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Canara Bank Education Loan

Last Modified : June 26, 2018

Canara Bank has launched variety of schemes namely Vidya Sahay, Vidya Turant, Education Loan under IBA Model, Model Loan Scheme for Vocational Education and Training. These schemes fall under Education Loan for India and Abroad

Canara Bank Education Loan for Abroad is also extended for studies in premier institutes with zero margin charged

Why Canara Bank?

Loads of benefits and attractive rate of interests plays a key factor in attracting students towards Canara Bank Education Loan. Bank charges 10.40% interest on loan amount upto INR 7.50 lacs and 10.20% for loan amount above INR 7.50 Lacs.

Interested students can also avail for various other schemes such as Central Sector Interest Subsidy Scheme for Education Loan, and Padho Pardesh Interest Subsidy Scheme for Education Loans to students belonging to Minority Community to ease 

Are you eligible for Canara Bank Education Loan?

  • Indian National. Student must be citizen of India or a holder of Indian passport.
  • 10+2 qualified. One must have cleared 10+2 from a recognized board of institutions.
  • Good Academic Background. One must have scored decent marks in their last qualifying examination. 
  • Co-Borrower. A co-borrower or a co-signer is must. A co-borrower must be a member of immediate family. 

How can you apply for Canara Bank Education Loan?

You can either apply through official website or Vidyalakshmi Portal if you opt for online mode of application process. Otherwise you can visit your nearest branch and ask for an application form.

In both scenarios, the bank representative will guide you till the end of your process about interest rates, eligibility criteria and the suitable variant of loan.

We have curated all the necessary details about different variants of education loan offered by Canara Bank Education Loan

1. Education Loan for Students- IBA Model Loan Scheme 

Canara Bank launched Education Loan Scheme for students who wish to pursue higher studies in India from reputed universities. The scheme is to ensure the academic excellence among students and to make nation ahead in terms of education sector.

What makes you eligible for Canara Bank Education Loan 

  • Indian National
  • Graduation/ Post Graduation/ Diploma courses in any recognized institute approved by State or Central Government.

Present Rate of Interest

Category

ROI

Present ROI

Loan amount upto INR 4 Lacs

1 year MCLR + 2.00%

10.40%

Loan amount between INR 4 to 7.50 Lacs

1 year MCLR + 2.00%

10.40%

Loan amount above INR 7.50 Lacs

1 year MCLR + 1.80%

10.20%

Vidya Turant

1 year MCLR + 0.20%

8.60%

IBA Model Education Loan Scheme for Vocational Education and Training

1 year MCLR + 1.50%

9.90%

Quick Facts about Canara Bank Education Loan

Margin

Upto INR 4 Lacs: Nil

Above INR 4 lacs: 5%

 

Maximum Loan Limit

INR 10 Lacs

Security

Less than INR 4 Lacs: No Collateral required

From INR 4 to 7.5 Lacs: Guarantee of bank approved third party

Above INR 7.5 Lacs: Collateral Security equal to amount of loan

Assignment of students future salary towards the bank 

Moratorium Period

Course Period + 1 year

Repayment (Maximum)

Repayment of the loan can be done after the moratorium period by mode of EMI

Upto INR 7.5 Lacs: 10 years

Above INR 7.5 Lacs: 15 years

Prepayment Charges

Nil

Additional Facts about Canara Bank Education Loan

  • Zero Margin for Loan upto INR 4 Lacs
  • No collateral is required if the loan is less than INR 4 Lacs
  • Loan is sanctioned conjointly to the applicant and his/ her guardian.

Expenses covered under Canara Bank Education Loan

  • Tuition Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee 
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)

Courses Covered under Canara Bank Education Loan

  • Graduation, Post- Graduation or Doctorate courses
  • Professional Courses- Medical, Law, Dental, Engineering, Hospital Management, Hotel Management, Event Management, Mass Communication, Fashion Studies, Agricultural Studies, etc.
  • Courses that are offered by reputed foreign universities in India
  • Regular or Evening Courses conducted by colleges/ universities approved by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.
  • Degree or Diploma courses in Teacher Training, Nursing, B.Ed provided the training institutes are approved by Central/ State Government.

