Skill Loan by Canara Bank
Students registered for ASAP courses can avail of skill loans for course fees ranging between INR 5,000 and INR 1,50,000 from the nearest Canara Bank branch.
Canara Bank is offering skill loans of up to Rs 1,50,000 for courses offered by Additional Skill Acquisition Programme (ASAP) Kerala. Interested students can avail of the loan from the nearest Canara Bank branch. The minimum loan amount offered is Rs 5,000.
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Eligibility
- The student should have completed the 10th standard.
- There is no age restriction. Parents can process the documents of students who are minors. The bank will request a letter of acceptance/ ratification once the student attains 18 years.
- Aadhaar (UID) is accepted for Know Your Customer (KYC) norms in addition to other identity and address proof as determined by Canara Bank.
Skill loan process:
Step 1: Receive the provisional admission form from ASAP
Step 2: Students should apply in the Vidya Lakshmi portal. Click here for detailed steps.
Note: A few branches will undertake this registration from the branch itself, so students must ensure this prior to the application process.
Step 3: Along with the downloaded form (Vidya Lakshmi portal) signed by the parent and the student, all necessary documents must be submitted at the bank. Click here for the document checklist.
Note:
- Both student and parent should have a Canara bank account.
- After submitting all the requisite details to the bank, it may take 4-5 days for the bank to process it, if the student is eligible for the loan.
- If PAN card is not available, students should apply for the same prior to the above-mentioned procedures. For this, students need an Aadhaar card with their date of birth mentioned in the same. This can be verified from an Akshaya centre using their E-Aadhaar card. If the date of birth is not mentioned, students should get it updated in the Aadhaar card using the SSLC copy from an Akshaya centre.
Interest rate
- Simple interest rates are applicable on the loans for the duration of the course and till the repayment schedule starts.
- Once the repayment schedule commences, interest accrued during the moratorium period will be capitalised, and interest will be charged on a compounding basis, thereafter, as applicable to other education loans.
- Interest rates are as prevalent as per Reserve Bank of India (RBI) norms.
Note
- Students can choose to pay the interest during the duration of the course and through the moratorium period after submitting an undertaking at the bank from their parents/ guardians.
- The bank, at its discretion, may provide a 0.5% interest concession if the student opts to pay the interest during the duration of the course and through the moratorium period.
There is no processing fee
Banks will NOT charge any processing fee for skill loans.
No Collaterals
There is no collateral required to avail of the loan.
Moratorium
The moratorium period will be extended to the loans sanctioned under this scheme, as below:
| Courses of duration up to 1 year | Up to 6 months from the completion of the course |
| Courses of duration above 1 year | 12 months from the completion of the course |
Branches will have the flexibility to fix the structure of repayment – flat Equated Monthly Instalments (EMI), tube payments or moratorium period as deemed fit for various sectors and student categories.
Repayment
The loan will have a tenure as follows:
- Loans up to Rs 50,000 – For up to 3 years (after moratorium period)
- Loans between Rs 50,000 to 1 lakh – For up to 5 years (after moratorium period)
- Loans above Rs 1 lakh – For up to 7 years (after moratorium period)
Pre-closure
The borrower can close the loan at any time during the repayment period without any pre-closure penalty.
Insurance
The borrower can also choose to be covered under the Canara HSBC OBC Life policy.