Collegedunia: Canara Bank Education Loan

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Canara Bank has launched variety of schemes namely Vidya Sahay, Vidya Turant, Education Loan under IBA Model, Model Loan Scheme for Vocational Education and Training. These schemes fall under Education Loan for India and Abroad

Canara Bank Education Loan for Abroad is also extended for studies in premier institutes with zero margin charged

Why Canara Bank? Loads of benefits and attractive rate of interests plays a key factor in attracting students towards Canara Bank Education Loan. Bank charges 10.40% interest on loan amount upto INR 7.50 lacs and 10.20% for loan amount above INR 7.50 Lacs.

Interested students can also avail for various other schemes such as Central Sector Interest Subsidy Scheme for Education Loan, and Padho Pardesh Interest Subsidy Scheme for Education Loans to students belonging to Minority Community to ease

Are you eligible for Canara Bank Education Loan?

Indian National. Student must be citizen of India or a holder of Indian passport.
10+2 qualified. One must have cleared 10+2 from a recognized board of institutions.
Good Academic Background. One must have scored decent marks in their last qualifying examination.
Co-Borrower. A co-borrower or a co-signer is must. A co-borrower must be a member of immediate family.

How can you apply for Canara Bank Education Loan?

You can either apply through official website or Vidyalakshmi Portal if you opt for online mode of application process. Otherwise you can visit your nearest branch and ask for an application form.

In both scenarios, the bank representative will guide you till the end of your process about interest rates, eligibility criteria and the suitable variant of loan.

We have curated all the necessary details about different variants of education loan offered by Canara Bank Education Loan

1. Education Loan for Students- IBA Model Loan Scheme

Canara Bank launched Education Loan Scheme for students who wish to pursue higher studies in India from reputed universities. The scheme is to ensure the academic excellence among students and to make nation ahead in terms of education sector.

What makes you eligible for Canara Bank Education Loan

Indian National
Graduation/ Post Graduation/ Diploma courses in any recognized institute approved by State or Central Government.

Present Rate of Interest

Category	ROI	Present ROI
Loan amount upto INR 4 Lacs	1 year MCLR + 2.00%	10.40%
Loan amount between INR 4 to 7.50 Lacs	1 year MCLR + 2.00%	10.40%
Loan amount above INR 7.50 Lacs	1 year MCLR + 1.80%	10.20%
Vidya Turant	1 year MCLR + 0.20%	8.60%
IBA Model Education Loan Scheme for Vocational Education and Training	1 year MCLR + 1.50%	9.90%

Quick Facts about Canara Bank Education Loan

Margin	Upto INR 4 Lacs: Nil Above INR 4 lacs: 5%
Maximum Loan Limit	INR 10 Lacs
Security	Less than INR 4 Lacs: No Collateral required From INR 4 to 7.5 Lacs: Guarantee of bank approved third party Above INR 7.5 Lacs: Collateral Security equal to amount of loan Assignment of students future salary towards the bank
Moratorium Period	Course Period + 1 year
Repayment (Maximum)	Repayment of the loan can be done after the moratorium period by mode of EMI Upto INR 7.5 Lacs: 10 years Above INR 7.5 Lacs: 15 years
Prepayment Charges	Nil

Additional Facts about Canara Bank Education Loan

Zero Margin for Loan upto INR 4 Lacs
No collateral is required if the loan is less than INR 4 Lacs
Loan is sanctioned conjointly to the applicant and his/ her guardian.

Expenses covered under Canara Bank Education Loan

Tuition Fee
Examination Fee
Library/ Laboratory Fee
Hostel Fee
Cost of Books, equipment, instrument or uniforms
Miscellaneous expenses- study tours, project work, thesis, etc.
Reasonable cost of computer or laptop (if required)

Courses Covered under Canara Bank Education Loan

Graduation, Post- Graduation or Doctorate courses
Professional Courses- Medical, Law, Dental, Engineering, Hospital Management, Hotel Management, Event Management, Mass Communication, Fashion Studies, Agricultural Studies, etc.
Courses that are offered by reputed foreign universities in India
Regular or Evening Courses conducted by colleges/ universities approved by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.
Degree or Diploma courses in Teacher Training, Nursing, B.Ed provided the training institutes are approved by Central/ State Government.