Documents required for Canara Bank Education Loan

  • Identity Proof- Passport, Voter’s ID, Driving Licence or PAN Card
  • Mark sheet of recently qualified public exam for school, college in India
  • Admission Proof: Fee receipts, Transfer certificate, etc.
  • Schedule of expenses for the course
  • Two recent passport size photographs of applicant, co-applicant and guarantor
  • Educational Proof- copy of admission letter along with fee structure, mark sheets, SSC, HSC and degree course certificates
  • Salary Proof- Latest salary slip, Form 16 and recent salary certificate

2. Model Loan Scheme for Vocational Education and Training

Vocational courses are job oriented short-term courses that enhance students’ knowledge in the specific field and prepare them for the industry. Canara Bank has initiated Model Loan Scheme for Vocational Education and Training to extend a helping hand to students by financing expenses throughout the course.

Eligibility to avail Model Loan Scheme for Vocational Education and Training

  • Indian National
  • SSC/10th pass
  • Course approved by State/ Central Government

Quick Facts about Model Loan Scheme for Vocational Education and Training

Margin

Nil

 

Maximum Loan Limit

Course with 3 months duration: INR 20,000

Course with 3-6  months duration: INR 50,000

Courses with 6 months- 1 year duration: INR 75,000

Courses above 1 year duration: INR 1,50,000

Security

No security is required

No collateral or third party guarantee is asked for.

Moratorium Period

For course upto 6 months: Course Period + 6 months

For courses above 6 months duration: Course Period
+ 1 year

Repayment (Maximum)

Course with 3 months duration: 2-5 years

Course with 3-6  months duration: 2-5 years

Courses with 6 months- 1 year duration: 2-5 years

Courses above 1 year duration: 3-7 yeras

Prepayment Charges

Nil

Additonal Facts about Model Loan Scheme for Vocational Education and Training

  • No Margin 
  • No security
  • Loan can be availed from nearest Canara Bank branch

Expenses Covered under Model Loan Scheme for Vocational Education and Training

  • Tuition Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee 
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)

Courses Covered under Model Loan Scheme for Vocational Education and Training

  • Vocational or Development courses of 2 months to 3 years duration
  • Certificate, degree or diploma courses by a renowned organization.
  • University/ Institute approved by State/ Central Government

Documents required for Model Loan Scheme for Vocational Education and Training

  • Identity Proof- Passport, Voter’s ID, Driving Licence or PAN Card
  • Mark sheet of recently qualified public exam for school, college in India
  • Admission Proof- Fee receipts, Transfer certificate, etc.
  • Schedule of expenses for the course
  • Two recent passport size photographs of applicant, co-applicant and guarantor
  • Educational Proof- copy of admission letter along with fee structure, mark sheets, SSC, HSC and degree course certificates
  • Salary Proof- Latest salary slip, Form 16 and recent salary certificate

3. Vidya Sahay- Bridge loans to students who appear for counseling at CET Centres

Vidya Sahay, an education loan initiative by Canara Bank is to extend financial support to students who have to appear for counseling at any CET centers. The loan scheme is launched to assist the merit students in need of down payment to be made to CET authorities at the time of counseling.

Eligibility to avail Vidya Sahay Education Loan

  • Indian national
  • Cleared previous qualifying exam
  • Entrance test conducted by State/ CBSE/ IIT and similar all Indian National Examination conducting authority
  • Qualified entrance exam and selected for counselling process

Present Rate of Interest

Vidya Sahay Education Loan

As applicable on education loans: 11.50% (BR+1.5%)

DRI rate to students who qualify DRI norms

Quick Facts about Vidya Sahay Education Loan

Margin

Nil

 

Maximum Loan Limit

INR 1 Lac or initial payment as proposed by CET authorities (whichever is less)

Security

No security is required

No collateral or third party guarantee is asked for.

Moratorium Period

Course Period+ 1 year

Repayment (Maximum)

Bridge loan is to be cleared after the sanction of regular education loan

Prepayment Charges

Nil

Additional Facts about Vidya Sahay Education Loan

  • No processing or documentation charges
  • No margin
  • No security

4. Vidya Turant

Vidya Turant is an initiative launched under Canara Bank’s Education loan scheme for students who wish to pursue higher studies in premier institutions. The scheme is launched to extend a helping hand to students who have secured admission to premier Institutions.

