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Canara bank education loan products offer financial assistance to students taking admission in premier institutions of India and abroad for their higher studies. The education loan by Canara bank is offered under following products:
For abroad studies
- Scheme for pursuing Master’s Degree
- Vidya Sagar Scheme
- Vidya Shakthi (Conditions Will Be Same As Vidya Sagar Scheme)
To study in India
- Vidhya Sagar Scheme for India
- Vidya Turant
- Vidya Shakthi
- Vidhya Sahay
- IBA Skill Loan Scheme
NOTE - Vidhya Shakti for abroad is same as Vidya Sagar Scheme
Education loan scheme for students to study abroad in top universities of the world
Loan Parameters |
Details |
Loan Limit |
A greater amount can also be offered depending on the student’s profile |
Expenses covered |
Upto 100% finance of: - Tuition fees |
Accepted co-applicant |
Parents or guardians |
Interest rate |
Starts from 10.40% |
Loan Margin |
10% of the loan amount |
Moratorium Period |
Course duration + 1 year |
Repayment Duration |
Upto 15 years after moratorium period |
Eligibility Criteria |
- Student should be an Indian national |
Acceptable collaterals |
Immovable properties - House, Flat, Non-agricultural land Liquid securities - FD, Government bond, LIC policies |
Security |
|
Processing fee for scheme for pursuing Master’s degree
Value of Collateral |
Processing fee |
Less than 100% |
0.50% of sanctioned limit Max-Rs.20,000. |
100% & above |
0.50% of sanctioned limit Max-Rs.10,000. |
Vidya Sagar Scheme
Loan Parameters |
Details |
Loan Limit |
A greater amount can also be offered, depending on the student’s profile |
Expenses covered |
- Payment of Course fee |
Accepted co-applicant |
Parents, Parents in law, Siblings, Spouse |
Interest rate |
Starts from 9.25% Interest rate discounts are available for female students or early repayment of loan |
Loan Margin |
Up to Rs. 4 lacs - 0% Above Rs 4 lacs - 15% |
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
Up to 15 years after the moratorium period |
Eligibility Criteria |
- Only Indian students are eligible to take education loans under this scheme |
Acceptable collaterals |
Liquid security - government bonds, Fixed deposits, LIC policies, |
Security |
|
This scheme is to provide financial assistance to persons with disabilities (PwD), so that they can fly abroad to pursue higher education.
Loan Parameters |
Details |
Loan Limit |
Up to Rs. 7.5 lacs without collateral With collateral up to - 100% value of collateral A greater amount can also be offered, depending on the student’s profile |
Expenses covered |
- Payment of Course fee |
Accepted co-applicant |
Parents, Parents in law, Siblings, Spouse |
Interest rate |
Starts from 8.80% Interest rate discounts are available for female students or early repayment of loan |
Loan Margin |
Up to Rs. 4 lacs - 0% Above Rs 4 lacs - 15% |
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
Up to 15 years after the moratorium period |
Eligibility Criteria |
- Students of Indian nationality are eligible to apply for education loans under this scheme |
Acceptable collaterals |
- Immovable property - Non-agricultural land, building, flat |
Security |
- For loans up to Rs 7.5 lacs - No collateral is required as it will be covered under CGFSEL |
Loan Parameters |
Details |
Loan Limit |
A greater amount can also be offered, depending on the student’s profile |
Expenses covered |
|
Accepted co-applicant |
Parents, Parents in law, Siblings, Spouse |
Interest rate |
Starts from 9.25% Interest rate discounts are available for female students or early repayment of loan |
Loan Margin |
|
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
Up to 15 years after the moratorium period |
Eligibility Criteria |
|
Acceptable collaterals |
|
Security |
|
Eligible courses to study in India
- Graduate courses from prestigious educational institutions including professional and technical courses run by the Government, UGC, AICTE approved institutions
- Course leading to diploma or degree from prestigious colleges, or universities in India
Loan Parameters |
Details |
Loan Limit |
A higher amount can be offered according to the student’s loan profile |
Expenses covered |
|
Accepted co-applicant |
Parents, Parents-in-law, siblings, spouse |
Interest rate |
One year MCLR of the bank, currently 7.75% |
Loan Margin |
|
Moratorium Period |
Course duration + one year |
Repayment Duration |
Up to 15 years after the moratorium period |
Eligibility Criteria |
The student should be an Indian national |
Acceptable collaterals |
Liquid security - Fixed deposits, government bonds, LIC policies |
Processing on education loans by Canara Bank, under the Vidya Turant education loan scheme, is 0%, the bank does not charge any amount from students to process their education loan. However, if students take an education loan with collateral, then students might have to pay Rs 7,500 - Rs 10,000 as legal and valuation charges.
