Canara Bank Vidya Sahay Education Loan Scheme

Canara Bank Vidya Sahay Education Loan

The Canara Bank Vidya Sahay Education Loan is a bridge loan scheme that helps students who have been selected for counselling after clearing any common entrance test conducted by State Government or pan-India examinations and need to make a down payment for admission. The maximum loan amount that you can apply for under this loan scheme is Rs. 1 lakh.

Features of Vidya Sahay Education Loan

Why this Loan?

• The loan is meant for you if you just need money to make down payment for your CET selection at the time of counselling since the most other education loans are sanctioned after admission
• The bank disburses the Canara Bank Vidya Sahay Loan as a lump sum to be paid to the CET authorities at the time of counselling
• It is a unique loan scheme, sometimes also known as a bridge loan, to make the lump sum down payment for admission to the institute

Canara Bank Vidya Sahay Education Loan Amount

• The maximum loan amount one can get is Rs. 1 lakh

Interest

• The rate of interest is a sum of 1-year MCLR and a factor of 2.00% where MCLR is the Marginal Cost of Funds-Based Lending Rate (MCLR). As of November 2020, the MCLR of Canara Bank is 7.35% which brings the rate of interest at 9.35% for the Vidya Sahay Education Loan

Repayment

• The loan must be repaid as soon as the regular education loan is sanctioned

Canara Bank Vidya Sahay Education Loan – Security Needed

• Parents or guardian must be co-borrowers (i.e. co-applicants) with the student
• No specific collateral is needed

Eligibility

• As a borrower, you should be a Resident Indian, i.e. you should have spent more than 180 days in India in the previous financial year
• The student must have cleared common entrance test and selected for counselling

Eligible Courses

• All courses conducted by educational institutions selecting students based on entrance exams such as state-level entrance tests, pan-India tests, etc.

Borrower Contribution to Total Cost (Margin Money)

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

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

Canara Bank Vidya Sahay Education Loan – Processing and Other Charges

• There are no processing charges for this bridge loan

Canara Bank Vidya Sahay Education Loan – Uses

• The loan amount can be used to pay down payment to counselling authorities for admission in the course at the time of counselling

Canara Bank Vidya Sahay Education Loan – Other Features to Know

• The loan must be repaid as soon as the regular education loan is sanctioned

Canara Bank Vidya Sahay Education Loan – Documents Needed

• Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
• Two Passport Size Photographs of student, applicant and/or guarantor
• Photocopy of PAN Card of the student that needs 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
• Property or other security documents wherever applicable