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Canara Bank Education Loans

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Canara Bank is widely recognized for its customer-centric policies. The bank was founded in 1906 by the late Ammembal Subba Rao Pai, who was a well-known philanthropist in India during the turn of the last century. In 1910, it became a limited company and was registered as Canara Bank Ltd. In was later registered as Canara Bank in 1969 after its nationalization.

Canara Bank offers a wide range of education loan schemes. One of the unique things about these schemes is that they cover the various sections of the student population.

Canara Bank Education Loan Schemes

IBA Model Education Loan Scheme

Criteria	Details
Purpose of the Loan	Payment of course fees. Paying for the costs of exams, boarding, library, lab, and for buying books, equipment, uniforms, instruments, and computers, given the expenditure is essential for the completion of the course. Paying for caution deposit, a refundable deposit, and building fund. These have to be supported by the bills and receipts from the institute. Travel expenses or passage money needed for studying abroad Other expenses essential for the completion of the course.
Eligibility for the Loan	The student needs to be an Indian national.
Eligible Courses	Studies in India: UG courses PG courses Professional and Technical courses under reputed institutes, which are approved by the Government, UGC, Department of Electronics, AICTE, IMC, and various autonomous educational institutions such as the IIT and IIM Courses that lead to a diploma or degree under reputed institutions Studies abroad: UG courses PG courses Ph.D. courses PG Diploma Other such courses
Rate of Interest	For loans of up to Rs. 7.5 lakhs, the interest rate is one year MCLR plus 2% For loans above Rs. 7.5 lakhs, the interest rate is one year MCLR plus 1.5% Note: The interest rate may change. Girl students get 0.5% concession on the interest rate People who make prompt payments on interest during the moratorium get 0.5% concession on the interest rate
Margin	There is no Margin for loans of up to Rs. 4 lakhs Margin is 5% for courses in India if the loan is beyond Rs. 4 lakhs Margin is 15% for courses in India if the loan is beyond Rs. 4 lakhs
Security	Future income of the applicant or student Patents or guardians need to be co-applicants For loans till Rs. 7.5 lakhs: Collateral security is not needed. The loan shall be secured under the CGFSEL or Credit Guarantee Fund Scheme for Education Loans, subject to certain conditions. For loans beyond Rs. 7.5 lakhs Tangible collateral security is needed to secure 100% of the loan amount.
Loan Repayment	The loan should be repaid by monthly installments over a maximum of 15 years after moratorium.

IBA Skill Loan Scheme

Criteria	Details
Purpose of the Loan	The purpose of this loan is to develop and support the Government's skill development initiative.
Eligibility for the Loan	The student needs to be an Indian national.
Eligible Courses	Courses run by various training institutes that are aligned to NSQF. There is no minimum duration for the course. Courses that lead to a diploma or degree from reputed institutions in India
Scope of the loan	This is a need-based loan finance and can be worth between Rs. 5000 and Rs. 150000.
Rate of Interest	The interest rate is 1-year MCLR plus 1.50%.
Margin	There is no margin
Security	The future income of the student shall be assigned The student's parents or guardians shall be the co-applicants Collateral security and a third party guarantors are not needed. The loan shall be secured under the CGFSEL or Credit Guarantee Fund Scheme for Education Loans.
Moratorium	The moratorium is six months from completion of the course, given the total duration of the course is up to one year. The moratorium is 12 months from completion of course when the total duration of the course is beyond one year.
Loan Repayment	Repayment period is up to 3 years when the loan amount is till Rs. 50000. Repayment period is up to 5 years when the loan amount is beyond Rs. 50000 till Rs 100000. Repayment period is up to 7 years when the loan amount is more than Rs. 100000.

