Canara Bank Education Loan

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 

Scheme For Pursuing Master’s Degree

Education loan scheme for students to study abroad in top universities of the world

Processing fee for scheme for pursuing Master’s degree

Vidya Sagar Scheme

VIDYA SHAKTHI 

This scheme is to provide financial assistance to persons with disabilities (PwD), so that they can fly abroad to pursue higher education.

Vidya Sagar Scheme

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

Vidya Turant

Processing fee under the Vidya Turant scheme

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. 

Vidya Shakthi 

This scheme is to provide financial assistance to persons with disabilities (PwD), so that they can fly abroad to pursue higher education.

Vidhya Sahay

IBA Skill Loan Scheme

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:

• 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

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.

To study in India

To study abroad

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.

Offline application process

- 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

Online Application process via WeMakeScholars

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:

• Expert guidance - As per the analysis of your loan profile, your financial officer will guide you through the complete loan process to choose the best lender as per bank policies and your eligibility.
• Minimal Processing Time - We make every effort to approve study loans from commercial banks & NBFCs within 7 days after receiving the required paperwork, and from government banks within 15-20 working days.
• Support for negotiations - We go above and beyond to negotiate with lenders on your behalf to get the best possible interest rate and loan terms.
• End-to-end support - Even after getting your loan sanctioned, we will still be available at your service, till the last repayment of your EMI, even after 15 years.
• Better Interest Rates - Since we are the banks' largest partner, they provide students who handle their student loans with us with special interest rate discounts ranging from 0.5% to 2% on the going rate. 
• Tax benefits - We guide you throughout the repayment process to save tax under Section 80E, 80C, etc of the Income tax department, along with the tax collected at source (TCS).
• Digitized application process - WeMakeScholars' digitized application procedure eliminates the inconvenience of having to visit the bank many times merely to turn in the required paperwork.
• Cashback offer - A cashback of up to Rs 3,000 could be won by you from our side, at the time of your loan disbursement.
• Free-of-cost services - We are funded and supported by the Ministry of Electronics & Information Technology, under the Digital India Campaign, and therefore all our premium loan sanctioning services are entirely free of cost for all students.

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

How to transfer your education loan to Canara Bank?

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:

• Strategic advantage - After getting an idea from the repayment statistics, you can plan and organize your EMI repayment strategy accordingly.
• 100% accuracy - The calculator is specially designed to consider each and every factor while calculating. Therefore it gives 100% accurate results
• Detailed Explanation - You get a separate division of interest amount and the principal amount deducted from your EMI, along with the semester-wise division of disbursement. 
• No cost - The education loan EMI calculator is free of cost, just like all other services of WeMakeScholars. 

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:

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.

Dr. Ambedkar Interest subsidy scheme for OBC and EBC students

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.

Padho Pardesh Scheme

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.

Central Scheme for Interest Subsidy (CSIS)

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.