Canara Bank Education Loan for Study Abroad
Fund your international education with a Canara Bank abroad education loan built for Indian students heading to universities in the USA, UK, Canada, Australia, Europe and beyond.
100% Online | 0 Platform fee | No credit check
Canara Bank Study Abroad Loan Highlights
A dependable, public-sector-bank-backed canara bank Overseas Education Loan option for your international education journey.
Interest rate starting from
9.25% p.a.*
Max loan amount
Up to ₹1 crore
Processing fee
0.5%(of Sanctioned Amount.)
Repayment tenure
Up to 15 Yrs
Moratorium
6-12 Months
Key Features of Canara Bank Overseas Education Loan
Canara Bank is one of India's leading public sector banks for overseas education finance, offering a canara bank education loan for study abroad with reducing-balance interest and no hidden processing costs.
Government-Backed Reliability
Public sector bank with RBI/RLLR-linked pricing.
High Loan Amount
No upper limit with 100%+ collateral.
Comprehensive Coverage
Covers tuition, living, travel and insurance.
Competitive Interest
Reducing balance with eligible concessions.
No Prepayment Penalty
Repay early without extra charges.
Tax Benefits
Claim tax deductions on the interest paid under Section 80E of the Income Tax Act.
Types of Canara Bank Study Loans for Study Abroady
Canara Bank offers two dedicated routes for international education financing, making it possible to structure a Canara Bank foreign education loan around either a standard need-based scheme or a higher-ticket scheme for premier global universities.
IBA Model Education Loan Scheme (Vidya Sagar)
Canara Bank's standard education loan scheme, run on the IBA (Indian Banks' Association) model, is suitable for undergraduate, postgraduate, PhD and postgraduate diploma courses abroad.
Need-based financing based on course expenses and the applicant’s profile.
Course period plus one year.
- Up to ₹7.50 lakh - No collateral required, subject to CGFSEL conditions
- Above ₹7.50 lakh - Collateral worth at least 100% of the loan amount required
- A parent or guardian must join as a co-borrower
- 10.00% p.a. for loans up to ₹7.50 lakh
- 9.25% p.a. for loans above ₹7.50 lakh for abroad studies
- 0.50% interest concession for girl students
- Additional 0.50% concession for prompt interest servicing during the course period
Up to 15 years in EMIs, excluding the moratorium period. No prepayment penalty.
Courses leading to undergraduate, postgraduate/PhD, or postgraduate diploma qualifications abroad.
- Up to ₹4 lakh - No margin required
- Above ₹4 lakh - 15% of the total cost for studies abroad
- Tuition, hostel, examination, library and laboratory fees
- Travel or passage expenses for studying abroad
- Student insurance premium, where applicable
- Caution deposit, building fund and refundable deposit supported by institutional bills
- Books, equipment, instruments and uniforms
- Computer purchase, if required for the course
- Other approved course-related expenses within the bank’s limit
Source: IBA Model Education Loan Scheme
Canara Bank Education Loan for Master’s Degree Abroad
This scheme is designed for students admitted to eligible Master’s programmes at select top-ranking foreign universities.
- Loans start above ₹7.50 lakh
- If the collateral fully covers the loan, there is no fixed maximum limit
- If the collateral does not fully cover the loan, the maximum loan amount is ₹1 crore
- The final loan amount depends on the course cost and the bank’s approval
- 9.25% p.a. with 100% or higher collateral coverage
- 9.85% p.a. with 75% to below 100% collateral coverage
- 10.10% p.a. with 50% to below 75% collateral coverage
- Rates are linked to Canara Bank’s RLLR and may change over time
10% of the loan amount, which may be brought in on a year-on-year basis as disbursements are made.
Up to 15 years in EMIs, excluding the moratorium period.
- The student’s future income must be assigned to the bank
- A parent or guardian must join as a co-borrower
- Collateral covering at least 50% and up to 100% of the loan amount is required
- The final security requirement depends on the bank’s terms and conditions
- The student must be an Indian national
- A valid passport is required
- Admission must be secured at a select eligible institution
- The student must meet the applicable SAT, ACT, GRE or GMAT score requirement
- The bank charges 0.50% of the approved loan amount
- The fee is capped at ₹10,000 when collateral fully covers the loan
- The fee is capped at ₹20,000 when collateral does not fully cover the loan
- A 50% fee waiver is available until 30 September 2026 under the Retail Loan Festival
- Up to 100% financing of eligible tuition fees
- Travel or passage expenses for studying abroad
- Living expenses during the study period
- Medical insurance premium, where applicable
Eligibility for Canara Bank Study Abroad Loan
Reviewing eligibility upfront for a Canara Bank Study Abroad Loan can help you prepare the right documents and avoid delays in sanction.
