Canara Bank Education Loan

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Canara Bank Education Loan

Canara Bank is one of the largest public sector banks in India. It has its headquarters in Bengaluru with over 1 lakh employees working for it. It was established at Mangalore in 1906 by Ammembal Pai and currently has 10,400 branches, 10,000 ATMs spread across 4,467 centers. It also has overseas presence with offices in London, Dubai and Hong Kong.

Overview

Scheme Name Details/ Eligibility
IBA Model Education Loan Scheme -Applicable to Indian National

-For Inland and studies abroad

-Need based finance

IBA SKILL LOAN SCHEME -Applicable for Indian National

-For Skill development under NCQF

-Maximum loan amount of 1.5 lakhs

VIDYA TURANT -Applicable for Indian National

-Loan to students in few select institutes

-Maximum Loan amount of 40 lakhs

VIDYA SHAKTHI -Applicable for Indian National

-Provide financial assistance to PWD (persons with disabilities)

-Maximum Loan amount of 7.5 lakhs

VIDYA SAHAY -Applicable for Indian National

-Maximum Loan amount of 1 lakh

-Only for down payment

IBA Model Education Loan Scheme

The main purpose of this loan is to provide financial assistance to students for payment of course fee, hostel fees, examination fees, library fees etc. The loan can also be utilized by the students to purchase necessary equipment required for their courses like computers and other instruments.

Eligibility of courses

This is applicable for pursuing graduation, post-graduation, technical/profession courses from reputable government, private and other well-known autonomous institutions like IIMs, IITs etc. from India. This course is also applicable for pursuing

graduation, post-graduation, technical/profession courses from a well-known and reputable university abroad.

Margin Amount

It is the amount which the borrower will have to pay towards the loan amount thus contributing to the entire amount borrowed.

For loan amount up to 4 lakh rupees there is no margin amount. For loan amount above 4 lakh rupees the margin is 5% and 15% for India and abroad respectively.

Loan Security

Loan is granted jointly with the Parent/Guardian of the students and also includes assignment of future income of the students. For loan amount up to 7.5 lakhs no tangible collateral is required, but for loan amount above 7.5 lakhs tangible collateral security is required up to at least 100% of the loan amount.

Loan tenure and Repayment of Loan

The tenure of the loan is 15 years excluding the moratorium period (this the duration of applicant’s course + 1). The repayment of loan will start after the moratorium period in the form of equated monthly installment (EMI).

 

IBA SKILL LOAN SCHEME

The purpose of this loan is to assist and support the national initiatives for skill development undertaken by the Ministry of Skill Development and entrepreneurship. This loan can be taken by the students to cover the costs of courses aligned to NSQF. According to MSDE’s website “The National Skills Qualifications Framework (NSQF) is a competency-based framework that organizes all qualifications according to a series of levels of knowledge, skills and aptitude.”

Eligibility of courses

Only those courses which are run by Training Institutes aligned to NSQF are eligible for this loan.

Margin Amount

There is no margin amount for this particular loan.

Processing Fee

There is no processing fee applicable for this loan.

Loan Security

Loan is granted jointly with the Parent/Guardian of the students and also includes assignment of future income of the students. No collateral or third-party agreement is required for this loan.

Repayment and Loan Tenure

The tenure of the loan depends upon the amount of loan borrowed. The repayment of loan starts after the moratorium period (6 months if the duration of the course is 1 year and 12 months if the duration of the course is more than 1 year). The repayment of loan will happen in the form of EMI (equated monthly installments).

Loan Amount Loan Tenure
50,000 Up to 3 years
50,000 – 100,000 Up to 5 years
100,000 < Up to 7 years

VIDYA TURANT

The main purpose of this loan is to provide financial assistance to students who are pursuing their education in select Indian institutions. These institutes consist of IITs, IIMs, ISBs, NITs, IISCs and other reputed institutes. These institutes have been divided into 3 categories on the basis of maximum loan amount offered to each category.

Eligibility of courses

The loan will be provided only to those students who are pursuing courses at select premier Indian Institutes. This includes -:

  1. IIM
  2. IIT
  3. ISB
  4. NIT
  5. XLRI

Margin Amount

For loan amount up to 4 lakh rupees there is no margin amount. For loan amount above 4 lakh rupees the margin is 5%. The margin amount will include all scholarships if any.

