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Canara Bank Education Loan Case Study

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Canara Bank Educational Loan Canara Bank Education Loan Scheme Overview: One of the main agendas of the Government of India is to make sure that no one is deprived of a proper education due to financial constraints. Indian Banks' Association (IBA) has framed an all-inclusive model educational loan scheme, which every bank has adopted. With the aim of supporting students from economically weaker sections of the society, Department of Education, Ministry of Human Resource Development and Government of India has launched this scheme with subsidized interest.

Canara Bank Offers two kinds of education loans, namely Loans for Students and Model Loan Scheme for Vocational Education & Training. 1. LOANS FOR STUDENTS: Features & Benefits …show more content…

For loan sum more than that, 5 percent interest will be levied if you are studying in India and 15 percent if you are going abroad. Repayment:

Starts a year after the course is completed or six months after landing a job, whichever is earlier.
Loan with interest can be repaid in EMIs i.e. you can take 10 years to repay loan amount up to INR. 7.5 lakhs and 15 years if the amount is more than that.

Security: Loan is provided conjointly to the applicant and his/ her guardian.
There is an assignment of future earnings of the student.
No collateral is required if the loan amount is less than INR. 4 lakh.
For loan sum between INR. 4 lakh and INR 7.5 lakh, guarantee from a bank-approved third party may be required. To avoid this, the borrower can offer security of palpable assets (covering the loan amount) in its stead.
If the loan amount is more than INR. 7.5 lakhs, the security worth the same is required as collateral. Margin Up to INR. 4 lakhs – Nil
Above INR. 4 lakhs:
- for studying in India – 5%
- for studying overseas - 15% Eligible Courses: a. …show more content…

The applicant must have gotten admission in a course in any recognized institute, approved by the State or Central Government. 2. MODEL LOAN SCHEME FOR VOCATIONAL EDUCATION AND TRAINING
Features & Benefits of Model Loan Scheme for Vocational Education & Training: Objective/ Loan Purpose: The purpose of Model Loan Scheme for Vocational Education & Training is to finance the expenses of a prospective student throughout the course period. Vocational courses are job-oriented and train students in a specific field before aiding them with placements. Expenses considered for Canara Bank’s Model Loan Scheme for Vocational Education & Training: The loan mainly goes towards the student’s tuition fees for the entire course, exam fee, lab fee, library fund and caution deposit. It can also be used to finance the required books, apparatus and other valid expenses. Amount of Education Loan: For three-month courses - INR 20,000/-
For three to six month courses – INR 50,000/-
For 6 months to 1 year courses – INR 75,000/-
For courses of one year and above - INR

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