Canara Bank History

Canara Bank is founded in 1906 as Canara Bank Hindu Permanent Fund at Mangalore, Karnataka, by late Shri Ammembal Subba Rao Pai, a philanthropist. It was then grown into a limited company as Canara Bank Ltd. in 1910. Later in 1969, it was renamed to Canara Bank after nationalization. Effectual founding principles, enlightened leadership, unique work culture and extraordinary adaptability to the dynamic environment have made Canara Bank be a frontline banking institution of global standards.

Canara net banking service was launched in 2004 with 100% Branch computerization. The highest dividend paid to the shareholders was in 2012-13 that was 130%. By 2016, the network crossed 6000 branches across the world. It has several firsts to its credit such as Launching of Inter-City ATM Network, Obtaining ISO Certification for a Branch, Issuing credit card for farmers, Providing Agricultural Consultancy Services and so on. Today, Canara Bank holds a premier place in the comity of Indian banks.

Canara Bank Customer Services

There are plenty of services offered by the bank for the flexibility of the customers and to give them an exposure to international banking experience. Some of the services offered by the bank are given below.

  • Online Banking - It allows you the whole process of banking in the comfort of your home/workplace via the internet. 

  • Safe Deposit Lockers - It allows you to keep your valuables safely in the selected branches of Canara Bank.

  • Online Trading - You can invest in share market with the help of the bank to secure your future.

  • Canara Rewards - It is a debit/ credit card loyalty program initiated for all the valuable customers which give the opportunity to earn rewards/ bonus point everytime you make a transaction with the Canara debit/ credit card with the selected outlet.

Canara Bank Education Loan

Canara Bank is one of the largest public-sector banks in India. It is headquartered in Bangalore, India. It has been providing services to people since 1906. It has its operations worldwide. It has 3,212 branches all around the world. The bank also has around 2,150 ATM’s.

The main purpose of the provision of education loans by Canara bank is to help students with the payment of tuition fees, to purchase the books required, course material, instruments, uniform if required, payment of hostel fees, examination fees, and also to cover travel and passage expenses in cases of abroad studies.

Canara Bank has launched a variety of education loans namely Vidya Turant, Vidya Sahay, Education Loan under IBA Model, Model Loan Scheme for Vocational Education and Training. There are a lot of key factors which you will see that attracts the students towards Canara Bank.

 Sr. No.

Type of Education Loan

IBA Model Education Loan scheme for pursuing higher studies in India and abroad 

Model Loan Scheme For Vocational Education And Training 

Vidya Sahay

Vidya Turant

 Canara bank education loan

IBA Model Education Loan scheme for pursuing higher studies in India and abroad

 Courses Eligible

  • For courses in India, courses such as under graduation courses, post-graduation courses inclusive of the technical and professional courses that have the potential of employment are eligible.

  • Courses conducted by colleges or universities which are 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. It can either be a graduate course or a post-graduation course.

 Quantum of Finance and Margin

  • The maximum amount of loan given for courses in India is Rs.10 Lacs and for courses abroad, it is Rs.20 Lacs.

  • If the borrowed amount is below Rs.4 lacs there will be no margin charged.

  • If the amount is above Rs.4 Lacs for courses in India then the margin charged is 5%.

  • For the courses in abroad and the amount borrowed is more the Rs.4 Lacs, the margin is 15%.

  • For the loans below Rs.4 Lacs, no security will be asked, however, for the loan amount above Rs.4 Lacs and below Rs.7.5 Lacs a third-party guarantee is required.

  • For amount above Rs.7.5 Lacs, a 100% collateral is required.


  • The repayment commences after 6 months or 1 year after the completion of the course.

  • For amounts below Rs.7.5 Lacs, the repayment period is 10 years.

  • For amounts above Rs.7.5 Lacs, the repayment period is 15 years. 

Model Loan Scheme For Vocational Education And Training

 Student Eligibility

  • The student should be an Indian national.

  • The student should have passed class 10.

  • The student should have secured an admission in a course which is conducted by the ministry, department of Central/State Government or an Organization recognized and authorized by the Government to conduct courses.

 Courses Eligibility

  • The courses should be development courses which can be completed in the duration from 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.

 Quantum of Finance

  • For courses of duration up to 3 months - Rs.20,000/-

  • For courses of duration 3-6 months - Rs.50,000/-

  • For courses of duration 6 months to 1 year - Rs.75,000/-

  • For courses of duration above 1 year - Rs.1,50,000/-.

  • There is no margin charged on this loan and no security has to be produced either.


  • For the courses that will be completed before a year, the repayment period commences after 6 months.

  • For the courses that require more than 1-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.

Vidya Sahay

Vidya Sahay is designed for assisting the needy and meritorious students who are in need of funds that have to be paid to the CET/counseling Authorities at the time of selection.


  • The students who have written the in Common Entrance Test(CET) which is conducted by respective state governments, CBSE, IIT and such other all India examination and have been selected for counseling are eligible

  • The students should be of Indian National.

  • The students should have successfully completed the qualifying exam.

  • Address and ID Proof to be provided at the time of sanction of Bridge Loans for complying with KYC norms.

 Quantum of Finance

  • The maximum eligible amount would be Rs.1 Lakh or initial payment as proposed by the CET Authorities whichever is less

  • There is no marginal charge.

  • There is no security required.


  • This bridge should be cleared immediately after the education loan is sanctioned.

Vidya Turant

This loan is designed to assist the needy and meritorious students who are in need of education loans and are pursuing their higher studies in select reputed institutions such as IIMs/IITs/NITs/IISc /ISB (Hyderabad & Mohali) and other reputed institutes.

Eligibility to avail Vidya Turant Education Loan

  • The candidate should be an Indan 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.

Quantum of Finance



Limit eligible 


Students of IIMs.

Limit up to Rs 25.00 Lacs.


Students of ISB, Hyderabad & Mohali

Limit up to Rs 36.00 Lacs.


All other institutions other than  A and B

Limit up to Rs 20.00 Lacs.

  • 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/ Collateral

  • No Security is required up to limits for institutions designated category wise. ie IIMs Limits up to Rs 25.00 lacs, ISB Limits up to Rs 36.00 Lacs, all other institutions Limits up to Rs 20.00 Lacs.

  • Parent/guardian will have to join as Co-borrower.

  • Assignment of future income of the student is required

Canara Bank Customer care/ Toll-free Number

For any query related to education loan or any other details, you can call 1800 425 1906 which is a toll-free number that functions 24/7 except for 3 national holidays.

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Harshith Kulal

Thanks for clearing my doubts regarding Canara bank education loan


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