As students know, education loans are one of the best ways to fund your higher education abroad. Canara bank is one of the top Government banks in India that provides collateral education loans to individuals having different funding requirements. 

Canara Bank even offers multiple schemes for students who aim to pursue their dream of studying abroad. In this article, you’ll acknowledge all the Canara bank education loan details like the latest interest rate, loan documents required, education loan schemes, repayment terms, and many more. 

Overview of Canara bank education loan scheme

IBA Model education loan Scheme for pursuing higher studies in India and abroad 

Parameters	IBA Model Education Loan Scheme
Objective of the scheme	The IBA Model Education Loan Scheme aims to provide meritorious students to pursue their higher education in India or Abroad.
Eligibility	Student should be Indian National
Loan Amount	Need-based finance
Rate of Interest	Up to 7.5 Lakh:   9.3% Above 7.5 Lakh:  8.9%
Loan Margin	Upto Rs.4.00 Lakhs - Nil Above Rs.4.00 Lakhs -  Studies in India-5%  Studies abroad   - 15%
Repayment Tenure	Upto 15 years (excluding moratorium period)

Interest rates are subject to change with the change in the market conditions.

Canara Bank eligibility criteria

The eligibility criteria for education loans in Canara bank are:

• The candidate should be an Indian National
• The candidate must have a deemed admission letter from a recognized university.
• As Canara bank only processes secured education loans, the candidate should be ready to submit acceptable collateral

Canara Bank education loan interest rate

Canara Bank's education loan interest is subject to change with the change in the market conditions. It keeps on varying depending on the RLLR. RLLR is the Repo Linked Lending Rate which decides their education loan interest rate. The ongoing RLLR is currently 7.30. 

Concession of 0.50% ROI extended to girl students under education loans and further concession of 0.50% for prompt servicing of interest during moratorium period under education loans. The ongoing education loan interest rate for male and female candidates are mentioned below. 

	Up to 7.5 lakhs	Above 7.5 lakhs
For male candidates	9.30	8.90
For female candidates	8.70	8.40

Most times, for students who directly approach banks for education loans, there are chances that bank officials might misguide them throughout the entire education loan process due to a lack of information. To avoid this, we recommend you process your education loan through WeMakeScholars. Our financial team will help and guide you through the entire education loan process. 

Canara Bank - education loan margin

It is common knowledge that not all Government banks fund 100% of the total expenses of a candidate’s higher studies. The education loan margin is the percentage of the amount that has to be paid by an applicant towards their total expenses. It is the proportion of the money that the student has to pool in with every disbursement.  

Canara bank has set the education loan margin at 15% for abroad education loans. This means that candidates will be required to contribute 15% of their total expenses and the remaining 85% will be funded by the Canara bank. 

So every time, before disbursing the money, the bank will first ask the student to put in 15% which is the loan margin, after which the bank will disburse the rest of the money to the student.

Canara Bank education loan documents

Here are a few education loan documents required by the student and the co-applicant. Also, if you are opting for a secured education loan, look at the Canara bank education loan documents for the collateral to be submitted by the student. 

Documents required for students/loan applicants:

• Duly filled Canara bank education loan application form.
• 2 Passport size photographs.
• Passport: compulsory for education loan for abroad studies.
• Identity Proof: Pan Card, voter ID card.
• Address proof: Aadhar card, Driving license, a recent copy of telephone bill, electricity bill, water bill, piped gas bill, etc.
• Academic mark sheets of 10th, 12th, Undergraduate Degree (if applicable)
• Eligibility test scorecard: SAT/GRE/GMAT/TOEFL/IELTS scorecards.
• University ranking printout. To get the correct university ranking, contact our team.
• Admit letter from the university

Documents required by the Co-applicant

• Relevant proof of Residence like an 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 the last 3 months)
• ITR of the Last 2 years
• 2 Passport size photos
• Balance Sheet for the last 3 years and Profit and Loss Statement (only if self-employed)
• If self- employed- Proof of Business Address
• If employed- Employer’s ID Card

Documents required when you are pledging a collateral

• Property Title Deed and Registered Sale Agreement
• Original Registration Receipt for the above agreement
• Allotment Letter by Municipal Corporation/ Authorized Government Authority like MHADA, CIDCO, HUDA, JDA, GIDC ETC (if applicable)
• Encumbrance Certificate (EC) of the last 30 years. This document is commonly known as Link Document
• Copy of municipality approved building plan or plot layout
• Latest property tax bill or Latest electricity bill bearing the same address

There are multiple other documents that are mandated by the banks and may vary from region to region. These documents are required to prove the legality of immovable property. Bank officials usually do not provide any checklist of the documents and demand state and region-specific documents at the last minute. 

