Canara Bank Education Loan, Education Loan

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 :-

• Upto 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) 

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

Disbursement :-

• Directly to University /College /Hostel /book supplie r/ etc.

Security :-

• Loans upto Rs.4.00 Lacs -  Joint documentation with parents/guardian.
• Loans above Rs.4.00 Lacs - 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.