Canara Bank Education Loan Interest Rate 2024

Canara Bank offers students a financial aid program called a Canara Education Loan to help them pay for their academic pursuits. This loan, which has flexible repayment options and affordable interest rates, is intended to cover various educational costs. By offering financial assistance for various courses, it seeks to make high-quality education more affordable and facilitate students’ pursuit of their academic objectives.

Canara Bank Education Loan Interest Rates 2024

Canara Bank Education Loan Scheme Name	Loan Amount Limit	Interest rate (in % p.a.)
Education Loan Scheme for Pursuing Master’s Degree (from Top Universities of World)	≤ Rs.1 crore	9.25% – 11.35%
IBA Model Education Loan Scheme	Need-based financing	Contact the bank
Vidya Sagar Scheme	≥ Rs. 7.50 lakhs	10.25% – 11.25%
IBA Skill Loan Scheme	Rs. 5000 – Rs. 1.5 lakhs	9.25% – 10.75%
Vidya Turant	≤  Rs.40 lakhs (on the basis of category of institutions)	8.60% – 11.35%
Vidya Shakthi	Degree courses:  ≤ Rs.7.5 lakhsVocational, certificate, diploma and skill loan: ≤ Rs.1.5 lakhs	9.25%
Vidya Sahay	≤ Rs.1 lakh	11.25%

Canara Bank Education Loan Schemes

Canara Bank Vidya Turant

Canara Vidya Turant’s mission is to support academic success by offering top students at esteemed universities including IIMs, IITs, NITs, IISc, ISB (Hyderabad & Mohali), and others hassle-free education loans.

Terms and Conditions	Values
Margin	NIL (Scholarship/assistantship included in margin)
Loan Amount Limit	Loan Category	Institutions	Maximum Eligible Limit
	A	ISB, Hyderabad & Mohali	≤ Rs. 50 lakhs
	B	IIMs (19), IITs (23), Symbiosis Groups (5), BITS (4), IIFT (2), IMI (1), IRMA (1), ISM (1), IMT (1), KJSIMSR (1), MDI (1), SPJINMR (1), NMIMS (1), RGIIM (1), XIM (1), XLRI (1), and others	≤  Rs 40 lakhs
	C	All other institutions, excluding A and B (109)	≤  Rs 30 lakhs
Processing Charges	NIL
Security	Assignment of future income; No security up to specified limits for Group “A,” “B,” and “C” institutes
Repayment Tenure	Up to 15 years in equated monthly instalments (excluding the moratorium period)
Prepayment Penalty	None during the repayment period
Expenses Covered	Fee, examination/library/laboratory fee, travel expenses, insurance premium, caution deposit, books/equipment/uniforms, computer purchase, and other course-related expenses
Eligibility under the CSIS Scheme	The CSIS program can cover all Vidya Turant education debts, provided that the borrower meets qualifying requirements based on income and other standards..

Canara Bank Vidya Shakthi Scheme

Category	Details
Purpose	To support PWD category students seeking education loans for specialized courses in India. For overseas studies, loans will adhere to IBA Model Education Loan/Skill Loan scheme guidelines.
Loan Quantum	Degree Courses: Up to Rs 7.50 lakhsVocational/Certificate/Diploma/Skill Loan Courses: Up to Rs 1.50 lakhsLoans beyond these limits follow IBA’s Model Education Loan scheme.
Margin	Up to Rs 4.00 lakhs: No marginAbove Rs 4.00 lakhs: Minimum 5% margin (including scholarships/assistantships).
Processing Charges	NIL, including Vidya Lakshmi portal referral fee.
Security	Assignment of the student’s future incomeParent/guardian as Co-borrowerNo collateral security up to Rs 7.5 lakhsLoans up to Rs 7.50 lakhs are covered under the Credit Guarantee Fund Scheme For Education Loans (CGFSEL).
Repayment Tenure	Equated Monthly Installments (EMIs) up to 15 years (excluding the moratorium period) for general education loansFor skill development loans, 3 to 7 years depending on the loan quantum.
Eligibility under the CSIS Scheme	Subject to income and other requirements, all Vidya Turant student loans are covered by the Central Scheme of Interest Subsidy on Education Loans (CSIS).

