The IBA Model Education Loan offered by Canara Bank is a financial product designed to support students in pursuing higher education both in India and abroad. This education loan scheme encompasses a multitude of benefits, making it an attractive choice for aspiring students. With no requirement for collateral for loans up to Rs 7.50 Lakhs and a lower interest rate, it addresses the financial challenges associated with education expenses.
One notable feature is the reducing balance interest rate, ensuring favorable and manageable repayment terms. The loan process is characterized by quick processing and disbursement, facilitating timely access to funds for educational needs. Additionally, the absence of prepayment penalties provides flexibility for borrowers who wish to repay their loans ahead of schedule.
Features Of IBA Model Education Loan:

Loan Quantum: Need-based finance tailored to the educational expenses.

Application Submission: Students can submit loan applications at bank branches near their residence or the educational institution.

Margin:

Upto Rs. 4.00 Lakhs – Nil

Above Rs. 4.00 Lakhs (Studies in India) - 5%

Above Rs. 4.00 Lakhs (Studies abroad) - 15%

Security:

Collateral Security for loans above Rs. 7.50 Lakhs, covering at least 100% of the loan amount.

For loans up to Rs. 7.50 Lakhs, no collateral security, covered under Credit Guarantee Fund Scheme for Education loans (CGFSEL).

Repayment Tenure:

Equated Monthly Installments (EMIs) for a maximum of 15 years, excluding the moratorium period (course period plus one year).

No prepayment penalty during the repayment period.

Canara Bank's education loan aims to make quality education accessible, offering a range of benefits and features tailored to the needs of students pursuing studies in India or abroad.