Corporation Bank Education Loan
Overview of Corporate Bank Education Loan:
Corporation Bank is a 110 years old lender, headquartered in the city of Mangalore, India. It is a public sector bank that provides a wide selection of banking solutions to clients across the country. Corporation Bank Education Loan empowers students to protect their future and pursue instructional classes of their choice from India or abroad. Low rates of interest, easy application procedure, minimal documentation are a few of the features which make education loans from Corporation Bank popular with students in India.
Features and Benefits of Corporation Bank Education Loan:
Purpose of the loan:
The objective of Corporation Bank Education Loan will be to assist Indian students pursue research in India or overseas, without needing to be concerned about the price of education.
Expenses Known for Corporation Bank Education Loan:
The costs considered for the schooling loan from Corporation Bank comprise:
- School, faculty, evaluation, hostel, lab and library fee
- Traveling expenses and passing money when studying overseas
- Purchase of equipment, books, uniforms, tools, computer (bought at reasonable cost )
- Expenses involving research schools, thesis, project work etc. beneath the maximum limitation allowed by the loan strategy.
Please note that warning or refundable deposit, building funds aren't considered even if they are supported by relevant receipts.
Number of Education Loan:
The maximum loan amount provided is Rs.10 lakhs for pursuing classes in India and Rs.20 lakhs for pursuing courses abroad.
The Rates of Interest for Corporation Bank Education Loan are as follows:
- 12.10% for loan amounts of Rs 4 lakhs or below
- 13.10% for loan amounts of Rs 4 lakhs – 7.50 lakhs
- 12.60% for loan amounts above Rs 7.50 lakhs
Simply simple interest is charged during the repayment holiday or moratorium period.
Girl pupils receive a concession of 50 bps on the interest rate (which includes 25 bps for SC, ST and women students) for all loans. Physically challenged students get a concession of 0.50% for all education loans.
There are no processing fees for pursuing courses in India but for pursuing courses abroad, there is a processing fee of Rs 2,000 which is refunded when the loan is availed.
For loan amounts of Rs 7.50 lakhs or below, the repayment tenure is fixed at 10 years, excluding the moratorium period.
For loan amounts above Rs 7.50 lakhs, the repayment period is fixed at 15 years, excluding the moratorium period.
Moratorium period (repayment holiday)
Duration of the course plus 1 year or 6 months after getting employed.
For loans up to Rs 4 lakhs
No security apart from co-obligation of parents
For loans of Rs 4 lakhs - 7.5 lakhs
Suitable 3rd party guarantee or collateral equivalent to the loan amount along with co-obligation of parents is required as security.
For loans above Rs 7.5 lakhs
Security in the form of tangible collateral, co-obligation of parents and the assignment of the student's future income for making the instalment payment is required.
There is no margin for loans up to Rs 4 lakhs. For loans above Rs 4 lakhs, the margin is 5% for pursuing courses in India and 15% for pursuing courses abroad.
Corporation Bank Education Loan Eligible Courses:
The eligible courses for Corporation Bank Education Loan are as follows:
For Study in India:
- Graduate / post graduate diploma and degree courses offered by institutes, colleges or universities recognized by Government/UGC/CMR/AIBMS/AICTE etc.
- ICWA, CFA, CA (regular and integrated) courses etc.
- Courses that are conducted by IIMs, XLRI, NID, NIFT, IITs, IISc etc.
- Government approved degree and diploma courses in the field of Civil Aviation, Aircraft Maintenance, Pre-sea training etc. (in India)
- B.Ed, Nursing and teachers training courses (only degrees and diplomas) offered by institutions that are recognized by State Governments or the Central Government.
- Courses offered by recognized foreign universities in the country.
- Vocational and skill development courses
PhD, research courses, correspondence, off-campus, part time, partnership and certification courses are not eligible for this loan.
For Study Abroad:
- Job-oriented technical/professional graduate courses and postgraduate courses like MBA, MS, MCA etc. offered by recognized universities abroad.
- Courses that are conducted by CPA, USA and CIMA, London etc.
- Approved degree and diploma courses in the field of Civil Aviation, Shipping, Pilot Training etc. (in India or abroad)
PhD, research courses, PG diploma and diploma courses offered by foreign universities are not eligible for Corporation Bank Student Loan.
Corporation Bank Education Loan Eligibility and Documentation:
The eligibility criteria for Corporation Bank Education Loans are as follows:
- The student should be a citizen of India
- The student should have cleared all qualifying examinations
- The student should have secured minimum 60% marks (55% for SC/ST students) in the qualifying examinations.
- The student should have completed HSC or its equivalent qualification.
- The student should have been admitted to a recognized college, institute or university in India or abroad.
The following documents are required to apply for Corporation Bank Education Loans:
- Application form
- Identity proof
- College brochure stating the fee structure of the course
- Proof of admission (admission or selection letter)
Corporation Bank Education Loan FAQs:
- I am a working professional. Can I apply for an education loan from Corporation Bank for higher studies in India? Yes, you can apply for a student loan if you pursue an approved evening course offered by a recognized institution, college or university.
- Are there any prepayment charges for Corporation Bank Student Loan? No, there are no prepayment charges for this student loan from Corporation Bank.
- I have an education loan with another bank, can I transfer it to Corporation Bank? No, take over or transfer of loans from other banks is not permitted under the Corporation Bank Education Loan Scheme.
- Are there any concessions for physically challenged girl students? Yes, physically challenged girl students get a concession of 1% on the interest rate charged for the loan.
- Are LIC Policies accepted as collateral for the loan? Yes, LIC Policies, deposits and government securities are accepted as collateral for the loan.