Eligibility to avail Vidya Turant Education Loan

  • Indian National
  • Qualified previous qualifying exam
  • Entrance exam based selection
  • admission to premier Institutes viz. IIMs, IITs, NITs, IISc, and other such institutes. (List of institutes that are approved under this loan is mentioned below)

Quick Facts about Vidya Turant Education Loan

    Margin

    5%

     

    Maximum Loan Limit

    IIMs: INR 25 Lacs

    ISB Hyderabad, Mohali: INR 36 Lacs

    Institutes other than List A or List B: INR 20 Lacs

    Security

    No security upto the limit designated to particular institute (students of IIMs: INR 25 Lacs, students of ISB: INR 36 Lacs and students of other institutes: upto INR 20 Lacs)

    Assignment of future income towards bank

    Moratorium Period

    Course Period + 1 year or 6 months after getting job

    Repayment (Maximum)

    15 years (irrespective of loan amount)

    Prepayment Charges

    Nil

    Additonal Facts about Vidya Turant Education Loan

    • No processing charges
    • No prepayment fee
    • No provision of 0.5% concession to girl students
    • Parent/ guardian has to join as co-borrower

    Expenses Covered under Vidya Turant Education Loan

    • Tuition Fee
    • Examination Fee
    • Library/ Laboratory Fee
    • Hostel Fee 
    • Cost of Books, equipment, instrument or uniforms
    • Miscellaneous expenses- study tours, project work, thesis, etc.
    • Reasonable cost of computer or laptop (if required)
    • Insurance premium for student

    List of Institutes that fall under A and B Category

    VIDYA TURANT SCHEME -

     LIST OF APPROVED INSTITUTONS AND DESIGNATED  BRANCHES

    Sl.No.

    INSTITUTION

    BRANCH

    CIRCLE OFFICE

    CATEGORY-A

    1

    Indian Institute of Management, Ahmedabad

    Ahmedabad,  Vastrapur DP Code-2637

    AHMEDABAD

    2

    Indian Institute of Management, Bangalore

    Arakere Gate Branch, DP Code 2753

    BANGALORE

    3

    Indian Institute of Management, Indore

    Indore RNT Marg DP Code-0359

    BHOPAL

    4

    Indian Institute of Management, Kozhikode

    Calicut West Hill DP Code-833

    TRIVANDRUM

    5

    Indian Institute of Management, Kolkata

    Thakurpukur Branch D P Code-8626

    KOLKATA

    6

    Indian Institute of Management, Lucknow

    Lucknow Janakipuram DP Code-3210

    LUCKNOW

    7

    Indian Institute Management, Ranchi

    Kanke Road, Ranchi, DP Code 2869

    RANCHI

    8

    Indian Institute Management, Trichy

    NIT, Thuvkudi, DP Code 3314

    MADURAI

    9

    Indian Institute Management, Rohtak

    Rohtak MainDP Code 1171

    KARNAL

    10

    Indian Institute Management, Udaipur

    Udaipur Main, UdaipurDP Code 2982

    JAIPUR

    11

    Indian Institute Management, Kashipur

    Kashipur DP Code 2795

    DELHI

    12

    Indian Institute Management, Raipur

    Raipur Main, Raipur, DP Code 381

    BHOPAL

    13

    Indian Institute of Management, Mananwala, Amritsar.

    1.  

    (DP Code : 6177 )

    1.  

     

    CATEGORY-B

    14

    Indian School Of Business, Mohali, Sector 8A, SAS Nagar, Mohali – 140 306

    Mohali, IISER Campus DP Code 4790

    CHANDIGARH

    15

    Indian School Of Business, Hyderabad

    Madhapur branch, DP 3091

    HYDERABAD

    CATEGORY-C

    16

    Rajiv Gandhi Indian Institute of Management, Shillong

    Shillong Main D P code-1184

    GUWAHATI

    17

    IIT, Madras

    IIT, Chennai, D P Code-2722

    CHENNAI

    18

    IIT, Roorkee

    Roorkee DP Code-2200

    DELHI

    19

    IIT, Delhi

    IIT Delhi Branch, IIT Campus, Hauz Khas, Delhi, D P Code-8599

    DELHI

    20

    IIT, Guwahati

    IIT Guwahati D P Code-8652

    GUWAHATI

    21

    IIT, Kharagpur

    Kharagpur Branch D P Code-0190

    DURGAPUR

    22

    IIT (BHU)

    Varanasi Lanka DP Code-2453

    LUCKNOW

    23

    IIT, Kanpur

    Kanpur Mall Road DP Code- 1195

    LUCKNOW

    24

    IIT, Patna

    Pataliputra Colony  Branch, Patna ,(DP Code 2518)

