Canara Bank: Education Loans

Expenses considered in Education Loan

Payment of course fees, Purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tour, passage expenses (for studies abroad)

Canara Bank Education Loan – Eligible Course

Studies in India: Graduation, Post-Graduation including technical/ professional courses with employment potential conducted by colleges/ Univercities approved by |UGC/ Govt. / AICTE/ Department of Electronics/ IMC, autonomous institutions like IIT, IIM etc.

Studies abroad: Job oriented technical/ professioal courses (graduation/ post graduation).

Quantum of Finance

• Need based finance
• For studies in India : Max. Rs, 10.00 lacs
• For studies abroad : Max. Rs. 20.00 lacs

Margin

• Upto to Rs. 4.00 lacs NIL
• Above Rs 4.00 lacs –
• Studies in India : 5% and Study in abroad : 15%

Security

• Loan is given jointly to the student and parent/ guardian
• Assignment of future income of the student
• Rs. 4.00lacs- No security
• Above Rs. 4.00 lacs upto Rs. 7.50 lacs.

Satisfactory third party guarantee

• Above rs. 7.50 lakhs: Collateral security equal to 100% o the loan amount

Canara Bank Education Loan Rate of Interest

• (Subject to change 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%

• Upto Rs. 4 lakhs – 12.50%
• Upto Rs. 4 lakhs – 12.50%
• Above Rs. 7.50 lacs upto Rs. 15 lacs- 11.25%
• Above Rs. 15.00 lacs upto Rs. 20.00 lakhs- 11.25%
• For student secured admission in IIT/ IIM/ISB- 10.75%

Note

• 0.50% concession in ROI for prompt servicing of interest during study period.
• Reduction of 1% for all courses in all slabs/ category for girl student for loans granted.

Repayment of Education Loan

• Commences one year after completion of the course of six months after getting employment , whichever is earlier.
• Loan with interest is repayable in eqanted monthly instalment within 5 to 7 years

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