card, driver’s licence, latest copy of gas bill/telephone bill/electricity bill/water bill/piped gas bill.
  3. 2 passport size photographs.
  4. Documents related to any ongoing loans from other banks/lenders.
  5. Loan account statement for one year.

Finance-related documents to be submitted by co-applicants/guarantors:

If the co-applicant is a salaried professional: 

  1. Salary slip/salary certificate.
  2. IT Returns documents of 2 years.
  3. The co-applicants bank salary account statement for the past 6 months.

If the co-applicant/guarantor is self-employed/owns a business:

  1. Business address proof (if applicable)
  2. ITR documents for 2 years.
  3. TDS Certificate (Form 16A) if applicable.
  4. Certificate of qualification (for co-applicants who are doctors, CA and other similar professionals)
  5. Bank account statement for the last 6 months.
  6. All the above-mentioned documents are to be self-attested by the co-applicant.

Apply online to get the latest list and guidance.

 

Canara Bank Education Loan: Accepted List of Assets For Collateral

Canara Bank offers collateral-based education loan under the IBA education loan for higher studies in India and Abroad scheme. Below given is a list of assets generally accepted by Canara Bank as collateral against an abroad education loan. Generally the following categories of assets are accepted as collateral security against an abroad education loan in Canara Bank.

Immovable property: Canara Bank accepts immovable property residential flat, independent house  non-agricultural land/ empty plots with defined boundaries as collateral security against an abroad education loan.

Liquid security: Liquid assets such as FDs (preferably opened with Canara Bank), Govt Bonds, a life insurance policy with a fixed maturity date from government-approved national insurance providers, etc. are also accepted as tangible collateral security against a Canara Bank abroad education loan.

Third-party collateral: The Canara Bank also accepts assets belonging to a third party (someone apart from the co-applicant) as collateral security against education loans. Like collateral belonging to uncle/ aunt/ other relatives/ family friends are acceptable as well.

Collateral (immovable property) related documents checklist:

  1. Property title deed and registered sale agreement.
  2. Original registration receipt of the sale agreement.
  3. Allotment letter by the respective municipal corporation or any competent government authorized bodies such as HUDA, JDA, DDA, GIDC, MIDC, etc.
  4. Encumbrance Certificate (E.C) of the past 30 years. This document is commonly known as a ‘link document’.
  5. A copy of the municipality approved building plan/plot layout.
  6. Latest property tax bill or latest electricity bill bearing the same address.

The above list is a generic list. Immovable properties belonging to different regions require various different set of documents. To know the entire list of documents for an education loan in Canara Bank, do apply online and get in touch with the education loan team.

Canara Bank Education Loan Eligibility Criteria

The Canara Bank has not stated any particular eligibility criteria for loan applicants. The only eligibility criterion stated by Canara Bank for abroad education loan applicants is that they should be Indian citizens.

Canara Bank Education Loan Subsidy & Tax Benefits

Students who belong to certain categories are eligible for a Canara Bank education loan subsidy under schemes introduced by the government of India for the benefit of students who have borrowed an education loan to aid their higher education. The Canara Bank education loan interest subsidy and tax benefits can be availed by students belonging to select communities and income groups only. The following Canara Bank education loan subsidy and tax benefits are applicable to students borrowing an education loan.

  • Central Sector Interest Subsidy Scheme
  • The Padho Pardesh education loan interest Subsidy Scheme
  • Dr Ambedkar Central Interest Subsidy Scheme

 

Education loan income tax exemption under Section 80 E

Students who have borrowed an education loan to fund their higher studies abroad are exempted from paying a certain percentage of their interest amount as income tax under the Section 80 E of the Income Tax Act of 1961.

Eligibility: Candidates who have borrowed education loans from government banks. This subsidy can only be availed either by the loan applicant or the co-applicant depending on who is paying the interest component. In either case, only one of the two can claim this subsidy.

abroad education loan

Canara Bank Education Loan Repayment

The Canara bank education loan repayment schedule is more or less similar for all the Canara bank education loan schemes, except for the Vidya Sahay education loan scheme. Candidates who borrow an education loan under any of the Canara Bank Education loan schemes are granted a moratorium period before the repayment of their loan commences.

A moratorium period refers to a time duration in a student’s loan tenure when they are not required to begin their education loan repayment process. This benefit is only available to those who have taken education loans from government banks.

The moratorium period for the different Canara Bank education loan schemes are as follows:

Canara Bank Education Loan Scheme Moratorium Period
IBA Model Loan Product For Higher Studies in India and Abroad For studies in India & abroad: Course duration + one year
IBA Skill Loan Scheme If Course duration up to 1 year: Moratorium  is 6 months from the date of completion of course.If course duration is above 1 year: Moratorium is 12 months from the date of completion of course.
The Vidya Turant Education Loan to Study in India Course period, plus one year
Vidya Shakthi Course period, plus one year
Vidya Sahay Repayment to commence immediately after the first disbursement of the loan is made available.

 

Why Approach WeMakeScholars For Your Education Loan Process?

When students directly approach banks for enquiries regarding the abroad education loan process, most of them are given only partial information regarding the same. The financial team of WeMakeScholars has sufficient knowledge about the abroad education loan process due to their experience of tackling even the most complicated cases. As a result, close to 3000+ students have benefitted from their services. In the abroad education loan process, most students who have planned their higher studies in countries like Germany and Canada are mostly concerned about their pre-visa disbursements from government banks as many of these banks are often not aware of the education loan provisions for these countries and as a result, delay the pre-visa disbursement. When you apply through WeMakeScholars, our financial officers ensure that this does not happen and often try their level best to get such loans sanctioned well in time. So, if you are confused on how to go about the abroad education loan process, do get in touch with our team now.

 

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s at free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others

 

Written by

Bibliophile, wanderer, major foodie. I write too :)

 

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

error: All content is protected !!