Skill Loan by Canara Bank

Students registered for ASAP courses can avail skill loan for course fees ranging from INR 5,000 to INR 1,50,000 from the nearest Canara Bank branch.

Canara bank is offering skill loans up to Rs 1,50,000 for courses offered by Additional Skill Acquisition Programme (ASAP) Kerala.
Interested students can avail the loan from their nearest Canara Bank branch. The minimum loan amount offered is Rs 5,000.

Eligibility

The student should have completed 10th standard.

There is no age restriction. Parents can process the documents of the 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.

Interest Rate

Simple interest rates are applicable on the loans during the duration of the course and till repayment schedule starts.

Once the repayment schedule commences, interest accrued during the moratorium period will be capitalised, and interest will be charged on 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/guardian.

The bank, at its discretion, may provide 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
The banks will NOT charge any processing fees for skill loans.

No Collaterals

There is no collateral requirement to avail the loan.

Moratorium

Moratorium period will be extended to the loans sanctioned under this scheme, as below:

Courses of duration up to 1 yearUp to 6 months from the completion of the course
Courses of duration above 1 year12 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 upto Rs.50,000 – Up to 3 years (after moratorium period)

Loans between Rs.50,000 to 1 lakh – Up to 5 years (after moratorium period)

Loans above Rs.1 lakh – Up to 7 years (after moratorium period)

Pre-Closure

The borrower can close the loan any time during the repayment period without any pre-closure penalty.

Insurance

The borrower can also choose to be covered under Canara HSBC OBC Life policy.