Canara Bank Vidya Shakti Education Loan

Vidya Shakti Education Loan Scheme

This loan helps PWD category students who want to attend special device courses in India pay their course fees and related expenses. The maximum loan amount that you can apply for is Rs. 7.5 lakh for degree courses and Rs. 1.5 lakh for vocational, diploma or certificate courses.

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Features of Vidya Shakti Education Loan Scheme

Why this Loan?

  • Meant to provide financial assistance to students with physical disability of 40% or more, to attend a special device course
  • The bank disburses the Canara Bank Vidya Shakti Education Loan as a series of payments over the required number of terms or years to pay the course fees or other approved charges

Loan Amount

  • The maximum loan amount one can get is Rs. 7.5 lakh for degree courses and Rs. 1.5 lakh for vocational, certificate or diploma courses
  • The bank offers loans over this limit under the IBA Model Education Loan scheme


  • The rate of interest is equal to 1-year MCLR where MCLR is the Marginal Cost of Funds-Based Lending Rate. As of November 2020, the MCLR of Canara Bank is 7.35%
  • The accrued interest during the moratorium period is added to the principal amount to arrive at the fixed Equated Monthly Instalment (EMI) that need to be paid during the repayment period


  • The repayment moratorium is for the course duration and an additional grace period of 1 year but simple interest is charged for this moratorium period
  • A loan of up to Rs. 7.5 lakh needs to be repaid in 15 years in equal monthly instalments (EMIs) after the moratorium ends
  • A skill development loan has to be repaid in 3-7 years depending on the loan amount. The standard IBA model skill loan timeline is:
    • Loans upto Rs. 50,000: 3 years after completion
    • Loans of Rs. 50,000 to Rs. 1 Lakh: 5 years
    • Loans over Rs. 1 Lakh: 7 years

Security Needed

  • This loan needs a co-obligation of parents
  • No collateral security is required
  • An assignment of future income of the student is also needed


  • The borrower should be an Indian national
  • Only students with physical disability to the extent of 40% or more can apply for this loan

Eligible Courses

  • All accredited special device courses

Borrower Contribution to Total Cost (Margin Money)

  • Loans Up to Rs. 4 lakh: The bank does not charge any margin money for loans of Rs. 4 lakh or less
  • Loans Above Rs. 4 lakh: The bank charges 5% as margin money for loans above Rs. 4 lakh
  • Scholarship or assistantship, if any, is also considered as margin

Note: Margin money refers to the amount the borrower contributes to the overall loan amount required by the borrower. So a margin money of 5% for a Rs. 10 lakh loan means that the borrower will have to contribute Rs. 50,000 to the overall amount needed for the course.

Processing and Other Charges

  • There are no processing charges for this loan

Uses of the Loan

  • The loan amount can be used to pay any fees or other expenses necessary to complete the course including the charges to cover any expenses on study tours, project works, thesis and so on

Other Features to Know

  • The bank may ask for details of expenses for the course that the applicant(s) need to obtain from the institution
  • The loan is disbursed directly to the college, bookseller or publisher, computer seller, and so on and not to the applicant(s)

Documents Needed

  • Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • An Income Certificate from a Competent Authority to avail the interest subsidy under Central Interest Subsidy Scheme of Education Loans, if eligible
  • Property or other security documents wherever applicable
  • Documents to support disability claims

Contact Number / Customer Care Number for Canara Bank

  • Canara Bank Websites:
    • Canara Bank Main Website:
    • Canara Bank MSME Website:
  • Customer Care
    • Toll-Free Number (within India): 1800 1030
    • From Outside India: +91 80 2206 4232
    • MSME Contact Number: +91 80 2224 0903
  • Email for MSME Loans: [email protected]
  • Headquarters: Bengaluru, Karnataka