Obtaining a higher education degree, especially from renowned institutions in India or abroad, is a dream for many students. However, the cost associated with pursuing such studies can be quite high. This is where education loans come to the rescue, providing financial assistance to students. Canara Bank, one of India’s leading public sector banks, offers a range of education loan products to support students in their pursuit of higher education. In this comprehensive guide, we will explore the various education loan offerings by canara bank education loan interest rate, eligibility criteria, application process, repayment options, and more.
Canara Bank Education Loan Products for Abroad Studies
Canara Bank understands the aspirations of students to study abroad and has tailored specific loan products to cater to their needs. Let’s take a look at the education loan products offered by Canara Bank for studying abroad:
Scheme for Pursuing a Master’s Degree
The Scheme for Pursuing a Master’s Degree is designed to provide financial assistance to students pursuing master’s degrees in STEM (Science, Technical, Engineering, and Management) courses from select top-ranking universities abroad. The loan amount can range from a minimum of Rs 7.5 lakhs to a maximum of 100% of the project cost, depending on the collateral coverage. The interest rates offered are competitive, starting from 10.85% for collateral security of 100% and above. The loan repayment tenure can extend up to 15 years, excluding the moratorium period.
Vidya Sagar Scheme
Under the Vidya Sagar Scheme, Canara Bank offers education loans for students pursuing higher studies abroad. The loan amount can be availed without collateral up to Rs 7.5 lakhs or up to 100% of the collateral value, depending on the applicant’s profile. The interest rates start from 9.25%, and the repayment duration can extend up to 15 years after the moratorium period.
Vidya Shakthi Scheme
Canara Bank’s Vidya Shakthi Scheme aims to provide financial assistance to persons with disabilities (PwD) who wish to pursue higher education abroad. The loan amount can be availed without collateral up to Rs 7.5 lakhs or up to 100% of the collateral value. The interest rates are competitive, starting from 8.80%, and the repayment duration can extend up to 15 years after the moratorium period.
Scheme for Pursuing Master’s Degree (Vidya Shakti)
The Scheme for Pursuing Master’s Degree, known as Vidya Shakti, offers financial assistance to students with disabilities who wish to pursue a master’s degree abroad. The loan amount can be availed without collateral up to Rs 7.5 lakhs or up to 100% of the collateral value. The interest rates start from 9.25%, and the repayment duration can extend up to 15 years after the moratorium period.
Canara Bank Education Loan Products to Study in India
Canara Bank also offers education loan products for students who wish to pursue their higher studies within India. Let’s explore these loan products:
Vidya Sagar Scheme for India
The Vidya Sagar Scheme for India is designed to provide education loans to students pursuing graduate courses in prestigious educational institutions in India, including professional and technical courses run by the Government, UGC, and approved institutions. The loan amount can be availed without collateral up to Rs 7.5 lakhs or up to 100% of the collateral value, depending on the applicant’s profile. The interest rates start from 9.25%, and the repayment duration can extend up to 15 years after the moratorium period.
Vidya Turant Scheme
The Vidya Turant Scheme offers financial assistance to students aspiring to pursue higher education in India. The loan amount can be availed without collateral up to Rs 40 lakhs or up to 100% of the collateral value, depending on the applicant’s profile. The interest rates are competitive, with the current rate set at 7.75%. The repayment duration can extend up to 15 years after the moratorium period. It is important to note that there is no processing fee charged for education loans under the Vidya Turant Scheme.
Vidya Shakthi Scheme
Similar to the education loan product for studying abroad, Canara Bank’s Vidya Shakthi Scheme provides financial assistance to persons with disabilities (PwD) who wish to pursue higher education in India. The loan amount can be availed without collateral up to Rs 7.5 lakhs or up to 100% of the collateral value. The interest rates are competitive, starting from 7.75%, and the repayment duration can extend up to 15 years after the moratorium period.
Vidya Sahay Scheme
The Vidya Sahay Scheme caters to students who require financial assistance for down payment to secure their seat in prestigious colleges or universities in India. The loan amount can be availed up to Rs 1 lakh or as proposed under the bank’s policy. The interest rates are competitive, with the current rate set at 9.75%. The repayment duration varies based on the loan amount, ranging from 3 years for amounts up to Rs 50,000 to 7 years for amounts above Rs 1 lakh.
