Canara Bank Education Loan In India 2023 Interest and Eligibility

Canara Bank Education Loan: Applicants can get assistance from the Canara Bank Education Loan with whatever financial need they may have. Canara Bank candidate loans cover the majority of candidates’ costs in an era where Indian education is growing more and more expensive. Concessional Programs (diploma, ITI, etc.), the Education Fund for Vocational Training, and Foreign Education Loans for Minorities are all included in the list of programmes that qualify for Canara Bank education loans.

Canara Bank accepts applications for education funds that are for incredibly small sums, unlike other banks. For smaller loan amounts (as low as $20,000), it also offers school credit. For your convenience, we have provided all the details of the Canara Bank Education Loan Plan, including information on how to apply and submit a claim for financial aid.

Higher education from a reputable university is becoming increasingly necessary, which improves one’s chances of landing a well-paying job. A institution with a high ranking, however, costs more money because of its elite faculty and infrastructure. The Education Fund is crucial to a Candidate’s life in order to overcome this!


Education Loan From Canara Bank In India 2023

Loans for education assist candidates with the skills and potential. The loan pays for their educational costs, including tuition and other fees. The Scholarship is available for both domestic and international research. Canara Bank is available to assist the Candidates in any situation. Any candidate may submit an application for a Canara Bank education loan as long as they meet the requirements and have the necessary paperwork on hand.

Education loans are one of the finest ways to finance your higher education overseas, as Candidates are aware. One of the leading government banks in India, Canara Bank, offers collateralized education loans to people with various finance needs. Even candidates who want to pursue their goal of studying abroad can choose from a variety of programmes offered by Canara Bank. You may find all the information you need about Canara Bank’s educational loans on this page, including the most recent interest rate, necessary loan documentation, educational loan programmes, payback terms, and many other details.

Description of the Canara Bank education loan programme

Canara Bank Education Loan In India 2023
Parameters  Canara Bank Education Loan In India 2023
Objective of the scheme In order to enable deserving students to pursue their higher education in India or abroad, the IBA Model Education Loan Program was created.
Category Loan
Loan Amount Need-based finance
Rate of Interest Up to 7.5 Lakh:   9.3%Above 7.5 Lakh:  8.9%
Loan Margin Up to Rs.4.00 Lakhs – Nil
Above Rs.4.00 Lakhs –  Studies in India-5%
Studies abroad   – 15%
Official Website

Regarding Canara Bank

As UTI Bank, Canara Bank Private Ltd. opened in Mumbai in 1993. It is the third-largest private sector bank in India and offers a variety of financial services to its clients, including those for large and mid-sized corporations, MSME, agricultural, and retail businesses. The bank has over 14,000 ATMs, 3300 locations, and 9 international offices.

Everyone is eager to spend a lot of money on education in order to have a prosperous life in the afterlife. As a prominent provider of educational loans, Canara Bank is aware of the demands of applicants and provides highly competitive education funds at lower interest rates.

With the help of Canara Bank education funds, numerous candidates gain admission each year to prestigious universities and institutions in India and abroad.

What is the interest rate on Canara Bank student loans?

Applicants may borrow up to 7.5 lakhs from the Vidya Sagar Education Fund at an interest rate of 8.90%. The interest rate is 8.50% for those who borrow money from the Vidya Sagar Education Fund for more than INR 7.5 lakhs. The interest rate for those who take the Vidya Turant Portion with a co-borrower is 6.90%, while the interest rate for those who take it alone is 7.50%.

The requirements for a relevant Canara Bank education loan in India as of 2023

Application requirements for the Canara Bank Education Fund are as follows:

  • The candidates must be citizens of India.
  • The Applicants should have been admitted to a reputable international university.
  • The candidates must be prepared to provide appropriate collateral and documents proving their needs.

Below are the eligibility criteria for the respective Funds stated above:

  • Applicants who desire to pursue higher education in India or abroad may apply for the IBA MODEL Education Loan Program.
  • Those who wish to pursue vocational programmes and training courses in India from institutions accredited by the UGC or AICTE are eligible for the Model Loan Program for Vocational Education and Training.
  • Applicants for the Canara Bank Vidya Turant should be interested in pursuing professional and technical studies at reputable Indian institutions.

