Home / Articles / Central Bank of India Education Loan – Eligibility, Interest rates, Margin

Central Bank of India Education Loan – Eligibility, Interest rates, Margin

Central Bank of India Education Loan

The central bank of India stretched its kind hands to give financial support for the economically weaker section (EWS) students through Central Bank of India Education Loan for doing their higher education in any of the accredited and affiliated recognized technical/professional university. The scheme will be applicable for the students who have obtained admission in recognized institution or University through Entrance exam or merit-based selection process. The Central Bank of India Education Loan is designed to help for only Indian Nationals.

Central Bank of India Objective

The main purpose of the loan is to provide financial support to poor/EWS students in order to ensure brakeless studies in either India or Abroad to reach their desired destiny in right path. The nature of Central Bank of India Education Loan is Term loan. The scheme shall be applicable only in respect of disbursements made by the bank. Central Bank of India Education Loan also called as Cent Vidyarthi education loan.

Central Bank of India Education Loan

Overview

The maximum limit for Central Bank of India Education Loan is 10 lacs for Indian studies and 20 lacs for abroad studies. There will be a nil margin for the loans up to 4 lacs. Loans above 4 lacs have a margin of 5% for Indian studies and 15% for abroad studies. Also, loan up to 4 lacs has no collateral and above 7.5 lakh loans will need 3rd party guarantee. There will be a special concession/rebate in interest for girl students.

Central Bank of India Education Loan Eligibility

The contenders who are looking forward to doing their higher education with the help of Central Bank of India Education Loan must fulfill all the requirements regarding Student eligibility criteria as follows:

  • The applied candidate should get admission in accredited university which comes under approved institutes/universities list through an entrance test or merit-based selection process after completion of HSC or SSC.
  • The candidate must be an Indian National
  • If the applied candidate is not from entrance exam then He/She will get admission based on their aggregate in previous academics which is a minimum of 50%.
  • Also for the candidates who are from professional employment and wish to pursue their higher esteem in India or Abroad will get eligibility for a loan in case of no entrance test.

Also, the applicant should aware of the eligible courses which are applicable under Central Bank of India Education Loan as follows:

  • Courses under graduation are B.A., B.com., B.Sc. etc
  • Post graduation courses like Ph.D., Masters etc
  • Professional courses namely engineering, medicine, law, management, veterinary, computers etc.
  • Also certified courses like computer-based from any of the renewed institutes.
  • Well known courses like CA, ICWA, CFA etc
  • Some other courses which are conducted by IIT, IIM, IISc, XLRI, NIFT etc
  • Evening courses from approved accredited affiliated institutes/universities
  • Also, courses offered by reputed foreign universities in India.
  • All the Degree/Diploma courses which are conducted by AICTE/UGC/Govt. etc
  • Courses offered by national institutions and renewed private boards.
  • For studies in abroad the offered courses be like MBA, MCA, MS etc.
  • Courses conducted by CIMA-London and CPA in the USA comes under the category of Abroad studies.

Mandatory Documents for Central Bank of India Education Loan

The applicants who are applied for education loan in central bank of India need to carry some important documents for the registration and loan availing process without any fail.

  • Identity proofs like Aadhar Card, Voter Id, Driving License, Pan Card, Passport etc
  • Address/resident proof namely Bank account statement, latest electricity bill, recent mobile bill, utility bills etc.
  • Income proofs like IT returns statements, salary slips, Income certificate which is authorized by a CA, form 60 and form 16
  • Academic proofs like previous class mark memos, Transfer certificates etc.

Quantum of Loan

The quantum of loan or loan amount of the Central Bank of India Education Loan is detailed as follows

  • For studies in India: maximum of 10 lacs
  • For Abroad studies: maximum of 20 lacs

Central Bank of India Education Loan Margin

The Margin will be NIL for the loans up to 4 Lacs. And for the loans above 4 lacs margin will be 5% for Indian studies and 15% for abroad studies respectively.

Central Bank of India Education Loan Rate of Interest

The interest will be varied based on the type of borrower which is clearly explained as follows. The intenders who are applied for Central Bank of India Education Loan should keep an eye on the interest rates in order to avoid queries.

Education Loan Rate of Interest

Percentage of interests as follows:

Percentage of interests

Eligibility for Interest Subsidy

The interest subsidy will be given for only integrated courses in India. It will be available for the eligible students who have first UG/PG/Diploma courses in India. It will not be applicable for the students who have unfortunately discontinued the studies. If any of the applicants who had to discontinue their studies with reasonable health issue would be eligible for interest subsidy only when they have authorized permission certificate from the head of the educational institution.

Central Bank of India Education Loan Security

  • For the loans up to 4 lacs, there is no security
  • For the loans, in between 4 lacs and 7.5 lacs, there will be a co-obligation of parents /guarantee collateral security is needed in the form of 3rd party guarantee
  • For the loans above 7.5 lacs, security terms will be co-obligation of parents or guardian with tangible collateral security of suitable value along with the assignment of upcoming income of the applicant for repayment process.

Central Bank of India Education Loan Repayment

The repayment process will be started after 12 months of the student securing job whichever is earlier. For the loans, up to 7.5 lacs the repayment period is about 10 years and for the loans above 7.5 lacs, the maximum period for repayment is 15 years. The entire repayment of the loan will be EMI/Installment basis.

Central Bank of India Education Loan Processing Fee

Under Central Bank of India Education Loan, the bank will not charge any processing fee on below 4 lacs loans. Apart from that the students under the category of Abroad studies need to pay 500/- processing for below 10 lakh loans and 1000/- for above 10 lakh loans. The paid fee will be refunded within 6 months after the successful completion/sanction of loan.

Central Bank of India Education Loan Disbursement of Interest Subsidy

The disbursement of interest subsidy claims to the bank will be in 6 months or yearly basis which is to be worked out in consultation with ministry head.

Central Bank of India Education Loan Concessions

  • There will be concession of 1% if the interest is serviced during study period
  • During the repayment period interest will be charged half yearly or yearly with simple interest only.

Useful Central Bank of India Posts For Job Aspirants

About Recruitment

Check Also

Bank of Maharashtra Education Loan

Bank of Maharashtra Education Loan 2017-2018 | Eligibility | Application Process | Interest Rates

Bank of Maharashtra Education LoanRecruitment Notification Highlights1 Bank of Maharashtra Education Loan1.1 Objective1.2 Bank of …