Canara IBA Skill Loan Scheme

About the Canara IBA Skill Loan Scheme

Students seeking skill-based education are meant to be supported by the Canara IBA Skill Loan initiative. It offers financial support for courses fitting the National Skill Qualification Framework (NSQF). Designed to be flexible, this education loan lets you take a break of six to twelve months following course completion before payback starts. Since it is taken with a parent or guardian, the repayment time ranges from three to seven years, making it accessible and free from further financial burden.

Schemes - Rate of Interest

The Canara IBA Skill Loan Scheme offers financial support for skill development courses with an interest rate of 11.25% per annum.

Features of Canara IBA Skill Loan

• Through easy terms and financial aid, the Canara IBA Skill Loan is meant to facilitate skill-based education. The following are some salient characteristics of this education loan:

• No collateral is needed; the loan is approved without a third-party guarantee.

• Under enhanced security, the loan is covered under the Credit Guarantee Fund Scheme for Skill Development (CGFSSD).

• Moratorium Period: Your course length will determine whether you get a 6 to 12-month repayment respite.

• The tenor of Repayment: Loan repayment is set out as follows:

• Repay within three years up to ₹50,000.

• Payback between ₹50,000 and ₹1,00,000 five years.

• Repay within seven years above ₹1,00,000.

Eligibility Criteria for Canara IBA Skill Loan Scheme

To apply for the Canara IBA Skill Loan, you need to meet the following requirements:

• You have to be an Indian national.

• The training should align with the National Skill Qualification Framework (NSQF).

• There is no minimal course length needed.

Documents Required for Canara IBA Skill Loan

When applying for a child investment plan under the Canara IBA Skill Loan scheme, you will need to submit the following documents:

• I finished the loan application, including two passport-style pictures.

• KYC paperwork (Aadhaar, PAN, Voter ID, Passport, Driving Licence).

• Proof of residence includes Aadhaar, passport, utility bills, etc.

• Proof of admittance and, naturally, a schedule of expenses.

• Last qualifying test mark sheet.

• Income evidence for guaranteed or co-applicant/guarantor (if relevant).

Most Important Terms and Conditions

Before applying for the Canara IBA Skill Loan, it is essential to be aware of the key terms:

• The loan has to be taken alongside a parent or guardian.

• Ensuring financial stability, it is protected by the Credit Guarantee Fund Scheme for Skill Development (CGFSSD).

• Depending on the course length, a moratorium period ranges from six to twelve months.

• The loan amount determines the payback length; it ranges from three to seven years.

• There are no more hidden fees, so guaranteeing total openness.

• Interest paid on this loan may be eligible for a tax deduction under Section 80E, reducing your overall financial burden.