Vidya Turant – Scheme Guidelines

Criteria	Details
Purpose of the Loan	To provide education loans to deserving and meritorious students. The students need to pursue courses at selected institutions, such as IIMs, NITs, IITs, and ISM at Hyderabad and Mohali. Other selected institutes are covered as well. The loan can be used to cover all expenses essential for the completion of the course.
Eligibility for the Loan	The student needs to be an Indian national.
Eligible Courses	Category A Institutes including the students of IIMs - the loan limit is Rs. 25 lakhs Category B Institute including the students of ISB - the loan limit is Rs. 40 lakhs Category C Institute including the students of other institutions not covered Category A and B - the loan limit is Rs. 20 lakhs Complete list of institutes: Click here
Rate of Interest	The interest rate is one year MCLR. The interest rate is subject to change.
Margin	When the loan amount is till Rs. 4 lakhs, the margin is NIL When the loan amount is more than Rs. 4 lakhs, the margin is 5% Margin includes scholarship or assistantship.
Security	No collateral security is needed for the various institutions that are divided into three categories, as listed above. The student's future income needs to be assigned The loan needs to be taken jointly with guardians or parents.
Processing and Upfront Fees	NIL
Loan Repayment	The loan should be repaid by monthly installments over a maximum of 15 years after moratorium.

Vidya Shakti – Scheme Guidelines

Criteria	Details
Purpose of the Loan	This loan seeks to assist and aid students from the PWD category who wish to pursue certain higher education courses within India. They can opt for studies abroad as well, which shall be according to the guidelines laid down by the IBA Model Education or Skill Loan Scheme.
Eligibility for the Loan	Student needs to be an Indian national. The student should have at least 40% physical disability.
Scope of the Loan	The loan is need-based, and is subject to certain conditions as given below: Maximum Rs. 7.5 lakhs for degree courses. Maximum Rs. 1.5 lakhs for vocational, diploma, and certificate courses. All of these loans need to be sanctioned according to the IBA's Model Education Loan scheme.
Rate of Interest	The interest rate is the ongoing 1-year MCLR. The interest rate is subject to change.
Margin	No margin for loans till the amount of Rs. 4 lakhs Margin of 5% for loans above the amount of Rs. 4 lakhs. Scholarship or assistantship is taken into account for calculating the margin.
Security	The student's future income No collateral security is needed for loans of up to Rs. 7.5 lakhs The loan needs to be taken jointly by the student with parents or guardians The loan till the limit of Rs. 7.5 lakhs shall be invariably secured under the CGFSEL or Credit Guarantee Fund Scheme for Education Loans.
Processing and Upfront Fees	NIL. The fees include the fee for the Vidya Lakshmi portal referral.
Repayment	The loan needs to be paid back in equal monthly installments. It should be paid back within 15 years max, which does not include the moratorium. In case of skill development courses, the repayment term is 3 to 7 years. The repayment depends on the quantum or scope of the loan.

Vidya Sahay – Education Loan Scheme Guidelines

Criteria	Details
Purpose of the Loan	The Vidya Sahay education loan from Canara Bank is for aiding meritorious students who are in need of funds for making a downpayment to CET or counseling authorities at the time of counseling or selection.
Eligibility for the Loan	Students who have already appeared in common entrance tests conducted by: -> respective state governments -> IIT -> CBSE, -> other counseling and examination organizations in India. The student needs to an India national. The student needs to have already cleared the previous qualifying exam. The student needs to furnish ID and address proof at the time of Bridge Loan sanctions. This is to ensure that the KYC norms are complied with.
Quantum of Finance	Rs. 1 lakh shall be the maximum eligible amount or the initial payment according to the proposal of the CET authorities. The quantum of finance shall be whichever is the lesser of these two.
Rate of Interest	The interest rate shall be the ongoing 1-year MCLR+2%. (This is subject to change.)
Margin	NIL
Security	The loan needs to be taken by the student jointly with parents or guardians
Processing or Upfront fees	NIL
Loan Repayment	This loan needs to be repaid when a regular education loan is sanctioned.

FAQs

Q. What is the eligibility criteria for the IBA Model Education Loan Scheme?
A. The student needs to be an Indian national.

Q. What is is the margin for IBA Skill Loan Scheme?

A. There is no margin for this scheme.

Q. What is the interest rate for Vidya Shakti Scheme?
A. This amounts to the ongoing 1-year MCLR. Please remember that the rate of interest is subject to change.

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