Canara Bank Abroad Education Loan

✓ Education Loan to Study Abroad

✓ At starting interest rate of 10.4% P.A.

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Table of content

  1. Education loan products of Canara bank to study abroad
  2. Vidya Sagar Scheme
  3. IBA model education loan
  4. IBA skill loan
  5. Vidya Turant education loan
  6. Vidya Shakthi
  7. Documents required to get Abroad education loan from Canara bank
  8. Canara Bank Abroad Education loan repayment policies
  9. How to apply for an abroad education loan from Canara Bank?
  10. Why choose WeMakeScholars?
  11. FAQ's
  12. Need Help? Ask Here!

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Canara Bank provides secured and unsecured education loans to students planning to study abroad. Well, the aspirants can expect an education loan starting at an interest rate of 9.25% for an amount up to 100% of the value of the collateral provided.

Education loan products of Canara bank to study abroad

 Schemes offered by Canara Bank for pursuing Master’s Degree:

  • Vidya Sagar Scheme
  • IBA model education loan
  • IBA skill loan 
  • Vidya Turant education loan
  • Vidya Shakthi
Type of Scheme  Interest Rate  Loan Amount 
Vidya Sagar education loan Starting from 9.25%

Unsecured amount 7.5 Lakh rupees

IBA model education loan Starting from 9.25% Unsecured amount of 7.5 Lakh rupees 
IBA skill loan  Starting from 9.25% 5000 to 1.5 Lakh rupees
Vidya Turant education loan Starting from 8.60% 50 Lakh rupees
Vidya Shakthi Starting from 9.25%  Unsecured amount of 7.5 Lakh rupees 
We're here to take care of education loan process for you, so that you can focus on your studies

Vidya Sagar Scheme

 

Loan Parameters

Details

Loan Limit

  • Without collateral, a loan of upto Rs. 7.5 lacs can be given
  • With collateral, a loan of upto 100% value of collateral can be given
  • Higher loan amounts can be given based on student’s profile

Expenses covered

  • Purchase of equipments, books, instruments & uniforms
  • Payment of Course fee
  • Travel Expenses
  • Cautionary deposit cost
  • Insurance Premium expenses
  • Purchase of Laptop or computer
  • Examination fees

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

Canara bank education loan interest rate/rate of interest

  • Starting from 9.25%
  • Female students are eligible for Interest rate discounts
  • Discounts are also applicable on early repayment of loan

Loan Margin

  • For a loan amount of upto Rs. 4 lacs - 0% of the loan amount 
  • For a loan amount of above Rs. 4 lacs - 15% of the loan amount 

Moratorium Period

Course duration + 12 months

Repayment Duration

Up to 15 years after moratorium period

Eligibility Criteria

 
Only students holding indian citizenship are eligible for this scheme

(NRI students holding an Indian passport are eligible)

Acceptable collaterals

  • Liquid security - Fixed deposits, Govt. bonds, LIC policies
  • Immovable property - Non-agricultural land, house, flat

Security

  • For loan amount of greater than Rs 7.5 lacs - It is mandatory to pledge a tangible collateral of 100% value of the loan amount required 
  • For loan up to Rs 7.5 lacs - No collateral is required

 

IBA model education loan

Loan Parameters Details
Loan limit 
  • Without collateral, a loan of upto Rs. 7.5 lacs can be given
  • With collateral, a loan of upto 100% value of collateral can be given
  • Higher loan amounts can be given based on student’s profile
Interest rate  starting from 9.25%
Course eligibility  Undergraduate, Post Graduation/PHD, Post Graduate Diploma etc
Loan margin  15% of required loan amount 
Security Assignment of future income of the student
Moratorium period  course duration + 1 year
Repayment tenure up to 15 years 
Eligibility criteria
  • Student should be an Indian National.
  • NRI Students holding valid Indian passport.

For Merit Quota: 

Loan amount Security
Upto Rs 7.50 Lakhs No collateral Security is required, loan will be covered under Credit Guarantee Fund Scheme for Education loans(CGFSEL) scheme 
Above Rs 7.50 Lakhs Tangible Collateral security is required to cover 100% of the loan amount.

For Management Quota :

Loan amount Security
Upto Rs 4.00 Lakhs No collateral Security is required
Above Rs 4.00 Lakhs Tangible Collateral security is required to cover 100% of the loan amount.

IBA skill loan

Loan Parameters  Details
Loan limit  Rs.5000 to Rs.1,50,000
Interest rate  Starting from 9.25%
Course eligibility  Courses run by Training Institutes aligned to National Skill Qualification Framework (NSQF) are covered by the Skill Loan.
Loan margin  No margin
Security Assignment of future income of the student
Moratorium period  6 months to 1 year (depending on course duration)
Repayment tenure 3 years - 7 years (depending on the loan amount)
Eligibility criteria Student should be an Indian National
We understand the challenges of funding education. Let us help you with our hassle-free services.

