Canara Bank Student 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
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. |