NOTE: The amount offered as an education loan is dependent on the college or university in which you are taking admission, top institutes are categorized into Category A, Category B, and Category C institutes.
WeMakeScholars financial officers have the list of institutes falling under all the categories, request a callback or fill out the common application form to know, which institute is under which list, so you can get how much education loan.
This scheme is to provide financial assistance to persons with disabilities (PwD), so that they can fly abroad to pursue higher education.
Loan Parameters |
Details |
Loan Limit |
Loan greater than Rs 7.5 lacs will be offered as per IBA’s Model Education Loan scheme |
Expenses covered |
- Payment of Course fee |
Accepted co-applicant |
Parents, Parents in law, Siblings, Spouse |
Interest rate |
One year MCLR of the bank, currently 7.75% Interest rate discounts are available for female students or early repayment of loan |
Loan Margin |
|
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
Up to 15 years after the moratorium period |
Eligibility Criteria |
|
Acceptable collaterals |
Immovable collateral security - House, Building, Non-agricultural land, Flat |
Security |
|
Loan Parameters |
Details |
Loan Limit |
Up to 1 lacs or as proposed under bank policy |
Expenses covered |
Downpayment for seat selection to take admission |
Accepted co-applicant |
Parents, Parents-in-law, Siblings, Spouse |
Interest rate |
One year MCLR + 2%, currently 9.75% |
Loan Margin |
0% |
Repayment Policy |
The loan has to be cleared after the main education loan is sanctioned |
Eligibility Criteria |
- Student should appear in any Common Entrance Test conducted by - CBSE, IIT etc |
Processing fees |
NIL |
Loan Parameters |
Details |
Loan Limit |
Up to Rs 1.5 lacs |
Accepted co-applicant |
Parents/ Guardians |
Interest rate |
One year MCLR + 1.5%, currently 9.25% |
Loan Margin |
0 % |
Moratorium Period |
- If the course duration is 1 year then, 6 months |
Repayment Duration |
- Loan amount up to Rs 50000 - up to 3 years - Between Rs 50000 and Rs 1 lac - 5 years - Loan amount above Rs 1 lac - up to 7 years |
Eligible courses under the IBA Skill Loan Scheme
Courses offered by Training Institutes, affiliated with the National Skill Qualification Framework (NSQF) are considered eligible. Also, there is no minimum course duration, declared.
According to Canara Bank Education Loan Requirements:
The processing fees charged on student loan in Canara Bank is around 1-2% of the sanctioned loan amount. However, the bank does not charge any processing fee for some of its student loan schemes like Vidya Turant scheme. But, if you are taking study loan with collateral then you will have to pay an additional amount of Rs 7500 - Rs 10,000 for legal and valuation reports.
But WeMakeScholars does not charge anything from students, being a government-funded initiative, all our premium services related to loan sanctioning are totally free of cost. Reach out to your financial officer at WeMakeScholars, to start your loan process
There is a long list of documents required for study loan in Canara Bank, to process the loan, check out the list of the mandatory documents here:
Section 1: Canara Bank education loan application form
- Application for student loan along with two passport-size photos (online copy generated by WeMakeScholars is acceptable)
Section 2: Basic documents for Applicant (student) and co-applicant and/or Guarantor
- Identification proof –PAN Card and passport incase the student is going abroad
- Residence proof - Passport/ Ration card/ Voter ID Card/ / Bank account statement/ Telephone bill/ Aadhar card (two proofs if the present and current addresses are different).
- Current six month bank statement (Salary or personal account). In case the co-signer is self-employed, the statement should show one year's worth of transactions.
- Statement of Personal Assets and Liabilities.
Each document must be self-attested.
