Education Loan Interest Rates 2020214 views
- Why to Apply for Central Bank of India Education Loan?
- Because of the lowest interest rate and customized loan offers, know more about it in detail.
For a higher education in India or foreign universities, you require funds. And the admission is based on the qualification of the student and how he/she has fared in the entrance exam. You can secure your admission and borrow funds from the Central Bank of India to manage your expenses. With an education loan, you can pay for your hostel, admission, examination, etc. The primary debtor for your loan is the guardian or parents of the student. As the student is not an earning individual, he/she cannot pay the loan EMIs. But students are the co-borrowers because if they secure a job after the course completion, they can pay for the loan. Read to know about the benefits and features of the Central Bank of India education loan.
Table of Contents
- 1 Cent Vidyarthi Education Loan for Studies in India and Abroad
- 2 Central Sector Credit Subsidy Scheme
- 3 Cent Vidyarthi Scheme for Executive MBA
- 4 Cent Skill Loan
- 5 Cent Vidyarthi for IIIM & 4 Reputed Institutes in India
- 6 Apply for Central Bank of India Education Loan
Cent Vidyarthi Education Loan for Studies in India and Abroad
Students can borrow up to INR 20 lakh from the Central Bank of India to finance their education expenses. But first, they need to secure their place in the university through merit-based selection or entrance test results. If the admission is solely based on marks in the qualifying examination, the student must have obtained at least 50% mark. A relaxation of 10% is granted to students belonging to Scheduled Caste/Scheduled Tribe categories. There’s no maximum limit to the loan amount if it is backed with a collateral or security covering the loan amount fully. If you don’t provide any collateral security, you won’t get the entire loan amount you ask for. This means you need to pay something from your end to the institution. This is called margin money. The table below shows the margin money requirement across loan amounts.
|Up to INR 4 lakhs||Nil|
|> INR 4 lakhs for studies in India||5%|
|> INR 4 lakh for overseas studies||15%|
You can make a margin payment with the help of a scholarship that you may have earned from your academic performance.
The Central Bank of India provides interest rates on your education loan depending on the Marginal Cost of Fund-based Lending Rate (MCLR) that is 7.60%. The eventual lending is a couple of percentage higher because of the addition of the spread over the MCLR. You can check the table below to know the exact rate.
|Student||Interest Rate (per annum)|
|For SC/ST students||9.10%|
Note: You can have a concession of 1% on your education loan interest rate if you wish to service it during the moratorium period as well.
Disbursement & Payment
The loan is disbursed to the institution or university directly if the borrower gives all the mentioned list of fees including that of hostel, airlines, project work, etc. Original receipt from the college is required to evidence the fees. And the borrower can pay the Central Bank of India Education Loan in Equated Monthly Installment (EMI) for 10-15 years after the course gets over.
The Central Bank of India education loan moratorium period is based on the student. The repayment holiday is of 12 months after the course, and it can be of 6 months if the student secures a job.
Security to Cent Vidyarthi Education Loan
There is no need to provide any type of collateral to the bank if you borrow up to INR 4 lakh. Otherwise, you need to provide a sort of security deposit to the bank. You can provide a tangible collateral security such as insurance policies and fixed deposits to support your education loan. And can also add a third-party guarantee apart from the joint borrower guardian or parent. The table below shows the security you need to submit.
|Loan Quantum (INR)||Security|
|Up to 4 Lakh||NIL|
|> 4 Lakh up to 7.5 lakh||Third-Party Guarantee|
|Above 7.5 Lakh||Tangible Assets|
Central Sector Credit Subsidy Scheme
For the students who can’t afford the education loan, the Central Bank of India offers them a credit subsidy scheme. As per the scheme, students can borrow up to INR 10 lakh or more for their higher education in India. But make sure that the subsidy is offered to the borrower only if the student is applied for a professional or technical course. Otherwise, they can’t claim any subsidy. The borrower’s annual income shouldn’t exceed INR 4.5 lakh. Also, the students under Management Quota can’t apply for the education loan under the credit subsidy scheme as per the criteria.
There is no processing fee for the education loan required by the bank for studies in India. Whereas you need to pay INR 500 to 1,000 processing fee for studies abroad. And the fee will be refunded after the sanction of the loan if the student becomes the primary borrower for the obliged loan and interest rate in 6-months of disbursal.
Cent Vidyarthi Scheme for Executive MBA
Securing a job doesn’t mean your learning should stop, you can still apply for higher studies in India or abroad with the Central Bank of India education loan. The applicant should be a working professional and have a work experience of 2 years in government, corporate, or multi-national. Your age should be 23 years and above to apply for the education loan. And you must secure admission to the reputed institute or college for higher studies. Central Bank of India categorized the institutions to provide the desired loan to the students.
Your co-borrower can be your parent, spouse or in-laws. Below are the listed details of the loan.
|Loan Quantum||Up to INR 20 Lakh|
|Interest Rate||7.60%-8.85% per annum|
The bank doesn’t put a margin on your loan, so you can borrow the loan as your desired course demands.
Cent Skill Loan
You can pursue special skill development courses from institutions recognized by the government or National Skill Development Corporation (NSDC). The student can get a diploma or degree at the end of the course and secure a job if the institution offers placement. There is no age restriction for the student to get enrolled in any of the skill development courses
|Loan Quantum||INR 50,000 to 1.5 Lakh|
|Interest Rate||9.10% per annum|
You can apply for the Central Bank of India education skill development loan without collateral as the loan is covered under Credit Guarantee Scheme of (NCGTC).
Cent Vidyarthi for IIIM & 4 Reputed Institutes in India
For the management courses in India for the select institutes, Central Bank of India offers a loan up to INR 30 lakh. You can pay for your fees and other educational expenses with the loan amount. Following are the institutions for which you can get this loan.
- IIM, Ahmedabad, Gujarat
- IIM, Bangalore, Karnataka
- IIM, Kolkata, West Bengal
- IIM, Indore, M.P and Mumbai Campus
- IIM, Kashipur, Uttarakhand
- IIM, Kozhikode, Kerala
- IIM, Lucknow, U.P
- IIM, Raipur, Chattisgarh
- IIM, Ranchi, Jharkhand
- IIM, Rohtak, Haryana
- IIM, Shillong, Meghalaya
- IIM, Trichy, Tamil Nadu
- IIMt, Udaipur, Rajasthan
- IIM, Amritsar, Punjab
- IIM, Indore for IPM Programme and other similar Integrated 5 year programs of IIMs.
- IIM, Bodhgaya, Bihar
- IIM, Nagpur
- Xavier Labour Relation Institute (XLRI), Jamshedpur.
- Xavier University for Bhubaneswar Campus (XIMB).
- SP Jain Institute of Management and Research, Mumbai.
- Management Development Institute (MDI), Gurgaon
There is no margin on your loan amount and the interest rate is 1-year MCLR of the bank that is 7.60 %. You don’t have to provide collateral to the bank to secure the loan amount. And you can pay the loan in installments over a maximum of 12 years.
Apply for Central Bank of India Education Loan
To get the desired loan for your admission to the university or college, you can apply for the education loan. You just need to follow the procedure mentioned below.
- Visit official website of Central Bank of India
- Select ‘Vidyarthi Loan’ form and download it in Pdf or Word format
- Fill up the loan application form and submit it to the bank branch
- Pay the processing fee with the KYC and income documents
The bank will disburse the loan a few days after it approves the application. And, for any query regarding the loan, you can contact the bank from toll-free number 1800 22 1911.