Corporation Bank Education Loan- Interest Rates | Eligibility Criteria & more

This article gives complete details about the Corporation Bank Education Loan- Interest Rates, Eligibility Criteria, Margin criteria & more.

 

Eligibility

• A student should be an Indian national.
• Should have passed the 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]

 

Purpose

To meet expenses related to pursuing studies in India and abroad

 

Loan Amount

Study in India – upto Rs.10 lakhs, Study Abroad: upto Rs. 20 lakhs

 

Margin

• Loan up to Rs. 4 lakhs: Nil
• Loan above Rs.4 lakhs:
  • Studies in India: 5%
  • Studies Abroad: 15%

 

Security

• 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 the 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 installments.
• The loan shall be fully secured after maintaining a prescribed margin on respective securities offered.
• In case of a 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 the 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

 

 

Prepayment Charges

NIL

 

Repayment

• Uniform repayment tenor of 15 years irrespective of the 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 the Term loan

Eligible Courses

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 the loan under the scheme.
• Correspondence courses/Part time /Certificate/Short duration courses / off-campus courses and On-site/Partnership Programme are NOT eligible for the loan under the scheme. However, Vocational/Skill development courses are eligible for the 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 are NOT permitted.
• Research course/ Ph.D. courses for study abroad are not eligible.

 

Eligible Expenses

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 the computer at a 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 a maximum permissible limit as per the scheme.

 

Other Guidelines

• 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