Canara Bank


"One of the main agendas of the Government of India is to make sure that no one is deprived of a proper education due to financial constraints. Indian Banks' Association (IBA) has framed an all-inclusive model educational loan scheme, which every bank has adopted. With the aim of supporting students from economically weaker sections of the society, Department of Education, Ministry of Human Resource Development and Government of India has launched this scheme with subsidized interest. Canara Bank Offers two kinds of education loans, namely Loans for Students and Model Loan Scheme for Vocational Education & Training."

Loan Interest Rates:

Max. Loan Amount Interest Rate
less than INR 4 lakhs No Interest
For loan sum more than 4 lakh 5 percent interest will be levied if you are studying in India and 15 percent if you are going abroad.

Loan Eligibility:

Courses Eligible For Education Loan:
  • Bachelors (Graduation) and Masters (Post-graduation) that include professional as well as technical courses with work potential conducted by colleges or universities validated by UGC, Government, Department of Electronics, AICTE, IMC, and autonomous institutes like IIT, IIM, Madras Christian College etc.
  • Any Bachelor's or Master's Degree that is employment-oriented from an approved institute.

Courses Eligible For Vocational Education and Training Loan:
"Any development/ Vocational Courses of period ranging from 2 months to 3 years, preferably granting you with a certification, diploma or degree given by a known organization, approved by the State or Central Government."
Documents Required:
  • Mark sheet of the most recent qualifying public exam for school or college in India.
  • Proof of admission to the course (Fee receipts, Transfer Certificate, etc.).
  • Schedule of expenses for the course (Fee receipts obtained from the institute).
  • Two recent passport size photos of the borrower, co-obligant and guarantor.
  • Duplicate copy of any national ID card like passport, Voter's ID, Driving License etc.
  • Recent salary slips if you are a salaried person and income proofs like reference from clients, IT papers etc. if you are self-employed, freelancers, professionals, entrepreneurs or agriculturist.

Candidate Education Loan Eligibility:
    For Education Loan:
  • The student must be an Indian National & must have passed the required course with essential grades.
  • The applicant must have received admission in a course in any recognized institute, approved by the State or Central Government.
    For Vocational Education And Training:
  • The student must be an Indian National & must have passed the SSLC examination.
  • The applicant must have secured admission in a vocational course in any recognized institute, approved by the State or Central Government.

Processing Fees:
"This loan does not carry any processing fee or any other charges."

Expenses Covered under Education Loan:

    For Education Loan:
  • Course fee, hostel fee, costs of required books and instruments, examination fee and study trips are considered.
    For Vocational Education And Training Loan:
  • The loan mainly goes towards the student's tuition fees for the entire course, exam fee and lab fee and library fund and caution deposit. It can also be used to finance the required books, apparatus and other valid expenses.

Loan Repayment:

    For Education Loan:
  • Starts a year after the course is completed or six months after landing a job, whichever is earlier.
  • Loan with interest can be repaid in EMIs i.e. you can take 10 years to repay loan amount up to INR. 7.5 lakhs and 15 years if the amount is more than that.
    For Vocational Education And Training Loan:
  • For courses of up to one year - Six months from completion.
  • For courses that takes more than one year - One year from completion.
  • The repayment period are listed below:
  • Loan taken for courses from three months to one year should be paid back in two to five years.
  • Loan taken for courses for more than one year should be paid back in three to seven years.

Security Required:

    For Education Loan:
  • Loan is provided conjointly to the applicant and his/ her guardian.
  • There is an agreement that future earnings of the student will contribute to loan repayment.
  • No collateral is required if the loan amount is less than INR. 4 lakh.
  • For loan sum between INR. 4 lakh and INR 7.5 lakh, guarantee from a bank-approved third party may be required. To avoid this, the borrower can offer security of palpable assets (covering the loan amount) in its stead.
    For Vocational Education And Training Loan:
  • You do not need to provide any collateral or security. There is no requirement for a third party guarantor either. But the parent or guardian has to execute the loan papers as a joint borrower along with the student.


1.What is CSIS?
Ans. The Central Government has established a new Central Scheme to deliver interest subsidy during the period between course completion and landing a job on educational loans for borrowers belonging to financially weaker sections (with parents earning less than INR. 4.5 lakh per year).
2.What is the last date for filing incomplete claims for the year?
Ans. It is normally done by the end of June.
3.Am I eligible for subsidy if I am going to study abroad and has taken a loan for 20 lakhs?
Ans. Approving the subsidy depends solely on the bank's discretion.
4.If I am joining another course soon after the current course, can I get an extension?
Ans. In most cases, you will not get an extension. And even if you do, the interest rates will be higher.
5.Can I place my family property as collateral?
Ans. Yes, but only with the consent of all the family members involved.