To avoid arranging these documents in a rush, connect with our team at WeMakeScholars. Our financial team will give you the latest checklist of the education loan documents required and will also assist you through the entire education loan process. 

Canara Bank education loan subsidy & Tax benefits

Canara Bank education loan provides subsidies and tax benefits for students coming from certain sections of society. These schemes are introduced by the Government of India for the benefit of students who have borrowed an education loan to finance their higher education. The following education loan subsidy and tax benefits are applicable to students borrowing an education loan are: 

• Central Sector Interest Subsidy (CSIS) Scheme
  This scheme is provided by the Ministry of Human Resources and Development, Government of India. This scheme is only applicable to families where the annual income is not more than 4.5 lakhs and for the students who are willing to pursue their education in India. This scheme is not eligible for Canara Bank Abroad Education Loan.
• The Padho Pardesh education loan interest Subsidy Scheme
  This scheme is provided by the Ministry of Minority Affairs, Government of India. Students coming from economically weaker sections of the society and having a maximum family income of 6 lakhs can apply for this scheme to complete their education overseas.
• Dr. Ambedkar Central Interest Subsidy Scheme
  This scheme is provided by the Ministry of Social Justice and Empowerment, Government of India. Students coming from OBC and EBC communities who are willing to pursue their dream of studying abroad can apply for this scheme. This scheme is only applicable for families with a maximum family income of Rs. 6 Lacs for OBC and Rs. 2 Lacs for EBC families.

Canara Bank education loan repayment

Before beginning with the repayment process, students get a moratorium period in all government banks. The moratorium period refers to the length of time during which students are not required to pay anything towards the repayment of the loan. It is usually the course duration plus six months and can extend up to 1 year.

So according to Canara bank, repayment starts once the student's moratorium period ends. If a student fails to repay the education loan on time, a penalty fee of 2% of the loan amount must be paid due to the delay in the repayment process. 

How to apply for Canara Bank education loan? 

If you have come this far, then we know you are looking for how to apply for Canara Bank education loan. So, here is the complete procedure on how you can apply for one but before that do not forget to fill all your details with accurate information.

Steps to follow to apply for Canara Bank Education Loan:

1. First, fill in the details of the student who is willing to take the Canara bank education loan with all the required details. 

• First name and Last name of the candidate
• Fill in the contact number which is currently working
• Give accurate email ID 
• Your permanent location and 
•  And your PAN card number

2. Give further education details of the students i.e. 

• Intake season and the year of the intake
• Degree the student has opted for
• Specialization of the subject you are is willing to study
• Mention all the countries where you want to pursue your studies
• Give details of the universities in which you have received the admit letter

3. And finally mention the loan related details and the Co-Applicant details i.e.

• Loan amount you want in lakhs
• Total expenses
• What is your relationship with the co-applicant
• Employment status of the co-applicant
• Net income of the co-applicant in lakhs
• And mention if the co-applicant have ITR or not 

4. After completion of the form, check all the details carefully and click on the submit button. 

Note: The details mentioned by the students in the Canara Bank Online Application form are strictly confidential and can be accessed only by the lending financial institution or the processing partner. This Canara Bank Online Application Form is valid across India, irrespective of your location.

These are all the required details about the Canara bank education loan. When students directly approach banks to start their education loan process, banks may fail to explain all the education loan jargons and processes which are necessary for the student as well as the parent to understand. 

Therefore, we recommend you to start your education loan process via WeMakeScholars as our financial team deals with a number of problems daily and have solutions for the same. We have helped students to plan their higher studies in different countries like Germany and Canada by helping them with their education loan process. To apply for an education loan abroad, get in touch with our team at WeMakeScholars today.