Canara Bank is one of the largest public sector banks in Bangalore. Ammembal Subba Rao Pai established the bank in 1906 and then it was nationalized in 1969 by the government of India. Canara Bank merged with Manipal based Syndicate Bank on 1st April 2020. The bank has 10,403 branches and 13,406 ATMs. The bank also has offices abroad in London, Hong Kong, Moscow, Shanghai, Dubai, Tanzania, and New York.
Being one of the largest banks in the country it has established its name in the field of education loans as well. Canara Bank provides a wide range of education loans depending upon the needs of the person wanting to pursue higher education.
- 1 List of Canara Bank Education Loan Schemes and their Applicability.
- 2 Canara Bank Education Loan Summary
- 3 Canara Bank Loan Eligibility Criteria
- 4 Canara Bank Education Loan Required documents
- 5 Canara Bank Education Loan Collateral Submission Details
- 6 Property Documents Required in Education Loan Process
- 7 Canara Bank Education Loan Subsidy.
List of Canara Bank Education Loan Schemes and their Applicability.
IBA Model Loan Scheme
- This scheme is for students wanting to study abroad or in India.
- This educational loan covers everything from tuition fees, books, stationery, equipment, uniform, exam fees to insurance premiums and travel expenses.
- This loan is available to students pursuing higher education from a recognized educational institution.
- The university must be University Grants Commission ( UGC)/ All India Council for Technical Education(AICTE) Department of Electronics/ IMC or any central/ state government agency approved .
- No margin is charged up to Rs. 4 Lacs of loan but above this 5% margin is charged.
- The collateral security which is submitted should be 100% of the value of the loan which is taken.
Model Loan Scheme for Vocational Education and Training
- This scheme is for students wanting to do a vocational course in India from a recognized institution from UGC/AICTE.
- The student must have completed his/her at least class 10th or 12th to be eligible for this loan scheme.
- The duration of the course should be 2 months to 3 years. The scheme covers expenses like tuition and examination fees, books, uniforms, library and laboratory fees, hostel fees, and other related expenses required to complete the course.
- The loan has zero margins and no collateral security.
Canara Bank Vidya Turant
- This scheme is for students wanting to pursue professional and technical courses from reputed Indian institutions.
- This scheme is available to students who have got admission for professional courses in recognized institutions. Institutions like the Indian Institutes of Management (IIMs)/ Indian Institutes of Technology (IITs)/ National Institutes of Technology (NITs)/ Indian Institute of Science (IISc)/ Indian School of Business (ISB) – Hyderabad and Mohali, etc.
- This scheme covers tuition and examination fee, books, uniforms, study tours, project work, thesis, etc. No margin is up to Rs. 4 Lacs of loan, above this 5% margin is charged. Security is not required under this scheme.
Canara Vidya Sahay Education Loan Scheme
- This scheme is for those students who have got admission to an Indian institute and have to pay the first installment fee to secure admission.
- This loan is provided to those who are in the counseling stage of admission.
- This scheme provides financial support to students who have cleared the Common Entrance Test (CET) conducted by the respective state governments, Central Board of Secondary Education (CBSE), Indian Institutes of Technology (IITs), and other such recognized institutions.
- No margin and no collateral security.
Canara Bank Education Loan Summary
- Canara Bank provides education loans to its customers at an interest rate of 11.15%.
- For female students, the rate of interest is 10.65%. The minimum amount of the loan must be Rs. 8 Lacs and the maximum amount must be Rs. 20 Lacs.
- The duration of the loan repayment is a maximum of 15 years.
- The processing fee of the education loan is 1% of the loan amount.
- Moratorium on the loan is provided during the course and one more year.
- The education loan covers tuition fees, living expenses, stationery, travel expenses, academic materials, and exam fees.
- The repayment of the loan begins one year after the course has ended or six months after gaining employment.
- An additional 2% of the loan amount penalty fee, in case of default in repayment.
Canara Bank Loan Eligibility Criteria
- The applicant of the loan should be an Indian citizen.
- The student must have received admission to a recognized university abroad to a professional or a technical course.
- The applicant is willing to submit collateral security.
Canara Bank Education Loan Required documents
The applicant and co-applicant must submit the following documents to get an education loan from Canara Bank.
Applicant’s documents :
- Canara Bank Education form.
- Copy of Passport.
- Relevant proof of Residence like the Aadhaar Card or Electricity Bill.
- Identity Proof like a PAN card or driving license.
- Copy of class X, class XII degree, and latest academic qualifications certificate and mark sheet.
- Letter of Admission from the University.
- University Ranking Printout.
- Scoreboard of qualifying exams like IELTS, TOEFL, GRE, or GMAT.
- Two passport size photographs.
Co-applicant’s documents :
- Relevant proof of Residence like Aadhar Card or Electricity Bill.
- Identity Proof (Drivers Licence or PAN card)
- Form 16 of the last 2 years at least.
- Latest salary slips (for last 3 months).
- ITR of last 2 years.
- Two passport size photographs.
- Balance Sheet for the last 3 years and profit and loss statement (only if self-employed).
- If self-employed – proof of Business address.
- If self-employed – Employer’s ID card.
Canara Bank Education Loan Collateral Submission Details
Two kinds of Collateral securities can be submitted while registering for an Educational Loan in Canara Bank. Those Collateral securities can be :
- Immovable Property can be a house, an empty plot of land with boundaries.
- Liquid Securities like fixed deposits, liquid securities, LIC policies, etc.
- These securities are valued on the current amount, not on the maturity amount.
- Gram Panchayat property is not accepted in Canara Bank Education Loan.
- The value of the collateral security must be equal to the amount of the loan.
Property Documents Required in Education Loan Process
The documents which are to be submitted of the collateral securities are given below:
- Property Title Deed and registered sale agreement.
- Original registration receipt for the sale agreement.
- Letter of allotment by the Municipal corporation or authorized government authority like MHADA, CIDCO, HUDA, JDA, GIDA, etc.
- Encumbrance Certificate (EC) or Link Document of the last 30 years.
- Copy of municipality approved building plan or plot layout.
- Latest electricity bill or latest property tax bill.
Canara Bank Education Loan Subsidy.
Canara Bank is a government bank and offers to various government schemes and subsidies provided by departments. These schemes are:
- Central Sector Interest subsidy – This subsidy is provided by the Ministry of Human Resource Development, GOI. This subsidy is applicable to those whose family income is less than Rs. 4.5 Lacs. This is not eligible for Canara Bank Education Loan abroad.
- Dr. B R Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) – This subsidy is provided by the Ministry of Social Justice and Empowerment GOI. The studies belonging to the OBC and EBC categories can avail of this subsidy. With a maximum family income of Rs. 6 Lacs for the OBC category and Rs. 2 Lacs for EBC families.
- Padho Pardesh Scheme of Interest Subsidy on Educational Loans for Overseas Studies for the Students – This subsidy is provided by the Ministry of Minority Affairs, GOI. This scheme is for the students belonging to the religious minority. Families with a maximum income of Rs. 6 Lacs are eligible for this scheme.