Canara Bank Education Loan
Canara Bank offers education loans to students aiming to pursue higher education in India or abroad, with loan amounts ranging from Rs. 50,000 to Rs. 50 lakhs. The loan comes with a fixed interest rate for the entire loan tenure and allows repayment over a period of up to 15 years. To secure the loan, Canara Bank accepts hypothecation of immovable property, third-party guarantee, or pledge of shares. Additionally, the student borrower is required to have a personal accident insurance cover. The loan application process is straightforward, offering online and in-branch options at Canara Bank. The approval process typically takes 15-30 days. Moreover, this loan qualifies for tax benefits as per Section 80E of the Income Tax Act, 1961. For further details, interested individuals can visit the Canara Bank website or reach out to their nearest Canara Bank branch.
Education loan Eligibility:
- Age: The applicant must be at least 18 years old and not more than 60 years old at the time of loan disbursement.
- Income: The applicant must have a minimum annual income of Rs. 1.5 lakhs for salaried individuals and Rs. 2.5 lakhs for self-employed individuals.
- Collateral: The loan may be secured by hypothecation of immovable property, third-party guarantee or pledge of shares.
- Credit score: The applicant must have a minimum credit score of 750.
- Course: The loan can be used to pursue any recognized course in India or abroad.
- Eligibility: The applicant must be a citizen of India.
Documents Required:
- Application form: Obtain the application form from the Canara Bank website or a branch and fill it out completely.
- Passport-size photograph: Provide two passport-size photographs of the applicant.
- Identity proof: Submit a valid identity proof, such as a voter ID card, PAN card, passport, or Aadhaar card.
- Address proof: Present a valid address proof, such as a voter ID card, PAN card, passport, Aadhaar card, or recent bank statement.
- Proof of income: Furnish proof of income, such as salary slips, Form 16, or business income tax returns.
- Proof of education: Provide evidence of education, such as marksheets, certificates, or a letter of admission from the institute.
- Guarantee: If the loan amount exceeds Rs. 20 lakhs, arrange for a guarantee from a third-party, such as a parent or guardian.
- Personal accident insurance: Obtain personal accident insurance covering the entire loan amount.
Process to apply for education loan:
- Gather the necessary documents: Collect all the required documents, including the application form, passport-size photographs, identity proof, address proof, proof of income, proof of education, guarantee, and personal accident insurance cover.
- Fill out the application form: Carefully complete the application form, ensuring all the required information is provided, and sign it in the presence of a witness.
- Submit the application form: Submit the filled application form to the nearest Canara Bank branch or apply online through the Canara Bank website.
- Provide the required documents: Present the original copies of the documents you submitted during the application process to the bank for verification.
- Await loan approval: The bank will review your application, and the loan approval process typically takes 15-30 days.
- Sign the loan agreement: Once your loan is approved, you will be required to sign the loan agreement, which outlines the terms and conditions of the loan.
- Receive the loan amount: After signing the loan agreement, the approved loan amount will be disbursed to your designated bank account.
Expenses Covered in education loan scheme:
- Course fees: The loan can be used to pay the course fees of the institute.
- Study materials: The loan can be used to purchase study materials, such as books, stationery, and equipment.
- Hostel fees: The loan can be used to pay the hostel fees, if applicable.
- Travel expenses: The loan can be used to pay the travel expenses, such as airfare, train fare, and bus fare.
- Living expenses: The loan can be used to pay the living expenses, such as food, accommodation, and clothing.
Courses covered in education loan scheme:
- Degree courses: The loan can be used to pursue degree courses, such as Bachelor's degree, Master's degree, and Doctorate degree.
- Diploma courses: The loan can be used to pursue diploma courses, such as Engineering diploma, Medical diploma, and Management diploma.
- Vocational courses: The loan can be used to pursue vocational courses, such as Computer courses, IT courses, and Nursing courses.
- Foreign courses: The loan can be used to pursue foreign courses, such as MBA in the US, MS in the UK, and Engineering in Australia.
Schemes:
Vidya Sagar Scheme: Designed for students pursuing higher education in India. Loan amount ranges from Rs. 50,000 to Rs. 50 lakhs with a fixed interest rate for the entire tenure. Repayment period extends up to 15 years.
Vidya Turant Scheme: Offers quick loans to cover tuition fees. Loan amount ranges from Rs. 50,000 to Rs. 20 lakhs. Interest rate is fixed for the first 6 months and then floats with the market. Repayment period is up to 10 years.
Vidya Shakthi Scheme: Aimed at students seeking higher education abroad. Loan amount ranges from Rs. 50,000 to Rs. 50 lakhs with a fixed interest rate throughout the loan tenure. Repayment period extends up to 15 years.
Iba Skill Loan Scheme: Geared towards skill-based education. Loan amount ranges from Rs. 50,000 to Rs. 1.5 lakhs with a fixed interest rate for the entire tenure. Repayment period is up to 10 years.
Note: The information provided about education loans is sourced from official guidelines. However, for complete satisfaction and up-to-date details, we recommend visiting the official website of the respective financial institution. The official website will provide comprehensive and accurate information regarding eligibility, application process, documentation requirements, terms, and conditions.
