Thursday, July 26, 2012

Canara Bank’s Interest Subsidy for Educational Loans


Government of India envisioned that no student will be denied education only because he/she is poor. This vision of the government took shape when Indian Bank’s Association planned a model education loan scheme whose aim was to provide educational loans to students from economically weaker sections. In keeping with the governments vision, Canara Bank is providing this scheme on loans.

This model education loan scheme was named Central Scheme of Interest Subsidy for Educational Loans.  Some important points regarding this loan scheme is:

1.      This loan scheme is available only for studying approved courses of undergraduate and post graduate levels in technical and professional streams offered by recognized institutes.

2.      Student must belong to Economically Weaker Section with annual family income of Rs. 4.5 lakhs.

3.      Full interest subsidy during moratorium period (6 months or 1 year after getting employed).

4.      Scheme is applicable on loan amounts availed during April 1, 2009 to March 31, 2010.

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