Canara Bank Education Loan

Canara Bank education loan products offer financial assistance to students admitted to premier institutions in India and abroad for their higher studies. The education loan by Canara Bank is offered under the following products:

For abroad studies
- Scheme for pursuing a Master’s Degree
- Vidya Sagar Scheme
- Vidya Shakthi Scheme (Conditions Will Be Same As Vidya Sagar Scheme)

To study in India
- Vidya Sagar Scheme for India
- Vidya Turant
- Vidya Shakthi
- Vidya Sahay
- IBA Skill Loan Scheme

NOTE - Vidya Shakti for abroad is the same as the Vidya Sagar Scheme 

Scheme For Pursuing Master’s Degree

In the below table are the features offered by this scheme to pursue a master's degree abroad:

Processing fee for scheme for pursuing Master’s degree

Vidya Sagar Scheme

In the below table are the details of the Vidya Sagar scheme offered by Canara Bank:

Vidya Shakti Scheme 

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

Check out all the features offered by the Vidya Sagar scheme for pursuing your higher studies abroad in the table below:

Eligible courses to study in India

- Graduate courses from prestigious educational institutions including professional and technical courses run by the Government, UGC, and approved institutions
- Course leading to diploma or degree from prestigious colleges, or universities in India

Vidya Turant Scheme 

The information regarding the Vidya Turant Scheme is mentioned in the table provided below:

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. 

Vidya Shakthi Scheme

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

Vidya Sahay Scheme 

An overview of the features and information about the Vidya Turant Scheme are given below.

IBA Skill Loan Scheme

The table below provides details about Canara Bank's 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 a study loan in Canara Bank, to process the loan, check out the list of 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 in case 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's academic documents

- Academic certificates and credentials (10th, 12th, and degree) 
- Entrance exam scorecard
- Admission proof for the course (mentioning the 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 the last 3 months)
- Form 16 of the last 2 years.
- 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

The list of documents is different for each state. The complete document checklist will provide you with a state-specific collateral documents list.

The study loan insurance charges for Canara bank are around 1-2% of the loan. We recommend students 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.

To Study in India

To Study Abroad

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 out 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.

Transferring your education loan to Canara Bank has benefits like lower interest rates, better repayment plans, and student-friendly terms. Here's how to do it:

• Get proof of your outstanding loan from your current lender.
• Talk to your WeMakeScholars financial officer about transferring your loan.
• Submit the necessary documents to Canara Bank as per your financial officer's checklist.
• Once approved, your existing loan shifts to Canara Bank, and you follow their repayment conditions.

Canara Bank does have its own loan EMI calculator which is available on its website. But we suggest you use the 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 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. 

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.