One of the main issues students have while considering a college degree is how to pay for it. Education loans are a fantastic option to fund your academic goals in these situations. One of the best choices for students looking for financial aid for their studies both in India and outside is the Canara Bank Education Loan. Everything you need to know about Canara Bank education loans, including the application procedure, loan characteristics, and eligibility requirements, will be covered in this article.
Canara Bank Education Loan Overview
Canara Bank Education Loan Scheme Name | Loan Amount Limit | Interest rate (in % p.a.) |
Education Loan Scheme for Pursuing Master’s Degree (from Top Universities of the World) | ≤ Rs.1 crore | 9.25% – 11.35% |
IBA Model Education Loan Scheme | Need-based financing | Contact the bank |
Vidya Sagar Scheme | ≥ Rs. 7.50 lakhs | 10.25% – 11.25% |
IBA Skill Loan Scheme | Rs. 5000 – Rs. 1.5 lakhs | 9.25% – 10.75% |
Vidya Turant | ≤ Rs.40 lakhs (based on category of institutions) | 8.60% – 11.35% |
Vidya Shakthi | Degree courses: ≤ Rs.7.5 lakhsVocational, certificate, diploma, and skill loan: ≤ Rs.1.5 lakhs | 9.25% |
Vidya Sahay | ≤ Rs.1 lakh | 11.25% |
What is an Education Loan?
An education loan is a loan or sum of money obtained by a person to continue their education in India or outside. Following graduation, the student’s loan repayment begins, and they are granted a six-month grace period to find or accept employment. Your choice of interest rate will influence the repayment amount; you must choose how you wish to pay back the loan. That is if you wish to begin making payments either during or after the moratorium period. The moratorium period is the duration of your study plus an additional six months or a year to find employment. You only need to make the payment after this period.
You have a substantial amount to return by the time you graduate because the loan interest begins to accrue at the time the funds are disbursed. The alternative is for your guardian or parents to begin making loan payments during the actual moratorium period when the interest is computed as simple interest.
Benefits of the Canara Bank Education Loan?
- No Collateral Needed: Your family’s funds might be freed up because loans up to Rs. 7.5 lakhs don’t require any assets or real estate as collateral.
- No Prepayment Penalty: You can pay back your loan early without facing any additional fees, giving you flexibility and possibly saving money.
- Competitive Interest Rates: Take advantage of reduced rates as compared to other lenders, which will help you better manage your educational investment.
- Reducing Balance Interest: Over time, make smaller monthly payments by only paying interest on the remaining loan balance.
- Faster Processing and Disbursement: Get your loan authorized and the money disbursed as soon as possible so you may start studying right away.
- CSIS, or the Central Scheme of Interest Subsidy Eligibility: To lessen your interest load, apply for a government subsidy based on your income and course.
Fees
Fee/Charge | Description | Applicable To |
Processing Fee | Nil | All loans |
Prepayment Penalty | Nil | All loans |
Margin on loan amount | Varies depending on course (mostly Nil or 5-15%) | Based on the IBA Model Scheme and loan amount |
Guarantor/co-applicant charges | Applicable if required (varies based on bank’s discretion) | Not applicable in all cases |
Late payment charges | 2% per month on the outstanding balance | This applies to delayed payments |
CIBIL reporting charges | Nominal annual fee for credit score maintenance | All borrowers |
Documents Required
Essential Documents:
- Photos: Passport-size (2 copies)
- Application form: Filled and signed
- ID proof: PAN card, Aadhaar, Voter ID (anyone)
- Academic docs: Mark sheets, admission letter/call letter
- Address proof: Aadhaar, Voter ID, driving license (anyone)
- Date of birth proof: Birth certificate, school leaving certificate
Additional (depending on the situation):
- Fee schedule: Breakup of course costs
- Income proof of co-applicant/guarantor: Salary slips, ITRs
- Property documents: For loan amounts exceeding specific limits
How to Apply for a Canara Bank Education Loan?
Choose your application method:
- Online: Apply using the e-Beckon gateway on the Canara Bank website.
- Offline: Go to the Canara Bank location that is closest to you and fill out an application in person.
Gather the required documents:
- Identity proof
- Address proof
- Date of birth proof
- Academic documents
- Duly filled application form
- Passport-size photographs
- Birth certificate, school leaving certificate, etc.
Submit your application:
- Online: Apply online and upload all supporting documentation.
- Offline: At the bank branch, turn in the completed form and supporting documentation.
Loan processing and disbursal:
The bank will examine your eligibility and validate your documentation.
The loan money will either be added to your account or disbursed straight to the educational institution upon approval.
Conclusion
To assist students in India and beyond in realizing their academic goals, Canara Bank provides a variety of education loan programs. It offers a flexible and convenient way to finance education with affordable interest rates, no prepayment penalties, and quick processing. Students can simply apply for a Canara Bank education loan and start their studies without worrying about money if they meet the qualifying requirements and submit the necessary paperwork.