Documents required for Canara Bank Education Loan

Identity Proof- Passport, Voter’s ID, Driving Licence or PAN Card
Mark sheet of recently qualified public exam for school, college in India
Admission Proof: Fee receipts, Transfer certificate, etc.
Schedule of expenses for the course
Two recent passport size photographs of applicant, co-applicant and guarantor
Educational Proof- copy of admission letter along with fee structure, mark sheets, SSC, HSC and degree course certificates
Salary Proof- Latest salary slip, Form 16 and recent salary certificate

2. Model Loan Scheme for Vocational Education and Training

Vocational courses are job oriented short-term courses that enhance students’ knowledge in the specific field and prepare them for the industry. Canara Bank has initiated Model Loan Scheme for Vocational Education and Training to extend a helping hand to students by financing expenses throughout the course.

Eligibility to avail Model Loan Scheme for Vocational Education and Training

Indian National
SSC/10^th pass
Course approved by State/ Central Government

Quick Facts about Model Loan Scheme for Vocational Education and Training

Margin	Nil
Maximum Loan Limit	Course with 3 months duration: INR 20,000 Course with 3-6 months duration: INR 50,000 Courses with 6 months- 1 year duration: INR 75,000 Courses above 1 year duration: INR 1,50,000
Security	No security is required No collateral or third party guarantee is asked for.
Moratorium Period	For course upto 6 months: Course Period + 6 months For courses above 6 months duration: Course Period + 1 year
Repayment (Maximum)	Course with 3 months duration: 2-5 years Course with 3-6 months duration: 2-5 years Courses with 6 months- 1 year duration: 2-5 years Courses above 1 year duration: 3-7 yeras
Prepayment Charges	Nil

Additonal Facts about Model Loan Scheme for Vocational Education and Training

No Margin
No security
Loan can be availed from nearest Canara Bank branch

Expenses Covered under Model Loan Scheme for Vocational Education and Training

Tuition Fee
Examination Fee
Library/ Laboratory Fee
Hostel Fee
Cost of Books, equipment, instrument or uniforms
Miscellaneous expenses- study tours, project work, thesis, etc.
Reasonable cost of computer or laptop (if required)

Courses Covered under Model Loan Scheme for Vocational Education and Training

Vocational or Development courses of 2 months to 3 years duration
Certificate, degree or diploma courses by a renowned organization.
University/ Institute approved by State/ Central Government

Documents required for Model Loan Scheme for Vocational Education and Training

Identity Proof- Passport, Voter’s ID, Driving Licence or PAN Card
Mark sheet of recently qualified public exam for school, college in India
Admission Proof- Fee receipts, Transfer certificate, etc.
Schedule of expenses for the course
Two recent passport size photographs of applicant, co-applicant and guarantor
Educational Proof- copy of admission letter along with fee structure, mark sheets, SSC, HSC and degree course certificates
Salary Proof- Latest salary slip, Form 16 and recent salary certificate

3. Vidya Sahay- Bridge loans to students who appear for counseling at CET Centres

Vidya Sahay, an education loan initiative by Canara Bank is to extend financial support to students who have to appear for counseling at any CET centers. The loan scheme is launched to assist the merit students in need of down payment to be made to CET authorities at the time of counseling.

Eligibility to avail Vidya Sahay Education Loan

Indian national
Cleared previous qualifying exam
Entrance test conducted by State/ CBSE/ IIT and similar all Indian National Examination conducting authority
Qualified entrance exam and selected for counselling process

Present Rate of Interest

Vidya Sahay Education Loan	As applicable on education loans: 11.50% (BR+1.5%) DRI rate to students who qualify DRI norms

Quick Facts about Vidya Sahay Education Loan

Margin	Nil
Maximum Loan Limit	INR 1 Lac or initial payment as proposed by CET authorities (whichever is less)
Security	No security is required No collateral or third party guarantee is asked for.
Moratorium Period	Course Period+ 1 year
Repayment (Maximum)	Bridge loan is to be cleared after the sanction of regular education loan
Prepayment Charges	Nil

Additional Facts about Vidya Sahay Education Loan

No processing or documentation charges
No margin
No security

4. Vidya Turant

Vidya Turant is an initiative launched under Canara Bank’s Education loan scheme for students who wish to pursue higher studies in premier institutions. The scheme is launched to extend a helping hand to students who have secured admission to premier Institutions.