Canara Bank IBA Skill Loan Scheme

Category	Details
Purpose	Skill Loan Scheme is designed to support national skill development initiatives.
Loan Quantum	Need-based financing ranges from Rs. 5,000 to Rs. 1,50,000.
Eligible Courses	Courses aligned with the National Skill Qualification Framework (NSQF) offered by Training Institutes are covered.No minimum course duration is required.
Margin	NIL
Security	Assignment of the student’s future incomeLoan jointly granted with the parent/guardianCovered under the Credit Guarantee Fund Scheme for Skill Development (CGFSSD)No collateral or third-party guarantee is required
Moratorium	Moratorium period of 6 months to 1 year, depending on the course periodMoratorium Period: Up to 1-year course: 6 months from course completionAbove 1 year course: 12 months from course completion.
Repayment Tenure	The repayment period is from 3 to 7 years, depending on the loan quantum.
Loan Tenure	For a loan of up to Rs. 50,000: Up to 3 yearsFor loans above Rs. 50,000 and up to Rs. 1,00,000: Up to 5 yearsFor loans above Rs. 1,00,000: Up to 7 years.

Canara Bank IBA Model Education Loan Scheme

Category	Details
Loan Quantum	There is need-based financing available.Applying students can be done at bank branches close to the school or where their parents live.
Eligible Courses	For Studies in India: Graduation, post-graduation, including technical/professional courses from recognized colleges/universities approved by UGC/Government, AICTE/Department of Electronics/IMC, autonomous institutions like IIM, IIT, etc. Any courses leading to a degree/diploma from reputed Institutes/Colleges/Universities for studies in India. For Abroad Studies: Courses leading to undergraduate, post-graduation/Ph.D., Post Graduate Diploma, etc., are eligible.
Margin	Up to Rs. 4.00 Lakhs: NilAbove Rs. 4.00 Lakhs (Studies in India): 5%Above Rs. 4.00 Lakhs (Studies abroad): 15%.
Security	Assignment of the student’s future income. Merit Quota:Up to Rs. 7.50 Lakhs: No collateral security, covered under Credit Guarantee Fund Scheme for Education Loans (CGFSEL) subject to conditionsAbove Rs. 7.50 Lakhs: Tangible collateral security to cover at least 100% of the loan amount.Management Quota:Up to Rs. 4.00 Lakhs: No collateral securityAbove Rs. 4.00 Lakhs: Tangible collateral security to cover at least 100% of the loan amount.
Repayment Tenure	Repayment in equated monthly installments up to a maximum of 15 yearsIt excludes the moratorium period (i.e., course period plus one year)No prepayment penalty during the repayment period.
Expenses Considered for Loan	Course payment due to the college, school, or hostel.Fee for the examination, library, and lab.Travel and transit costs associated with studying overseas.If appropriate, the student borrower’s insurance premium.Building funds, refundable deposits, and caution deposits backed by invoices or receipts from the institution.acquisition of uniforms, instruments, literature, and equipment.if it’s necessary to buy a computer at a fair price to finish the course.The amount of additional money needed to finish the course has a cap.

Canara Bank Vidya Sahay Scheme

Category	Details
Purpose	To assist financially disadvantaged and deserving candidates who require help paying the CET/counselling authorities’ down payment throughout the selection and counseling process.
Loan Quantum	The maximum eligible amount is Rs. 1 Lakh or the initial payment proposed by the CET Authorities, whichever is less.
Margin	NIL.
Processing Charges	NIL.
Security	Parent/guardian must join as a co-borrowerNo collateral security is required
Repayment Tenure	The loan is to be repaid after the sanction of the regular education loan.

