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Canara Bank Education Loan
Apply OnlineAn 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.
Canara Bank Education Loan Topics Covered
For a basic overview of the key points of Canara Bank Education Loan Online specifically for higher studies abroad, click here!
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.
| 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 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%.
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
| 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!
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.
Documents Regarding Collateral Security accepted by Canara Bank
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.
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 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.
| 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.
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.
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.
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!
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!
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.
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!
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.
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 |
| Apply Online | Apply Online | Apply Online |
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.