Eligibility to avail Vidya Turant Education Loan

Indian National
Qualified previous qualifying exam
Entrance exam based selection
admission to premier Institutes viz. IIMs, IITs, NITs, IISc, and other such institutes. (List of institutes that are approved under this loan is mentioned below)

Quick Facts about Vidya Turant Education Loan

Margin	5%
Maximum Loan Limit	IIMs: INR 25 Lacs ISB Hyderabad, Mohali: INR 36 Lacs Institutes other than List A or List B: INR 20 Lacs
Security	No security upto the limit designated to particular institute (students of IIMs: INR 25 Lacs, students of ISB: INR 36 Lacs and students of other institutes: upto INR 20 Lacs) Assignment of future income towards bank
Moratorium Period	Course Period + 1 year or 6 months after getting job
Repayment (Maximum)	15 years (irrespective of loan amount)
Prepayment Charges	Nil

Additonal Facts about Vidya Turant Education Loan

No processing charges
No prepayment fee
No provision of 0.5% concession to girl students
Parent/ guardian has to join as co-borrower

Expenses Covered under Vidya Turant Education Loan

Tuition Fee
Examination Fee
Library/ Laboratory Fee
Hostel Fee
Cost of Books, equipment, instrument or uniforms
Miscellaneous expenses- study tours, project work, thesis, etc.
Reasonable cost of computer or laptop (if required)
Insurance premium for student