Vidya Turant education loan

Loan Parameters Details
Loan limit  Upto 50 Lakh rupees
Interest rate  Starting from 8.60%
Course eligibility  All Education loans under Vidya Turant can be covered under CSIS scheme (Central Scheme of Interest Subsidy on Education Loans), subject to eligibility, as per income & other norms
Loan margin  No margin 
Security Assignment of future income of the student
Moratorium period course duration + 1 year 
Repayment tenure Upto 15 years
Eligibility criteria
  • Student should be an Indian National.
  • Students should have cleared the previous qualifying exam and selected through Entrance Test conducted by Competent Authorities

Vidya Shakthi

Through the Vidya Shakti scheme, Canara bank offers financial aid to students with disabilities, so that they can pursue higher education abroad.

Loan Parameters

Details

Loan Limit

  • Without collateral, a loan of upto Rs. 7.5 lacs can be given
  • With collateral, a loan of upto 100% value of collateral can be given
  • Higher loan amounts can be given based on student’s profile

Expenses covered

  • Cautionary deposit charges
  • Payment of Course fee
  • Purchase of equipments, uniforms, books & stationery
  • Insurance Premium charges
  • Travel Expenses
  • Examination fees
  • Cost of computer or Laptop

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

Canara bank education loan interest rate/rate of interest

  • Interest rate Starting at 9.25%
  • Female students are eligible for Interest rate discounts
  • Discounts are also applicable on early repayment of loan

Loan Margin

  • For a loan amount of upto Rs. 4 lacs - 0% of the loan amount
  • For a loan amount of above Rs. 4 lacs - 15% of the loan amount

Moratorium Period

Course duration + 12 months

Repayment Duration

Up to 15 years after moratorium period

Eligibility Criteria

  • Physical disability of student should atleast be 40% and it must be verified by responsible authority
  • Only Indian students are eligible to get a loan under this scheme

  Acceptable collaterals

  • Immovable property - Flat, building, Non-agricultural land
  • Liquid security - LIC policies, Govt. bonds, Fixed deposits

Security

  • For loan up to Rs 7.5 lacs - No requirement of collateral as it falls under CGFSEL
  • For loan amount of greater than Rs 7.5 lacs - It is mandatory to pledge a collateral of value equal to 100% of the required loan amount

Processing fee for scheme based Master’s degree through Canara Bank : 

Value of Collateral Processing fee
If less than 100%

0.50% of sanctioned loan amount 

(Maximum of Rs.20,000)

If 100% or above

0.50% of sanctioned loan amount 

(Maximum of Rs.10,000)

 

 

Let us help you navigate the education loan process, so you can focus on your studies.

Documents required to get Abroad education loan from Canara bank

The list of documents required to get abroad education loan from Canara bank is very long, checkout the list of mandatory documents to start your loan process:

  • Section 1: Application form 
    • The hard copy of online application form filled through WeMakeScholars website with 2 passport size photographs.
  • Section 2: Basic documents for Applicant (student) and co-applicant and/or Guarantor
    •  Last 6 months bank account statements(Personal/ Salary). For co-applicant, it should show credited salary if salaried or business transactions of 1 year if self-employed.
    • Statement of personal asset & liability (assessed by the branch professional)
    • Proof of Residence – Electricity Bill/ Bank account statement/ Voter ID Card/  Passport/ Telephone Bill/ Ration card/ Aadhar card. (2 different proofs are required if current and permanent residence are not same)
    • Proof of identity – PAN Card and Passport (of the student if going abroad)

Only self-attested documents will be accepted

  • Section 3: Applicant academic documents
    • Entrance exam score card - to study in India and abroad, accordingly
    • Education marksheets and qualifying certificates- 10th, 12th, Degree
    • Admission proof for the course (mentioning total duration of the course)
    • Fee structure as provided by the university or college 
  • Section 4: Income documents of Co-applicant

-If Salaried

    • Last 2 yrs details according to Form 16
    • Company’s ID card
    • Latest salary slips (for last 3 months)
    • Last 2 yrs ITR

-If Self-employed

    • Business’s address proof
    • Last 3 yrs Profit & Loss account and balance sheet (only if self-employed)
    • Last 3 yrs ITR
  • Section 5: Other Documents
    • Notarized Joint affidavit with the co-applicant and student as per bank’s format containing information about declaration from co-applicant’s side stating that left over other expenses, apart from loan amount will be paid by them (our financial officer will provide detailed information)
  • Section 6: Additional docs (if applicable)
    • Payments made previously in the last 6 months, if any
    • Loan account statements of any pending loans in the past 1 year
    • Gap certificate if the students had a break in studies (This is done on a stamp paper) 
  • Section 7: Collateral documents (Optional)
    • Applicable for students taking education loans with collateral. Each state has different document requirements, our financial officer will provide you with a specific document checklist for your state.
    • You can submit your documents in the bank or directly upload them on the WeMakeScholars documents portal online to quickly start your education loan application process. To get your documents checklist ask for a callback or fill out the common application form
We provide tailored education loan solutions. Request a callback to learn more.