    PATNA

    25

    IIT, Mumbai

    Mumbai IIT, Powai DP Code-2724

    MUMBAI

    26

    Indian Institute of Technology,

    Bhilai, Chhattisgarh

    Raipur, SejbaharBranch

    (DP Code : 5142 )

    BHOPAL

    27

    NIT, Rourkela

    Rourkela Main,  DP Code 0395

    BHUBANESWAR

    28

    NIT, Calicut

    Koduvally DP Code-3487

    TRIVANDRUM

    29

    NIT, Srinagar

    Srinagar Main DP Code-1190

    CHANDIGARH

    30

    NIT, Hamirpur

    Hamirpur DP Code-3238

    CHANDIGARH

    31

    NIT, Agartala

    NIT, Agartala D P Code-4121

    GUWAHATI

    32

    NIT, Kurukshetra

    Kurukshetra Branch, D P Code 2475

    KARNAL

    33

    NIT, Durgapur

    Durgapur NIT Campus Branch, D P Code-8569

    KOLKATA

    34

    NIT Silchar

    Silchar, DP Code-3050

    GUWAHATI

    35

    NIT,  Karnataka, Surathkal

    Surathkal NITK Camp D P Code-8517

    MANGALORE

    36

    NIT, Raipur

    GE Road, Raipur D P Code-2555

    BHOPAL

    37

    NIT, Patna

    Patna Exhibition Road DP Code-2004

    PATNA

    38

    NIT, Jamshedpur

    Jamshedpur Bistupur, DP Code 0324

    DELHI

    39

    NIT, Tiruchirappalli

    Trichy Thuvakudi DP Code- 3314

    MADURAI

    40

    NIT, Warangal

    Hanumakonda, DP Code 2450

    HYDERABAD

    41

    Motilal Nehru National Institute of Technology, Allahabad

    Allahabad Civil Lines, DP Code-0627

    LUCKNOW

    42

    Visvesvaraya National Institute of Technology, Nagpur

    VNIT, Nagpur D P Code-3124

    PUNE

    43

    Xavier Institute Of Management, Bhubaneswar

    ICMR, Bhubaneshwar, DP Code 2957

    BHUBANESWAR

    44

    Faculty Of Management Studies(FMS)

    Kamalanagar 3F, Delhi,DP Code 0156

    DELHI

    45

    Management Development Institute(MDI)

    Gurgaon Main, Gurgaon,DP Code 1723

    KARNAL

    46

    Institute Of Management Technology-IMT

    Ghaziabad Main, Ghaziabad,DP Code 1149

    DELHI

    47

    S. P.Jain Institute Of Management and Research, Mumbai – 400 058

    Andheri West (SSB), Mumbai, DP Code 2667

    MUMBAI

    48

    Jamnalal Bajaj Institute Of Management Studies(JBIMS), Reclaimation, Mumbai

    Nariman Point, Mumbai,DP Code 172

    MUMBAI

    49

    K.J.Somaiya Institute Of Management Studies And Research

    Chembur Amarmahal, Mumbai DP Code 232

    MUMBAI

    50

    Symbiosis Institute Of Business Management(SIBM), Pune

    MSFC Branch, PuneDP Code 2829

    PUNE

    51

    Symbiosis Centre for Management and Human Resource Development (SCMHRD)

    Model Colony, Pune  DP Code 262

    PUNE

    52

    Xavier Labour Relations Institute (XLRI)

    Bistupur Main,JamshedpurDP Code 0324

    RANCHI

    53

    Narsee Monjee Institute Of Management Studies (NMIMS),  Mumbai – 400 056

    JVPD Scheme, MumbaiDP Code 0121

    MUMBAI

    54

    BITS – Pilani

    Jhunjhunu Branch,(DP Code 2330)

    JAIPUR

    55

    International Management Institute (IMI), Delhi

    Jit Singh Marg Branch,(DP Code 1484)

    DELHI

    56

    IRMA – Anand

    Anand Main Branch,(DP Code 0163)

    AHMEDABAD

    57

    Indian School of Mines (ISM), Dhanbad

    Seraidhela Branch (DP Code 0986)

    RANCHI

    58

    Indian Institute of Foreign Trade, New Delhi

    Jit Singh Marg Branch,(DP Code 1484)