Section 3: Applicant academic documents
- Academic certificates and credentials (10th, 12th, and degree)
- Entrance exam score card
- Admission proof for the course (mentioning total duration of the course)
- Fee structure as given by the college or university
Section 4: Income documents of the Co-Borrower If the co-borrower is Salaried
- Employers ID card
- Recent salary slips (for last 3 months)
- Form 16 of the last 2 yrs.
- ITR of last 2 yrs
If the co-borrower is Self-employed
- Last 3 yrs balance sheet and Profit & Loss account (only if self-employed)
- ITR of last 3 yrs
- Address proof of business
Section 5: Other Documents
Notarised joint affidavit with the student and co-applicant in Bank’s standard format (Format to be provided by WeMakeScholars Financial officer)
Letter mentioning that left over other expenses, apart from loan amount will be paid by the co-applicant (Format will be provided by WeMakeScholars Financial officer)
Section 6: Additional docs (if applicable)
- All loan account statements (1 year) if any pending loans.
- Receipts of payments made previously if any.
- Gap certificate if the students had a break or failure in studies on Rs. 100 stamp paper. (Format to be provided by WeMakeScholars Financial officer)
Section 7: Collateral documents (Optional)
It is only applicable for loans with collateral. List of documents is different for each state. Your WeMakeScholars financial officer will provide you with a state-specific collateral documents list.
Your financial officer will provide you with a detailed documents checklist, when you process your student loan with WeMakeScholars, as per your profile analysis. To get your documents checklist request a callback or fill the common application form
The study loan insurance charges for Canara bank are around 1-2% of the loan. We recommend students to take the loan insurance because then, in case of any unprecedented situation, resulting even in the death of the applicant, the responsibility to repay the outstanding loan will be of the insurance company, not the parents or co-borrower of the loan.
This is a smart way to ensure your dependents. For more information about education loan insurance ask your financial officer while processing your loan with WeMakeScholars.
Loan Amount |
Loan Margin |
Loan amount below 4 lacs |
0% |
Loan amount above 4 lacs |
5% |
Loan Parameters |
Details |
Loan amount below 4 lacs |
0% |
Loan amount above 4 lacs |
15% |
Sometimes the loan margin amount is beyond the paying capacity of students, but there is no need to worry about it, as you can ask your financial officer about the methods to reduce loan margin. To speak to your financial officer, request a callback or fill out the common application form.
- Go to the Canara bank branch and enquire about the loan products
- Decide and select the best student loan product according to your eligibility and fill the loan form
- Ask for the list of required documents to start your loan process
- Visit the bank again just to submit your documents and finally start your loan process
Step 1: Fill out the online education loan form for Canara Bank
Step 2: Upon receiving a callback from your financial officer, provide all the required information, to get your loan profile analyzed
Step 3: Compare and choose your lender from all the lender options as per your eligibility and loan policies
Step 4: Upload your documents on the WeMakeScholars secure document portal, as per the documents checklist shared by your financial officer
Step 5: Your file will be logged in, after document submission. You will receive a confirmation of loan sanctioning within 2-6 days from private banks and within 15-20 days from Govt. banks.
Step 6: You can sign the loan agreement, after the sanction, and collect your sanction letter.
The process will not be as simple if you directly go to the bank and apply for the loan. Following are the issues, which students face if they approach directly to the banks to process their loan:
- Delay in process
- Lots of documentation
- Lack of proper customer service
- Incomplete information about loan schemes
- Partiality in legal & valuation reports
- No particular document checklist
- Multiple visits to the bank
But you can avoid these issues by processing your higher studies loan with WeMakeScholars because with WeMakeScholars you get the following benefits:
To start your higher studies loan application process with WeMakeScholars, Request a callback or fill out the common application form to start your loan application process at the earliest.
Education loan transfer helps the student to get a better deal with a lower rate of interest
- Better repayment plans
- Student-friendly loan conditions
- Easy bank policies
- Wider coverage of the loan scheme
Step 1: Ask for the outstanding loan amount proof from your current lender's bank
Step 2: Speak to your financial officer at WeMakeScholars, regarding your loan transfer
Step 3: Submit your document to Canara Bank, as per the documents checklist given by your financial officer.
As soon as your application is approved, your existing student loan will be transferred to Canara Bank and you have to now pay the loan to Canara Bank as per their repayment conditions.
