Looking for an Education Loan to Finance Your Technical Education in India?

Look no further. This page contains all the information you will need on Canara Bank’s Skill Loan Scheme for technical courses.

Canara Bank IBA Skill Loan Scheme

This loan helps students who have secured admission into technical courses offered by training institutes, polytechnics, schools or colleges approved by the State or Central Government for technical education to pay for their course fees. The loan amount starts from Rs. 5,000 and can go up to Rs. 1.5 lakh depending on the duration of the course.

Features of IBA Skill Loan Scheme for Technical Courses

Why this Loan?

  • The loan is meant for you if you have gained admission into a programme offered by a polytechnic, Industrial Training Institute (ITI), school, college etc. in India offering technical courses
  • The bank disburses the IBA Skill Loan Scheme as a series of payments over the required number of terms or years to pay the course fees or other approved charges
  • There is no minimum course duration

Loan Amount

  • The minimum loan amount starts from Rs. 5,000 and the maximum amount can go up to Rs. 1.5 lakh depending on the duration of the course
  • Courses up to 3 Months: For these courses, the maximum loan amount available will be Rs. 50,000
  • Courses of 3 to 6 Months: For these courses, the maximum loan amount available will be Rs. 75,000
  • Courses from 6 months to 1 Year: For these courses, the maximum loan amount available will be Rs. 1 lakh
  • Courses of Duration More than 1 Year: For these courses, the maximum loan amount available will be Rs. 1.5 lakh

Interest

  • The rate of interest for the Canara Bank Skill Loan is a sum of 1-year MCLR and a factor of 1.50% where MCLR is the Marginal Cost of Funds-Based Lending Rate (MCLR). As of November 2020, the MCLR of Canara Bank is 7.35%. This makes the effective rate 8.85%

Repayment

  • Loans of up to Rs. 50,000: Repayment period is up to 3 years after course completion
  • Loans between Rs. 50,000 and 1 lakh: Repayment period is up to 5 years after course completion
  • Loans above Rs. 1 lakh: Repayment period is up to 7 years after course completion
  • The repayment moratorium for courses of less than 1 year is for the course duration and an additional grace period of 6 months after date of completion of the course
  • The repayment moratorium for courses of over 1 year duration is for the course duration and an additional grace period of 12 months after date of completion of the course

Security Needed

  • Canara Bank grants the loan jointly to the student and the parent or guardian
  • No collateral or third party guarantee is required to apply for this loan
  • Assignment of future income of the student (after completing the course) is mandatory to apply for the IBA Skill Loan Scheme

Eligibility

  • The borrower should be an Indian national

Eligible Courses

  • Canara Bank offers IBA Skill Loan for courses run by institutions that are aligned with the National Skill Qualification Framework (NSQF)

Borrower Contribution to Total Cost (Margin Money)

  • The bank does not charge any margin money on this loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required

Processing and Other Charges

  • There are no processing charges for this loan

Uses of the Loan

  • The loan amount can be used to pay any fees or other charges that are required to successfully complete the course
  • The loan can also be met to cover examination, library and laboratory fees
  • It also covers any caution deposit fees
  • It can also be used to buy books or equipment or instrument needed for the course

Other Features to Know

  • The borrower can repay the loan from any time without having to pay any prepayment charges
  • Canara Bank offers optional Education loan insurance cover to borrowers. The premium is recovered through EMIs
  • The bank may ask for the student’s progress report at regular intervals
  • The lending branch should be near the institute, study centre of the technology partner or the place of residence of the borrower
  • The loan is disbursed directly to the college, book seller or publisher, computer seller, and so on and not to the applicant(s)

Documents Needed

  • Application Form duly filled and signed by applicant and/or parents along with details of applicant and/or parents
  • Two Passport Size Photographs of applicant(s)
  • Photocopy of PAN Cards of the student or parents that need to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • Relevant documents to avail the interest subsidy, if eligible

Reference Facts

  • Canara Bank Website: www.canarabank.com and www.canarabank.in (net banking)
  • Headquarters: Bengaluru, Karnataka
  • Call Centre Toll-Free Number: 1800 425 0018