Canara Bank Education Loan

Canara Bank Education Loan

IBA Model Education Loan scheme for pursuing higher studies in India and abroad


Payment of course fees, purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tools, passage expenses, (for study abroad)

Eligible courses

Graduation, post graduation, including technical/professional courses with employment potentials conducted by colleges/universities approved by UGC/Government, AICTE/Department of Electronics/IMC, autonomous institutions like IIM, IIT, etc.

Studies abroad

Job oriented technical/professional courses-(graduation/post graduation.)

Quantum of finance

  • Need-based finance
  • For studies in India: maximum Rs 10.00 lakhs
  • For studies abroad maximum Rs 20.00 lakhs


  • Upto Rs.4.00 Lakhs - Nil
  • Above Rs.4.00 Lakhs - for studies in India - 5%
  • Studies abroad - 15%
  • Loan is given jointly to the student and parent/guardian
  • Upto Rs.4.00 Lakhs - No Security
  • Above Rs.4.00 Lakhs upto Rs.7.50 Lakhs - Satisfactory third party guarantee


(Note: If the proposed borrower prefers to offer collateral security of tangible assets (moveable or immoveable) instead of bringing collateral securities in the form of third party guarantee, the same may be accepted, at his request, provided the securities with stipulated margin covers 100% of the loan amount).

Above Rs.7.50 Lakhs: Collateral security equal to 100% of the loan amount.

  • Commences one year after completion of the course or six months after getting employment, whichever is earlier.
  • Loan with interest is repayable in equated monthly installments as follows.


  • - Upto Rs.7.5 Lakhs - 10 years
  • - Above Rs.7.5 Lakhs - 15 years

Loan can be availed from the branch nearest to the place of permanent residence of the parent/guardian.

EModel Loan Scheme For Vocational Education And Training:

Student Eligibility

  • The student should be an Indian National and should have completed 10th standard.
  • Secured admission in a course run/supported by Ministry/Department of Central/State or an Organization recognized b/authorized by Government to do so.
  • Loan can be availed from the branch nearest to the place of permanent residence of the parent/guardian.

Eligible Courses

Development Courses of duration from 2 months to 3 years preferably leading to a Certificate /Diploma/Degree, etc. issued by a Government Organization or an Organization recognized/authorized by the Government to do so.


  • Tuition/course fee, Examination/Library/Laboratory Fee, Caution Deposit.
  • Purchase of Books, Equipments and Instruments.
  • Any other reasonable expenditure found necessary for completion of the course.

Quantum of finance

Need-based finance will be considered subject to the following ceilings:

  • For courses of duration upto 3 months - Rs.20,000/-
  • For courses of duration 3-6 months - Rs.50,000/-
  • For courses of duration 6 months to 1 year - Rs.75,000/-
  • For courses of duration above 1 year - Rs.1,50,000/-.




  • No security.
  • No collateral or third party guarantee will be taken.
  • However, the parent will execute loan document along with the student borrower as joint borrower.
  • Upon completion of the course, repayment will start after a moratorium period as indicated below:
    • For courses of duration upto 1 year = 6 months from the completion of the course.
    • For courses of duration above 1 year = 12 months from the completion of the course.


The repayment periodicity is given as under:

  • Courses upto 3 months - In 2 to 5 years
  • Courses upto 3 to 6 months - In 2 to 5 years
  • Courses 6 months to 1 year - In 2 to 5 years
  • Courses above 1 year - In 3 to 7 years.

Vidya Sahay

Vidya Sahay ......Know More

Vidya Turant

Vidya Turant ......Know More


The Govt. of India has formulated a scheme to provide interest subsidy during the moratorium period on loans taken by the students belonging to the Economically Weaker Sections under the Education Loan scheme of the Indian Banks' Association, for pursuing any of the approved courses of studies in Technical/ Professional streams from recognized institutions in India.


This is a Central Sector Scheme to provide interest subsidy to the student belonging to the communities declared as minority communities in terms of section 2 ( C ) of National Commission of Minorities Act, 1995, on the interest payable for the period of moratorium for the Education Loans under the Scheme of Interest Subsidy on Education Loans for Overseas Studies at Masters and Ph.D levels.

                                                                                                                                For further details, please click here