Quality education is one thing every child must live a fulfilled life, make ends meet, and be exposure needs. Sadly, this type of education is not affordable for everyone who merits it.
This is why banks like Canara Bank choose to help by providing education loans. Canara Bank education loans aim at providing outstanding students the assistance they need in pursuing their desired course of study.
One interesting thing about these is that their interest rates are low when compared with other education loans. Hence, their interest rates are very competitive for education at India’s best institutes as well as studying abroad.
Aside from their interest rate, there are other interesting facts about this education loan that would be of great interest to you.
So, if you need an education loan and you’re already considering a Canara Bank education loan, carefully read through to learn more.
This article provides detailed information about this education loan. It also provides answers to the most commonly asked questions regarding this education loan.
Read on!
About Canara Bank
Canara Bank is one of the largest government-owned banks in India. It is owned by the Ministry of Finance, Government of India.
Its headquarters are in Bengaluru. Ammembal Subba Rao Pai founded the bank in Mangalore in 1906, and the government nationalized it in 1969.
The bank also has offices abroad in London, Hong Kong, Moscow, Shanghai, Dubai, Tanzania, and New York.
What is Canara Bank Education Loan?
Canara Bank Education Loan is a loan from the Canara Bank to individuals in order to enable them to pursue higher education in the country and abroad.
Basically, the loan is available at low interest rates and can repay within 15 years of being granted. The bank offers a 0.50 percent interest rate discount to female students.
It is a popular option however for students who wish to take an education loan for their higher studies, in India or abroad.
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What Does the Canara Bank Education Loan Cover?
Getting this education loan just like every other educational loan can go a long way in making your studying easy. This is because it takes care of so many educational needs. For clarity, getting a Canara bank education loan will take care of the following:
- Your tuition Fee Examination Fee Library/Laboratory Fee Hostel Fee Books, equipment, instruments, or uniforms.
- Miscellaneous expenses including study visits, project work, thesis writing, and so forth.
- Can get you a computer or laptop at a reasonable price (if required).
How much education loan can I Get from Canara Bank?
How much you loan you get depends on soles on the loan scheme you opt for. Basically, there are 5 Canara Bank Education loan schemes available at the bank.
For instance, if you apply for the Vidya Truant scheme and get admission to “A” category institutes, you can get a maximum loan of INR 40 lakhs.
On the flip side, if you get admission to study at a ‘B’ category institute, you will be eligible for a maximum loan sum of 25 lakhs.
Still under the Vidya Turant initiative, if you apply to other colleges, you will be entitled to a maximum loan sum of INR 20 lakhs.
What is the Canara Bank Rate of Interest for Education Loan?
The bank charges interest in accordance with the RBI’s standards. Canara Bank’s current MCLR is 8.70%. For a loan of up to INR 7.5 lacs, the interest rate is 10.70 percent. And the RoI is 10.50% for amounts greater than INR 7.5 Lacs.
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Who Can Apply For Canara Bank Education Loan?
To be eligible for Canara Bank Education Bank Loan, you must:
- Be an Indian citizen or have a valid Indian passport.
- Have 3 years of working experience with any organization.
- Be ready to acquire higher professional qualifications
- Must be a 10+2 from a recognized institute is required.
- Be a co-borrower or co-signer. A co-borrower must be a member of the same household.
- You must have applied for a course at a reputable, government-recognized institute.
Canara Bank loan margin for Education Loan
Canara Bank’s IBA Model Education Loan scheme, like all government bank education loans, contains a Loan Margin. In the Canara Bank Education Lending process, the loan margin is 15%. The loan margin is the amount of money that the student must contribute with each installment.
The bank believes that when a student contributes some of his own money, he is more committed to finishing his degree. Canara Bank’s loan margin for education loans is 15%, and it must be paid on a pro-rata basis.
That is, with each distribution, the bank will first ask the student to contribute 15% of the required amount, after which the bank will distribute the remainder of the money.
Read: International Student Loans in the UK: How to Get and Payback in 2024
What are the Available Canara Bank Education Loan Schemes?
Canara Bank offers 5 different education loan schemes. They include:
- IBA Model Education Loan Scheme
- Vidya Turant
- Vidya Sahay
- IBA Model for India Loan Scheme
- Vidya Shakti
1. IBA Model Abroad Education Loan Scheme
This Education Loan scheme is specifically for students in premier universities who want to study abroad. The following are what you must note before you choose this loan option:
- You must be an Indian resident
- The scheme is available for both inland and abroad education
- Girl students get a concession of 0.50%
- Up to 7.5 Lakh has ongoing One Year MCLR+2.00 %, while above 7.5 Lakh has ongoing One Year MCLR+1.50 %
- Concession of 0.50% offered for prompt repayment of interest during the moratorium
- There is a Moratorium of 1 year
- The bank gives Zero-Margin facility for loans up to INR 4 Lacs.
