Canara Bank education loan starts with an interest rate of 9.50% p.a., for domestic countries and abroad. The popular education loans include Vidya Sahay, Vidya Turant, and so on.
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Canara Bank Education Loan with various schemes namely Vidya Turant, Vidya Sahay, Education Loan under IBA Model, Model Loan Scheme for Vocational Education and Training. There are many key factors in the Canara bank education loan that will attract the students towards the bank. In addition, no collateral is required for a student loan at Canara Bank up to INR 4 Lakhs.
With this article get the highlights about the various Canara Bank Education Loan Schemes as of February 2022.
Canara Bank Education Loan Schemes
The primary purpose of the Canara bank education loan provision is to help students with,
- Payment of tuition fees, hostel fees, and examination fees
- Purchase books, course material, instruments, and uniforms
- Assist with the travel and passage expenses in cases of abroad studies
Canara Bank offers four popular student loans, which are tabulated below.
| Scheme Name | Maximum Loan Amount | Interest Rate (p.a.) |
|---|---|---|
| IBA Model Education Loan Scheme | INR 7.5 Lakh and Above | Up to INR 7.5 Lakh
|
| Canara Bank IBA Skill Loan Scheme | INR 1.50 Lakh | 8.85% p.a. |
| Canara Bank Vidya Sahay Scheme | INR 1 Lakh | 10.15% p.a. |
| Canara Bank Vidya Turant Loan | INR 40 Lakh | 7.35% p.a. |
IBA Model Education Loan Scheme
The Indian Banks Association (IBA) has put a standardized model educational loan scheme implemented by all nationalized banks across the country. The main objective of this exercise is the provision of financial support from the banking sector to the deserving and meritorious students for pursuing higher education in India and abroad.
Details of the IBA Model Education Loan scheme are as follows.
- IBA Model Education Loan Courses Covered and Eligibility
- IBA Model Education Loan Amount and Margin
- Repayment of IBA Model Education Loan Scheme
IBA Model Education Loan Courses Covered and Eligibility
Here is a list of the courses covered under the scheme and eligibility.
- For courses in India, courses such as under graduation courses, post-graduation courses inclusive of the technical and professional courses with employment potential are eligible.
- Courses conducted by colleges or universities approved by the University Grants Commission (UGC), the state or the central Government, the All India Council for Technical Education(AICTE), IMC, or autonomous institutions like IIM, IIT, etc. are considered eligible.
- For courses abroad, it is necessary for the course chosen to be either job-oriented, technical, or professional courses. In addition, it can either be a graduate course or a post-graduation course.
IBA Model Education Loan Amount and Margin
Given below is the loan amount and margin for various courses offered by IBA Model Education Loan Scheme.
- The maximum amount of loans given for courses in India is INR 10 lakh, and for courses abroad, it is INR 20 lakh.
- If the borrowed amount is below INR 4 lakh, there will be no margin charged.
- If the amount is above INR 4 lakh for courses in India, then the margin charged is 5%.
- For pursuing courses abroad, and the amount borrowed is more than INR 4 lakh, the margin is 15%.
- No security will be asked for loans below INR 4 lakh; however, a third-party guarantee is required for the loan amount above INR 4 lakh and below INR 7.5 lakh.
- For the amount above INR 7.5 lakh, 100% collateral is required.
Repayment of IBA Model Education Loan Scheme
Here are the guidelines for the repayment of the IBA Model Education Loan Scheme.
- The repayment commences after 6 months or 1 year after the completion of the course.
- For amounts below INR 7.5 lakh, the repayment period is 10 years.
- For amounts above INR 7.5 lakh, the period of repayment is 15 years.
Canara Bank IBA Skill Loan Scheme
IBA skill loan helps students who wish to get admission to technical courses from training institutes and polytechnic schools or colleges approved by the Central or State Government for technical or vocational education.
The latest important information concerning Canara Bank Model Scheme Loan is provided below.
- IBA Skill Loan Student Eligibility
- IBA Skill Loan Courses Eligibility
- IBA Skill Loan Amount and Margin
- Repayment of IBA Skill Loan
IBA Skill Loan Student Eligibility
Given below are the criteria for student eligibility for the Model Loan Scheme.
- The student should be an Indian national.
- The student should have passed class 10.
- The student should have secured admission in a course conducted by the ministry, department of Central/State Government, or an Organization recognized and authorized by the government to conduct courses.
IBA Skill Loan Courses Eligibility
Only the below-mentioned courses are eligible for the scheme.
- The courses should be development courses that can be completed in 2 months to 3 years.
- It is preferred if the course leads to other certificate courses, diploma courses, or degree courses.
