Student Education loans in India

Here know the complete information about Student Education Loans offered by Corporation Bank India.

Corporation Bank

Studies in India

Eligibility for Education Loan
  • Must be an Indian National.
  • Secured admission to Professional/ Technical courses through Entrance Test/ Selection Process.
  • Person in gainful employment is not eligible for loan. If they want to pursue evening course or resigning from present employment, then such proposals may be considered if the applicant provides the proof.
Eligible Courses for Education Loan
  • Graduation, Post-graduation including technical / professional courses from recognized universities.
  • Computer certificate courses from reputed institutes accredited to department of electronics of institutes affiliated to university.
  • Courses like ICWA, CA, CFA and courses conducted by IIM, IIT, IISc, XLRI, NIFT and courses approved by UGC / Govt. / AICTE / AIBMS / ICMR 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 the course is pursued abroad, the institute should be recognized by the competent local aviation/shipping authority
Expenses considered for Education Loan
  • Fee payable to college/school/hostel
  • Payment of course fees
  • Purchase of books/equipments/instruments/uniforms and computer/laptops
  • Examination/Library/Laboratory fee
  • Other expense that are required to complete the course - like study tours, project work, thesis, etc.
Quantum of Finance
Need based finance upto Rs. 10.00 lacs.
Margin
  • Upto Rs.4,00,000/- -- NIL
  • Above Rs.4,00,000/- -- 5%

Studies in Abroad

Eligibility for Education Loan
  • Must be an Indian National.
  • Must provide a valid passport and visa
Eligible Courses for Education Loan
  • Graduation : For job oriented professional / technical courses offered by reputed universities
  • Post-Graduation - MCA, MBA, MS, PhD etc.
  • Courses conducted by CIMA-London, CPA in USA etc.
Quantum of Finance
Need based up to a maximum of Rs. 20.00 lacs
Margin
  • Upto Rs.4,00,000/- -- NIL
  • Above Rs.4,00,000/- -- 15%

Common aspects for Indian and Abroad studies

Security
  • Upto Rs.4.00 lacs - Co-obligation of parents / guardian. No other security.
  • Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: 1. Co-obligation of parents / guardian with collateral security in the form of suitable third party guarantee.
  • Above Rs. 7.5 lacs : Co-obligation of Parents/Grand Parents ( if Parents are deceased) together with tangible collateral security along with the assignment of future income of the student for payment of instalments. The loan to be fully secured after maintaining prescribed margin on respective securities.
Rate of Interest
  • Upto Rs. 4.00 Lakh - 11.00%
  • Above Rs. 4 Lakh & Upto Rs. 7.50 Lakh - 12.00%
  • Above Rs.7.50 Lakh - 11.50%
  • 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.f. 04.03.2009.
  • Note: 1% interest concession is available during repayment holiday period if the interest is serviced as and when debited, but not later than 30 days of debit. In the event of intermittent default, concession will be extended for the period of regular interest servicing.
Repayment
The loan to be repaid within a period of 7-10 years after completion of repayment holiday. Repayment holiday is course period + 1 year OR 6 months after getting the job whichever is earlier.
For more details visit Corporation Bank official website: corpbank.com

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