Student Eligibility
The student must be an Indian national.
NRI students with a valid Indian passport may apply under the IBA Model Education Loan Scheme.
The student must have confirmed admission to an eligible undergraduate, postgraduate, PhD or postgraduate diploma course abroad.
For the Master’s Degree Abroad scheme, admission must be secured at a select top-ranking foreign institution.
The student must meet the applicable SAT, ACT, GRE or GMAT score requirement for the Master’s scheme.
A parent or guardian must join the loan application as a co-borrower.
Collateral Security
Under the IBA Model scheme, no collateral is required for merit-quota loans up to ₹7.50 lakh, subject to CGFSEL conditions.
For loans above ₹7.50 lakh under the IBA Model scheme, collateral covering at least 100% of the loan amount is required.
Under the Master’s Degree Abroad scheme, collateral must cover at least 50% of the loan amount.
The amount of collateral provided under the Master’s scheme affects the applicable interest rate and maximum loan amount.
Documents Required for a Canara Bank Foreign Education Loan
Keep the following documents ready for your Canara Bank education loan application. The final checklist may vary by scheme, applicant profile and security offered.
01 Student Documents4 Documents
Identity Proof: PAN card, driving licence, voter ID, passport or Aadhaar card.
Address Proof: Driving licence, voter ID, passport, Aadhaar card, electricity or telephone bill, or applicable business address proof.
Age Proof: For the applicant and co-applicant.
PAN Card: Photocopy.
02 Application Documents3 Documents
Loan Application: Canara Bank’s prescribed application form.
Photographs: Two passport-size photographs of the applicant, co-applicant or guarantor, as applicable.
KYC Documents: For the applicant, co-applicant or guarantor, as applicable.
03 Admission and Academic Documents3 Documents
Admission Proof: Proof of admission to the course.
Course Expenses: Schedule of expenses for the course.
Academic Record: Marksheet of the last qualifying examination.
04 Income and Other Documents4 Documents
Student’s Income or Assets: Provide supporting documents if the student has any.
Co-applicant’s Income: Provide income proof if they earn an income.
Land Records: If you apply under IBA Model Education Loan Scheme, the bank lists a copy of land records among its documents.
Additional Documents: Any others Canara Bank requires.
How do you apply for Canara Bank Education Loan for Abroad Studies?
Your Education Loan Journey: 5 Swift Steps, Zero Hassle.
Check Eligibility
Choose the right scheme based on course and collateral.
Gather Documents
Prepare KYC, academic, admission and income documents.
Submit Application
Apply via PM Vidyalaxmi, Vidya Lakshmi or a Canara Bank branch.
Verification & Sanction
Bank verifies documents and approves eligible applications.
Loan Disbursement
Funds are released as per institutional requirements.
Popular Study Abroad Destinations For Canara Bank
Explore leading international study destinations that may be covered under eligible Canara Bank overseas education loan schemes.
United States
United Kingdom
Canada
Australia
Germany
France
Singapore
Netherlands
South Korea
Hong Kong
Expenses Covered by Canara Bank Education Loan for Abroad Studies
Canara Bank's overseas education loan cover the following categories of expense, as specified on the official scheme pages:
Tuition Fees
Covers eligible university and course fees.
Living Expenses
Supports accommodation and everyday living costs.
Travel Expenses
Covers eligible overseas travel and passage costs.
Books & Materials
Funds required books and study materials.
Medical Insurance
Covers applicable student insurance expenses.
Academic Fees
Includes eligible examination and library charges.
Why Nomad Credit?
Personalized rates, free expert guidance, and fast approvals
27,000+
Students Assisted
10B+
in Loans Processed
20+
Lending Partners
9+
Study Destinations
27,000+
Students Assisted
10B+
in Loans Processed
20+
Lending Partners
9+
Study Destinations
Our Lending Partners
Hear from the Global Nomads
About their Nomad Experience
As I was heading for MBA at Columbia, I got in touch with Nomad team regarding the financing. They were super helpful and always approachable. This involved sitting with me on calls as I fill forms, helping with US cosigner doubts, helping me process all the applications. I highly recommend them!!
I’m really grateful to Nomad team for all the help and support. From the very first step, they were always just a call away. Thanks to them, the whole process felt so much smoother and less stressful. I’d happily recommend them. They truly go above and beyond for the people they works with!
I got in touch with Anchal regarding financing options as I head for an MBA at Stanford. She helped me get to know about all the available options with utmost patience. In the end, I was able to get a highly competitive interest rate with her help, which turned out to be the best option available in the market!
Ganesh was my case manager at Nomad Credit. He helped me secure 2 student loans, 1 for each year of my MBA at UCLA Anderson. It is not always straight forward for international students to get student loans in the US, but Ganesh walked me through the whole process step by step, making it as stress free as possible. Highly recommended!