Processing Fee

There is no processing fee applicable for this loan

Loan Security

No collateral security required up to the category designated amount limit. (refer the table Loan Amount/ Quantum of Finance).

Loan tenure and Repayment of Loan

The tenure of the loan is 15 years excluding the moratorium period (this the duration of applicant’s course + 1). The repayment of loan will start after the moratorium period in the form of equated monthly installment (EMI).

VIDYA SHAKTHI

The main purpose of this loan is to provide financial assistance to PWD (persons with disabilities) students who want to pursue special devices course in India. If these students want to pursue education abroad, they will have to follow the guidelines of IBA model education loan scheme.

Eligibility of courses

This loan is applicable for students with disabilities, who want to pursue special devices courses, vocational courses, certificate courses, diploma courses and degree courses in India.

Margin Amount

For loan amount up to 4 lakh rupees there is no margin amount. For loan amount above 4 lakh rupees the margin is 5%. The margin amount will include all scholarships if any.

Processing Fee

There is no processing fee applicable for this loan.

Loan Security

Loan is granted jointly with the Parent/Guardian of the students and also includes assignment of future income of the students. For loan amount up to 7.5 lakhs no tangible collateral is required.

Repayment and Loan Tenure

The tenure of the loan depends upon the purpose for which the loan is borrowed. The repayment of loan starts after the moratorium period (6 months if the duration of the course is 1 year and 12 months if the duration of the course is more than 1 year). The repayment of loan will happen in the form of EMI (equated monthly installments).

VIDYA SAHAY

The main purpose of this loan is to provide immediate financial assistance to needy and meritorious students. This loan is used by the students for the down payment of fees at the time CET counselling or at the time of selection.

Eligibility of courses

This loan is applicable only for the down payment of fees at the time of CET counselling/selection. The loan amount cannot be used towards payment of fees for a course. This is only given till the time the students actual loan is sanctioned.

Margin Amount

There is no margin amount for this particular loan.

Processing Fee

There is no processing fee applicable for this loan.

 

Loan Security

Loan is granted jointly with the Parent/Guardian of the students. No collateral or third-party agreement is required for this loan.

Repayment and Loan Tenure

The loan has to be cleared as soon the regular education loan is sanctioned.

Loan Amount and Interest Rates

NAME OF THE SCHEME QUANTUM OF FINANCE/ LOAN AMOUNT INTEREST RATE
IBA MODEL EDUCATION LOAN  For study in -:

India – up to 10 lakhs

Abroad – up to 20 lakhs

*Need based finance

Up to 7.5 Lakh:

Current 1 Year MCLR +2.00 %

Above 7.5 Lakh:  current 1 Year MCLR+1.50 %

Concession of 0.5% for girl students

IBA SKILL LOAN SCHEME Minimum – 5000

Maximum – 1.5 lakhs

Current 1 Year MCLR+1.50 %
VIDYA TURANT CAT A – up to 25 lakhs

(IIMs)

CAT B – up to 40 lakhs

(ISBs)

CAT C – up to 20 lakhs

(all other institutes)

Current 1-year MCLR
VIDYA SHAKTHI Degree courses – up to 7.5 lakhs

Vocational/certificate etc. – up to 1.50 lakhs

Current 1-year MCLR
VIDYA SAHAY Maximum loan amount of 1lakh Current 1-year MCLR + 2%

Documents Required (may vary depending on the scheme)

  1. Duly filled application form
  2. Proof of Identity – Passport/ Voter’s ID
  3. Address Proof – Telephone Bill / Electricity Bill
  4. Photograph of applicant and guardian
  5. Mark list of qualifying exams
  6. Proof of income of guardian – Bank statements
  7. List of all possible expenditure to be incurred during the course
  8. Proof of selection into the course – Offer/ Admission letter from the college (including fees details)
  9. Papers for collateral acting as security

How to Apply for the loan?

  1. Applicants can download pdf application form, from the bank’s website. They can then fill and upload the pdf to the website. They will then be called to their nearest bank branch for further procedures.
  2. Applicants can visit its nearest bank and make an appointment to know more about the schemes

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