SQL & PL/SQL :: Error Handling Inside Cursor

I am writing a cursor and inside that cursor I am checking record exists or not and based on that I am doing my operation.But I am getting error that i can not use exception inside cursor see the below sample code (syntax may not be correct)

sample code------------------
cur c1
is select * from T1;
open c1
loop
fetch c1 into cur_id;

select name into var_name from t2 where id = cur_id;

exception
when no_data_found then
continue with next cursor value
end

update t3 set name = var_name where t3.id = cur_id;
commit;
end loop;
end;