Canara Bank Education Loan

VidyaSagar - Educational Loan Scheme

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)

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.

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