About Central Bank of India Education Loan
Here you will find Central Bank of India Education Loan Interest Rates, its Eligibility and Repayment Process.
Purpose of Loan
For pursuing higher studies, in India & Abroad
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).
However, entrance test or selection purely based on marks obtained in qualifying examination may not be the criterion for admission to some of the post graduate courses or research programmes. In such cases Branch should take into consideration the employability and reputation of the institution concerned.
Note: A meritorious student (who qualifies for a seat under merit quota) is eligible for loan under this scheme even if the student chooses to pursue a course under Management Quota.
Nature of Facility
Expenses considered for loan
i. Fee payable to college++/ school/ hostel*
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. **
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.***
ix. While computing loan required, scholarships, fee waiver etc., if any available to the student borrower may be taken into account.
For courses under Management quota seats considered under the scheme, fees as approved by the State Government/Government approved regulatory body for payment seats will be taken, subject to viability of repayment.
Reasonable lodging and boarding charges will be considered in case the student chooses / is required to opt for outside accommodation.
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.
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.
Maximum loan amount
Rs. 10 lakh for studies in India.
Rs. 20 lakh 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 Managers can 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.
Upto Rs. 4 lacs : NIL, Above Rs. 4 lacs:In India - 5% ,Abroad - 15% Margin (scholarship may be included in margin.)
Rate of Interest
Type of Borrower - Rate of interest:-
Male Students - Base Rate+2.00%
Female SC,ST & IIM/IIT students - Base Rate+1.50%
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