      DELHI

    59

    NITIE – Mumbai

    IIT, Powai Branch,(DP Code 2724)

    MUMBAI

    60

    Shailesh J Mehta Institute of Management, Mumbai

    IIT, Powai Branch,(DP Code 2724)

    MUMBAI

    61

    Indian Institute of Sciences  (IISc), Bangalore

    Indian institute of Sciences branch, DP 0683

    BANGALORE

    62

    S.V. National Institute of Technology, Surat

    Surat KM Road Main- DP Code-336

    AHMEDABAD

    63

    Maulana Azad National Institute of Technology

    Bhopal New Market D P Code- 2651

    BHOPAL

    64

    Dr. B.R. Ambedkar National Institute of Technology, Jalandhar

    Dr. B.R. Ambedkar National Institute of Technology,Jalandhar DP Code-2945

    CHANDIGARH

     

    65

    Malaviya National Institute of Technology, Jaipur

    Jaipur Malviya Nagar DP Code-2550

    JAIPUR

    66

    Birla institute of Technology,Mesra,Ranchi

    Ormanjhi Branch ( DP Code 5708)

    RANCHI

    67

    MICA ( Mudra Institute of Communications, Ahmedabad )

    Bopal Branch ( DP Code 3423)

    AHMEDABAD

    68

    A: NID ( National Institute of Design , Gandhinagar)

    Gandhi nagar Branch ( DP Code 2381),

    AHMEDABAD

     

    B: NID (National Institute of Design,Ahmedabad)

    Paldi Branch ( DP Code 0174)

    AHMEDABAD

    69

    Institute of Management, NIRMA University. Ahmedabad

    Thaltej Branch ( DP Code 3180)

    AHMEDABAD

    70

    IIT, Hyderabad, Telangana

    Yeddumailaram Branch(DP Code 3458)

    1.  

    71

    National Institute of Foundry and Forge Technology (NIFFT), Ranchi, Jharkhand

    NIFFT Campus Branch (DP Code 2730)

    1.  

    72

    IIT, Jodhpur, Rajasthan

    Jodhpur Main( DP Code 1088)

    1.  

    73

    1.  

    Information &Technology University, Jaipur

    Saint Angella Sophia School Branch

    ( DP Code 8465)

    1.  

    74

    International Management

    Institute (IMI),Kolkata, West Bengal

    Alipore, Kolkata, ( DP Code : 0254)

    1.  

    75

    T. A. Pai Management Institute (TAPMI), Manipal , Karnataka

    Udupi Town Branch (DP Code :0630)

    1.  

    76

    Indian Institute of Information Technology(IIIT), Allahabad,

    Allahabad Main, (DP Code : 0627)

    1.  

    77

    Indian Institute of Technology

    (IIT) Gandhinagar, Gujarat

    IIT,Gandhinagar Branch,

    ( DP Code: 5159)

    1.  

    78

    Bharathidasan Institute of Management, Tiruchirappalli

    Thuvakudi Branch, ( DP Code: 3314)

    1.  

    79

    Indian Institute of Technology(IIT), Indore

    Simrol IIT Branch,(DP Code : 6223)

    1.  

    80

    Indian Institute of Technology(IIT), Palakkad

    IIT, Palakkad Branch,

    (DP Code: 6174)

    1.  

    FAQs

    1. What schemes does Canara Bank considers for its education loans?

    Answer: There are multiple other schemes offered by Canara Bank apart from the basic education loans. These are:

    • CSIS Scheme
    • Padho Pardesh
    • Model Loan Scheme for Vocational Education and Training
    • Vidya Sahay
    • Vidya Turant
    1. In whose name is the loan granted?

    Answer: The loan is granted in the name of the student

    1. Is the loan contract executed only in student’s name?

    Answer: No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

    1. What is the age limit for availing loan in Canara Bank?

    Answer: There is no age restriction for the applicant applying for education loan from Canara Bank. He/ she should only meet the other stated eligibility criteria’s.

    1. Are minors eligible to apply for Canara Bank Education Loan?

    Answer: Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

    1. What does margin on any loan mean?

    Answer: Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

    1. Should the student’s margin be paid upfront in the starting?

    Answer: Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

    1. Where can I avail Canara Bank Education Loan?

    Answer: You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

    1. Is there any provision to apply for loan online?

    Answer: : Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

    1. Can I view my loan statement online if I am an existing education loan borrower?

    Answer: Yes, by creating a login on Canara Bank web portal, you can view all details related to education loan online.

