Canara Bank Education Loan
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| Interest Rate | Grace Period | Margin Money |
| 8.75% – 11.60% | Course Period + 1 Year | 15% |
Have you decided to study abroad? You’ve filled out all your application forms and await the next steps. However, when it comes to managing your expenses, you might be wondering how to do it.
This is where an education loan comes in. Canara Bank education loan offers students a financial aid package that helps ease the burden of studying abroad. Want to find out more? Let’s begin!
Find Your Best Education Loan!
Types of Canara Bank Education Loans
Canara Bank offers various education loans for students studying in India and abroad. The multiple types of Canara Bank education loans are as follows:
| Type of Loan | Features |
IBA Model Education Loan Scheme |
|
Education Loan Scheme for Pursuing Masters Degrees |
|
IBA Skill Loan Scheme |
|
Vidya Turant |
|
Canara Bank Abroad Education Loan
Canara Bank offers two types of education loans for abroad studies: the IBA Model Education Loan Scheme and the Education Loan Scheme for Pursuing Master’s Degree. The details are as follows:
IBA Model Education Loan Scheme
| Particulars | Details |
Loan Amount |
|
| Repayment | Through EMI for up to 15 years |
| Tax Benefit | Under section 80 (E) |
Eligible Courses | Courses that lead to undergraduate, Post Graduation/PHD, Post Graduate Diploma, etc |
Expenses Considered for Loan |
|
Security – Merit Quota |
|
Security – Management Quota |
|
Education Loan Scheme for Pursuing Masters Degrees
| Particulars | Details |
Loan Amount |
|
| Repayment | Through EMI for up to 15 years |
Eligible Courses | Master’s Degree in STEM (Science, Technical, Engineering, and Management) courses |
| Margin | 10% of the loan amount |
Processing Charges |
|
Security |
|
Expenses Considered for Loan |
|
Canara Bank Student Loans: Country Breakdown
Canara Bank offers an education loan for abroad from their IBA Model Education Loan Scheme and Education Loan Scheme for pursuing a Master’s abroad scheme. Here’s a quick country breakdown:
- Canada: Canara Bank for study in Canada supports Indian students pursuing undergraduate and postgraduate courses in recognized Canadian universities. The loan covers tuition fees, living expenses, travel costs and other expenses.
- Europe: Canara Bank for study in Europe provides financial assistance for students aiming to enroll in top European universities. Eligibility and loan amounts depend on course and university.
- UK: Canara Bank for study in UK supports Indian students pursuing higher education in the UK. Loans up to INR 7.50 lakhs is available (without collateral) for the UK.
- US: Canara Bank loan for study in USA is tailored for Indian students in the USA covering several costs.
Canara Bank Education Loan Interest Rate
Canara Bank offers various education loan schemes with interest rates that vary based on the loan amount. The Canara Bank education loan interest rate as of April 2025 is as follows:
| Loan Details | RLLR | Credit Risk Premium over RLLR | Effective Rate of Interest under RLLR | ||
| Floating | Fixed | Floating | Fixed | ||
| Collateral security 100% and above | 8.75% | 1.25% | 1.60% | 10% | 11.10% |
| Collateral security 75% and above | 8.75% | 1.85% | 10.60% | 11.35% | |
| Collateral security 50% & above (less than 75%) | 8.75% | 2.10% | 10.85% | 11.60% | |
Documents Required for Education Loan in Canara Bank
Canara Bank education loan helps cover tuition fees, accommodation, books, travel, and other educational expenses. These documents help the bank assess your profile and academic records. The documents required for an education loan in Canara Bank are:
- Loan application with 2 passport-size photographs of applicant / Co-applicants or guarantor
- KYC documents of applicant / Co-applicants or guarantor
- Identity proof (PAN CARD/Driver’s License/Voter ID /Passport/ Aadhar Card, etc.)
- Address proof (Driver’s License/Voter ID/Passport / Aadhar Card / Electricity Bill/Telephone Bill, etc., /Business Proof related to GST and others.)
- Age proof of applicant / co-applicant
- PAN card (photocopy)
- Proof of admission and schedule of expenses for the course
- Marksheet of last qualifying examination
- Proof of income/assets (if any)
- Income proof for Co-applicant / guarantor (if any)
- Copy of land records (for IBA Model Education Loan Scheme)
- Any other documents as required by the bank
Frequently Asked Questions
How can I calculate my EMI for a Canara Bank education loan?
You can use Canara Bank’s education loan EMI calculator by entering the loan amount, interest rate, and tenure. The calculator will show your monthly EMI, total interest, and repayment amount, which will help you plan your finances.
How do you apply for an education loan at Canara Bank?
You can apply online through the Vidya Lakshmi Portal or visit a Canara Bank branch with the required documents. To save you time, you can connect with Nomad Credit’s experts. They will provide you with a free consultation and assist you in making your loan application process easier.
Does Canara Bank have a list of approved colleges for education loans?
Yes, Canara Bank offers education loans for courses at recognized colleges and universities in India and abroad. The bank has a list of approved institutions on its website.
What are the Canara Bank education loan eligibility criteria?
To be eligible, you must be an Indian citizen, have secured admission to a recognized institution, and be pursuing an approved course. A collateral may be required based on the loan amount.
What is the Canara Bank education loan subsidy?
Canara Bank offers interest subsidies on education loans under the Central Government’s Interest Subsidy Scheme for economically weaker students. The eligibility criteria include family income limits.
What documents are required to apply for a Canara Bank loan to study in Canada?
To apply for a loan from Canara Bank to study in Canada, you must have common documents such as an admission letter from the Canadian institution, proof of identity and address, academic records, co-applicant’s income proof, and a detailed fee structure from the university.
What expenses are covered under the education loan from Canara Bank to study in Europe?
Education loan from Canara Bank to study in Europe covers a wide range of expenses. It covers costs such as tuition fees, travel costs, library fees, and more.
Does Canara Bank offer education loans for studying in the UK?
Yes, education loans are provided by Canara Bank for study in UK. The bank offers the IBA Model Education Loan Scheme and specialized programs for master’s degrees at top-ranking universities.
What are the eligibility criteria for obtaining a Canara Bank loan for study in the USA?
To be eligible for a Canara Bank education loan to study in the USA, you must be an Indian citizen or hold a valid Indian passport. You must have secured admission to a US university, must have a co-applicant/co-signer with a good credit history.
Mansi Jain
Updated on July 31, 2025
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