Benefits of the Canara Bank Education Loan

The following is a summary of the Canara Education Loan facility’s main advantages:

• Competitive Interest Rates: Take advantage of lower rates than those offered by other lenders, which will help you budget for your educational expenses.
• No Security Needed: Your family’s finances are freed up since loans up to Rs. 7.5 lakhs do not require any real estate or other assets as collateral.
• Lowering Balance Interest: Over time, your monthly payments will become less by paying interest only on the remaining loan balance.
• No Penalty for Prepayment: Early loan repayment allows you to avoid additional fees and offers flexibility as well as the possibility of savings.
• Faster Processing and Disbursement: Get your loan authorized and the money disbursed as soon as possible so you can start studying.
• Interest Subsidy Central Scheme (CSIS) Eligibility: Take advantage of government subsidies to lower your interest costs, according on your income and course.
• Zero Processing Charges: Reduce application fees, which makes Canara Bank a more economical choice.
• Different Loan Plans: Select from a range of programs catered to varying needs and educational backgrounds, guaranteeing a great match for your objectives.
• Quick Customer Support: Take use of the resources and friendly professionals at Canara Bank to help you navigate the loan application process.

Charges & Fees for Education Loans from Canara Bank

The following table lists the fees associated with student loans from Canara Bank:

Fee/Charge	Description	Applicable To
Processing Fee	Nil	All loans
Prepayment Penalty	Nil	All loans
Margin on loan amount	Varies depending on course (mostly Nil or 5-15%)	Based on the IBA Model Scheme and loan amount
Guarantor/co-applicant charges	Applicable if required (varies based on bank’s discretion)	Not applicable in all cases
Late payment charges	2% per month on the outstanding balance	This applies to delayed payments
CIBIL reporting charges	Nominal annual fee for credit score maintenance	All borrowers

The following is a list of the documents needed to apply for an education loan from Canara Bank:

Essential Documents

• Application form: Filled and signed
• Photos: Passport-size (2 copies)
• ID proof: PAN card, Aadhaar, Voter ID (anyone)
• Address proof: Aadhaar, Voter ID, driving license (anyone)
• Date of birth proof: Birth certificate, school leaving certificate
• Academic docs: Mark sheets, admission letter/call letter
• Additional (depending on the situation):
• Fee schedule: Breakup of course costs
• Income proof of co-applicant/guarantor: Salary slips, ITRs
• Property documents: For loan amounts exceeding specific limits

How to Apply for a Canara Bank Education Loan?

The following are the stages involved in applying for Canara Bank’s education loan schemes:

• Choose your application method

1. Online: Visit Canara Bank’s website and apply through their e-Beckon portal.

2. Offline: Head to your nearest Canara Bank branch and submit a physical application form.

• Collect the necessary documents

Duly filled application form

Passport-size photographs

Identity proof

Address proof

Date of birth proof

Birth certificate, school leaving certificate, etc.

Academic document

• Submit Your Application:

Online: Upload all documents and submit the application electronically.

Offline: Submit the completed form and documents at the bank branch

• Loan processing and disbursal:

The bank will check your documentation and determine your eligibility.

The loan money will be deposited to your account or sent directly to the educational institution upon approval.

With affordable interest rates, various repayment options, and a simple application process, the Canara Bank student loan is a dependable financial alternative for prospective students. By relieving students and their families of some of the financial burden associated with their education, Canara Bank, a reputable banking institution, helps make educational ambitions come true.

Also Read: ICICI Bank Education Loan Interest Rate 2024

FAQs

What is the student scheme of Canara Bank?

Canara Bank’s Vidya Turant is a premium education loan program that offers students at top Indian universities collateral-and security-free loans at a discounted interest rate.

How to repay a Canara Bank student loan?

The loan will be repaid during the course of the course plus one year in equal monthly installments, with a maximum term of 15 years. At any point during the repayment term, there won’t be a prepayment penalty assessed for loan prepayment.

Is Canara Bank eligible for scholarship?

Candidates should be enrolled in undergraduate, graduate, professional, or research degree programs in order to be eligible to apply for the Canara Bank Scholarship. The candidate must be aware that the bank offers numerous unique scholarships, some of which may need postgraduate training in addition to a maximum age limit.