Canara Bank is one of India’s premier nationalised banks. It has been a steadfast supporter of education, empowering students to pursue their academic dreams. With a rich history of over 117 years, Canara Bank is committed to providing comprehensive and accessible education loan schemes to help students from all walks of life to bridge the financial gap and achieve their educational aspirations.
Renowned for its customer-centric approach, Canara Bank was established in July 1906 by the visionary and philanthropist, Shri Ammembal Subba Rao Pai, in Mangalore, a quaint port town in Karnataka. The Bank has traversed through diverse phases of growth over its century-long existence.
Its remarkable expansion, particularly after nationalisation in 1969, propelled Canara Bank to the status of a national-level player, boasting extensive geographical reach and diverse clientele segments. The 1980s marked a period of business diversification for the Bank.
In June 2006, Canara Bank celebrated a century of operations in the Indian banking industry, punctuating its journey with numerous significant milestones. Today, Canara Bank holds a prestigious position among Indian banks.
Beyond its role in commercial banking, Canara Bank has etched a unique legacy in various corporate social responsibilities.
It has actively contributed to national priorities, championed rural development, fostered rural self-employment through multiple training institutes, and taken the lead in fulfilling financial inclusion objectives.
The promotion of an inclusive growth strategy, now a fundamental tenet of the national policy agenda, is inherently embedded in the bank’s founding principles.
Canara Bank offers a diverse range of education loan schemes to cater to the varied needs of students across different academic levels and disciplines. These schemes include:
Purpose: The IBA Skill Loan Scheme has been developed to support national initiatives aimed at skill development, helping individuals acquire new skills and improve their employment prospects.
Loan Amount: Students can secure need-based financing within the range of ₹5,000 to ₹1,50,000.
Eligible Courses: Courses offered by Training Institutes aligned with the National Skill Qualification Framework (NSQF) will be eligible for coverage under the scheme. There is no stipulated minimum course duration.
Security: Students are not required to provide any collateral or guarantors for the skill loan. The loan is secured through an assignment of their future income and is jointly granted with their parent or guardian. The loan is also covered by the Credit Guarantee Fund Scheme for Skill Development (CGFSSD).
Moratorium: Moratorium periods range from 6 months to 1 year, depending on the course duration:
Repayment Tenure: Repayment period ranges from 3 years to 7 years, depending upon the loan amount.
Eligibility: Student should be an Indian national.
Canara Bank Interest Rate:
Purpose: This loan is designed to support underprivileged and deserving students facing financial constraints, specifically aiding them in covering the necessary down payment required by the Common Entrance Test (CET)/counselling authorities during the selection and counselling process.
Loan Amount: The maximum loan amount is ₹1 lakh, or the initial payment required by the CET authorities, whichever is less.
Interest: There is no interest charged on this loan.
Processing Fees: There are no processing fees associated with this loan.
Security: A parent or guardian must co-borrow the loan. No collateral is required.
Repayment: The loan must be repaid after the student has secured a regular education loan.
Benefits: The benefits include zero processing fees, absence of collateral requirements, a reduced interest rate, no prepayment penalties, expedited processing, and swift disbursement of funds.
Eligibility: To be eligible, students must have participated in the Common Entrance Test conducted by their respective state governments (CBSE, IIT, and other all-India examinations) and earned selection for counselling. Additionally, the student must be an Indian national and have successfully cleared the preceding qualifying examination.
Canara Bank Interest Rates:
Loan Quantum: Students can obtain finance based on their specific needs.
Application Process: Students have the flexibility to submit their loan applications either at bank branches close to their parents’ residence or those near their educational institution.
Eligible Courses:
Eligible Expenses: The loan can be used to cover the following expenses:
Management Quota:
Security: Assignment of future income of the student. Merit quota-
Eligibility:
Purpose: This loan is designed to provide financial assistance to meritorious students pursuing higher education in top-tier institutions, such as select IIMs, IITs, NITs, IISc, ISB (Hyderabad and Mohali), and other highly regarded institutions.
Margin: There is no margin requirement for this loan. (Scholarships or assistantships, if any, will be included in the margin.)
