Canara Bank education loan - Student Loan in India

Canara Bank education loan Scheme

Nature of Course / Study
Financial assistance to needy and meritorious Indian students for pursuing studies from High School onwards including graduation, technical and professional courses.

Loans are also provided for study abroad for job oriented courses at degree level and advanced studies in all areas for post-graduation.

Purpose of loan
For payment of fees to school/college and for purchase of books, hostel fees, examination fees, etc.

Eligibility Conditions

Need based finance is permitted within a maximum of Rs.7.50 lakhs for inland study and Rs.15 lakhs for study abroad.
Institutions offering courses should have approval of Central Govt. & State Govt./University affiliation/Autonomous Institutes/AICTE/DOEACC.

Margin
Up to Rs.4.00 Lacs
Nil for both inland and Foreign Studies
Above Rs.4.00 Lacs
5% for inland studies 15% for studies abroad

Rate of Interest
(As on 20th June 2001)
(Subject to changes as advised by Bank/RBI from time to time)

(1) Student satisfying DRI norms
(Irrespective of quantum of loan)
(DRI:annual income less than Rs 7200 p.a) 4.00%
(2) Others - Upto Rs.4 lakhs
- Above Rs.4 lakhs 11.75%
12.75%

Disbursement
Directly to University/College/Hostel/book supplier/ etc.

Security

Loans up to Rs.4.00 lacs Joint documentation with parents/guardian.
Loans above Rs.4.00Lacs Collateral security of suitable value or Co-obligation of Third Party having required networth with Assignment of future income of the student.

Repayment Conditions

To be repaid in 5 to 7 years.
Initial repayment holiday of One year both for principal & interest from the date of completion of course or six months of getting a job whichever is earlier.
Interest will be debited quarterly on simple basis during the repayment holiday/moratorium period. After commencement of repayment, the accrued interest is added to the principal amount and EMIs fixed on total outstanding amount.
Penal Interest @ 2% will be charged for above 2.00 Lacs for the overdue amount and overdue period.

Credit Delivery
The loan can be availed from the branch nearest to the place of permanent domicile.

Also See

Public Sector Banks to offer Insurance linked Education Loans