Corporation Bank Education Loan- Student Loan in India

Corp Vidya - Loan to pursue Education 

Eligibility of the Student 

Student should be an Indian national. 

Should have completed 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]

Person already in gainful employment not eligible for loan under the scheme except for pursuing evening course covered under the scheme of approved Institute.

If a gainfully employed person wants to pursue full time education either on study leave or by resigning from present employment, such proposals may be considered provided the applicant submits the proof in this regard to the sanctioning authority before disbursement of loan.

Corporation Bank Education 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, and 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 to be eligible for loan. 

Research course/Ph.D courses for study in India are not eligible for loan under the scheme.

Approved Courses offered in India by reputed Foreign Universities.

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 course and not to Certificate course. 
courses/Part time /Certificate/Short duration / development study courses, off-campus courses and On-site/Partnership programme are not eligible for loan under the scheme. Correspondence Vocational / skill

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.

Diploma courses for study abroad are not permitted. However, PG diploma courses for study abroad are permitted

Research course/Ph.D courses for study abroad are not eligible for loan under the scheme.

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/equipments/instruments/uniforms[Refer –Note]

Purchase of computer at reasonable cost, if required for completion of the course[Refer –Note] . 

Any other expenses required to complete the course like study tours, project work, thesis etc.[Refer-note]

Note: It is likely that expenditure under the above item may not be available in the schedule of fees and charges prescribed by the college. Therefore, a realistic assessment may be made of the requirement under these heads.

However, the maximum expenses may be restricted to 20% of the total tuition fees payable for completion of the course.

Hostel fees/expenses may be considered as an eligible item for finance under the Scheme. Payment of hostel fees should be made directly to the hostel authorities.

Reasonable lodging and boarding charges will be considered in case the student chooses/is required to opt for outside/private/paying guest accommodation. 

In such cases, payment towards accommodation and food may be made directly to the student. 

Insurance premium for life of student borrower

Corporation Bank Education Loan - Quantum of Loan 

Studies in India - Maximum upto Rs. 10 lakh

Studies Abroad - Maximum upto Rs. 20 lakh

Margin 

Upto Rs. 4 lakh - Nil

Above Rs. 4 lakh

- Studies in India 5% 

-Studies abroad 15%

Margin may be brought–in on year-to-year basis as and when disbursement are made on a pro-rate basis.

Corporation Bank Education Loan Security 

  • Upto Rs.7.50 Lakh : Co-obligation of Parent/s, Grand Parent/s ( if parents are deceased). No other security.
  • Above Rs.7.50 Lakh : Co- obligation of Parents/ Grand Parent/s ( if parents are deceased) 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.

Corporation Bank Education Loan Rate of interest

  • Floating Rate of Interest is linked to MCLR and  subject to annual reset∍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∍

For Interest Rates, Please click here.

Corporation Bank Education Loan Repayment

  • 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