- For above Rs.4.00 Lakhs, the bank gives studies in India 5% and 15% to abroad studies.
- The loan is granted jointly with the parent/guardian
2. Vidya Turant
This type of scheme is for people who want to study in the premier institutes such as IITs and IIMs. The following are what you must note before you choose this loan option:
- You must be an Indian resident
- It’s available for people who want to pursue higher studies in selected IIMs, IITs, IISc. ISBs and other reputed institutions.
- It doesn’t require an upfront or processing fee
- There is no collateral security
3. Vidya Shakti
This Canara Bank education scheme aims at assisting students from the PWD category who require an education loan to pursue special equipment courses in India.
Education loans for international studies will be issued in accordance with the provisions of the IBA Model Education loan/Skill loan scheme.
The following are what you must note before you choose this loan option:
- The student must be an Indian national with a physical disability to the extent of 40% or more
- It can be availed for pursuing special devices courses in the country
- There is no margin for up to 4 lakhs.
- Meanwhile, a margin above 4 lakhs is 5%
- No collateral Security up to a limit of Rs 7.5 lakhs.
- Loan granted jointly with parent/guardian and student.
- Loans up to a limit of Rs 7.50 lakhs sanctioned are to be invariably covered under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL) guarantee scheme.
- Repayment tenure can go up to 15 years (depending on the course)
- No processing fees.
- Repayment of the loan will be in equated monthly Installments up to a maximum of 15 years excluding the moratorium period.
4. Vidya Sahay
This scheme aims to assist needy and meritorious students who require a down payment to be given to the CET/counseling Authorities during the selection/counseling process.
It is designed for students who have taken their state common entrance test, CBSE, IIT, and all India examination and selected for counseling.
The following are what you must note before you choose this loan option:
- The maximum eligible amount would be Rs.1 Lakh
- The student must have cleared the previous qualifying exam
- There is no margin
- There is no upfront payment fee
- Loan granted jointly with parent/guardian and student
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5. IBA Model for India Loan Scheme
This education loan is offered for studies in reputed universities. What to note about this scheme includes:
- The bank gives Zero-Margin facility for loans up to INR 4 Lacs.
- Repayment of the loan can be made within 7 years (depending on the borrowed amount)
- Has INR 10 Lacs maximum loan limit.
- It’s available for courses run by training institutes aligned to National Skill Qualification Framework (NSQF)
- The loan will be covered under the Credit Guarantee Fund Scheme for Skill Development (CGFSSD)
- No collateral if the loan amount is less than INR 4 Lacs.
Is Canara Bank education loan available for all types of degrees and disciplines?
Canara Bank’s IBA model education loan is offered for graduate and postgraduate degrees in India and abroad.
Under this scheme, courses leading to a degree or diploma from Indian colleges certified by appropriate agencies such as UGC/Government, AICTE/Department of Electronics/IMC, autonomous institutions such as IIM, IIT, and others are eligible for a loan.
Students who want to apply for a Canara Bank education loan online can contact GyanDhan for assistance with the Canara Bank education loan application process.
Repayment Procedures
Canara Bank Education Loan Payback terms state that repayment begins one year after degree completion or six months following employment, whichever comes first.
There is a penalty fee of 2% of the loan amount that must be paid if the loan is not paid on time. So, please be punctual in returning your Canara Bank education loan.
Read: Best Loan Repayment Programs for Social Workers.
Are there Documents Required?
Yes. To be able to apply for Canara Bank Education Loan, you must have the following documents:
- Duly filled application form
- A Passport-size photograph
- An identity proof which can be your Voter ID, Aadhaar card, driving license, passport, PAN etc.
- Date of birth Certificate
- Letter of Admission from the University
- Academic mark sheets and certificates (10th, 12th, subsequent exams if applicable)
- Admission letter or call letter from the institute.
- Scorecard of qualifying exams like IELTS, TOEFL, GRE, or GMAT
How Do I Apply for Canara Bank Education Loan?
Canara Bank offers education loans both online and in person. To apply online:
- Visit the official website for Canara Bank Education Loan and select IBA Model Loan Scheme
- Click on ‘APPLY NOW’
- Complete the form with the required information
- Submit the required documents
- Submit the form and print a copy of the application.
- Further requirements must be completed at a Canara Bank branch.
You can also go to a bank branch with the proper documentation and get the money to help pay for your courses.
Click here to apply: Visit Gyandhan
Before we wrap it up, let’s talk about Canara Bank education loan EMI calculate:
Canara Bank Education Loan EMI Calculator
The Canara Bank Education Loan EMI calculator is designed to help you compute or calculate the amount of money you need to pay as EMI.
To do that, enter the specific amount that you’re expected to pay. Add the interest rate, and repayment tenure, then click on calculate.
Reference:
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