Canara Bank — Education Loans (India)

1. Bank Overview

Canara Bank is one of India’s largest public sector banks with a vast network of approximately 9,861 branches and 7,900+ ATMs across the country as of mid-2025. Headquartered in Bengaluru, it offers a robust public sector banking experience for education financing.

2. Key Loan Products (Domestic-focused)

Vidya Turant Scheme

• Designed for students admitted to premier Indian institutes (IIMs, IITs, ISB, etc.).

• Loan limits:

  • ₹50 lakh for ISB Hyderabad & Mohali (Category A)
  • ₹40 lakh for IIMs, BITS, Symbiosis, XLRI, etc. (Category B)
  • ₹30 lakh for all other eligible institutions (Category C).
• Collateral: None up to these specified limits; repayment backed by future income assignment.

• Interest rate (RLLR-based):

  • Typically around 8.60%–9.85%, with better rates for loans with co-applicant or top-tier schools.
• Tenure: Up to 15 years EMI repayment, post moratorium of course duration + 1 year.
• Processing Fee: No processing charge.

IBA-Model Education Loan

• Covers need-based financing for recognized courses (UG/PG) in India.
• Unsecured: Up to ₹7.5 lakh; beyond that, collateral is needed. Margin rules apply: NIL up to ₹4 lakh, 5% above.
• Tenure: Up to 15 years including moratorium.

Vidya Sagar, Vidya Shakthi, Skill Loans

• Vidya Sagar: Loans up to ₹20 lakh, interest ~9.25%–11.25%.
• Skill Loan: ₹5,000 – ₹1.5 lakh, interest typically ~9.25%–10.75%.
• Vidya Shakthi: Tool for diploma/certificate/vocational, ~8.25% interest after concessions.

3. Interest Rates & Concessions

• Female applicants can get up to 0.50% interest reduction in certain schemes.

4. Eligibility & Documentation

• Indian national admitted to recognized AICTE/UGC/PSU-approved courses.
• Mandatory co-applicant (usually parent/guardian).
• Required docs include KYC (Aadhaar, PAN), admission letter, fee structure, academic transcripts, co-applicant income proof, etc.
• Some Reddit users report that the bank may request the co-applicant to have an account or Customer ID with the bank—often for internal process reasons.

5. Application & Disbursement Process

• Apply via Canara Bank's online portal or Vidya Lakshmi.
• Processing time: Typically 10–15 days; disbursement may be within 2–3 working days post-sanction for schemes like Vidya Turant.
• Moratorium: Course duration + 1 year, followed by EMI over up to 15 years.

6. Summary Table