Processing Fees: There are no processing fees associated with this loan.
Maximum Loan Amount without Collateral:
Repayment: The loan will be repaid in equal monthly installments for up to 15 years, excluding the moratorium period (the length of the course plus one year). There is no penalty for prepaying the loan.
Eligible Expenses: The loan can be used to cover the following expenses:
Eligibility for CSIS Scheme: All education loans under Vidya Turant can be covered under the CSIS (Central Scheme of Interest Subsidy on Education Loans), subject to eligibility based on income and other criteria.
Loan Quantum:
Eligibility: Student should be an Indian national. Students should have cleared the previous qualifying exam and selected through Entrance Test conducted by Competent Authorities.
Canara Bank Interest Rate:
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Purpose: To provide financial assistance to students with disabilities who need education loans to pursue specialized courses in India. For studies abroad, the guidelines of the IBA Model Education Loan or Skill Loan Scheme will apply.
Loan Amount: The loan amount will be based on the student’s needs, subject to the following maximum limits:
Margin: No margin is required for loans up to ₹4.00 lakh. For loans above ₹4.00 lakh, a minimum margin of 5% is required. (Scholarships or assistantships, if any, will be included in the margin.)
Processing Fees: There are no processing fees, including the Vidya Lakshmi portal referral fee.
Repayment Tenure:
Eligibility for CSIS Scheme: All education loans under Vidya Turant can be covered under the CSIS (Central Scheme of Interest Subsidy on Education Loans), subject to eligibility based on income and other criteria.
Eligibility: Students should be an Indian national with physical disability to the extent of 40% or more.
Canara Bank Interest Rate:
Purpose: This education loan is designed to help students pursue Master’s degrees in STEM (Science, Technology, Engineering, and Management) fields at top-ranked universities abroad.
Eligible Courses: Master’s degrees in STEM fields
Margin: 10% of the loan amount
Loan Quantum: Minimum loan amount is above ₹7.50 lakh. Maximum quantum depends on the collateral coverage as follows:
Repayment Tenure: The loan will be repaid in equal monthly installments for up to 15 years, excluding the moratorium period (the length of the course plus one year)
Expenses Covered:
Processing charges:
Eligibility:
Canara Bank Interest Rate:
Coll. Security 100% and above
Coll. Security 75% and above (less than 100%)
Coll. Security 50% and above (less than 75%)
The documents that need to be submitted while looking to avail an education loan from Canara Bank are listed below:
Note:- The bank may ask students for other documents as well. Please contact the bank officials.
Canara Bank education loans stand out from the crowd due to their numerous benefits, including the following:
Application for Canara Bank education loan can be done online or in person. Interested applicants can visit the bank’s official website and follow the instructions to apply for a loan. Students can also pay a visit to a bank office and apply for an education loan programme.
In conclusion, Canara Bank has proven to be an ideal support for aspiring students across India, fostering a commitment to education that spans over a century. Through its diverse range of education loan schemes, such as the IBA Skill Loan Scheme, Vidya Sahay, IBA Model Education Loan Scheme, Vidya Turant, Vidya Shakthi, and Education Loan Scheme for Pursuing Masters Degree, the bank addresses the unique financial needs of students pursuing various courses and levels of education.
Canara Bank’s education loans distinguish themselves with competitive interest rates, flexible repayment options, and special concessions for girl students, aligning with the bank’s commitment to promoting gender equality in education. The ease of the online application process exemplifies Canara Bank’s efforts to make education financing a seamless experience for students.
As Canara Bank continues to champion the cause of education, its education loan offerings remain a vital resource for students, bridging the financial gap and empowering them to realize their academic aspirations. With a legacy spanning over 117 years, Canara Bank’s commitment to education stands strong, ensuring that countless students can pursue their dreams and contribute meaningfully to society.
EPABX: 080- 22221581/582/0490/0491/1788/1789/1790/1984/1985/1986
Canara Bank, Head Office, Bangalore: 080- 22221581/582/0490/0491/1788/1789/1790/1984/1985/1986
Call Center: Toll-Free No. (24*7) 18001030
Non-Toll-Free Number (if calling from outside India): +91-80-22064232
