Education Loan Eligibility from Canada Bank
Borrower must be an Indian citizen
Co-borrower(s) must be an Indian citizen
Borrower must be 18 years of age or older
Co-borrower(s) must have a bank account in any bank in India with cheque writing facilities
Confirmed admission in the colleges before disbursement
Borrower and Co-borrower(s) to meet Cedilla’s credit and underwriting norms as applicable from time to time
It is mandatory to bring in an earning co-borrower(s) based in India to support the Education Loan application.
Co-borrower(s) may be any of the following relatives, viz Father / Mother / Brother / Sister (married) /Spouse, where such co-borrower’s income would be considered in determining the loan eligibility per Credila’s credit and underwriting norms;
Co-borrower’s liability is co extensive with the Student;
Co-borrower(s) to provide documentary proof to establish their relationship with the student, to the satisfaction of Credila;
In case the collateral to be provided is not provided by one of the above relatives, then the collateral could be provided by one of the following relatives provided they are brought into the arrangement as Co-borrower(s) viz: Father-in-law; Mother-in-law; Sister-in-law; Brother-in-law;
Maternal or Paternal Uncle or Aunt, Grandparents & First Cousins
Bachelors (Graduation) and Masters (Post-graduation) that include professional as well as technical courses with work potential conducted by colleges or universities validated by UGC, Government, Department of Electronics, AICTE, IMC, and autonomous institutes like IIT, IIM, Madras Christian College etc.
Any Bachelor's or Master's Degree that is employment-oriented from an approved institute.
Loan & Interest Rates:
If the loan you have taken is less than INR 4 lakhs, no interest will be levied.
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.
Up to INR. 4 lakhs – Nil
Above INR. 4 lakhs:
- For studying in India – 5%
- For studying overseas - 15%
Know Your Customer
2 Passport size photographs of the borrower, co-applicant (if any) or guarantor
Mark sheet of the most recent qualification
Acceptance offer letter from the institute the borrower has applied
List of expense to be done for the education (usually given by the institute to the borrower)
6 Month of bank statement, 2 month salary slip, if the person is a salaried employee, 2 year of ITR if the borrower's
guarantor/co-applicant is self emplyed,Last 2 Yrs. Audited Balance Sheet / P& L if the guarantor/co-applicant is a self-employed professional.
Loan is provided conjointly to the applicant and his/ her guardian.
There is an agreement that future earnings of the student will contribute to loan repayment.
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.
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.