Nomad Team helped me get the best possible option for my financing needs. They made sure that I got the most updated and consistent information to make the right decision towards the most important aspect of my studies i.e. money management. They were always there to help me and have a great attitude towards helping others.
Working with your team was an incredibly smooth and reassuring experience. A special shoutout to the Nomad Credit team, who truly went above and beyond at every stage and making sure everything was on track despite tight timelines. I’m genuinely grateful to have had such a supportive team by my side, I couldn’t have done it without you!
Since, I was doing this for the first time, I had a lot of questions. The team very patiently answered all my queries and consistently supported me from filling-up my application to document verification until I had received my loan confirmation. Overall, I really appreciate Nomad’s help in navigating me through my loan application process.
Your unwavering support, particularly in navigating the challenge of securing a loan without collateral, has been truly remarkable. Special thanks to Shweta ma’am. Your service and commitment to helping students like me achieve their dreams have made a profound impact, and for that, I am deeply thankful.
I’m incredibly grateful to entire Nomad Team for their outstanding support throughout. Their guidance was clear, timely, and tailored to my specific needs. I highly recommend them to anyone pursuing international education. They’re knowledgeable, professional, and genuinely invested in your success.
Thanks Sulekha & Nomad Credit for assisting me throughout. You also helped me boost my confidence personally in the entire process. I am grateful, you were there to resolve my every doubt regarding visa interview questions and any query I had. At the end, thanks once again for helping me achieve F-1 visa for the USA.
Your exceptional guidance made my master’s application process smooth and stress-free. You were always available and willing to answer my queries with patience and clarity. I highly recommend Nomad to anyone seeking professional guidance for their higher education journey.
Frequently Asked Questions
What interest rate does Canara Bank charge on overseas education loans?
For loans above ₹7.50 lakh, the IBA Model scheme currently charges 9.25% p.a. The Master’s Degree Abroad scheme charges between 9.25% and 10.10% p.a., depending on collateral coverage. These are floating rates linked to Canara Bank’s RLLR and may change periodically.
Does Canara Bank offer a collateral-free canara bank abroad education loan?
Yes, in a limited way. Under the IBA Model scheme, loans up to ₹7.50 lakh (merit quota) do not require collateral and are covered under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL), subject to conditions. For higher loan amounts, or under the Master's Degree Abroad scheme, tangible collateral of 50–100% or more of the loan amount is generally required.
What margin money is required for a canara bank abroad education loan?
Under the IBA Model scheme, margin money is nil for loans up to ₹4 lakh, and 15% of the cost of studies for loans above ₹4 lakh for abroad studies. Under the Master's Degree Abroad scheme, the margin required is 10% of the loan amount, contributed on a year-on-year basis as disbursements are made.
How can I apply for a canara bank education loan for study abroad?
You can apply through the government-backed PM‑Vidyalaxmi portal, the Vidya Lakshmi portal, or by visiting a Canara Bank branch near your residence or your educational institution with the required documents.
Is there any interest concession available on Canara Bank's education loans?
Yes. Canara Bank offers a 0.50% interest concession for girl students, and a further 0.50% concession for prompt servicing of interest during the moratorium/course period, under its education loan schemes.
What is the maximum repayment tenure on a Canara Bank education loan for abroad studies?
Both the IBA Model scheme and the Master's Degree Abroad scheme allow repayment in EMIs over a maximum of 15 years, excluding the applicable moratorium period, with no prepayment penalty.
Take The First Step Toward Your Study Abroad Dream!
Apply For Your Canara Bank Study Abroad Loan Through Nomad Credit Today!
Takes less than a minute | 100% free assessment
Verified Information
Written by
Mansi Jain| Content Specialist
Reviewed by
Swati Sahu| Lender Editor
Reading Time
12 min read
Disclosure
- This page is for general informational purposes only and does not constitute financial advice; applicants should verify current terms directly with Canara Bank or an authorized representative before making any borrowing decision.
- Rate applicable under the "above ₹7.50 lakh – Abroad Studies" slab of the Vidya Sagar/IBA Model scheme, based on RLLR of 8.00% (effective 12.03.2026) plus applicable Credit Risk Premium. Rates are floating and revised periodically by the Bank/RBI.
- Canara Bank's Vidya Turant scheme is a separate, collateral-free product but is restricted to select premier institutions in India only and does not cover overseas study — it has not been included above for that reason.
- Canara Bank's official scheme pages list income proof generically as "Income Proof for Co-applicant/guarantor, if any," without itemising salaried vs. self-employed formats. In practice, branches commonly request standard supporting documents such as recent salary slips, Form 16/ITR, and bank statements for income verification - confirm the exact list applicable to your case with your branch.
