Canara Bank IBA Model Education Loan Scheme 2024

BY: DALIP SINGH

July 27, 2024

Loan Quantum

Offers need-based financing with applications available at bank branches near the student's school or their parents' residence.

Eligible Courses 

In India: Covers graduation, post-graduation, technical/professional courses from recognized colleges/universities approved by UGC, Government, 

Eligible Courses 

AICTE, Department of Electronics, IMC, and autonomous institutions like IIM and IIT. Includes any courses leading to a degree/diploma from reputed institutes/colleges/universities. 

Eligible Courses 

Abroad: Covers courses leading to undergraduate, post-graduation/Ph.D., Post Graduate Diploma, etc. 

Margin Requirements 

– Up to Rs. 4.00 Lakhs: Nil – Above Rs. 4.00 Lakhs (India): 5% – Above Rs. 4.00 Lakhs (Abroad): 15%

Merit Quota 

– Up to Rs. 7.50 Lakhs: No collateral security, covered under Credit Guarantee Fund Scheme for Education Loans (CGFSEL) subject to conditions.

Merit Quota 

– Above Rs. 7.50 Lakhs: Tangible collateral security covering at least 100% of the loan amount.

Management Quota 

– Up to Rs. 4.00 Lakhs: No collateral security. – Above Rs. 4.00 Lakhs: Tangible collateral security covering at least 100% of the loan amount.

Repayment Tenure 

Repayment in equated monthly installments up to a maximum of 15 years, excluding the moratorium period. No prepayment penalty during the repayment period.

Expenses Covered 

Course payment to the college, school, or hostel.  Examination, library, and lab fees. Travel and transit costs for studying overseas.

Moratorium Period 

The moratorium period includes the course duration plus one year. 

Application Process 

Students can apply at bank branches near their school or parents' residence, making the process convenient and accessible. 

Credit Guarantee Scheme 

Loans up to Rs. 7.50 Lakhs under the merit quota are covered by the Credit Guarantee Fund Scheme for Education Loans (CGFSEL), subject to conditions. 

No Prepayment Penalty 

Borrowers can repay the loan early without any penalty, providing flexibility in managing finances.