Headquartered in Bengaluru, Canara Bank is the third-largest nationalised bank in India. With an increasing number of students looking to pursue higher education, banks and financial institutions are making provisions to help them realise their dreams. There are also a variety of Canara Bank education loan options available and in this article, we shall discuss their features and the process of applying for a Canara Bank education loan.
Following are the education loan schemes provided by Canara Bank:
- IBA Model Education Loan Scheme
- Model Loan Scheme for Vocational Education and Training
- Canara Bank Vidya Turant
Eligibility Criteria For Respective Loans
The requirements to apply for a Canara Bank education loan are:
- The applicant should be an Indian national
- The applicant should have received admission to a recognised university abroad
- The applicant should be willing to submit acceptable collateral and its required documents
Below are the eligibility criteria for the respective loans stated above:
- IBA MODEL Education Loan Scheme – Applicable to students wanting to pursue higher education both, in India or abroad.
- Model Loan Scheme for Vocational Education and Training: Applicable to those wanting to pursue vocational programmes and training courses in India from institutions recognised by UGC or AICTE.
- Canara Bank Vidya Turant: Applicable to those wanting to pursue professional and technical courses from reputed Indian institutes
In this article, we will be discussing the specifics of the Canara Bank abroad education loan.
Features of Canara Bank Education Loan To Study Abroad
- Loan Amount: The bank grants a loan of a minimum of INR 8 lakhs to a maximum of INR 20 lakhs for study abroad applicants.
- Interest Rate: The Canara Bank education loan interest rate is 11.15% for male students and 10.65% for female students.
- Loan Period: The time period of the loan is 15 years.
- Processing Fees: The processing fee is 1% of the loan amount.
- Moratorium Period: The moratorium period is the period of time when you are exempted from paying back the loan. The moratorium period for the bank’s education loan is the entirety of your course duration followed by a year.
- Loan Margin: Loan margin is the difference of amount between the loan amount borrowed and the value of the collateral secured by the lender. The loan margin for the education loan is 15%.
- Repayment: Repayment of the bank’s education loan begins one year after the completion of your course or six months after getting employed – whichever is earlier.
Below are the expenses covered by the study abroad loan:
- Fees payable for the course to the university/college
- Hostel rent
- Travel expenses for studying abroad
- Purchase of books, stationery, uniform, etc.
- Exam fees
- Other expenses such as study tours, project work, thesis, etc.
Documents Required For Education Loan In Canara Bank
Documents required to be submitted by the applicant:
- Copy of your passport
- Identity Proof (PAN Card, Driver’s License, etc.)
- Residence Proof (Aadhar Card, electricity or telephone bill)
- Admission letter from the university
- 2 passport size photographs
- Mark sheet of GRE, GMAT, TOEFL, IELTS (whichever is applicable)
- Past academic certificates (X and XII mark sheets, Degree certificates, etc.)
- University ranking printout
Documents required to be submitted by the co-applicant:
- Identity Proof
- 2 passport size photographs
- Residence Proof (Aadhar card, electricity or telephone bill)
- Last 3 months’ salary slips
- Income tax receipts for the last two years
- Form 16 for the last two years
- Employee ID card (in case employed)
- Proof of business address (if self-employed)
- Last 3 years’ balance sheet and P&L statement
Collateral is an asset accepted as security from the loaner in order to extend a loan. Following are the two types of collaterals accepted by Canara Bank for their education loan:
- Liquid securities such as government bonds or a fixed deposit
- Tangible collateral such as a house, a property or a plot of land with fixed boundaries, etc.
Collateral Documents Required By Canara Bank
- Deed of registered sale agreement along with property title
- Original registration receipt for the above agreement
- Allotment letter by the municipal corporation or any government authority such as CIDCO, MHADA, HUDA, etc. (if applicable)
- Encumbrance Certificate (EC) of the last 30 years, commonly known as Link Document.
- Copy of municipality approved plot layout or building plan
- Latest property tax bill bearing the same address
EMI Calculation On Canara Bank Loan
Canara Bank Education Loan Repayment Calculator is how you can calculate the monthly instalment you have to pay upon securing the loan.
If you found this blog on “Canara Bank Education Loan” helpful, make sure to check out our other blogs:
- MPOWER Financing Education Loan Options
- All About Prodigy Finance Education Loan Options
- Bank Of Baroda Education Loan Options