Canara Bank does have its own loan EMI calculator, which is available on its website. But we suggest you use WeMakeScholars loan EMI calculator because it offers the following advantages:
The loan repayment process in Canara Bank can last up to 15 years, as that is the maximum repayment period for an educational loan taken from Canara Bank.
Suppose a student has applied to take a loan of Rs 30 lacs without collateral at a 12% interest rate and decides to pay back the loan in 10 years, then their amortization schedule will look like the following table:
Repayment cycle |
EMI |
Interest portion |
Principal portion |
Loan Outstanding |
Start of loan EMI |
42897 |
24507 |
18390 |
3441407 |
End of year 1 |
42897 |
23022 |
19874 |
3230318 |
End of Year 2 |
42897 |
21265 |
21631 |
2980555 |
End of Year 3 |
42897 |
19353 |
23543 |
2708715 |
End of Year 4 |
42897 |
17273 |
25624 |
2412847 |
End of Year 5 |
42897 |
15008 |
27889 |
2090828 |
End of Year 6 |
42897 |
12542 |
30354 |
1740344 |
End of Year 7 |
42897 |
9859 |
33037 |
1358881 |
End of Year 8 |
42897 |
6939 |
35957 |
943700 |
End of Year 9 |
42897 |
3761 |
39136 |
491821 |
End of Year 10 |
42897 |
302 |
42595 |
0 |
However, students can opt to repay their loan earlier, by applying the following methods:
- Opting for shorter repayment periods (as done in the above example)
- Considering transferring your study loan
- Part repayment or Prepayment
Tip: While repaying your outstanding loan amount, keep a little extra amount with the last EMI cheque, because if in case the branch manager closes your loan the next day, there shouldn’t be any additional outstanding amount.
For more such tips related to your loan repayment, start your sanctioning process with WeMakeScholars, request a callback, or fill out the common application form to start your loan process.
The Ministry of Social Justice and Empowerment launched the scheme for students belonging to EBC and OBC sections of the society, to give rebates on their interest payable within the moratorium period.
Eligibility criteria for Dr. Ambedkar Interest subsidy scheme for OBC and EBC students
- Admission must be secured by the student in masters. M.Phil, or PhD courses abroad
- Family income of the student should not be more than Rs 8 lacs per annum for EBC category and OBC category
- Caste certificate is mandatory for students belonging to OBC category.
- Loan taken from scheduled banks as per the Indian Banking Association guidelines are only acceptable
Benefit: Interest payable in moratorium period of the loan will be waived off.
The Ministry of Minority Affairs launched the scheme to benefit study abroad aspirants of EWS communities.
Eligibility criteria for Padho Pardesh Scheme
- Loan must be taken from scheduled banks as per the IBA guidelines.
- Students must take admission in courses like masters, Phd, or M.Phil
- Certificate of income approved by the government is mandatory
- Students family income should necessarily be less than Rs 6 lacs annually
Note: Padho Pardesh scheme has been discontinued by the government of India after 31st March 2022. But the eligible students will continue to get benefitted from the scheme if they have registered before 1st April 2022.
The MHRD, now the Ministry of Education, introduced the programme to provide interest waivers on student loans taken out by those from the EWS portion of society.
CSIS eligibility requirements
- Students need documentation from the EWS sector of society proving their membership.
- Students must be accepted into authorized study programmes solely in India.
- The student's family's annual income should not be more than Rs. 4.5 lacs.
Benefit: As part of the programme, qualifying students who borrowed money to study in India during the moratorium period are exempt from paying interest on their loans.
What is the interest rate offered on an education loan by Canara bank?
Interest rate in Canara bank starts from 7.75% (current 1 year MCLR of the bank), however the interest rate is floating and depends on the other components like, repo rate and spread rate. However, girl students are offered an interest rate discount, and also those students who choose to repay their loan earlier.
How does the Canara bank emi calculator work?
Canara bank loan EMI calculator is available on their website for students to calculate their EMI. But we suggest students to use WeMakeScholars loan EMI calculator to get more accurate and deeply analyzed results.
What is the processing fee for an education loan in Canara bank?
The processing fees for taking study loan from Canara bank is around 1-2% of the sanctioned loan amount. However, the exact percentage depends upon the amount of loan taken. But you can process your student loan with WeMakeScholars for free of cost, so ask for a callback to start your loan process today.