Canara Bank Education Loan

Canara Bank Education Loan Interest Rates

Canara Bank Education Loan Schemes

1. Education Loan Scheme for Pursuing Master’s Degree

The purpose of this education loan is to offer funds to individuals who wish to pursue higher education.

Features and Benefits:

1. Low processing charge and interest rate
2. High quantum of loan
3. There is no prepayment penalty

Quantum of Loan:

1. Minimum: Rs.7.50 lakh
2. Maximum: for collateral coverage of 100% and more: Min Rs.7.50 lakh, no maximum cap (as per project cost)
3. For collateral coverage of less than 100%: Maximum Rs.100 Lakh

Eligible Courses:

1. Masters Degree under STEM (Science, Technical, Engineering and Management) courses

Margin:

1. 10% of the loan amount. A margin may be introduced on an annual basis as and when pro rata payments are made

Processing Fee:

1. Less than 100%: 0.50% of the sanctioned limit, Maximum (Rs.20,000)
2. 100% and above: 0.50% of the sanctioned limit, Maximum (Rs.10,000)

Security:

1. Assignment of the student's future earnings
2. A parent or legal guardian must become a co-borrower
3. Collateral security from 50% to 100%

Expenses Covered:

1. Complete financing for tuition
2. Living costs while studying overseas
3. Travel costs and passage money for overseas study
4. Premium for the student borrower's health insurance, if any

Repayment:

1. The loan will be repaid over the duration of the course plus one year in equal monthly instalments, with a maximum term of 15 years excluding the moratorium period
2. According to the loan amount, a skill development loan may last three to seven years

1. Eligibility: 

1. Indian nationals with a valid passport
2. The student must have received admission from a specific institution
3. The student must have met the minimum requirements for the GRE, GMAT, SAT, and ACT

2. IBA Model Education Loan Scheme

The IBA Model Education Loan Scheme has been designed to cover various expenses related such as course fees, travel costs, library/laboratory fees, insurance premium, etc.

Features and Benefits:

1. Low processing charge and interest rate
2. There is no prepayment penalty

Quantum of Loan:

1. Based on a student’s financial needs

Eligible Courses:

1. Undergraduate and postgraduate degrees, as well as technical and professional courses from reputable universities and colleges that have been approved by the government, AICTE, the Department of Electronics and IMC, and autonomous institutions such as IIM and IIT. Any courses that lead to degree/diploma from recognised Institutes/Colleges/Universities for studies within India
2. Courses leading to undergraduate, graduate, postgraduate, PhD, and postgraduate diploma degrees for studies abroad

Margin:

1. Nil for up to Rs.4 lakh
2. 5% for studies in India
3. 15% for studies overseas

Security:

1.  Assignment of the student's future earnings
   

Expenses Covered:

1. Complete financing for college/school/hostel
2. Living costs while studying overseas
3. Travel costs and passage money for overseas study
4. Premium for the student borrower's health insurance, if any
5. Fee for the examination, library, and the laboratory
6. Building funds, refundable deposits, and caution deposits backed by invoices from the institution

1. Purchase of an affordable computer, if necessary
2. Purchase of equipment, book, instruments, and uniforms
3. Any additional costs necessary to finish the course are subject to a limit

Repayment:

1. The loan will be repaid over the duration of the course plus one year in equal monthly instalments, with a maximum term of 15 years excluding the moratorium period
   

Eligibility:

1. Indian nationals with a valid passport
2. NRI students with a valid passport

3. IBA Skill Loan Scheme Education Loans

The IBA Skill Loan Scheme offered by Canara Bank aims to assist with the national skill development initiatives.

Features and Benefits:

1. The interest rate is low
2. There is no margin
3. There is no prepayment penalty and collateral security
   

Quantum of Loan:

1. Based on finance ranging from Rs.5000 to Rs.1.5 lakh

Eligible Courses:

1.  The National Skill Qualification Framework (NSQF)-aligned Training Institutes' courses are eligible for coverage

Margin:

1. Nil

Security:

1. Assignment of the student's future earnings
2. A parent or legal guardian must become a co-borrower
3. Collateral security from 50% to 100%

Moratorium:

1. 6 months from the date of the completion of a course of up to one year
2. 12 months from the date of the completion of a course of more than a year

Repayment:

1. 3 years for loan quantum of up to Rs.50,000
2. 5 years for loan quantum of Rs.50,000 to Rs.1 lakh
3. 7 years for loan quantum of more than Rs.1 lakh

Eligibility:

1. All Indian nationals are eligible for this loan

4. Vidya Turant Education Loan

The Vidya Turant education loan aims to offer education loans to deserving students attending select universities to pursue higher education.

