Central Bank of India launches education loan scheme for Executive MBA

by Kishwar Chahal

central bank of india

The Central Bank of India has come out with a loan scheme for students wanting to pursue an Executive MBA. The scheme is available for a maximum of Rs. 20 lakh and there are no processing charges. Let’s have a look at the eligibility, expenses covered, rate of interest and other details for this scheme for financing Executive MBA

Eligibility for applying for loan for Executive MBA

  • The student should be an Indian National with minimum work experience of two years in Government/ Corporate/Multinational concern.
  • The minimum age of the student should be 23 years.
  • Should have been issued NOC by the employer to pursue the MBA programme and avail loan from bank for that purpose. NOC not applicable if resigned from service.
  • The student should possess Income Tax PAN Number and self attested copy of the PAN card should be submitted to Bank.
  • Should have secured admission or intimation of final selection to Executive MBA programme of a reputed institution in India or abroad.
  • Students of the Institutes approved by Retail Banking Department, Central Office, are eligible for loan. List of institutes attached as Annexure I.
  • Staff of our Bank who fulfill the selection criteria of the institute subject to issue of NoC by HRD, C.O.

Co-borrower

There needs to be a co-borrower. The co-borrower / joint borrower should normally be parent(s)/guardian of the student borrower. In case of a married person, joint borrower can be spouse or the parent(s) / parents-in-law.

Eligible expenses

The list of expenses is given as follows. However, living expenses, personal/family maintenance expenses etc. will not be covered

  • Fee payable to the institute/ hostel.
  • Examination/ Library/ Laboratory fee.
  • Purchase of books/ equipments/ instruments.
  • Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts
  • Travel expenses/ passage money for studies abroad.
  • Purchase of computer - essential for completion of the course.
  • Insurance premium for student borrower
  • Any other expense required to complete the course - like study tours, project work, thesis, etc..

Security required

There is no collateral security, except assignment of present as well as future income of the student. Also the Insurance Policy on the life of the student availing Educational Loan to the extent of at least loan amount for a minimum period of loan term (i.e., course period + moratorium period + repayment period) assigned in favour of the Bank.  Premium has to be paid regularly by borrower.

Rate of interest

  • For students pursuing Exe. MBA in IIMs and 4 other reputed institutes: (Schedule A)

Male Students - Base Rate + 0.50%.
Female/SC/ST/Minority Community Students - Base Rate.
Interest to be compounded monthly.
No further concession in rate of interest for servicing of interest by the borrower during the study/moratorium period.

  • For students pursuing Exe.MBA in other institutes (Schedule B)

Base Rate + 1.25%

Female/SC/ST/Minority Community Students - Base Rate+1.25% (no concession)

Interest to be compounded monthly.

No concession in rate of interest for servicing of interest by the borrower during the study/moratorium period.

 (The revised rate of interest will be applicable to new accounts only.)

 Repayment

The repayment in EMIs will start three months after completion of course. The loan will be repayable in EMIs for a period up to eight years in case the loan amount up to Rs.7.50 lakh and up to 12 years in case the loan amount is more than Rs.7.50 lakh.

Appraisal /Sanction/ Disbursement

  • The loan to be sanctioned as per delegation of powers and disbursed preferably by the Branch nearest to the place of employment / residence of the student.
  • The loan to be disbursed in stages as per the requirement/ demand directly to the Institutions/ Vendors of books/ equipments/ instruments to the extent possible.

List of institutes eligible under Executive MBA scheme

SCHEDULE  -  A

1

Indian Institute of Management, Ahmedabad, Gujarat

2

Indian Institute of Management, Bangalore, Karnataka

3

Indian Institute of Management, Kolkata, West Bengal

4

Indian Institute of Management, Indore, Madhya Pradesh

5

Indian Institute of Management, Kashipur, Uttarakhand

6

Indian Institute of Management, Kozhikode, Kerala

7

Indian Institute of Management, Lucknow, Uttar Pradesh

8

Indian Institute of Management, Raipur, Chhatisgarh

9

Indian Institute of Management, Ranchi, Jharkhand

10

Indian Institute of Management, Rohtak, Haryana

11

Indian Institute of Management, Shillong, Meghalaya

12

Indian Institute of Management, Trichy, Tamil Nadu

13

Indian Institute of Management, Udaipur, Rajasthan

14

Xavier Labour Relations Institute (XLRI), Jamshedpur

15

Xavier Institute of Management, Bhubaneswar (XIMB)

16

SP Jain Institute of Management and Research (SPJMR), Mumbai

17

Management Development Institute (MDI), Gurgaon

SCHEDULE - B

1

Symbiosis Institute of Management

2

Faculty of Management Studies (FMS) - University of Delhi

3

Jamnalal Bajaj Institute of Management Studies (JBIMS)

4

Indian Institute of Foreign Trade - IIFT

5

Indian School of Business (ISB) - Hyderabad