- The institute conducting this course should be authorized and recognized by the government.
IBA Skill Loan Amount and Margin
Given below is the loan amount and margin for various durations.
- For courses of duration up to 3 months - INR 20,000
- For courses of duration 3-6 months - INR 50,000
- For courses of duration 6 months to 1 year - INR 75,000
- For courses of duration above 1 year - INR 1.50 Lakh
Note: There is no margin charged on this loan, and no security has to be produced either.
Repayment of IBA Skill Loan
Below are the guidelines for the repayment of the Canara Bank education loan.
- For the courses to be completed before a year, the repayment period commences after 6 months.
- For the courses that require more than one year for completion, the repayment period commences after 12 months or a year.
- Courses up to 3 months - In 2 to 5 years
- Courses up to 3 to 6 months - In 2 to 5 years
- Courses 6 months to 1 year - In 2 to 5 years
- Courses above 1 year - In 3 to 7 years
Canara Bank Vidya Sahay Scheme
Vidya Sahay is introduced for assisting the meritorious students who require funds that have to be paid to the CET/counselling Authorities at the time of selection.
Below are the details of the Canara bank Vidya Sahay scheme.
Canara Bank Vidya Sahay Eligibility
Here are the eligibility criteria for students who want to avail themselves of the Canara Bank Vidya Sahay Scheme.
- The students who have written the Common Entrance Test (CET) conducted by respective state governments, CBSE, IIT, and other all India examinations and selected for counseling are eligible.
- The students should be of Indian National.
- The students should have completed the qualifying exam.
- Address and identification proof must be provided at the sanction of Bridge Loans for complying with KYC norms.
Vidya Sahay Loan Amount and Margin
Following is the loan amount and margin for the Canara Bank Vidya Sahay Scheme.
- The maximum amount is INR 1 Lakh or the initial payment proposed by the CET authorities, whichever is less.
- There is no marginal charge.
- There is no security required.
Repayment of Vidya Sahay Loan
This bridge should be cleared immediately after the education loan is sanctioned.
Canara Bank Vidya Turant Loan
This loan is designed to assist the needy and meritorious students who need education loans and pursue their higher studies in select reputed institutions such as IIMs, IITs, NITs, IISc, or ISB (Hyderabad & Mohali) and other reputed institutes.
Below are the details of the Canara bank Vidya Turant scheme.
- Eligibility to Avail Vidya Turant Education Loan
- Vidya Turant Loan Limits
- Security Required for Vidya Turant Loan
This table gives you an overview of the loans and limits for students from different financial institutions under the Vidya Turant Educational Loan.
| Category | Institutions | Limit |
|---|---|---|
| A | Students of IIMs | Up to INR 25 lakh |
| B | Students of ISB, Hyderabad & Mohali | Up to INR 36 lakh |
| C | All other institutions except the categories A and B | Up to INR 20 lakh |
Eligibility to Avail Vidya Turant Education Loan
Here are the eligibility criteria to avail Vidya Turant Education Loan.
- The candidate should be an Indian Citizen.
- The candidate must have cleared the previous qualifying exam conducted by the competent authorities.
- Admission to premier Institutes viz. IIMs, IITs, NITs, IISc, and other such institutes.
Vidya Turant Loan Limits
The loan has to be paid back within 15 years irrespective of the amount borrowed. There is no security required for loans for certain universities or institutions. The MCLR interest is 0.20%. A concession of 0.50% will be given to female students.
Security Required for Vidya Turant Loan
The following is the security or collateral required for Vidya Turant Loan of Canara Bank.
- No Security is required up to limits for institutions designated category-wise, i.e., IIMs Limits up to INR 25 lakh, ISB Limits up to INR 36 Lakh, all other institutions limit up to INR 20 lakh.
- The parent/guardian will have to join as co-borrower.
For the Canara Bank Education Loan College and Institution list for the Vidya Turant Scheme Click Here
Canara Bank Education Loan Interest Rate
Canara Bank takes nil margins and offers 100% finance for loans up to INR 4 Lakh. It allows multiple co-borrowers for the loan to procure the maximum loan. Loans up to INR 4 lakh are available without security or collateral and up to INR 7.5 lakh with a third-party guarantee.
The specific interest rates and details for the 4 education loans offered by the bank have been tabulated below.
| Canara Bank Loan Schemes | Interest Rate (p.a.) |
|---|---|
| For Vidya Turant Loan Scheme | 6.60% |
| Up to INR 4 Lakhs | 10.40% |
| INR 4 Lakhs to INR 7.50 Lakhs | 10.40% |
| Loans above INR 7.50 Lakhs | 10.40% |
And loans above INR 7.5 lakh can be availed by submitting the adequate collateral asked for. For all loan types and amounts, the average Canara bank education loan interest rate is in the range of 9.90% and 10.70%.
