Education loan from Canara Bank for higher studies in India


Canara Bank offers Vidya Turant an education loan scheme aimed at providing financial aid to needy and meritorious students for pursuing higher education in educational institutions of repute. The educational institutions approved under the scheme include IIMs, IITs, NITs and private institutions like BITS Pilani and BIT Mesra and many more.

Higher education has become an expensive affair, and parent's today struggle to meet these growing expenses. This is where an education loan from the Canara Bank comes in as a blessing. The bank offers loans structured under the Indian Bank Association (IBA) education loan scheme and covers every possible aspect of higher education. Borrowers can take a loan to cover the tuition fee, cost of study material and equipment, hostel fee and all other sundry expenses that come under education.



Canara Bank has various education loan schemes. However, this article discusses a loan scheme offered by the bank for studies in specific institutions of repute. The loan scheme termed as Vidya Turant is available for UG and PG courses, including technical and professional job oriented courses offered by recognised institutions approved by the UGC, AICTE or by the State or Central Government. Education loan under this scheme is also offered for admission into autonomous institutions such as IIMs, IITs and NITs etcetera. The list of institutions eligible for a loan under this scheme is divided into three categories, and the loan amount for each category is predetermined.

Vidya Turant Scheme


Canara Bank has an exclusive education loan product for individuals who have secured admission in institutions of repute, offering professional courses. It is designed for needy and meritorious students seeking financial assistance to pursue higher studies. The loan product is meant for candidates joining institutions such as the IITs, the IIMs, the NITs, IISc and ISB campuses in Hyderabad and Mohali and other similar high-ranking educational institutions.

Eligibility


Only Indian nationals are eligible for a loan under the Vidya Turant Scheme. They should have qualified specific entrance examinations such as CAT (Common Admission Test), JEE (Joint Entrance Examination) or other relevant examinations conducted by educational institutions of repute and gained admission into the specified institutions before applying for education loan with Canara Bank.

Quantum of loan


The quantum of loan varies depending on the category of the institution that a student has gained admission in. All Indian Institute's of Management (IIMs) fall under the category 'A'. The Hyderabad and Mohali campuses of the Indian School of Business (ISB) fall under category 'B'. Institutions that fall under category 'C' include the Indian Institutes of Technology (IITs), National Institutes of Technology (NITs) and institutes like the Jamnalal Bajaj Institute Of Management Studies (JBIMS), Mumbai, Xavier Institute Of Management, Bhubaneswar, BITS Pilani and a number of other government and private institutions. A total of eighty institutions is approved for a loan under this scheme. Check the list of approved institutions for loan under Vidya Turant Scheme.

  • Individuals who have gained admission is either of campus of ISB can avail a loan amounting to thirty six lakhs
  • Individuals who have got admission in any of the IIMs are entitled to a loan of up to twenty five lakhs
  • Loan for all other institutions under category 'C' is capped at twenty lakhs

Expenses covered


The following expenses are covered under the Vidya Turant education loan scheme by Canara Bank–
  • Tuition fees
  • Hostel fees
  • Insurance premium
  • Examination fees
  • Laboratory fees
  • Library Fees
  • Cost of study material, instruments & equipment and uniform
  • Money for purchase of computer
  • The loan amount also covers caution deposit, refundable security depost, building fund and all other refundable deposits officially charged by the institution
  • Expenses incurred as part of the course such as project work, thesis and study tours etcetera are covered too
  • Charges for hired accommodation outside the campus

Key features of education loan


  • No margin money is applicable for loans under four lakhs
  • Loans above four lakhs attract a margin money of 5%
  • Scholarship and assistantship are accepted as margin money
  • The rate of interest on the Vidya Turant education loan is based on MCLR (Marginal Cost of funds based Lending Rate) plus 0.20%, and is presently fixed at 10%. Girl candidates are eligible for a 0.50% discount
  • No security for loans disbursed for designated institutions (IIMs, IITs, NITs, ISBs, IISC etcetera) for the amounts specified above
  • Applicants must have a parent or guardian as a joint applicant
  • An agreement must be signed assigning future salary of the student towards loan repayment
  • There is no loan processing fee nor an upfront fee charged

Loan repayment


  • Loan repayments are scheduled with EMI (equated monthly instalments)
  • Maximum loan repayment tenure ranges between ten and fifteen years depending on the sum taken as loan
  • The bank does not levy a prepayment penalty is case the loan amount is paid before the decided period

Procedure for loan application


Applications for education loan can be presented at any branch of Canara Bank. In case, the branch is not certified to process loan applications the manager should direct you to a branch closest to you. Application form available at the bank has to be filled and submitted along with documents, for verification. Submit photocopy's of original documents and carry originals for verification. The documents required to be presented to the bank/loan disbursement office are –



  • Admission letter from university
  • Proof of fee and other charges specified by the institution
  • Passport sized photographs of student and co-applicant
  • Copy of PAN card & Aadhar card of student and co-applicant
  • Address proof (a copy of the passport/telephone bill/bank passbook/electricity bill)
  • Bank statement of the co-applicant
  • Copy of the IT returns of co-applicant
  • Proof of income of co-applicant (Form 16/salary statement/IT return)
  • Statement of Assets & Liabilities of the co-applicant
  • Education documents of student (copy of mark sheets/pass certificate/transcripts
  • Completed loan application form

You may also check details of other educational loan schemes offered by Canara bank.

While you are at it, you might also want to explore the education loan schemes marketed by other banks -


Article by Juana
Juana is a freelance writer, with years of experience, creating content for varied online portals. She holds a degree in English Literature and has worked as a teacher and as a soft skill trainer. An avid reader, she writes on a variety of topics ranging from health, travel, education and personality development.

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