Corporation Bank Education Loan | Interest Rates | Eligibility Criteria
- Student should be an Indian national.
- Should have passed previous qualifying examination.
- Should have secured at least 60% marks [ 55% for student belonging to SC/ST category ] in the previous qualifying examination.
- Should ?have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance test / Merit based selection process/through Management quota after completion of HSC [10+2 or equivalent]
To meet expenses related to pursuing studies in India and abroad
Study in India – upto Rs.10 lakhs, Study Abroad : upto Rs. 20 lakhs
- Loan up to Rs. 4 lakhs : Nil
- Loan above Rs.4 lakhs:
- Studies in India: 5%
- Studies Abroad: 15%
- Up to Rs.4.00 Lakh : Co-obligation of Parent/s, No other security.
- Above Rs.4.00 Lakh & up to Rs.7.50 Lakh : Co obligation of Parent/s together with collateral in the form of suitable third party guarantee with a net worth of at least equal to loan amount.
- Above Rs.7.50 Lakh : Co- obligation of Parents together with tangible collateral security along with the assignment of future income of the student for payment of instalments.
- Loan shall be fully secured after maintaining prescribed margin on respective securities offered.
- In case of married person, co obligant can be either spouse, or the parents or parents -in-law.
Rate of Interest
- Floating rate of interest is linked to the Base Rate & subject to revision from time to time ?Simple interest will be charged during repayment holiday period.
- Concession in rate of interest at 25 bps below the applicable card rate is extended to SC/ST/Women beneficiaries for fresh loans sanctioned/ disbursed on or after 15.08.2008.
- Concession in rate of interest at 50 bps (inclusive of 25 bps available for SC/ST/Women) below the applicable card rate for girl students for new loans sanctioned/ disbursed w.e.from : 04.03.2009.
- Interest concession of 0.50% is extended to Physically Challenged students for loans initially disbursed on or after 20.09.2010
- Uniform repayment tenor of 15 years irrespective of loan amount.
- The repayment tenor is after completion of moratorium/Initial Repayment Holiday
- Initial Repayment Holiday/Moratorium is Course Period + 1 year
Nature of facility
In the form of Term loan
For Studies in India
- Approved courses leading to Graduate/Post Graduate Degree, Diploma and PG Diplomas conducted by recognized Colleges/Universities recognized by UGC/Govt/AICTE/AIBMS/ICMR etc.
- Courses like ICWA, CA/integrated CA-on virtual /video mode, CFA, etc.
- Courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NID etc.
- Regular Degree/Diploma courses like Aeronautical, Pilot training, Shipping etc., approved by Director General of Civil Aviation/ Shipping, if the course is pursued in India.
- In case of the Aircraft Maintenance Engineering /Pre Sea training courses must be either a Degree course recognized by a competent University or Diploma course recognized by appropriate State Body
- Teachers training /Nursing/B.Ed courses provided the training institutions are approved either by Central Govt or by State Govt and such courses should lead to Degree or Diploma and not to Certificate course.
- Approved Courses offered in India by reputed Foreign Universities
- Research course/Ph. D courses for study in India are not eligible for loan under the scheme.
- Correspondence courses/Part time /Certificate/Short duration courses / off-campus courses and On-site/Partnership Programme are NOT eligible for loan under the scheme. However, Vocational/Skill development courses are eligible for loan under the CVDVC Scheme.
For Studies abroad
- Graduation: For job oriented Professional/Technical courses offered by reputed Universities.
- Post-Graduation: MCA, MBA, MS etc.
- Course conducted by CIMA- London, CPA in USA etc.
- Degree/Diploma courses like aeronautical, pilot training, shipping etc provided these are recognized by competent regulatory bodies in India/Abroad for the purpose of employment in India/Abroad.
- PG diploma courses for study abroad is permitted.
- Diploma courses for study abroad is NOT permitted.
- Research course/Ph.D courses for study abroad are not eligible.
Fee payable to College./School/Hostel /Examination/ Library/ Laboratory fee.
Travel expenses/Passage money for studies abroad.
Caution Deposit, Building Fund/Refundable deposit, though supported by Institution bills/receipts, are not eligible.
Purchase of books/Equipment/Instruments/Uniforms, Purchase of computer at reasonable cost, if required for completion of the course, any other expenses required to complete the course like study tours, project work, thesis etc, subject to maximum permissible limit as per the scheme.
- Loan should be availed preferably from the Bank/ Branch situated near to the place of domicile of the parents.
- The model educational loan scheme has not stipulated service area approach to finance under the Scheme.
- Take over of loan from other banks is strictly not permitted.
- Life insurance cover to the student is mandatory