List of Institutes that fall under A and B Category

VIDYA TURANT SCHEME - LIST OF APPROVED INSTITUTONS AND DESIGNATED BRANCHES
Sl.No.	INSTITUTION	BRANCH	CIRCLE OFFICE
CATEGORY-A
1	Indian Institute of Management, Ahmedabad	Ahmedabad, Vastrapur DP Code-2637	AHMEDABAD
2	Indian Institute of Management, Bangalore	Arakere Gate Branch, DP Code 2753	BANGALORE
3	Indian Institute of Management, Indore	Indore RNT Marg DP Code-0359	BHOPAL
4	Indian Institute of Management, Kozhikode	Calicut West Hill DP Code-833	TRIVANDRUM
5	Indian Institute of Management, Kolkata	Thakurpukur Branch D P Code-8626	KOLKATA
6	Indian Institute of Management, Lucknow	Lucknow Janakipuram DP Code-3210	LUCKNOW
7	Indian Institute Management, Ranchi	Kanke Road, Ranchi, DP Code 2869	RANCHI
8	Indian Institute Management, Trichy	NIT, Thuvkudi, DP Code 3314	MADURAI
9	Indian Institute Management, Rohtak	Rohtak MainDP Code 1171	KARNAL
10	Indian Institute Management, Udaipur	Udaipur Main, UdaipurDP Code 2982	JAIPUR
11	Indian Institute Management, Kashipur	Kashipur DP Code 2795	DELHI
12	Indian Institute Management, Raipur	Raipur Main, Raipur, DP Code 381	BHOPAL
13	Indian Institute of Management, Mananwala, Amritsar.	(DP Code : 6177 )
CATEGORY-B
14	Indian School Of Business, Mohali, Sector 8A, SAS Nagar, Mohali – 140 306	Mohali, IISER Campus DP Code 4790	CHANDIGARH
15	Indian School Of Business, Hyderabad	Madhapur branch, DP 3091	HYDERABAD
CATEGORY-C
16	Rajiv Gandhi Indian Institute of Management, Shillong	Shillong Main D P code-1184	GUWAHATI
17	IIT, Madras	IIT, Chennai, D P Code-2722	CHENNAI
18	IIT, Roorkee	Roorkee DP Code-2200	DELHI
19	IIT, Delhi	IIT Delhi Branch, IIT Campus, Hauz Khas, Delhi, D P Code-8599	DELHI
20	IIT, Guwahati	IIT Guwahati D P Code-8652	GUWAHATI
21	IIT, Kharagpur	Kharagpur Branch D P Code-0190	DURGAPUR
22	IIT (BHU)	Varanasi Lanka DP Code-2453	LUCKNOW
23	IIT, Kanpur	Kanpur Mall Road DP Code- 1195	LUCKNOW
24	IIT, Patna	Pataliputra Colony Branch, Patna ,(DP Code 2518)	PATNA
25	IIT, Mumbai	Mumbai IIT, Powai DP Code-2724	MUMBAI
26	Indian Institute of Technology, Bhilai, Chhattisgarh	Raipur, SejbaharBranch (DP Code : 5142 )	BHOPAL
27	NIT, Rourkela	Rourkela Main, DP Code 0395	BHUBANESWAR
28	NIT, Calicut	Koduvally DP Code-3487	TRIVANDRUM
29	NIT, Srinagar	Srinagar Main DP Code-1190	CHANDIGARH
30	NIT, Hamirpur	Hamirpur DP Code-3238	CHANDIGARH
31	NIT, Agartala	NIT, Agartala D P Code-4121	GUWAHATI
32	NIT, Kurukshetra	Kurukshetra Branch, D P Code 2475	KARNAL
33	NIT, Durgapur	Durgapur NIT Campus Branch, D P Code-8569	KOLKATA
34	NIT Silchar	Silchar, DP Code-3050	GUWAHATI
35	NIT, Karnataka, Surathkal	Surathkal NITK Camp D P Code-8517	MANGALORE
36	NIT, Raipur	GE Road, Raipur D P Code-2555	BHOPAL
37	NIT, Patna	Patna Exhibition Road DP Code-2004	PATNA
38	NIT, Jamshedpur	Jamshedpur Bistupur, DP Code 0324	DELHI
39	NIT, Tiruchirappalli	Trichy Thuvakudi DP Code- 3314	MADURAI
40	NIT, Warangal	Hanumakonda, DP Code 2450	HYDERABAD
41	Motilal Nehru National Institute of Technology, Allahabad	Allahabad Civil Lines, DP Code-0627	LUCKNOW
42	Visvesvaraya National Institute of Technology, Nagpur	VNIT, Nagpur D P Code-3124	PUNE
43	Xavier Institute Of Management, Bhubaneswar	ICMR, Bhubaneshwar, DP Code 2957	BHUBANESWAR
44	Faculty Of Management Studies(FMS)	Kamalanagar 3F, Delhi,DP Code 0156	DELHI
45	Management Development Institute(MDI)	Gurgaon Main, Gurgaon,DP Code 1723	KARNAL
