Education Loan Interest Rates 2024

Canara Bank Education Loan

Canara Bank Education Loan

Last Updated : April 20, 2020, 2:59 p.m.

Canara Bank offers different loan schemes for the education of students wanting to pursue studies in India and abroad. You can grab the loan after securing admission to the best universities and colleges by cracking the entrance exam or obtaining certain marks required for admission. Read on to know about the details of the Canara Bank education loan and its features.

Loan QuantumNeed-based
Interest Rate1-year MCLR of bank 7.85%
Tenure15 years
Processing FeeNIL

Canara Bank Education Loan for Higher Studies in India & Abroad

To overcome the burden of fees and other essentials for the course, you can apply for the education loan at the bank. There is no upper loan limit set by Canara Bank, implying that you can borrow the desired loan amount as per your needs. The interest rate on the loan is based on the Marginal Cost of Fund-based Lending Rate (MCLR). And to know about it in detail look at the table below.

Loan (In INR)Interest Rate (In Per Annum)
Up to 7.5 lakh9.85%
Above 7.5 lakh9.35%
Concession for girls8.85%-9.35%
Payment during moratorium8.85%-9.35%

As you have seen from the above table, if you don’t take the moratorium benefit on your education loan, Canara Bank provides you a concession up to 0.50% on your loan interest rates. And for girl students, the concession is there by default.

Inland educational course
  • Graduation, post-graduation, including technical or professional courses, in any of the reputed colleges approved by UGC or Government.
  • Institutions like IIM, IIT, etc. are also valid for your higher education loan.
  • Any course that leads to a degree or diploma is apt for studies in India.
Foreign CourseCourses for undergraduate, Post Graduation, Ph.D., Post Graduate and Diploma overseas

Margin is based on the loan amount you take from the bank. The higher your loan is the more margin will be there on your education loan. Here in the table, you can know about the margin rates.

Loan (INR)Margin
50,000 to 4 lakhzero
Above 4 lakh5%
Above 4 lakh for abroad studies15%

You can manage the margin of your education loan with the scholarship. And the security of the loan is based on the student placement after the course completion. That is why the loan is co-borrowed by the student and parent both. Up to INR 7.5 lakh, you don’t need to provide any collateral to the bank. Otherwise, the bank needs 100% of the security for loans above INR 7.5 lakh. The collateral could be a fixed deposit land or property. But the land should be non-agricultural. Otherwise, it is not valid as per the terms and conditions of the education loan.

Canara Bank Skill Development Loan

Canara Bank offers a loan to customers to develop the skills of students by offering them a suitable loan amount for admission. The scheme is covered under the Credit Guarantee Fund Scheme for Skill Development (CGFSSD). You can take admission to any reputed institute whose courses are aligned to the National Skill Qualification Framework (NSQF). The range of loan is from INR 5000 to INR 1.5 lakh. There is no margin to your loan and Canara Bank provides you the loan without asking you to submit any collateral. At the same time, there’s no need for a third-party guarantee. And the interest rate to your loan is based on the 1-year MCLR of the bank.

Interest Rate9.35% per annum
Tenure7 years
Moratorium6-12 months
Processing FeeNIL

Canara Bank Vidya Turant Scheme

For technical courses from the top recognized institutes in India, students can finance their admission fees from this Canara Bank education loan scheme. The bank disburses the loan as per the category of institutes. Look at the table below to find out the categories of institutions.

CategoryInstitute NameLoan (In INR)
  • Indian Institute of Management (IIM), Ahmedabad
  • IIM, Bangalore
  • IIM, Indore Indore
  • IIM, Kozhikode Calicut
  • IIM, Kolkata
  • IIM, Lucknow
  • IIM, Ranchi
  • IIM, Trichy
  • IIM, Rohtak
  • IIM, Udaipur
  • IIM, Kashipur
  • IIM, Raipur
  • IIMt, MananwalaI
  • IIM, Sambalpur
  • IIM, Nagpur
  • IIM Visakhapatnam
  • IIM, Sirmaur
  • IIM, Jammu
Up to 25 lakh
  • Indian School of Business (ISB), Mohali, Chandigarh
  • ISB Hyderabad
Up to 40 lakh
  • Rajiv Gandhi IIT, Shillong
  • IIT, Mumbai
  • IIT, Kanpur
  • And other institutes which are not covered in category A & B
Up to 20 lakh

The interest rate on your borrowed amount is the 1-year MCLR of the bank and changes with the changes in MCLR from time to time. The moratorium period is excluded from your tenure, and the borrower gets a loan tenure of 15 years to pay the loan and interest rate. There are no upfront fees required by the bank to process the loan and the disbursal takes place quickly after the sanction.

Canara Bank Vidya Shakti Scheme

Candidates who come under the Persons With Disabilities (PWD) category can apply for the higher education loan at Canara Bank. For degree or diploma courses and the institute’s special skill course, you can apply for a loan. As per the IBA model of the loan scheme, you could borrow the desired amount for admission in India or educational institutions abroad. The tenure of the loan is based on the borrowed amount and course duration. Look at the below details of the Vidya Shakti scheme of Canara Bank education loan.

LoanUp to 7 lakh for degree or diploma
Up to 1.5 lakh for Skill Loan
Interest Rate7.85%
Tenure7-15 years
Processing FeeNIL including Vidya Lakshmi Portal referral fee

Canara Bank Vidya Sahay Education Loan Scheme

To help the needy students to secure their admission in the reputed institution, they need to clear the entrance or selection process. And to make their position permanent they are required to make a downpayment to the institution. To manage the amount, you can borrow from Canara Bank up to INR 1 lakh under its education loan schemes. The interest rate to your borrowed amount is 1-year MCLR plus 2.00%, it may change with the changing MCLR of the bank during the tenure. And the repayment period to your borrowed amount is based on your selection and regular education loan approval.

The details of the student must be submitted to the bank, like the qualification proof and the current examination or entrance result. KYC and address proof is mandatory to submit along with the loan application form. There is no processing fee required for the loan and it is disbursed to your account after the approval from the bank.

Apply for Canara Bank Education Loan

To get the funding for your education, you can apply for the loan from Canara Bank, and to do so, you just need to visit the bank branch. You can also apply for the loan using Vidya Lakshmi online portal. Register to the online website and select Canara Bank to apply for the loan. Fill up the online application form and submit it with the mentioned details. You will be notified via a message from the education portal once the bank approves your loan application.

Then your application will go towards the next procedure that is documentation. Below are the documents required for verification.

  • Aadhar card, PAN card, Driving Licence, Passport, etc. of both student and parent or guardian.
  • Salary slip, ITR report, TDS certificate, bank statement, etc, of parent and the Guarantor.

When the formalities of the education loan are completed both by the bank and customer, the user just needs to wait for the sanction.

For the payment of your loan, you can select the tenure as per the scheme and do the payment of the borrowed amount in equated monthly installments. You can use the following methods to do the EMI payment for your Canara Bank education loan.

ECS: You can pay the loan automatically via electronic clearing service (ECS). Submit the ECS form along with the other documents at Canara Bank.

PDCs: By offering the cheque payment service you can submit post-dated cheques as per the EMI schedule.

Standing Instruction Request: Borrowers can use their Canara Bank accounts to pay the EMI as well. Just make a request for the standing instruction service at Canara Bank by providing your banking details.

Related Post