Canara Bank Abroad Education loan repayment policies

Students can choose to return their school loans even sooner by considering the following repayment schemes; nonetheless, the typical payback length for abroad education loans received from Canara bank is 15 years after the moratorium period finishes.

  • Shorter repayment period
  • Transferring their education loan
  • Pre-payment or part payment

NOTE: Students who choose to prepay or partially prepay their education loans are given extra interest rate breaks on top of the standard rate.

suppose, a student takes an education loan of say Rs 40 lacs at 10% rate of interest for 15 years of duration to study abroad. Let's assume a scenario where the student is not making any payment during the moratorium period, Then the student will have to pay a total interest of 51,39,517 rupees. 

 After every EMI you will be informed about your loan repayment cycle by the lender's side. You can also use a Loan Calculator to get a better understanding based on your required loan amount. 

 

How to apply for an abroad education loan from Canara Bank?

Offline application process

  • Visit the Canara bank’s branch near your home and ask for the student loan products
  • As per your eligibility and coverage decide the best loan product for your abroad education needs
  • Get the documents checklist to start the loan process
  • Go to the bank again to submit your necessary documents and get your abroad education loan process started

Online Application process via WeMakeScholars

  • Step 1: Fill out the abroad education loan form online for Canara bank 
  • Step 2: Give your loan details upon receiving a callback from your financial officer
  • Step 3: From the suggested lender options, choose your lender and inform your financial officer.
  • Step 4: Upload your documents online on WeMakeScholars document portal, as per the shared documents checklist
  • Step 5: After submitting your papers the bank will log your loan profile in their system. You will receive a confirmation regarding the same.
  • Step 6: Sign and collect your education loan sanction letter, once the loan is approved.

The loan sanctioning process will not be this easy if you visit the banks and try processing your abroad education loan from Canara bank directly. You will certainly encounter the following issues:

  • Too much of documentation
  • Insufficient information regarding loan schemes
  • Numerous visits to the bank
  • Improper customer service
  • Delay in processing
  • No specific documents checklist
WeMakeScholars can promise you to get the best interest rate for your profile.

Why choose WeMakeScholars?

With WeMakeScholars you get:

  • Minimal Processing time - WeMakeScholars financial officers have the capability to get your education loan sanctioned within 15-20 days from government bank and within 7 days from private bank & NBFCs, which is almost 50% less than usual processing time
  • Expert guidance - Your financial officer will guide you through the complete education loan process, as per your loan profile analysis, to choose the best lender according to your eligibility and bank policies.
  • End-to-end support - We will be available at your service, even after getting your loan sanctioned, till the last repayment of your EMI to provide you help in disbursement and repayment process.
  • Support for negotiations - Whenever feasible, we go above and beyond to bargain on your behalf with the bankers and lenders team on the interest rate and loan terms.
  • Better Interest rates - Banks offer special interest rate discounts of 0.5% to 2% on the usual interest rate for the students processing their education loan with WeMakeScholars
  • Free-of-cost services - All of our prime loan sanctioning services are free for all students because we are a government-funded programme backed by the IT Ministry under the Digital India Campaign.
  • Digitized application process - Online education loan process and WeMakeScholars online documents portal empowers students with the power of digitalization and reduces the stress of going multiple times to the bank, thus reducing the loan processing time by 50%.
  • Cashback offer - A cashback of Rs 3,000 could be won you, at the time of your loan disbursement 

Apply for your abroad education loan in Canara bank through WeMakeScholars, Request a callback or fill the common application form to get the process started.

Education Loan FAQs

  • What are Canara bank education loans for abroad schemes?

    The abroad education loan schemes offered by Canara bank are: - Scheme for pursuing Master’s Degree - This scheme is for students who have taken admission in to top universities around the world (according to the Top university list of the bank) and are pursuing any of the STEM courses - Vidya Sagar Scheme - This scheme provides both collateralized and non-collateralized education loan to students, students can get abroad education loan of up upto 100% value of the collateral under this scheme. - Vidya Shakthi - Students with disabilities are eligible to apply for abroad education loan under this scheme and can get up to 100% loan amount, depending on the value of the collateral

  • What is the Canara bank education loan interest rate?

    The Canara bank education loan interest rate for abroad starts from 9.25%, however it depends upon the scheme under which a student is applying for an education loan. Moreover there is an interest rate discount for girl students and also for students who opt to repay their education loan earlier.

  • How does the canara bank education loan emi calculator work?

    The bank has its own EMI calculator, which is available on its website, but we suggest students to use WeMakeScholars education loan EMI calculator, as it is highly accurate and provides detailed analysis of your EMI repayment schedule.

Our Education Loan team will help you with any questions

Naresh Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.
Published: | Updated: