Canara Bank Overseas Education Loan with Low Interest rate Canara Bank Education Loan Apply Online

Introduction to Canara bank Education Loans

An education loan is the best way to fund your higher education abroad. The primary reason is that a steady stream of income is guaranteed. This certainty in finances is a huge plus point during your visa interview. Canara Bank Education Loan Scheme is one among the many Government Bank Education Loan Schemes to consider. While education loans from SBI and Bank of Baroda are the most popular, an education loan from Canara Bank is a good alternate option for students planning to study abroad.

This article covers all the points relating to an education loan from Canara bank for abroad studies.


For a basic overview of the key points of Canara Bank Education Loan Online specifically for higher studies abroad, click here!

Summary of all the Education Loan Schemes of Canara Bank

Here is a list of all the Canara Bank Education Loan Schemes which are provided by the bank:

Canara Bank Education Loan Scheme: Applicable to:
IBA Model Education Loan Scheme For pursuing higher studies abroad and in India
Model Loan Scheme For Vocational Education And Training For vocational and training programs in India, from institutions recognized by UGC/ AICTE
Canara Bank Vidya Turant Professional and Technical courses from reputed Indian institutions
Canara Vidya Sahay Education Loan Scheme For students who have received admits to reputed Indian institutes. But to confirm admission during the counseling stage, many students need a loan to pay the first installment.

This article’s primary focus is Canara Bank Education Loan For Abroad Studies. Therefore, the terms and conditions that are explained here are of the IBA Model Education Loan Scheme. However, the IBA Model Education Loan is applicable not only to study abroad cases but study in India cases as well.

Secured Canara bank education loan online application form

Basic Overview of Canara Bank Education Loan for Abroad Studies

Main Pointers of Canara Bank Education Loan Scheme For Study Abroad Cases Details of Canara Bank's Loan scheme for abroad education
Interest Rate 11.15% for male students and 10.65% for female students
Loan Amount A minimum of Rs. 8 Lacs and a maximum of Rs. 20 Lacs maximum for study abroad cases.
Loan Period 15 years maximum
Processing Fees 1% of Loan Amount
Moratorium Period Course duration + 1 year
Loan Margin 15%
Eligible Expenses Tuition fee, Living expenses, Stationary, Travel expenses, academic materials and exam fees.
Repayment begins One year after course completion OR six months after gaining employment- whichever is earlier.

An education loan from a government bank is always a wiser option because of the advantageous repayment policies, lack of preclosure charges, availability of a moratorium period etc. To get your Canara Bank Education Loan, apply online here.

Canara Bank Education Loan Rate of Interest

What is the Canara Bank Education Loan Interest Rate for Abroad Studies?

Canara Bank Education Loan Interest Rate 2019
Male Students 11.15%
Female Students 10.65%

The MCLR (Canara Bank Education Loan Base Rate) is currently 9.65%. And the Rate of Interest for Canara Bank Education Loan is MCLR (Marginal Cost of Funds Based Lending Rate)+ 1.5%. There is a 0.5% reduction in the Canara Bank Education Loan ROI for female students, like in every government bank.

So, Canara Bank Education Loan for Abroad's Interest Rate for male students is 11.15%. For female students it is 10.65%.

Canara Bank Education Loan Eligibility Criteria

What are the countries and courses eligible for Canara Bank Education Loan?

According to Canara Bank Education Loan Requirements:

> Applicant should be an Indian National

> Applicant should have received admission to a recognized university abroad, preferably to a professional or technical course

> Applicant should be ready to submit acceptable collateral

Canara Bank Education Loan- Documents Required

What are the Canara Bank Education Loan Documents Required?

Documents to be submitted by the Applicant in Canara Bank Education Loan Scheme Documents to be submitted by the Co-Applicant in Canara Bank Education Loan scheme
Canara Bank Education Loan Application Form Relevant proof of Residence like Aadhar Card or Electricity Bill
Copy of Passport Identity Proof (Drivers Licence or PAN card)
Relevant proof of Residence like Aadhar Card or Electricity Bill Form 16 of the last 2 years at least
Identity Proof like PAN card or Driving Licence Latest salary slips (for last 3 months)
Copy of Class X, Class XII, Degree and latest academic qualifications- certificate and mark sheet. ITR of Last 2 years
Letter of Admission from the University 2 Passport size photos
University Ranking Printout Balance Sheet for the last 3 years and Profit and Loss Statement (only if self-employed)
Scorecard of qualifying exams like IELTS, TOEFL, GRE or GMAT If self- employed- Proof of Business Address
2 Passport size photographs If employed- Employer’s ID Card

There are some more documents in addition to these basic documents that may vary from state to state. Contact our team to know more about funding your education loan to study abroad from Canara Bank!

Check Canara education loan eligibility

Canara Bank Education Loan- Collateral Details

According to Canara Bank Education Loan requirements, what kinds of collateral security is accepted by the bank?

During the Canara Bank Education Loan process, two kinds of collateral can be submitted. First is immovable property. Second is liquid security. Here are the examples.

Collateral security accepted by Canara Bank Education Loan Procedure Examples of Collateral which meet Canara Bank Education Loan Eligibility Criteria
Immovable property House, flat, empty plot of land with boundaries
Liquid Security Fixed Deposits, Liquid Security, LIC Policies

> Please note that LIC Policies will be valued according to the current value and not the maturity amount of the future.

> Also, gram panchayat property will not be accepted, according to Canara Bank Education Loan Rules.

> The value of collateral security should be equal to the amount of loan.

Property Documents needed in Canara Bank Education Loan Process

Documents Regarding Collateral Security accepted by Canara Bank

  1. Property Title Deed and Registered Sale Agreement
  2. Original Registration Receipt for the above agreement
  3. Allotment Letter by Municipal Corporation/ Authorized Government Authority like MHADA, CIDCO, HUDA, JDA, GIDC ETC (if applicable)
  4. Encumbrance Certificate (EC) of the last 30 years. This document is commonly known as Link Document
  5. Copy of municipality approved building plan or plot layout
  6. Latest property tax bill or Latest electricity bill bearing the same address

Every city’s municipal corporation has different documents and requirements to prove the legality of immovable property. Hence the Canara Bank Education Loan requirements vary from region to region. Speak to our Canara Bank Education Loan team to get a clear picture of the documents needed in your region.

Canara Bank Education Loan Processing Fee

What are the processing charges for an education loan from Canara Bank?

The Canara Bank Education Loan Processing Fee is 1% of the loan amount that is sanctioned to the student. Extra charges will be levied for legal and valuation charges.

Fill your Canara Bank Education Loan Application form here to fund your study abroad dreams!

Minimum and Maximum Amounts for Canara Bank’s IBA Model Education Loan Scheme

What are the minimum and maximum loan amounts provided for Education Loan by Canara Bank for studying abroad?

Minimum loan amount disbursed in Canara Bank Education Loan for International Studies Rs. 8 Lacs
Maximum loan amount disbursed by Canara Bank as Education Loan for Higher Studies Abroad Rs. 20 Lacs

According to Canara Bank Education Loan Rules, Rs. 20 Lacs is the maximum possible amount for abroad studies. However, for many students, this amount does not suffice. We have seen some cases where students were sanctioned a higher amount of education loan from Canara Bank. But a higher amount cannot be insisted upon, as according to Canara Bank Education Loan Terms and Conditions on paper, the maximum loan amount is Rs. 20 Lacs only.

Canara Bank Loan Margin for Education Loan Scheme

Does Canara Bank have a loan margin for Education Loan?

Loan Margin for Canara Bank Loan for International Studies 15%

Yes. Like every government bank education loan, Canara Bank’s IBA Model Education Loan scheme also has a Loan Margin. The loan margin in the Canara Bank Education Loan process is 15%. The loan margin is basically the proportion of money the student has to pool in with every disbursement.

The bank is of the opinion that when a student pools in some money of his own, the student is more serious about completing his course. The Loan margin for Education Loan in Canara Bank is 15%, and it must be paid on a pro- rata basis.

What this means is, with every disbursement, the bank will first ask the student to put in 15% of the required amount, after which the bank will disburse the rest of the money to the student.

Canara Bank Education Loan EMI Calculator

Where can I calculate my Canara Bank Education Loan EMI?

Since government bank interest rates are fixed, it is easy to calculate your EMI as well as the other Canara Bank Education Loan repayment details. Here you can check your EMI. This is a Canara Bank Education Loan Repayment Calculator. Canara Bank Education Loan Interest Calculator is similar to other government bank education loan schemes as the mode of interest calculation is quite similar.

Canara Bank Education Loan Prepayment Charges

Does Canara Bank charge any prepayment or preclosure charges for early closing of loan?

Many times the student is ready to close the loan account in 5-6 years, even though the agreed loan period was 10- 15 years. Government banks, unlike private lenders, do not have any pre-closure charges. So, Canara Bank Education Loan preclosure charges are nil.

Application form for education loan with collateral in Canara

Expenses covered under Education Loan for Abroad Studies by Canara Bank

What kind of expenses are covered by the Canara Bank Loan for abroad education?

The IBA Model Education Loan Scheme of Canara Bank for international studies covers all the expenses which a student living in a foreign country must incur. Tuition fee, living expenses, travel, stationery, academic material, exam fees etc.

Fill your Canara Bank Education Loan Form here to be connected with the best branch in your region!

Canara Bank Education Loan Repayment

What is the Canara Bank Education Loan Repayment Procedure?

According to Canara Bank Education Loan Repayment details, repayment begins one year after course completion or six months after getting employed- whichever happens earlier. There is a penalty fee of 2% of the loan amount which must be paid either because of default or delay in payment. So, please be prompt while repaying your education loan in Canara Bank.

Would you like a comparison of Canara Bank’s Education Loan scheme with other government banks? Click here!

Canara Bank Education Loan Subsidy

What are the specifications of Canara Bank Education Loan Interest Subsidy Scheme?

Since Canara Bank is a government bank it is subject to the various central government subsidy schemes by the various departments. Here is a summarized table from the Canara Bank's Education Loan Subsidy Portal:

Canara Bank Education Loan Interest Subsidy Scheme Provided by Applicable to
Central Sector Interest Subsidy Ministry of Human Resources and Development, GOI Family income not more than 4.5 L. This scheme is only available for higher studies in India. This is not eligible for Canara Bank Education Loan abroad.
Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) Ministry of Social Justice and Empowerment, GOI Students of OBC and EBC communities pursuing higher studies abroad- with a maximum family income of Rs. 6 Lacs for OBC families and Rs. 2 Lacs for EBC families.
Padho Pardesh – Scheme of Interest Subsidy on Educational Loans for Overseas Studies for The Students Ministry of Minority Affairs, GOI Students from religious minority communities who plan to pursue their higher studies abroad, with a maximum family income of Rs. 6 Lacs.

For everyone who is selected for these subsidy schemes, there will be a complete interest waiver for the duration of the course. There is a separate Canara Bank Education Loan Subsidy Application Form which must be filled by the student to avail the scheme. Canara Bank Education Loan interest waiver is applicable only to those who apply for it. However, not everyone gets selected for the Canara Bank Education Loan Subsidy Scheme.

Expenses covered under Education Loan for Abroad Studies by Canara Bank

What kind of expenses are covered by the Canara Bank Loan for abroad education?

The IBA Model Education Loan Scheme of Canara Bank for international studies covers all the expenses which a student living in a foreign country must incur. Tuition fee, living expenses, travel, stationery, academic material, exam fees etc.

Fill your Canara Bank Education Loan Form here to be connected with the best branch in your region!

Get latest Interest rates in 2019 for education loan

Canara Bank Education Loan Customer Care

Is there a Canara Bank Education Loan Contact Number that can be contacted if there are some issues?

You can find the official Canara Bank Education Loan Customer Care here.

However, if you have some general inquiries and require more information, it would be better to contact the Canara Bank Education Loan for abroad experts here.

Canara Bank and SBI- A Comparison

How does Canara Bank's Education Loan Policy compare with Other government banks?

While choosing an education loan, it’s always wise to compare with the education loan schemes of other providers. In the government bank education loan segment, SBI is the unparalleled leader. Here is a comparison of SBI’s Global Edvantage scheme with Canara Bank’s IBA Model Education Loan Scheme.

Key Differences Education Loan from Canara Bank Education Loan from SBI
Rate of Interest 11.15% for male students and 10.65% for female students 10.25% for male students and 9.75% for female students after insurance.
Maximum Loan Amount Disbursed Rs. 20 Lacs for higher education abroad Rs. 1.5 Crore for higher education abroad
Processing Fee 1% of the loan amount- separate payment for legal and valuation charges Rs. 10,000 (fixed charge irrespective of the loan amount) + Rs. 7,500 approximately for legal and valuation charges
Courses and Universities acceptable Technical and professional courses No barriers based on country, course, university or ranking.
Loan Margin 15% 10%
Online Repayment of Loan facility Available Available
Further steps To know more about Canara Bank’s Loan scheme for higher education abroad, speak to the Canara Bank Education Loan experts. To start the process of your Canara Bank Education Loan online, click here! To start the loan process with SBI, fill up this online application so that the digital team of SBI Global Edvantage Scheme can get back to you
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WeMakeScholars is the National Digital Partner of over ten government banks and other loan providers in the Education Loan segment. To compare and contrast the various loan options available in the market, and to have an unbiased discussion of which loan scheme best suits your profile, contact our digital team here. Since WeMakeScholars is funded and supported by the Central Government of India, it is a completely free service for the students.

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