Canara Bank is a well-known public-sector bank in India that offers education loans for studying abroad. The process for Canara Bank Education Loan Disbursement is online, ensuring a secure and quick transfer of funds to cover tuition fees and accommodation expenses at the university.
Canara Bank loan disbursement occurs in multiple instalments corresponding to the university’s semester schedule. Let’s understand in detail the Canara Bank education loan disbursement process, its workings, and the required documents.
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About Canara Bank Education Loan Disbursement
Canara Bank initiates the online transfer of the loan amount to the beneficiary after thorough verification. This process is conducted online, ensuring speed and security. For students studying abroad, the bank reviews the fee breakdown and other essential expenses that will be covered by the education loan. The first instalment of the loan amount will cover the first semester or year’s tuition fees, with subsequent disbursements following each semester. Before moving ahead with the loan you must be aware of the Canara Bank education loan interest rate. Check more details below:
- The full education loan amount will not be transferred at once
- The student should remind the bank at least 10-15 days before the upcoming due date for submitting the tuition fee for the next semester
- The bank monitors students’ academic progress, and failure to meet standards may result in the cancellation of the remaining loan amount.
Also Read: Do you know the difference between sanction and disbursement? Read this blog and know the major differences between a loan sanction letter and a loan disbursement letter
Canara Bank Education Loan Disbursement Process
Canara Bank’s education loan disbursement process is fast, safe and secure. However, there are certain steps that you need to follow before the loan gets disbursed. Check the details below:
- Apply for Canara Bank education loan online or at a branch. You can also apply through the Canara Bank Vidya Lakshmi Portal Education Loan.
- The bank will initiate a verification process, including document verification, asset assessment (for secured loans), university and course fee breakdown, and credit report.
- Upon successful verification, the education loan will be sanctioned.
- You will receive a sanction letter in which the loan amount, interest rate, repayment period etc will be mentioned
- The education loan sanction letter can be submitted to the university as evidence of financial support
- If you agree to the terms and conditions of the loan, Canara Bank will initiate the loan disbursement process
Documents Required for Loan Disbursement
After the Canara Bank Education Loan sanction, you need to submit certain documents so that the bank can initiate the education loan disbursement process. Below mentioned are the documents which the bank will require in order to disburse the loan:
- Copy of Visa approval letter
- Copy of University admission letter
- Air ticket of the student
- Health and travel Insurance details
Also Read: Is it a good decision to foreclose the loan? Check out all the details on early repayment charges on education loan
Example of Canara Bank Education Loan Disbursement
Mayank is a student who was admitted to the London School of Economics to pursue the 2-year postgraduate course. He applied for an education loan from Canara Bank. He was eligible for an INR 20 lakh loan amount which was sanctioned. After verifying all the documents, the bank transferred INR 7 lakhs for the first semester’s tuition and accommodation fees. After 6 months, the bank disbursed the second instalment of the loan amount. In this way, the bank disbursed the entire loan amount in line with the duration of the course. This is known as education loan disbursement.
FAQs
Canara Bank education loan disbursement is the transfer of the loan amount from Canara Bank to the borrower after successful verification, occurring when the borrower accepts the bank’s terms.
No, the bank directly transfers funds to the university account. However, some amount may be provided to the savings account of the student for miscellaneous expenses.
The interest rate varies between 11% to 15%, depending on factors such as loan amount and type. However, this interest rate may be less or more than mentioned above depending on the ongoing lending rates regulated by the RBI.
The bank transfers funds for tuition and accommodation directly to the university, with other expenses subject to specified terms.
Canara Bank education loan covers tuition fees, accommodation costs, lab fees, library charges, and other essential expenses.
This was all about the Canara Bank education loan disbursement process. Always check all the terms and conditions before proceeding with the Canara Bank Education Loan to study abroad.
To know more about the loan application process, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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when the person is eligible for a loan amount of 20 lakh but his course fee is 40 lakh how can you disburse the loan for him? either the amount of 20 lakh released in the first year or half the amount released in 1st year and half the amount released in the second year?
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