Central Bank of India Education Loan | Interest Rates 2024

• The student should be an Indian National.
• Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or equivalent).
• Where there is no entrance test/merit based selection process and admission is purely based on the marks scored in qualifying examinations, the student should have scored minimum 50% marks in qualifying examination. (10% relaxation for SC/ST categories).
• Where entrance test or selection purely based on marks obtained in qualifying examination is not the criterion for admission to some of the post graduate courses or research programmes, then Branch should take into consideration the employability and reputation of the institution concerned.

• i. Fee payable to college/ school/ hostel. Reasonable lodging and boarding charge will be considered in case the student chooses / is required to opt for outside accommodation.
• ii. Examination/ Library/ Laboratory fee.
• iii. Travel expenses/ passage money for studies abroad.
• iv. Insurance premium for student borrower, if applicable.
• v. Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts. These expenses could be considered subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
• vi. Purchase of books/ equipments/ instruments/ uniforms.
• vii. Purchase of computer at reasonable cost, if required for completion of the course.
• viii. Any other expense required to complete the course – like study tours, project work, thesis, etc.

It is likely that expenditure under Item Nos. vi, vii & viii above may not be available in the schedule of fees and charges prescribed by the college authorities. Therefore, a realistic assessment may be made of the requirement under these heads. However, the maximum expenses included under vi, vii & viii may be capped at 20% of the total tuition fees payable for completion of the course.

Rs. 20 lacs for studies Abroad.

The ceilings fixed for studies in India and Abroad correspond to the limits fixed by the RBI for treatment as priority sector lending. However Regional Managerscan consider/sanction higher quantum of loan on course to course basis and on merits subject to condition that the loan amount should be backed by 100% liquid security/collateral security. It may also be noted that even loans in excess of Rs. 10 lakh qualify for interest subsidy under Central Sector Interest Subsidy Scheme for loans up to Rs.10 lakh.

Interest is calculated at simple basis during Repayment Holiday / Moratorium Period. Interest will be compounded on monthly rests from due date of first instalment.

Maximum repayment period upto 10 years for loans upto Rs.7.50 lakh

Maximum repayment period upto 15 years for loans above Rs.7.50 lakh.  Repayment on EMI basis.

Comprehensive life insurance policy for the student availing Educational Loan to the minimum of loan amount for a minimum period of loan term (i.e., course period + moratorium period + repayment period) assigned in favour of the Bank.  Premium to be paid regularly.

Regional Manager is empowered to waive the condition of insurance very selectively but the education loan amount should be covered by 100% liquid security/collateral security.

It may also be noted that even loans in excess of Rs. 10 lakh qualify for interest subsidy under Central Sector Interest Subsidy Scheme of MoHRD for loans up to Rs.10 lakh.

• Educational Loans to students under Management Quota are not covered under IBA Model Education Scheme.

• These loans are not eligible for Central Sector Interest Subsidy Scheme of MoHRD.

• However, Branches can consider educational loans under management quota seats where employment potential is available, subject to the following conditions

• The payment/reimbursement of fees is restricted to fee structure as approved by the State Government or regulatory body.

• It should be ensured that the student should have the financial resources to meet the funding gap.

• Parent(s)/guardian to be joint borrower(s).

Irrespective of loan amount, 100% tangible collateral security acceptable to bank should be obtained along with assignment of future income of the student for payment of instalments.

• All other terms and conditions as applicable for Centvidyarthi Scheme shall be complied with.