Loan Programs for Education Canara Bank

The Canara Bank Education Funding provision’s main goal is to assist Applicants with,

  • Payment of tuition, room & board, and test fees
  • Buy books, course supplies, equipment, and uniforms.
  • Help with the passage and travel costs when studying abroad
Canara Bank offers
Scheme Name Maximum Loan Amount Interest Rate (p.a.)
IBA Model Education Loan Scheme INR 7.5 Lakh and Above Up to INR 7.5 Lakh

  • Interest – 9.35% p.a.
  • Interest – 8.85% p.a. for girl students

Above INR 7.5 Lakh

  • Interest – 8.85% p.a.
  • Interest – 8.35% p.a. for girl students
Canara Bank IBA Skill Loan Scheme INR 1.50 Lakh 8.85% p.a.
Canara Bank Vidya Sahay Scheme INR 1 Lakh 10.15% p.a.
Canara Bank Vidya Turant Loan INR 40 Lakh 7.35% p.a.

The IBA Model Education Loan Program

The Indian Banks Association (IBA) has established a nationalized model educational fund programme that all nationalized banks have adopted. The provision of financial aid from the banking industry to worthy and meritorious Candidates for pursuing higher education in India and abroad is the main goal of this programme.

Courses Covered by IBA Model Education Loans and Eligibility

The courses that are eligible for coverage under the Plan are listed below.

  • Courses including undergrad and postgrad programmes, as well as technical and professional programmes with career potential, are eligible for planes in India.
  • The University Grants Commission (UGC), the state or federal government, the All India Council for Technical Education (AICTE), IMC, or autonomous institutions like IIM, IIT, etc. are all deemed to have approved the colleges or universities in question.
  • It is necessary for courses taken overseas to be either career-oriented, technical, or professional courses. Moreover, it may be a post-graduate subject or a graduate course.

Education Loan Amount and Margin for IBA Model Loans

The Fund amount and margin for the various courses offered by the IBA Model Education Loan Plane are provided below.

  • For studies in India, the total amount of loans is capped at INR 10 lakh, while for courses abroad, it is capped at INR 20 lakh.
  • There will be no margin charge if the total amount borrowed falls below INR 4 lakh.
  • For courses in India, the margin is charged at 5% if the total is more than INR 4 lakh.
  • If the total amount borrowed for taking courses overseas exceeds INR 4 lakh, the margin is 15%.
  • No security will be required for loans under INR 4 lakh; however, for loans between INR 4 lakh and INR 7.5 lakh, a third-party guarantee is required.
  • 100% collateral is required for amounts beyond INR 7.5 lakh.

IBA Model Education Loan Scheme Repayment

The IBA Model Education Fund Scheme payback guidelines are shown below.

  • After six months or a year have passed after the course’s conclusion, the repayment process starts.
  • The repayment period is 10 years for sums under INR 7.5 lakh.
  • The return term is 15 years for sums over INR 7.5 lakh.

Canara Bank Education Loan In India IBA Talent Loan Programme 2023

IBA skill loans assist applicants who want to enrol in technical programmes at colleges and polytechnic institutions or training centres that are sponsored by the federal or state governments for technical or vocational education.

Below is the most recent significant update on the Canara Bank Model Scheme Loan.

The qualifications for students to participate in the Model Loan Aircraft are listed below.

  • Indian nationality is required for the candidates.
  • The applicants should have graduated from grade 10.
  • The candidates must have obtained admission to a programme offered by a ministry, division of the federal or state government, or an organisation recognised and permitted by the government to offer educational programmes.

IBA Skill Loan Eligibility for Courses

Only the courses listed below qualify for the plane.

  • The courses ought to be development-oriented and finishable in two to three years.
  • It is desirable if the course leads to other diploma, degree, or certificate courses.
  • Government approval and participation should be required for the institution offering this course.

Margin and Amount of IBA Talent Loans

The loan total and margin for various durations are provided below.

  • For classes lasting up to 3 months, the cost is INR 20,000.
  • Entire 3-6 month courses cost INR 50,000.
  • INR 75,000 for courses that last for six months to a year.
  • INR 1.50 Lakh for courses that are completed after a year.

Remember that neither a security nor a margin fee are required for this Fund.

Return of the IBA Skill Loan

The instructions for repaying the Canara Bank Education Fund are listed below.

  • If the courses are finished earlier than a year, the repayment period starts after six months.
  • The repayment period begins after 12 months or a year for courses that take more than a year to complete.
  • Up to three-month courses: in two to five years
  • 3 to 6 month courses: in 2 to 5 years
  • 6 month to 1 year courses: in 2 to 5 years
  • Courses lasting more than a year: 3 to 7 years

Canara Bank’s Vidya Sahay Programme

When deserving candidates need loans, Vidya Sahay is introduced to help them. These loans must be paid to the CET/counselling Authority at the time of selection.