46	Institute Of Management Technology-IMT	Ghaziabad Main, Ghaziabad,DP Code 1149	DELHI
47	S. P.Jain Institute Of Management and Research, Mumbai – 400 058	Andheri West (SSB), Mumbai, DP Code 2667	MUMBAI
48	Jamnalal Bajaj Institute Of Management Studies(JBIMS), Reclaimation, Mumbai	Nariman Point, Mumbai,DP Code 172	MUMBAI
49	K.J.Somaiya Institute Of Management Studies And Research	Chembur Amarmahal, Mumbai DP Code 232	MUMBAI
50	Symbiosis Institute Of Business Management(SIBM), Pune	MSFC Branch, PuneDP Code 2829	PUNE
51	Symbiosis Centre for Management and Human Resource Development (SCMHRD)	Model Colony, Pune DP Code 262	PUNE
52	Xavier Labour Relations Institute (XLRI)	Bistupur Main,JamshedpurDP Code 0324	RANCHI
53	Narsee Monjee Institute Of Management Studies (NMIMS), Mumbai – 400 056	JVPD Scheme, MumbaiDP Code 0121	MUMBAI
54	BITS – Pilani	Jhunjhunu Branch,(DP Code 2330)	JAIPUR
55	International Management Institute (IMI), Delhi	Jit Singh Marg Branch,(DP Code 1484)	DELHI
56	IRMA – Anand	Anand Main Branch,(DP Code 0163)	AHMEDABAD
57	Indian School of Mines (ISM), Dhanbad	Seraidhela Branch (DP Code 0986)	RANCHI
58	Indian Institute of Foreign Trade, New Delhi	Jit Singh Marg Branch,(DP Code 1484)	DELHI
59	NITIE – Mumbai	IIT, Powai Branch,(DP Code 2724)	MUMBAI
60	Shailesh J Mehta Institute of Management, Mumbai	IIT, Powai Branch,(DP Code 2724)	MUMBAI
61	Indian Institute of Sciences (IISc), Bangalore	Indian institute of Sciences branch, DP 0683	BANGALORE
62	S.V. National Institute of Technology, Surat	Surat KM Road Main- DP Code-336	AHMEDABAD
63	Maulana Azad National Institute of Technology	Bhopal New Market D P Code- 2651	BHOPAL
64	Dr. B.R. Ambedkar National Institute of Technology, Jalandhar	Dr. B.R. Ambedkar National Institute of Technology,Jalandhar DP Code-2945	CHANDIGARH
65	Malaviya National Institute of Technology, Jaipur	Jaipur Malviya Nagar DP Code-2550	JAIPUR
66	Birla institute of Technology,Mesra,Ranchi	Ormanjhi Branch ( DP Code 5708)	RANCHI
67	MICA ( Mudra Institute of Communications, Ahmedabad )	Bopal Branch ( DP Code 3423)	AHMEDABAD
68	A: NID ( National Institute of Design , Gandhinagar)	Gandhi nagar Branch ( DP Code 2381),	AHMEDABAD
	B: NID (National Institute of Design,Ahmedabad)	Paldi Branch ( DP Code 0174)	AHMEDABAD
69	Institute of Management, NIRMA University. Ahmedabad	Thaltej Branch ( DP Code 3180)	AHMEDABAD
70	IIT, Hyderabad, Telangana	Yeddumailaram Branch(DP Code 3458)
71	National Institute of Foundry and Forge Technology (NIFFT), Ranchi, Jharkhand	NIFFT Campus Branch (DP Code 2730)
72	IIT, Jodhpur, Rajasthan	Jodhpur Main( DP Code 1088)
73	Information &Technology University, Jaipur	Saint Angella Sophia School Branch ( DP Code 8465)
74	International Management Institute (IMI),Kolkata, West Bengal	Alipore, Kolkata, ( DP Code : 0254)
75	T. A. Pai Management Institute (TAPMI), Manipal , Karnataka	Udupi Town Branch (DP Code :0630)
76	Indian Institute of Information Technology(IIIT), Allahabad,	Allahabad Main, (DP Code : 0627)
77	Indian Institute of Technology (IIT) Gandhinagar, Gujarat	IIT,Gandhinagar Branch, ( DP Code: 5159)
78	Bharathidasan Institute of Management, Tiruchirappalli	Thuvakudi Branch, ( DP Code: 3314)
79	Indian Institute of Technology(IIT), Indore	Simrol IIT Branch,(DP Code : 6223)
80	Indian Institute of Technology(IIT), Palakkad	IIT, Palakkad Branch, (DP Code: 6174)

