For international students studying abroad, education loans from banks like Canara Bank offer strong support in managing the high costs of tuition, living expenses, and other essentials. However, with this financial support comes the responsibility of loan repayment, which can impact long-term finances. Canara Bank interest certificate is an important document that helps students and their families manage this responsibility with greater transparency and financial updates. Let’s understand everything about Canara Bank education loan interest certificate for education loans for students studying abroad.
Table of contents
What is a Canara Bank Interest Certificate?
A Canara Bank interest certificate is a detailed document that records the amount of interest paid on an education loan within a specific financial period. For students and their families, it provides a clear breakdown of the interest component of loan repayments, separate from the principal repayment, if any. You can use the Canara Bank interest certificate to claim tax deductions under section 80/E of the Income Tax Act Interest certificates for education loans usually include:
- An interest certificate shows the total interest paid during the specified time frame, often a financial year.
- Although focused on interest, some certificates may also mention the principal amount repaid, helping students track their loan balance.
- You can check such details in the loan amortisation schedule and know the exact amount paid against principal and interest.
- The interest certificate for Canara Bank also includes the details of the loan account, including the account number, to ensure accurate record-keeping.
Also Read: Check here all the major features and benefits of Canara Bank Forex card for international students
Importance of Canara Bank Interest Certificate for Students Studying Abroad
The Canara Bank interest certificate is essential for students studying abroad as it provides a clear record of the interest paid on their education loan. It helps you to claim valuable tax deductions under Section 80E of the Indian Income Tax Act. Interest certificate for education loan not only eases the financial burden by allowing students or their co-borrowers to claim deductions on the interest but also aid in budgeting and financial planning by providing transparency in loan repayment. With this certificate, students can track their loan payments accurately. Check all major importance of interest certificate for education loans below:
Tax Benefits Under Section 80E
For Indian taxpayers, Section 80E of the Income Tax Act allows tax deductions on the interest paid on an education loan for higher studies. Students or their co-borrowers, especially parents or guardians, can claim this deduction. The interest certificate from the bank is an official document required to avail of this deduction.
Transparency in Loan Repayment
Canara Bank interest certificate adds transparency which gives borrowers an accurate picture of how much they have paid toward interest versus principal and clarifies the outstanding loan balance. This transparency is essential for students looking to settle their debts faster or manage multiple expenses in their post-graduation phase.
Document for Financial Tracking and Proof of Payment
The interest certificate acts as proof of payment, which can be valuable when securing further financial assistance or scholarships, especially if a student’s financial situation needs to be demonstrated. For students planning further studies or those who need additional funding, this document becomes an asset to show their financial discipline and payment history.
Also Read: Check here some of the common FAQs on Tax Benefits on Education Loan
How to Obtain a Canara Bank Interest Certificate for Education Loans?
Canara Bank offers several methods to request and obtain an interest certificate. You can download the Canara Bank interest certificate through the online banking portal, mobile banking applications or by visiting the nearest branch of the bank. Check all the details below:
Online Banking Portal
Canara Bank’s online banking portal offers a convenient way to access account details, including interest certificates. Follow the below-mentioned steps to obtain a Canara Bank interest certificate:
- Log in to your Canara Bank online banking account.
- Go to the ‘Loans’ section and select your education loan account.
- Look for an option to download or request an interest certificate for the financial year you need.
- This is the most efficient method for students already abroad, as it eliminates the need to visit a branch in person.
Mobile Banking Application
The Canara Bank mobile app may also have options for requesting an interest certificate. Check the ‘Loans’ or ‘Statements’ sections within the app, where you might find options for generating your interest certificate. Download the certificate in .pdf format and save it to the files.
Branch Visit
For those who prefer in-person support, visiting a Canara Bank branch is an option. You’ll need to fill out a request form specifying the period for which you need the certificate. It may take a few days for processing, so ensure you account for this if you need the certificate urgently.
Canara Bank interest certificate for education loans is an important document required to claim tax deductions and to keep the repayment process transparent. Know some common FAQs based on the interest certificate from Canara Bank below:
FAQs
The Canara Bank interest certificate is a document that records the total interest paid on an education loan over a specific period, typically a financial year. It provides a summary of loan interest payments for tax purposes and financial tracking.
Students or their co-borrowers need the interest certificate to claim tax deductions on education loan interest under Section 80E, which helps reduce tax liability and manage loan repayment planning more effectively.
You can request the interest certificate through Canara Bank’s online banking portal, mobile app, or by visiting a branch in person.
Yes, Canara Bank allows online access to the interest certificate. Simply log in to your online banking account, go to your loan account, and download the document directly if available.
Generally, Canara Bank does not charge a fee for issuing an interest certificate. However, there may be minor charges if you request multiple copies or expedited service, so it’s best to confirm with the bank.
Yes, you can request an interest certificate for a specific financial year or a custom period, which can be especially useful for students who need it for tax filing or financial planning purposes.
With the interest certificate, you can claim deductions on the interest paid under Section 80E of the Indian Income Tax Act.
If there’s an error, contact the Canara Bank branch where you took the loan or reach out to their customer service. They will guide you through the process to correct and reissue the certificate.
Yes, the co-borrower, usually a parent or guardian, can use the interest certificate to claim deductions on the interest paid, provided they meet the tax eligibility criteria.
The certificate primarily focuses on the interest paid, but some versions may also include information on any principal repayment. This can help you track your overall loan repayment progress.
Yes, the certificate provides a clear record of interest payments. This helps you understand your financial obligations and plan for future instalments or early repayment options.
It’s recommended to obtain an interest certificate annually, especially before tax filing season. This ensures you have updated records for claiming tax deductions each year.
Canara Bank interest certificate primarily covers interest but it can indirectly help you track outstanding balances by clarifying how much has been paid versus what remains.
Yes, the certificate is valid for Indian tax purposes and can be accessed online, so students abroad can use it for financial tracking and share it with co-borrowers in India for tax claims.
Yes, the Canara Bank interest certificate can help refinance discussions as it shows your payment history. This transparency can support negotiations for lower interest rates or modified repayment terms.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