The details of the Canara Bank Vidya Sahay programme are listed below.

The qualifications for candidates who wish to participate in the Canara Bank Vidya Sahay Program are listed below.

  • Applicants who have passed the CBSE, IIT, and other all-India exams and have been chosen for counselling must have taken the Common Entrance Exam (CET), which is administered by the individual state governments.
  • The candidates must be citizens of India.
  • The qualifying exam should have been passed by the Candidates.
  • At the time bridge loans are approved, addresses and proofs of identification must be provided in order to meet KYC requirements.
Vidya Turant Loan Limit
Institutions Limit
Candidates of IIMs Up to INR 25 lakh
Candidates of ISB, Hyderabad & Mohali Up to INR 36 lakh
All other institutions except the categories A and B Up to INR 20 lakh

Eligibility to Avail Vidya Turant Education Fund

Here are the eligibility criteria to avail Vidya Turant Education Fund.

  • The Students should be an Indian Citizen.
  • The Students must have cleared the previous qualifying exam conducted by the competent authorities.
  • Admission to premier Institutes viz. IIMs, IITs, NITs, IISc, and other such institutes.

Vidya Turant Loan Limits

The Fund has to be paid back within 15 years irrespective of the amount borrowed. There is no security Needs for loans for certain universities or institutions. The MCLR interest is 0.20%. A concession of 0.50% will be given to female Candidates.

Security Required for Vidya Turant Loan

The following is the security or collateral Needs for Vidya Turant Loan of Canara Bank.

  • No Security is Needs up to limits for institutions designated category-wise, i.e., IIMs Limits up to INR 25 lakh, ISB Limits up to INR 36 Lakh, all other institutions limit up to INR 20 lakh.
  • The parent/guardian will have to join as co-Taker.

Education Loan Interest Rate Canara Bank Education Loan In India 2023

Canara Bank takes nil margins and offers 100% Money for loans up to INR 4 Lakh. It allows multiple co-Taker for the Fund to procure the maximum Fund. Loans up to INR 4 lakh are Ready without security or collateral and up to INR 7.5 lakh with a third-party guarantee.

The specific interest rates and information for the 4 education loans offered by the bank have been tabulated below.

Canara Bank Loan Schemes
Canara Bank Loan Schemes Interest Rate (p.a.)
For Vidya Turant Loan Scheme 6.60%
Up to INR 4 Lakhs 10.40%
INR 4 Lakhs to INR 7.50 Lakhs 10.40%
Loans above INR 7.50 Lakhs 10.40%

Moreover, loans over INR 7.5 lakh can be obtained by providing the necessary security. The average Canara Bank education loan return rate is between 9.90% and 10.70% for all Funding types and amounts.

Documents needed by applicants for student loans

  • properly completed application for a student loan from Canara Bank.
  • 2 photos the size of a passport.
  • For funding schooling overseas, a passport is required.
  • Pan Card or voter ID card as identification.
  • Address verification documents include an Aadhar card, a driver’s licence, and a current copy of a phone, electricity, or water bill.
  • Academic Transcripts for Grades 10, 12, and Undergraduate Degree (if applicable)
    Scores from the SAT, GRE, GMAT, TOEFL, and IELTS.
  • Printout of university rankings. Contact our team to receive the accurate university ranking.
    university letter of admission

How to Apply for an Education Loan from Canara Bank

Applicants have the option of applying for a student loan online or in person at a bank office. For simpler application, each Canara Bank Education Fund is also mentioned on the government’s Vidyalakshmi Portal. Both online and offline applications follow the following information procedure:

Canara Bank’s online application process for student loans

  • Visit Canara Bank’s official website at
  • Navigate to your present location to look up the nearest branch.
  • Gather the necessary identification documents, academic transcripts, and financial documentation (collateral, bank statements, Form 16s, or IT returns, as appropriate).
  • Visit the branch and submit an application for the Canara Bank Education Fund by completing the form there.

Online application for Canara Bank Education Loans

  • Visit the Canara Bank website at to apply for an education loan.
  • Go down to the section that lists the “banking,” “taken,” “invest,” and “insurance” tabs for Canara Bank.
  • On the “Borrow” menu, choose the “Educational Loan” option. You’ll be taken to the website for the Vidyalakshmi Education Fund.
  • Signup using your mobile number and email address. Verify your registration with Check in with your CELAF and save your email (Common Education Fund Application Form)
  • Using the ‘Search Education Fund’ option, look for the Canara Bank Education Loan Program.
  • Fill out the necessary Canara Bank Education Fund application.

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