Startup Loan from Canara Bank - For IIT & IIM Graduates

Education Loan Canara Bank interest rate

Canara Bank is the front-runner in implementing various Government Sponsored Schemes aimed to uplift poor, educated un-employed / under-employed people in rural / semi-urban / urban areas by providing financial assistance to set up self-employment ventures with the help of various government authorities / agencies.

The following are the prominent schemes:

Deendayal Antyodaya Yojana - National Rural Livelihood Mission (DAY-NRLM) /AJEEVIKA

The Hon'ble Finance Minister in his budget speech for 2013-14 proposed to provide interest subvention to women SHGs who avail loans up to Rs.3 lakhs at 7% per annum. The women SHGs will get an additional subvention of 3% if they repay in time, reducing the effective rate of interest to 4%.

  • This Scheme is launched by Ministry of Rural Development (MoRD), Government of India in June 2013. Aided in part through investment support by World Bank, the mission aims at creating efficient and effective institutional platforms of the rural poor enabling them to increase household income through sustainable livelihood enhancements and improved access to financial services.
  • CANARA BANK has been designated as nodal bank to handle the activities related to this scheme.
  • The scheme is promoted by MoRD, GoI and is applicable for all Public Sector Banks, Regional Rural Banks and Co-operative Banks in the 250 identified districts.


As per guidelines of Ministry of Finance, the mandatory credit to Minorities was set at 13% of priority sector during 2008-09, to be increased to 15% by March 2010 and sustained during the next three years.
Ministry of Finance also stressed in opening of Bank Branches in the Minority Concentrated Districts and exclusive set up at Head Office level for monitoring the progress of Lending to Minority Communities.

Road Map Drawn for Achieving the Mandatory Target:

Our Bank had drawn a road map during the year 2009 and steadily increased to credit flow to Specified Minorities and has achieved the mandatory level as at March 2010 and a maintained consistent level of above 17% to Priority Sector advances, as against the mandatory level of 15% since March 2010.

Our Bank has taken the following initiatives for improve Lending to the Minorities:

  • Nodal executive designated at Head Office to monitor progress under Lending to Minorities.
  • Functioning of exclusive cell for lending to Minority Communities at Head Office.
  • Nodal Officers at Minority Concentrated Districts at all the 5 Lead Districts in the State of Kerala.
  • Credit Campaign during the month of November every year are being exclusively for lendingto persons fromMinority Communities.
  • Bank has also initiated several pro-active steps viz., developing the Minority concentrated districts (MCD), designating nodal officers in MCD where our bank is having the lead bank responsibility, organizing credit campaign exclusively targeting the minority communities providing proper training, EDP programmes as a hand holding gesture and a step towards development and empowerment of the Minority Communities.


In Canara Bank the various steps being undertaken by our bank for hassle free sanction / disbursement of loans to persons from SC/ST communities.

  1. Bank has issued guidelines to all branches / offices that no loan proposal received from applicants belonging to SC/ST categorycan be rejected at branch level.
  2. A special cell has been set up at Head Office for monitoringflow of credit to SC/ST persons.
  3. In education loan sanction process where the admission is purely based on the marks scored in qualifying examination, the cut-off marks of 60 % is stipulated for all students as per IBA Model Scheme .However, in our bank we have reduced the cut-off point to 50% for students belonging to students belonging to SC/ST category, so as to motivate /encourage students to pursue higher education.
  4. Every year Canara Bank is celebrating the month of 'April and October as SC/ST Month' with a view to organize special credit campaigns in order to encourage maximum number of SC/ST borrowers to avail various credit facilities extended by the Bank, including loans under Differential Rate of Interest (DRI) category to SC/ST students., where loans are charged @ 4% rate of interest subject to eligibility.
  5. Special emphasis has been given by our bank to encourage skilling of un-employed youth. We have entered into MoU with National Skill Development Corporation of India, (NSDC) to extend loans for pursuing Vocational Education and Training courses. These courses are taken up by students from lower economic strata of the society mostly comprising of SC/ST category.
  6. In addition to the above, Our bank has launched a scheme of extending financial assistance to SC/ST girl students from rural area and named as "Canara Vidya Jyothi Scheme" as a Corporate Social Responsibility (CSR) Initiative.