IBA Skill Loan Scheme
Canara Bank participates in the IBA Skill Loan Scheme, which provides financial assistance to individuals pursuing skill development courses affiliated with the National Skill Qualification Framework (NSQF). The loan amount can be availed up to Rs 1.5 lakhs, and the interest rates are competitive, starting from 9.25%. The repayment duration varies based on the loan amount, ranging from 3 years for amounts up to Rs 50,000 to 7 years for amounts above Rs 1 lakh.
Eligibility Criteria for Canara Bank Education Loan
To avail an education loan from Canara Bank, applicants need to meet certain eligibility criteria. The general eligibility criteria for Canara Bank education loan are as follows:
- The applicant should be an Indian National.
- The applicant should have secured admission to a recognized university or institution for the course they wish to pursue.
- For studying abroad, the applicant should have qualified competitive exams like SAT, ACT, GRE, or GMAT, with scores above the minimum cutoff specified by Canara Bank.
- The applicant should be ready to provide acceptable collateral, as required by Canara Bank.
It is important to note that specific loan products may have additional eligibility criteria, such as disability status for schemes targeting students with disabilities.
Processing Fee for Canara Bank Education Loan
Canara Bank charges a processing fee for education loans, which is a percentage of the sanctioned loan amount. The processing fee varies based on the collateral coverage and the loan amount. Here is an overview of the processing fee structure for Canara Bank education loans:
| Collateral Coverage | Processing Fee |
|---|---|
| Less than 100% | 0.50% of sanctioned limit, with a maximum of Rs.20,000 |
| 100% and above | 0.50% of sanctioned limit, with a maximum of Rs.10,000 |
It is important to note that the Vidya Turant Scheme does not charge any processing fee for education loans. However, there may be additional charges for legal and valuation reports, ranging from Rs 7,500 to Rs 10,000, for loans with collateral.
Documents Required for Canara Bank Education Loan
To apply for an education loan from Canara Bank, applicants need to submit certain documents. The documentation requirements may vary depending on the loan product and the applicant’s profile. Here is a list of commonly required documents:
Section 1: Canara Bank Education Loan Application Form
- Completed application form for the education loan, including two passport-size photographs.
Section 2: Basic Documents for Applicant, Co-applicant, and/or Guarantor
- Identification proof: PAN Card, Passport (for students going abroad)
- Residence proof: Passport, Ration Card, Voter ID Card, Bank account statement, Aadhar Card
- Current six-month bank statement
- Statement of Personal Assets and Liabilities
Each document must be self-attested.
Section 3: Applicant’s Academic Documents
- Academic certificates and credentials (10th, 12th, and degree)
- Entrance exam scorecard
- Admission proof for the course
- Fee structure provided by the college or university
Section 4: Income Documents of the Co-Borrower
If the co-borrower is salaried:
- Employer’s ID card
- Recent salary slips (last 3 months)
- Form 16 of the last 2 years
- Income Tax Return (ITR) of the last 2 years
If the co-borrower is self-employed:
- Last 3 years’ balance sheet and Profit & Loss account
- Income Tax Return (ITR) of the last 3 years
- Address proof of the business
It is important to note that the document requirements may vary based on the loan product and the specific circumstances of the applicant. Applicants are advised to check with Canara Bank for the complete and up-to-date list of required documents.
Canara Bank Education Loan Insurance
Canara Bank offers education loan insurance to provide additional security to borrowers and their families. The insurance coverage provides financial protection in case of unforeseen events, such as the death of the student. By opting for education loan insurance, the responsibility to repay the outstanding loan amount will be transferred to the insurance company, relieving the burden from the parents or co-borrower of the loan.
Canara Bank Education Loan Margin Calculation
Loan margin refers to the percentage of the total educational expenses that the borrower must fund from their own resources. Canara Bank requires a loan margin for education loans, which may vary based on the loan amount and the collateral coverage. Here is an overview of the loan margin calculation for Canara Bank education loans:
Loan Margin for Studying in India
- Loan amount below Rs 4 lakhs: 0% loan margin
- Loan amount above Rs 4 lakhs: 5% loan margin
Loan Margin for Studying Abroad
- Loan amount below Rs 4 lakhs: 0% loan margin
- Loan amount above Rs 4 lakhs: 15% loan margin
It is important for borrowers to plan their finances accordingly to meet the loan margin requirements.
How to Apply for an Education Loan from Canara Bank
Applying for an education loan from Canara Bank can be done through both offline and online channels. Let’s explore the application process for Canara Bank education loans:
Offline Application Process
- Visit the nearest Canara Bank branch and enquire about the education loan products.