    1. Is there any minimum aggregate marks to meet the eligibility criteria to avail Canara Bank education loan?

    Answer: Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students

    1. What is the discount/ rebate offered by Canara Bank?

    Answer:

    • 0.50% concession is given to girl students
    • Eligibility criteria and margin on education loan is relaxed for SC/ST students
    1. What all is included in tangible collateral security?

    Answer: Mostly Canara Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Canara Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

    1. Can I place my family property as collateral?

    Answer: Yes, but it will need consent of all family members involved.

    1. Is scholarship or assistantship included in the margin?

    Answer: Yes any scholarship or assistantship will be a part of margin charged on education loan.

    1. What is Moratorium Period?

    Answer: Course Period plus one year, or six months after getting a job

    1. What is tenure of an education loan?

    Answer: Tenure of education loan provided by Canara Bank is maximum 15 years

    1. What does MCLR stands for?

    Answer: MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

    1. What all expenses are covered under this course?

    Answer: Expenses covered by Canara Bank education loan are:

    • Tuition/ college/ hostel fee
    • Examination/ lab/ library fee
    • Books/ uniform/ instruments
    • Caution deposit
    • Passage money for studies abroad, etc.
    1. I have taken admission through management quota. Am I eligible?

    Answer: This depends totally on bank’s discretion as whether a student meets other eligibility criteria or not.

    1. What do you mean by reputed or recognized institutes?

    Answer: Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

    1. Are there any special benefits if I have secured admission to one of the top premier institutes?

    Answer: Canara Bank provides 1% concession to students who have secured admission in top rated institutes like IITs, IIMs, XLRI, ISB, IIFT, NITs, etc.

    1. What is the processing fee or prepayment charges?

    Answer: The education loan offered by Canara Bank have no prepayment, processing or documentation charges.

    1. Will cost of my computer be covered under the loan sanctioned?

    Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course. 

    1. Why is Pan Card necessary?

    Answer: Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

    • Easy to assess Income
    • Easy to trace borrowers
    1. Are diploma or certificate courses considered under Canara Bank education Loan (both for India and Abroad)?

    Answer: Diploma courses are eligible under Canara Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.

    1. Is a co-borrower necessary for loan?

    Answer: Yes, it is mandatory to have a co-borrower to avail loan from Canara Bank.  

    1. Who can be my co-borrower?

    Answer: Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

    1. What all documents are required from the co-borrower?

    Answer: Documents required from the co-borrower are:

    • Attested copies of age proof, residence proof and birth date.
    • Self-attested passport size photograph
    • Income proof and/or copy of income tax return file
    • Details of collateral security along with government approved valuation certificate (if any).
    1. How many guarantors do I need to borrow loan from Canara Bank?

    Answer: You need at least 2 guarantors to avail loan from Canara Bank.

    Q.What is the KYC requirement in education loan?

    Answer: KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

    Q.What are maximum term for repayment?

    Answer: Maximum Term for repayment for Loan is 15 years

    1. How can I repay the loan?

    Answer: You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

    1. What is EMI? How are they calculated?

    Answer: EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

    • EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
    • Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
    • Or simply you can use the EMI calculator provision available on Canara Bank’s official website.
    1. What are the charges for late EMI payment?

    Answer: 24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.

    1. Is the loan disbursed in name of individual applicant or to the institute/ university directly?

    Answer: The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

    1. If I am unable to complete my course in given tenure, will my repayment term be extended?

    Answer: It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student’s reason. You can contact your nearest branch for more details.  

    1. What is method of application of interest on education loan?

    Answer: The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance. 

    1. If I am joining the course soon after current course, can I get an extension?

    Answer: Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher

    1. What is interest rate of education loan?

    Answer: The interest rate is different for different loan offered. Refer the tables below:

    Category

    ROI

    Present ROI

    Loan amount upto INR 4 Lacs

    1 year MCLR + 2.00%

    10.40%

    Loan amount between INR 4 to 7.50 Lacs

    1 year MCLR + 2.00%

    10.40%

    Loan amount above INR 7.50 Lacs

    1 year MCLR + 1.80%

    10.20%

    Vidya Turant

    1 year MCLR + 0.20%

    8.60%

    IBA Model Education Loan Scheme for Vocational Education and Training

    1 year MCLR + 1.50%

    9.90%

    1. What