FAQs

What schemes does Canara Bank considers for its education loans?

Answer: There are multiple other schemes offered by Canara Bank apart from the basic education loans. These are:

CSIS Scheme
Padho Pardesh
Model Loan Scheme for Vocational Education and Training
Vidya Sahay
Vidya Turant

In whose name is the loan granted?

Answer: The loan is granted in the name of the student

Is the loan contract executed only in student’s name?

Answer: No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

What is the age limit for availing loan in Canara Bank?

Answer: There is no age restriction for the applicant applying for education loan from Canara Bank. He/ she should only meet the other stated eligibility criteria’s.

Are minors eligible to apply for Canara Bank Education Loan?

Answer: Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

What does margin on any loan mean?

Answer: Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

Should the student’s margin be paid upfront in the starting?

Answer: Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

Where can I avail Canara Bank Education Loan?

Answer: You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

Is there any provision to apply for loan online?

Answer: : Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

Can I view my loan statement online if I am an existing education loan borrower?

Answer: Yes, by creating a login on Canara Bank web portal, you can view all details related to education loan online.

Is there any minimum aggregate marks to meet the eligibility criteria to avail Canara Bank education loan?

Answer: Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students

What is the discount/ rebate offered by Canara Bank?

Answer:

0.50% concession is given to girl students
Eligibility criteria and margin on education loan is relaxed for SC/ST students

What all is included in tangible collateral security?

Answer: Mostly Canara Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Canara Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

Can I place my family property as collateral?

Answer: Yes, but it will need consent of all family members involved.

Is scholarship or assistantship included in the margin?

Answer: Yes any scholarship or assistantship will be a part of margin charged on education loan.

What is Moratorium Period?

Answer: Course Period plus one year, or six months after getting a job

What is tenure of an education loan?

Answer: Tenure of education loan provided by Canara Bank is maximum 15 years

What does MCLR stands for?

Answer: MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

What all expenses are covered under this course?

Answer: Expenses covered by Canara Bank education loan are:

Tuition/ college/ hostel fee
Examination/ lab/ library fee
Books/ uniform/ instruments
Caution deposit
Passage money for studies abroad, etc.

I have taken admission through management quota. Am I eligible?

Answer: This depends totally on bank’s discretion as whether a student meets other eligibility criteria or not.

What do you mean by reputed or recognized institutes?

Answer: Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

Are there any special benefits if I have secured admission to one of the top premier institutes?

Answer: Canara Bank provides 1% concession to students who have secured admission in top rated institutes like IITs, IIMs, XLRI, ISB, IIFT, NITs, etc.

What is the processing fee or prepayment charges?

Answer: The education loan offered by Canara Bank have no prepayment, processing or documentation charges.

Will cost of my computer be covered under the loan sanctioned?

Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.

Why is Pan Card necessary?

Answer: Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

Easy to assess Income
Easy to trace borrowers

Are diploma or certificate courses considered under Canara Bank education Loan (both for India and Abroad)?

Answer: Diploma courses are eligible under Canara Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.

Is a co-borrower necessary for loan?

Answer: Yes, it is mandatory to have a co-borrower to avail loan from Canara Bank.

Who can be my co-borrower?

Answer: Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

What all documents are required from the co-borrower?

Answer: Documents required from the co-borrower are:

Attested copies of age proof, residence proof and birth date.
Self-attested passport size photograph
Income proof and/or copy of income tax return file
Details of collateral security along with government approved valuation certificate (if any).

How many guarantors do I need to borrow loan from Canara Bank?

Answer: You need at least 2 guarantors to avail loan from Canara Bank.

Q.What is the KYC requirement in education loan?

Answer: KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

Q.What are maximum term for repayment?

Answer: Maximum Term for repayment for Loan is 15 years

How can I repay the loan?

Answer: You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

What is EMI? How are they calculated?

Answer: EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
Or simply you can use the EMI calculator provision available on Canara Bank’s official website.

What are the charges for late EMI payment?

Answer: 24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.

Is the loan disbursed in name of individual applicant or to the institute/ university directly?

Answer: The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

If I am unable to complete my course in given tenure, will my repayment term be extended?

Answer: It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student’s reason. You can contact your nearest branch for more details.

What is method of application of interest on education loan?

Answer: The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.

If I am joining the course soon after current course, can I get an extension?

Answer: Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher

What is interest rate of education loan?

Answer: The interest rate is different for different loan offered. Refer the tables below:

Category	ROI	Present ROI
Loan amount upto INR 4 Lacs	1 year MCLR + 2.00%	10.40%
Loan amount between INR 4 to 7.50 Lacs	1 year MCLR + 2.00%	10.40%
Loan amount above INR 7.50 Lacs	1 year MCLR + 1.80%	10.20%
Vidya Turant	1 year MCLR + 0.20%	8.60%
IBA Model Education Loan Scheme for Vocational Education and Training	1 year MCLR + 1.50%	9.90%