Education Loan of Canara Bank
Canara Bank Education Loan Scheme Overview:
Among the key aims of the Government of India would be to ensure no one is deprived of a proper education as a result of financial limitations. Indian Banks' Association (IBA) has framed a comprehensive version student loan scheme, which each lender has embraced. With the intention of supporting pupils from economically weaker sections of this society, Department of Education, Ministry of Human Resource Development and Government of India has established this strategy together with subsidized interest.
Canara Bank Offers two kinds of education loans, namely Loans for Students and Model Loan Scheme for Vocational Education & Training.
1. LOANS FOR STUDENTS:
Features & Benefits of Canara Bank Loans for Students:
Target / Loan Purpose:
The loan mostly goes towards the course fees for the stream chosen by the applicant. It can also cover the costs of textbooks, apparatus, instruments, uniform levied by the organization, yearly hostel fee payment, exam fee, study trips as well as other related expenses. This is applicable no matter where the applicant chooses to study - in India or abroad.
Expenses considered for Canara Bank Education Loan:
Course fee, hostel fee, costs of mandatory books and tools, evaluation fee and research trips are all considered.
Number of Education Loan:
As a need-based student loan, Canara Bank has a limitation on the quantity it will provide as loan.
- For education in India: Up to INR. 10 lakh.
- For education overseas: Up to INR. 20 lakh.
- In the event the loan you have taken is less than INR 4 lakhs, no interest will be levied.
- For loan amount more than that, 5 percent interest will be levied if you are studying in India and 15% if you're going overseas.
Begins annually after the course is completed or six months after landing a job, whichever is sooner.
Loan with interest could be paid back in EMIs i.e. you can take 10 years to repay loan amount up to INR. 7.5 lakhs and 15 years when the amount is greater than that.
- Loan is provided conjointly to the applicant and his/ her guardian.
- There's an agreement that future earnings of the pupil will contribute to repayment.
- No collateral is required if the amount of the loan is less than INR. 4 lakh.
- For loan amount between INR. 4 lakh and INR 7.5 lakh, guarantee out of a bank-approved third party could be deemed necessary. To avert this, the borrower can provide security of real assets (covering the loan number ) in its stead.
- If the amount of the loan is greater than INR. 7.5 lakhs, the security worth the exact same is required as security.
- Up to INR. 4 lakhs – Nil
- Above INR. 4 lakhs:
- For studying in India – 5%
- For studying overseas - 15%
Bachelors (Graduation) and Experts (Post-graduation) that include professional as well as technical classes with work potential conducted by colleges or universities validated by UGC, Government, Department of Electronics, AICTE, IMC, and autonomous institutes like IIT, IIM, Madras Christian College etc.
Any Bachelor's or Master's Degree that is employment-oriented from an approved institute.
- Mark sheet of their most recent qualifying public examination for school or college in India.
- Proof of entry to the class (Fee receipts, Transfer Certification, etc.).
- Schedule of expenditures for the class (Fee receipts obtained from the institute).
- Two recent passport size photographs of the debtor, co-obligant and guarantor.
- Copy copy of any federal ID card such as passport, Voter's ID, Driving License etc..
- Recent wages slips if you are a salaried individual and income proofs including reference from clients, IT newspapers etc. if you're self-employed, accountants, professionals, entrepreneurs or agriculturist.
Eligibility Criteria of Student:
- The student must be an Indian National & should have passed the necessary class with essential grades.
- The applicant should have received admission in a class in any recognized institute, approved by the Central or State Government.
2. MODEL LOAN SCHEME FOR VOCATIONAL EDUCATION AND TRAINING:
Features & Benefits of Model Loan Scheme for Vocational Education & Training:
Goal / Loan Purpose:
Amount of Education Loan:
Expenses considered for Canara Bank's Model Loan Scheme for Vocational Education & Training:
The purpose of Model Loan Scheme for Vocational Education & Training is to fund the expenses of a student throughout the course period. Vocational classes are job-oriented and train students in a certain area before helping them . The loan mainly goes towards the student's tuition fees for the whole course, exam fee and laboratory fee and library finance and warning deposit. In addition, it can be used to finance the required books, apparatus and other valid expenses.
Amount of Education Loan:
- For three-month courses - INR 20,000/-
- For three to six month courses – INR 50,000/-
- For 6 months to 1 year courses – INR 75,000/-
- For courses of one year and above - INR 150,000/-
When the course is completed, the payoff of loan begins after a cessation period as given below:
- For courses of up to a year - Six months from conclusion.
- For courses that takes more than 1 year -- One year from completion.
The repayment period are Recorded below:
- Loan required for courses from three weeks to a year should be repaid in two to five decades.
- Loan taken for courses for over 1 year ought to be paid back in three to seven decades.
You don't have to offer any security or security. There's not any need to get a third party guarantor either. However, the parent or parent must do the loan documents as a joint debtor together with the pupil.
Any advancement / Vocational Courses of interval ranging from two months to 3 decades, rather granting you using a certificate, degree or diploma given by a famous organization, accepted by the Central or State Government.
- Mark sheet of the latest qualifying public examination for school or college in India.
- Proof of admission to the course (Fee receipts, Transfer Certificate, etc).
- Schedule of expenditures for the course (Fee receipts obtained from the institute).
- Two recent passport size photos of the borrower, co-obligant and guarantor.
- Duplicate copy of any federal ID card like passport, Voters ID, Driving License, etc..
- Latest salary slips if you are a salaried person and income proofs including reference from clients, IT papers etc. if you're self-employed, freelancers, professionals, entrepreneurs or agriculturist.
Student Eligibility Criteria:
- The student has to be an Indian National & must have passed the SSLC examination.
- The applicant must have secured admission in a vocational course in almost any recognized area, approved by the Central or State Government.
Canara Bank Education Loan FAQs:
- What is CSIS?
The Central Government has created a new Central Scheme to deliver interest subsidy during the period between course completion and landing work on educational loans for borrowers belonging to fiscally weaker sections (with parents earning less than INR. 4.5 lakh annually ).
- What is the last date for filing incomplete claims for the year? It is normally done by the end of June.
- Am I eligible for subsidy if I am going to study abroad and has taken a loan for 20 lakhs? Approving the subsidy depends solely on the bank’s discretion.
- If I am joining another course soon after the current course, can I get an extension? In most cases, you will not get an extension. And even if you do, the interest rates will be higher.
- Can I place my family property as collateral? Yes, but only with the consent of all the family members involved.