- Select the loan product that best suits your requirements and eligibility criteria.
- Fill out the loan application form and gather the necessary documents.
- Submit the loan application form and supporting documents to the bank.
- Follow the bank’s instructions for further processing and evaluation of the loan application.
Online Application Process via WeMakeScholars
- Fill out the online education loan form provided by WeMakeScholars.
- Receive a callback from your financial officer at WeMakeScholars to discuss your loan requirements.
- Provide all the necessary information and documents as requested by your financial officer.
- Compare the loan options available from different lenders, including Canara Bank.
- Upload your documents securely on the WeMakeScholars portal.
It is important to note that the online application process through WeMakeScholars simplifies the loan application and provides access to multiple lenders.
Why and How to Transfer Your Education Loan to Canara Bank
If you already have an existing education loan from another lender, you may consider transferring it to Canara Bank for various reasons. Canara Bank offers attractive benefits, including competitive interest rates, flexible repayment options, and additional schemes like interest subsidy for eligible candidates. To transfer your education loan to Canara Bank, follow these steps:
- Evaluate the terms and benefits offered by Canara Bank for education loan transfers.
- Calculate the potential savings or advantages of transferring your loan to Canara Bank.
- Contact Canara Bank and initiate the loan transfer process.
- Provide the necessary documents and information required for the loan transfer.
- Follow the instructions provided by Canara Bank for seamless loan transfer and repayment.
Transferring your education loan to Canara Bank can provide you with better terms and benefits, ultimately reducing the burden of loan repayment.
Canara Bank Education Loan EMI Calculation as per Interest Rate
Calculating the Equated Monthly Installments (EMI) for your Canara Bank education loan can help you plan your finances effectively. The EMI amount depends on various factors, including the loan amount, interest rate, and repayment duration. Canara Bank provides an EMI calculator on their official website, allowing borrowers to calculate their EMI based on their specific loan details.
To use the Canara Bank EMI calculator, you need to enter the loan amount, interest rate, and repayment duration. The calculator will provide you with the EMI amount, helping you plan your monthly budget accordingly.
Canara Bank Education Loan Repayment Process
Canara Bank offers flexible repayment options for education loans, allowing borrowers to choose a repayment duration that suits their financial capabilities. The loan repayment process typically starts after the completion of the moratorium period, which includes the course duration and an additional grace period.
The repayment duration for Canara Bank education loans can extend up to 15 years, excluding the moratorium period. Borrowers can opt for Equated Monthly Installments (EMIs) or a customized repayment plan based on their financial circumstances. It is important to make timely repayments to avoid any negative impact on your credit score and future borrowing capabilities.
Education Loan Interest Subsidy Schemes
Canara Bank participates in various education loan interest subsidy schemes initiated by the government and regulatory bodies. These schemes aim to provide financial relief to eligible students by subsidizing the interest on their education loans. The eligibility criteria and benefits vary depending on the specific schemes.
Frequently Asked Questions (FAQs)
1. How can I contact Canara Bank for more information about education loans?
You can contact Canara Bank through their customer care helpline, email, or by visiting your nearest Canara Bank branch. The contact details can be found on the official Canara Bank website.
2. Can I apply for an education loan from Canara Bank without collateral?
Yes, Canara Bank offers education loans without collateral for select loan products, subject to meeting the eligibility criteria and other requirements.
3. What is the maximum loan amount I can avail for studying abroad through Canara Bank education loans?
The maximum loan amount for studying abroad depends on various factors, including the collateral coverage and the specific loan product. Canara Bank provides loans up to 100% of the project cost for select loan products.
4. Can I prepay or foreclose my Canara Bank education loan before the completion of the repayment tenure?
Yes, Canara Bank allows borrowers to prepay or foreclose their education loans without any prepayment penalties. However, it is advisable to check the terms and conditions specific to your loan product.
Conclusion
Canara Bank’s education loan offerings provide valuable financial support to students aspiring to pursue higher studies in India and abroad. With competitive interest rates, flexible repayment options, and various loan products catering to different needs, Canara Bank ensures that students can focus on their education without worrying about financial constraints. It is important to carefully evaluate the loan products, eligibility criteria, and terms before applying for an education loan. By utilizing the information in this comprehensive guide, students can make informed decisions and pave the way for a successful academic journey.
