Canara Bank Vidya Turant Education Loan Scheme
This loan helps meritorious and deserving students pursue higher education in India at a premier institute such as IIM, IIT, NIT, IISc, ISB, etc. The maximum loan amount is capped based on the bank’s categorisation of institutes.
Features of Vidya Turant Education Loan
Why this Loan?
- The loan is meant for you if you have gained admission into a premier institute in India
- Canara Bank offers a relatively higher loan amount as compared to other banks
- The bank disburses the Canara Bank Vidya Turant Education Loan as a series of payments over the required number of terms or years to pay the fees or other approved charges
- The maximum loan amount is as below:
- Category A Institutes (ISBs): Maximum of Rs. 40 lakh
- Category B Institutes (IIMs): Maximum of Rs. 25 lakh
- Category C Institutes (Others): Maximum Rs. 20 lakh
- Check out the list of institutes and categorisation on this page.
- The bank also offers need-based finance based on the repayment capacity of the parents subject to the aforementioned ceiling
- The interest rate for this loan is equal to the 1-year MCLR where MCLR is the Marginal Cost of Funds Based Lending Rate. As of November 2020, the MCLR of Canara Bank is 7.35%
- The repayment moratorium is for the course duration and an additional grace period of 12 months
- The loan needs to be repaid in 15 years in equated monthly instalments (EMIs) after the moratorium ends
- No collateral security is required
- Assignment of future income of the student
- Parent/guardian must be a co-borrower for this loan
- The borrower should be an Indian national
- You can apply for this loan to pursue higher education courses offered by institutes and designated branches specified by Canara Bank in this list
Borrower Contribution to Total Cost (Margin Money)
- Loans up to Rs. 4 lakh: No margin money is needed
- Loans Above Rs. 4 lakh: Canara Bank takes a 5% margin for loans above Rs. 4 lakh
Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 40 lakh in which case the borrower will have to pay 5% of Rs. 40 lakh which is Rs. 2 lakh. The bank will cover the rest. In the case of Canara Bank, scholarship is included in the margin.
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 a part of the standard tuition, hostel or any other institution-approved cost that are necessary to complete the course
- The loan can also be met to cover any travel expenses, study tours and so on
Other Features to Know
- The loan is disbursed directly to the college, bookseller or publisher, computer seller, and so on and not to the applicant
- The bank may ask for the submission of the student’s progress report at regular intervals during the course
- 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
- Copy of Passport since loan is for overseas study
- Relevant documents to avail the interest subsidy schemes, if eligible
- Property or other security documents wherever applicable
- Cheque for processing charges that is refunded on first disbursal of loan
- Canara Bank Website: www.canarabank.com and www.canarabank.in (net banking)
- Headquarters: Bengaluru, Karnataka
- Call Centre Toll-Free Number: 1800 425 0018
IMPORTANT: Thousands of smart students and their parents lose lakhs of money every year by choosing a costlier education loan.
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