Established in 1906, Canara Bank, with its headquarters in Bengaluru, became a nationalized bank in 1969. Post its merger with Syndicate Bank on 1st April 2020, and it is now the fourth-largest public bank by assets.
An abroad aspirant must know about and explore the possibilities for Canara Bank education loans, which offer 100% coverage of the total education cost. The bank’s education loan schemes have gained popularity for their flexibility, competitive interest rates, and supportive terms.
Canara Bank education loan schemes
Table of Contents
Canara Bank offers six education loan for India and abroad. These schemes cater to students who wish to pursue degree, diploma, skill based and vocational courses. By providing financial assistance for higher education, these schemes empower students to pursue their dreams without being limited by financial barriers.
| Scheme | Interest rates |
| Vidya Sagar education loan | 9.25% – 11.35% |
| IBA model education loan | 9.25% – 11.25% |
| IBA skill loan | 9.25% – 10.75% |
| Vidya Turant education loan | 8.60% – 9.85% |
| Vidya Shakthi | 9.25 – 11.25% |
IBA model education loan scheme
The IBA model loan scheme by Canara bank provides education loans for studies in India and abroad.
| Loan amount | Need based finance |
| Margin money | 5% – 15% |
| Repayment tenure | 15 years |
| Moratorium period | Course duration + 12 months |
| Accepted collateral | No collateral required for loans upto INR 7.5 Lakh Residential property such as house or flat, Non – agricultural land, Fixed deposits, Government bonds |
| Accepted co-applicant | Parent/gaurdian |
Eligibility criteria:- This schemes is eligible for students planning studies in India or abroad
- Students must be an Indian citizen
- NRI students holding a valid Indian passport
- Eligible courses for education loan in India:
- Graduation, post graduation, including technical/professional courses from reputed colleges/universities approved by UGC/Government, AICTE/Department of Electronics/IMC, autonomous institutions like IIM, IIT, etc.
- Any courses leading to degree/diploma from reputed Institutes/Colleges/Universities for studies in India.
Eligible courses for education loan for abroad:
Courses which lead to undergraduate, post graduate/PHD, diploma etc are eligible.
3. IBA skill loan scheme
The IBA skill loan scheme by the Canara bank provides education loans for studies in India.
| Loan amount | INR 5000 – INR 1,50,000 |
| Margin money | Nil |
| Repayment tenure | 3 – 7 years |
| Moratorium period | Course duration + 6 or 12 months |
| Accepted collateral | No collateral or third party guarantee is required |
| Accepted co-applicant | Parent/gaurdian |
Eligibility criteria:
Indian students who apply for skill based courses in India are eligible for this scheme.
Courses run by training institutes aligned to National Skill Qualification Framework (NSQF) are eligible for this scheme.
4. Vidya Turant education loan scheme
The Vidya Turant education loan scheme provides education loans for studies in India.
| Loan amount | List A: INR 50 Lakh List B: INR 40 Lakh List C: INR 30 Lakh |
| Margin money | Nil |
| Repayment tenure | 15 years |
| Moratorium period | Course duration + 12 months |
| Processing fees | Nil |
| Accepted collateral | No collateral required |
| Accepted co-applicant | Parent/gaurdian |
Eligibility criteria:
Student must be an Indian citizen
Students must enroll in top selected Indian institutions of IIMs/IITs/NITs/IISc /ISB (Hyderabad & Mohali) and other reputed institutes.
5. Vidya Shakthi education loan scheme
The Vidya Shakthi education loan scheme caters to students with disability for studies in India and abroad.
| Loan amount | Need based finance Degree courses – INR 7.5 LakhVocational, diploma courses – INR 1.5 Lakh |
| Interest rate | 9.25% |
| Margin money | 0 – 5% |
| Repayment tenure | 3 – 7 years |
| Moratorium period | Course duration + 12 months |
| Processing fees | Nil |
| Accepted collateral | No collateral required |
| Accepted co-applicant | Parent/gaurdian |
Eligibility criteria:
- Indian students with physical disability to the extent of 40% or more are eligible.
- To assist the PWD category students who are in need of education loan for pursuing the special devices courses in India.
- Education loans for abroad studies will be as per the guidelines of IBA Model Education loan/Skill loan scheme.
Vidya Sahay education loan scheme
The Vidya Sahay education loan scheme offers loans for studies in India.
| Loan amount | Up to INR 1 Lakh |
| Margin money | Nil |
| Processing fees | Nil |
| Repayment tenure | Loan is to be cleared after sanction of regular education loan. |
| Accepted co-applicant | Parent/gaurdian |
Eligible courses:
- The scheme caters to the needy and meritorious students who are in need of the down payment to be made to the CET/counseling Authorities at the time of selection / counseling.
- Students who appeared in common entrance tests conducted by respective state governments, CBSE, IIT and such other all India examinations and selected for counseling are eligible.
- Students who have cleared the previous qualifying exam.
What are the documents required for Canara Bank education loan?
- If you are interested in appltying for an education loan through Canara Bank, you will need the following documents.
- Identity proof: PAN/ Passport/ DriverтАЩs License/ Voter ID card or government-issued identification document.
Education loan application form
- Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ Driving License/ Aadhaar card.
- Passport
- Past academic record.
- 10th standard mark sheet
- 12th standard mark sheet
- Undergraduate result (semester-wise)
Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
- Proof of admission: admission letter (A conditional admission letter is also applicable).
- Statement of expenses.
- 2 passport-size photographs.
- Loan A/C statement of one year (if applicable)
- Bank account statement of the student (if applicable)
Co-applicants documents
- Identity proof: PAN/ Passport/ DriverтАЩs license/ Voter ID card or government-issued identification document.
- Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of Driving license/ Aadhaar card.
2 passport-size photographs.
- Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).
- If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
- Legal documents of the collateral/ property documents.
- Income proof for salaried co-applicant/guarantor
- Salary slips for the last 3 months.
- Copy of Form 16 of the last 2 years or copy.
- Bank account statement for the last 6 months (Salary account).
- Brief statement of assets & liabilities of parent/ guardian/ other co-borrower.
Income proof for self-employed co-applicant/guarantor
- Business address proof.
- Last 2 years IT returns ( If IT Payee).
- TDS certificate (Form 16A, if applicable).
- Certificate of qualification (for C.A./ doctor and other professionals).
- Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
- Bank account statement for the last 6 months.
