Canara Bank :: Priority Credit Section

EDUCATION LOAN AND OTHER PRIORITY SECTOR LOANS

A. (i) Loans for Students

Purpose	Payment of course fees. Purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tours, passage expenses (for studies abroad)
Eligible Courses : Studies in India:	Graduation, Post-graduation including technical / professional courses with employment potential conducted by colleges / Universities approved by UGC / Govt./AICTE/Department of Electronics / IMC, autonomous institutions like IIT,IIM etc.
Studies abroad:	Job oriented, technical / professional courses- (graduation / post graduation
Quantum of Finance:	Need based finance For studies in India : Max. Rs.10.00 lacs For studies abroad : Max. Rs.20.00 lacs
Margin	Upto to Rs.4.00 lacs – Nil Above Rs.4.00 lacs – for studies in India – 5% studies abroad : 15%
Security:	Loan is given jointly to the student and parent /guardian Assignment of future income of the student Upto Rs.4.00 lacs- No security Above Rs.4.00 lacs upto Rs. 7.50 lacs –Satisfactory third party guarantee (Note: If the proposed borrower prefers to offer collateral security of tangible assets (moveable or immoveable) instead of bringing collateral securities in the form of third party guarantee, the same may be accepted, at his request, provided the securities with stipulated margin covers 100% of the loan amount). Above Rs. 7.50 lakhs: Collateral security equal to 100% of the loan amount.
Repayment	Commences One year after completion of the course or Six months after getting employment, whichever is earlier. Loan with interest is repayable in equated monthly instalments as follows : - Upto Rs.7.5 lakhs - 10 years - Above Rs.7.5 lakhs - 15 years Loan can be availed from the branch nearest to the place of permanent residence of the parent / guardian.

(ii) MODEL LOAN SCHEME FOR VOCATIONAL EDUCATION AND TRAINING

Student Eligibility	The student should be an Indian National &should have completed 10th standard Secured admission in a course run/supported by Ministry/Department of Central / State or an Organisation recognized/authorized by Government to do so. Loan can be availed from the branch nearest to the place of permanent residence of the parent / guardian.
Eligible Courses	Development Courses of duration from 2 months to 3 years preferably leading to a Certificate/ Diploma/ Degree, etc. issued by a Government Organization or an Organization recognized/ authorized by the Government to do so.
Purpose	Tuition/course fee, Examination/Library/Laboratory Fee, Caution Deposit Purchase of books, equipments and instruments Any other reasonable expenditure found necessary for completion of the course
Quantum of Finance:	Need based will be considered subject to the following ceilings: For courses of duration upto 3 months - Rs.20,000/- For courses of duration 3 – 6 months – Rs.50,000/- For courses of duration 6 months to 1 year – Rs.75,000/- For courses of duration above 1 year – Rs.1,50,000/-.
Margin	Nil
Security:	No security. No collateral or third party guarantee will be taken. However, the parent will execute loan document along with the student borrower as joint borrower.
Repayment	Upon completion of the course, repayment will start after a moratorium period as indicated below: For courses of duration upto 1 year = 6 months from the completion of the course For courses of duration above 1 year = 12 months from the completion of the course. The repayment periodicity is given as under : Courses upto 3 months - In 2 to 5 years Courses 3 to 6 months - In 2 to 5 years Courses 6 months to 1 year - In 2 to 5 years Courses above 1 year - In 3 to 7 years

B. Laghu Udyami Credit Card Scheme(LUCC)

Objective	LUCC Scheme is devised to provide hassle free financial support to small business units, retail traders, artisans, village industries, SSIs and tiny units, P & SE and small entrepreneurs.
Purpose	To meet Working capital requirement of small business units, retail traders, artisans, village industries, SSIs.
Eligibility	All existing small borrowers of above mentioned categories enjoying aggregate loan / limit of upto Rs 10 lakhs are eligible Borrowers should have satisfactory dealings with the bank for atleast for the last 3 years.borrowers with continuous satisfactory past dealings for a minimum period of 3 years but not having any liability right now can also be issued the card.
Loan Quantum	Maximum upto Rs.10.00 lakhs per borrower (aggregate)

C. Loan for Retail Traders

Purpose	For meeting the working capital/term-loan requirements.
Eligibility	Retail Traders dealing in essential commodities (fair price shops), consumer co-op stores and private retail traders with credit limit not exceeding Rs. 20 lacs.

D. Loan for Solar Water Heating Systems

Purpose

To purchase brand new solar water heater systems with necessary accessories

Eligibility

Individuals, Institutions, Associations, Small Business establishments, Industrial establishments, Hospitals, Hotels, Hatcheries, SMEs etc..

Salaried individuals should have minimum monthly net take home salary of 25% of their gross salary OR Rs. 2000/- (after meeting the loan instalment) whichever is more. Professionals and other non-salaried class should have a minimum net yearly income of Rs. 50000/-.

E.  Direct Financing to Self Help Groups

Purpose -To build mutual trust and confidence between the bankers and rural poor through formation of Self Help Groups
- To encourage banking activity both in thrift and credit operations.
- Credit Assistance to the Group on the extent of Savings mobilised, which varies from 1:1 to 1:4.

F.  Lending to Micro Credit Groups (MCG)

OBJECTIVE: The objective of the scheme is to provide credit to Micro Credit Groups of persons belonging to economically disadvantaged sections of the society, irrespective of the place of residence, for taking up any Income Generating Activities, falling within the purview of priority Sector definition.

COVERAGE: a) The scheme is applicable to the persons belonging to economically disadvantaged sections of the society irrespective of the place of residence.
b) The scheme is applicable only to Micro Credit Groups against the group guarantee.
c) The scheme will cover the NGOs/MFIs/MFI-NBFCs for on lending to Micro Credit Groups

PURPOSE: The finance can be granted for starting/improving/expanding any type of income generating activity. Finance can also be given for agriculture and allied activity. The finance may be provided so as to enable the group members to improve their earning and living standard.

QUANTUM: The limit permitted is Rs.50000/- per member, with a maximum of Rs.500000/- per group. The loan for the debt swap could also be given to the members up to a maximum of Rs.25000/-, within the overall limit of Rs.50000/- permitted per borrower.

G.  Finance to NGOs/mFIs for on-lending to SHGs

Type of eligible intermediaries:

a) Societies registered under Societies Act, 1860 or similar State Acts.

b) Trusts registered under Public Trusts Act, 1882 or similar acts.

c) Not for profit companies registered U/S 25 of Companies Act, 1956.

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