Canara Bank Education Loan: Interest Rates, Eligibility, Application Process & More

Canara Bank is one of India’s largest and oldest public sector banks, established in 1906. Since then, the bank has established a rich legacy of serving the nation. 

The bank has its headquarters in Bengaluru and is registered with the Reserve Bank of India (RBI). Canara Bank offers multiple financial solutions, including commercial finance, investment banking, consumer loans, private equity, treasury advisory, and credit cards. 

Canara Bank is also a popular choice for students seeking education loans to study abroad. In this guide, we will focus on education loans provided by Canara Bank and its application process, documents required, collateral rules, etc. 

About education loans from Canara Bank

Canara Bank offers education loans ranging from ₹50,000 to ₹2 crores, with interest rates that vary based on factors like collateral, the course you are pursuing, and the institution. Interest rates can start as low as 8.60% and can go up to 12.5%. 

After submitting your application and relevant documents online, Canara Bank typically takes 10-15 days to process the loan. The repayment period begins six months after your course completion, giving you enough time to ease into repayments. 

Moreover, if you apply with a co-applicant, they must have a minimum CIBIL score of 600. A co-applicant with a strong and stable income could also help you secure an unsecured loan of up to ₹50 lakhs. Additionally, female students enjoy a 0.50% reduction in interest rates across all education loan programs.

Canara Bank also offers a variety of collateral-free loan options, especially for working professionals and applicants admitted to prestigious international programs. Furthermore, for loans up to ₹7.50 lakhs, no collateral is required.

For more details on how Canara Bank can help finance your studies abroad, continue reading.

Also Read: Education loan for Study Abroad Guide for Students

Interest rates on Canara Bank education loans

The interest rate for your education loan mainly depends on the type of loan you are opting for and the loan amount. Given below is the rate of interest that you might incur based on your loan type: 

Canara Bank education loan schemes

Canara Bank offers a range of education loan schemes tailored to meet the needs of various students. Below are the different loan schemes offered by Canara Bank, along with the corresponding interest rates that you will have to pay: 

Note: Canara Bank does not charge any processing fees for any of its education loan schemes. Additionally, Canara Bank provides up to 100% coverage of the total education costs, including tuition, travel, and living expenses.

Eligibility for Canara Bank education loans

Here are some basic requirements that you, as an applicant, must meet to become eligible for an education loan from Canara Bank:

• You must have Indian citizenship. 
• You must have completed your 10th standard. 
• You must have secured admission to a recognized institution. 
• If you are applying to a university without an entrance exam, you must have a minimum of 60% or higher score in the last qualifying exam. 
• A co-applicant is usually necessary for the loan application. Moreover, the co-applicant should have a good credit history in order to pass the financial assessment done by the bank before loan approval. The co-applicant must also be able to provide proof of their regular income. 
• You must have secured admission to a recognized university for studies abroad, preferably in a technical course.  Moreover, you must have qualified for competitive exams such as the SAT, ACT, GRE, or GMAT. 

Note: The approval of the loan application is subject to Canara Bank’s discretion and adherence to its policies.

Also Read: Education Loan for Studying in the USA: Interest Rates, Courses, Requirements & Banks

Why choose Canara Bank for an education loan to study abroad?

Canara Bank’s education loan for studying abroad has multiple features that make it an attractive choice among students. Here is an overview:

Flexible Loan Amounts

Canara Bank provides education loans with flexible limits tailored to meet the needs of students aspiring to study abroad. Loan amounts range from ₹50,000 up to ₹2 crores, ensuring students can fund their education at prestigious institutions, including Ivy League schools, globally ranked universities, and leading professional programs.

Comprehensive Coverage of Expenses

With Canara Bank’s education loans, students can enjoy comprehensive financial support that covers not just tuition fees but also other essential expenses. These include costs for books, study materials, laptops, accommodation, travel, and living expenses.

Attractive Interest Rates

Canara Bank offers competitive interest rates on its education loans, starting as low as 8.60% (as of August 2024). This makes the bank one of the more affordable options for financing education abroad, helping students reduce their financial burden compared to other banks with higher rates.

Loan Approval Before Admission

Another standout feature is Canara Bank’s pre-admission loan approval. This means students can get their loans sanctioned even before receiving an official university admission offer. This pre-approval facilitates visa processes and strengthens applications to foreign institutions.

Simple and Efficient Application Process

Lastly, Canara Bank’s education loan application process is designed to be straightforward and stress-free. Students can easily apply online, submitting all necessary documents digitally. The streamlined process ensures timely approval and allows students to focus on their education goals rather than the complexity of securing a loan.

How to apply for a Canara Bank education loan? 

Below is a step-by-step guide to apply for an education loan at Canara Bank: 

Step 1: Check your Eligibility 

Before you begin your application, it is important to ensure that you fulfil all the eligibility criteria for the education loan that are mentioned in the previous section. Moreover, you should review any additional requirements specific to the loan scheme you are applying for. This will help you avoid any potential issues during the application process. 

Step:2 Collect the required documents

Even if your application is strong, missing documents can lead to rejection. This is why it is important to gather all necessary documents before starting your online application. A list of important documents is added in the next section so that you can ensure that you have everything prepared in advance. By referring to this list, you can avoid delays or complications during the application process and improve your chances of approval.

Step 3: Fill out the application form

• Once you are sure that you meet the eligibility criteria and have collected the required documents, you can fill out the online application form. 
• You can do the same by visiting their e-Beckon portal. 
• Canara Bank also allows you to fill out an offline application by visiting their nearest branch. 
• To complete the loan application, simply fill in your details, upload the required documents, and submit. The bank takes 10-15 days to evaluate your application and give a response.

Note: While Canara Bank is a great option for education loans, it’s always wise to compare offers from different lenders. However, this can be time-consuming and confusing. That’s exactly why FundRight (by GradRight) is here to help. With FundRight, you can quickly and easily view loan offers from over 15 banks and NBFCs and compare them with the offer you get from Canara Bank. This way, you’ll make a well-informed decision that best suits your needs and goals.

FundRight makes the process seamless:

• One application, multiple offers: No need to visit multiple banks.
• Competitive rates: Banks compete to offer you the best deal.
• Tailored solutions: Options that match your specific requirements.
• Fast and secure: No paperwork, just digital convenience.

By using FundRight, you can be confident in securing the best loan terms available.

Now, let’s move on to what documents you need to secure a student loan from Canara Bank.

Also Read: How to Get an Education Loan without Parental Support?

Documents required for securing a student loan from Canara Bank 

Below is a list of documents required for securing a student loan from Canara Bank: 

• A filled and signed application form
• Two recent passport-sized photographs that match the ones in your loan application
• Identity proof such as Aadhar card/PAN card/Voter ID Card/Passport
• Address proof such as Aadhar card/Voter ID/Driving license/Utility bills
• Date of birth proof, such as a birth certificate or school leaving certificate
• Academic documents, including previous mark sheets and admission letter from current institution
• Fee schedule, i.e., a detailed breakdown of course costs provided by the educational institution
• Proof of admission through merit lists
• Income proof of the co-applicant, such as recent salary slips or income tax returns and bank statements for the last 6 months 
• Collateral documents (if applicable)

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