Features and Benefits:

1. No processing charge and lower interest rates
2. High quantum of loan
3. There is no collateral security and prepayment penalty

Quantum of Loan:

1. Up to Rs.50 lakh for students studying in ISB, Hyderabad & Mohali
2. Up to Rs.40 lakh for students studying in IITs, IIMs, Symbiosis Groups, BITs, IMI, etc.
3. Up to Rs.30 lakh for all other institutions

Margin:

1. Nil
   

Security:

1. Assignment of the student's future earnings

Expenses Covered:

1. Complete financing for college/school/hostel
2. Living costs while studying overseas
3. Travel costs and passage money for overseas study
4. Premium for the student borrower's health insurance, if any
5. Fee for the examination, library, and the laboratory
6. Building funds, refundable deposits, and caution deposits backed by invoices from the institution
7. Purchase of an affordable computer, if necessary

1. Purchase of equipment, book, instruments, and uniforms
2. Any additional costs necessary to finish the course are subject to a limit

Repayment:

1. The loan will be repaid over the duration of the course plus one year in equal monthly instalments, with a maximum term of 15 years excluding the moratorium period
2. There won't be any fees associated with early loan repayment at any point during the repayment term

Eligibility:

1. According to eligibility based on income and other standards, all Vidya Turant education loans may be covered by the Central Scheme of Interest Subsidy on Education Loans (CSIS scheme)

5. Vidya Shakthi Education Loan Scheme Guidelines

The Vidya Shakti education loan provides funds to the PWD category students who want to pursue the special devices courses in India. Study abroad loans will be granted in accordance with the IBA Model Education Loan/Skill Loan Scheme guidelines.

Features and Benefits:

1. No processing charge and lower interest rates
2. High quantum of loan
3. There is no collateral security and prepayment penalty

Quantum of Loan:

The following requirements must be met before need-based financing is considered.

1. Up to Rs.1 lakh for vocational, certificate, diploma, and skill courses
2. Up to Rs.7.5 lakh for degree programmes

Excessive loan amounts should be approved under the IBA's Model Education Loan scheme.

Margin:

1. Nil for up to Rs.4 lakh
2. 5% Above Rs.4 lakh

Security:

1. Assignment of the student's future earnings
2. A parent or legal guardian must become a co-borrower
3. No security collateral up to a maximum of Rs.7.5 lakh
4. Loans up to a maximum sanctioned amount of Rs.7.5 lakh must always be covered by the Credit Guarantee Fund Scheme for Education Loans (CGFSEL)

Repayment:

1. The loan will be repaid over the duration of the course plus one year in equal monthly instalments, with a maximum term of 15 years excluding the moratorium period

1. Based on the loan amount, a skill development loan may last three to seven years

Eligibility:

1. The student must be an Indian national who has at least a 40% physical disability

 6. Vidya Sahay Education Loan Scheme Guidelines

The Vidya Sahay offered by Canara Bank helps meritorious students who require the down payment for CET and counselling.

Features and Benefits:

1. No processing charge and lower interest rates
2. There is no collateral security and prepayment penalty
   

Quantum of Loan:

1. The first payment suggested by the CET Authorities or a maximum of Rs.1 lakh, whichever is less

Processing Fee:

1.  Nil

Margin:

1. Nil

Security:

1. A parent or legal guardian must become a co-borrower

Repayment:

1. After a regular education loan has been approved, the loan must be paid back

Eligibility:

1. Students who qualified for counselling after taking the common entrance exam administered by their state governments, CBSE, IIT, and other all-India exams
2. The student must be a citizen of India
3. Students must have passed the prior qualifying test

How to Apply for Canara Bank Education Loan

A Canara Bank education loan can be applied online or in person. Go to the bank's official website and follow the instructions there to apply for a loan. You can also go to a bank office and get money to assist you pay for your studies if you have the right papers.