Canara Bank IBA Skill Loan Scheme 2024

BY: DALIP SINGH

July 27, 2024

Purpose

The Skill Loan Scheme aims to support national skill development initiatives, enhancing employability and skill levels.

Loan Quantum 

Offers need-based financing ranging from Rs. 5,000 to Rs. 1,50,000 to cover skill development course expenses.

Eligible Courses 

Covers courses aligned with the National Skill Qualification Framework (NSQF) offered by recognized training institutes. No minimum course duration is required. 

Margin 

There is no margin requirement for this loan scheme. 

Security Requirements

Loan is granted jointly with the parent/guardian.  – Secured by the assignment of the student’s future income.

Security Requirements

– Covered under the Credit Guarantee Fund Scheme for Skill Development (CGFSSD). –  – Secured by the assignment of the student’s future income.

Moratorium Period

– Up to 1-year course: 6 months from course completion.   – Above 1-year course: 12 months from course completion.

Moratorium Period

– Moratorium period ranges from 6 months to 1 year, depending on the course duration.

Repayment Tenure 

– For a loan up to Rs. 50,000: Up to 3 years. – For loans above Rs. 50,000 and up to Rs. 1,00,000: Up to 5 years. – For loans above Rs. 1,00,000: Up to 7 years.

Loan Tenure 

The overall repayment period is from 3 to 7 years, depending on the loan amount. 

No Collateral Requirement

The scheme does not require any collateral or third-party guarantee, making it accessible to a wider range of students.

Support for Skill Development 

The scheme aligns with national efforts to improve skill levels and employability through accessible financing for skill development courses.