Canara Bank Education Loan for Abroad Studies
As mentioned earlier, abroad studies are covered under the IBA Model Education Loan scheme and Model Loan Scheme For Vocational Education And Training schemes.
The processing charge levied on loans procured to study abroad is 1% of the total loan amount. However, one successful repayment of the loan by the candidate, this amount will be reimbursed.
The Canara bank education loan amount is directly disbursed off to the university or institute in question. There is no margin for the candidates who take an education loan for up to INR 4 lakh. The margin for the candidates who take a loan for above INR 4 lakh is 15%.
Canara UGC
Canara Bank is designated as UGC's nodal agency for distributing scholarships/ fellowships as per the guidelines of the University Grants Commission from time to time. Canara Bank has developed a new processing method popularly known as Public Financial Management System (PFMS). The process was set as per the guidelines of UGC for monthly disbursal of Scholarships/fellowships through DBT.
Canara Bank Customer Services
For any query related to education loans or any other details, you can call 1800 425 1906, a toll-free number that functions 24/7 except for three national holidays.
Canara Bank Customer Services
The bank offers plenty of services for the customers' flexibility and exposes them to the international banking experience.
Some of the services provided by the bank are given below.
- Online Banking: It allows students the whole process of banking in their home/workplace comfort via the internet.
- Safe Deposit Lockers: It allows students to keep their valuables safely in the selected branches of Canara Bank.
- Online Trading: Students can invest in the share market with the help of the bank to secure their future.
- Canara Rewards: It is a debit and credit card loyalty program initiated for all the valuable customers, which allows earning rewards/ bonus points every time you make a transaction with the Canara debit/credit card with the selected outlet.
Education Loan Repayment Support Scheme
To make educational loans easily accessible and affordable for every student, many tax benefits and an attractive government interest subsidy scheme are available in India.
Some of the key benefits of this subsidy are:
- Without any limit, the entire interest that can be paid on the education loan is tax-deductible under Section 80E of the Income Tax Act.
- A tax deduction reduces the effective interest rate on education loans by almost 250-400 base points, which brings the effective interest rate to as low as 9.5%.
- The student will need to furnish documentary evidence of the gross annual income of the family of the student together from all sources that do not exceed INR 4.5 lakh.
- The interest subsidy under the scheme is available to eligible students only once during their lifetime.
- The subsidy is available for the first undergraduate degree course or first postgraduate degree diploma courses in India and is admissible for integrated courses, graduate plus postgraduate.
- The scheme is applicable from the academic year 2009-10 starting 1st April 2009, and hence, the loan amount taken starting from the Academic Year 2009-10 is covered under the Interest Subsidy Scheme.
Education Loan Interest Rate in India
With more Indians choosing to pursue their education abroad, banking and lending institutions are keen on providing the best possible financing options to suit every student's needs. However, financing higher education in a foreign country is generally a gigantic task for any middle-tier family in India. Along with the regular tuition fees of the students, their families also have to bear boarding and lodging costs, books, travel, and other related expenses for the student.
Education loans generally cover many expenses, including fees, equipment, books, hostel fees, travel, examination fees, etc.
Undergraduate Education Loans
These are given to students who have completed their secondary education and are looking to do higher studies in graduation.
Postgraduate Education Loan
These are education loans given to students willing to pursue post-graduation after completing an undergraduate course from a reputed college or university.
Parents Availing Education Loan
This is the case where the parents take a loan for the educational purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also elementary and higher secondary courses.
Career Growth Education Loans
The loans are eligible to young people willing to pursue courses or training, certifications that will benefit their career growth.
Education loan also covers studies in India, with students opting for either graduation or post-graduation courses. Generally, education loans are offered in specific categories:
- Below INR 4 lakhs (Collateral not needed)
- Between INR 4 lakhs and INR 7.5 lakhs
- Above INR 7.5 lakhs
Educational Loan Without Collateral
According to RBI, the maximum study loan for education in the domestic country is INR 10 lakhs, and for studying abroad, it is INR 20 lakhs.
The guidelines laid down show that a loan taken up to INR 4 lakhs is allowed without collateral security. However, when the loan amount exceeds, the rule is to have collateral and a third-party guarantee, which is the student's parents.
To avoid any loss, collateral for a loan exceeding INR 4 lakhs is required. Only in rare special cases, when the student is extraordinary and deserving, the bank might consider exceeding a candidate's limit of study loan without collateral.
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