Central Bank Indian and Foreign Education Loan

Central Bank Indian and Foreign Education Loan – Central Bank of India was documented in 1911 and was the first commercial bank in India to be exclusively achieved by Indians. Central Bank of India provides to a miscellaneous clientele by offering banking and financial amenities including agri banking, MSME services, deposits, loans and NRI banking. An education loan accessible by Central Bank of India, CentVidyarthi, authorizes commendable candidates to seek a specialized course of their choice without money being a constraint.

Features and Benefits of Central Bank of India Education Loan

Central Bank of India bids education loan for seeking higher studies at educational institutes in India and abroad. The following are the features of Central Bank of India education loan.

  • Expenses considered for Central Bank of India Education Loan

The expenditures that will be covered under the mortgage will comprise the fees owed to college, hostel fees. Examination & laboratory fees, travel expenditures & passage money for studies abroad, caution deposit, building fund or refundable deposits with bills, cost of books, equipment & instrument costs. Any other expenditures are necessary to complete the coursework like study tour costs, project work cost will also be covered. The scholarships and fee relinquishments available to the student will be taken into account while computing the loan is compulsory.

  • Amount of Education Loan

 A maximum loan amount of Rs.10 lakh is accessible for studies in India. For studies in abroad, the loan amount is capped at Rs.20 lakh. However, regional administrators can deliberate higher loan significant depending on the course basis and subject to condition that the loan amount should be sponsored by 100% guarantee security.

Interest Rates

Borrower Type Interest Rate
Male Students Base Rate + 2.00%
Female, SC, ST & students admitted to IIM/IIT Base Rate + 1.50%

Processing Fees

Central Bank of India charges no dispensation fees and blunt charges for education loans in India. For studies in abroad, a fee of Rs. 500 is charged for loan amounts up to Rs.10 lakh. For loan amount exceeding Rs.10 lakh, a fee of Rs.1000 will be levied. The fees will be reimbursed within 6 months of the loan being authorized.

Repayment Tenure

The reimbursement of Central Bank of India Education Loan will embark 12 months after the course completion or 6 months after acquiring a job, whichever is earlier. For loans up to Rs.7.50 lakhs, the maximum compensation period is 10 years. The maximum recompense tenancy is 15 years for loans above Rs.7.50 lakh. The reimbursement is done on easy once-a-month installment basis.


For loans up to Rs.4 lakhs

Parent or guardian is to be the joint borrower for the loan. Also, the upcoming income of the candidate is to be allocated to the branch for imbursement of loan installments.

For loans above Rs.4 lakhs and up to Rs.7.5 lakhs

Besides parents or guardian being the joint borrower and assignment of income, a third-party security will be taken as warranty security. If fulfilled with the net-worth of the joint borrower, the bank administrator may waive off the security.

For loans above Rs.7.5 lakhs

Parent or guardian should be the joint borrower and future income of the student is to be allocated to the branch. Also, a tangible guarantee security of minimum value equal to the loan amount is to be ended.


For loans up to Rs.4 lakhs, there is no margin. For loan amounts above Rs.4 lakhs, the margin is 5% for education in India and 15% for education in abroad.

Eligibility & Documentation for Central Bank of India Education Loans

In order to be entitled for Central Bank of India education loan, the candidate must gratify the following conditions.

  • The candidate must be of Indian Nationality.
  • The candidate must have secured an admission to a specialized course in sanctioned institutes in India or abroad through a merit based selection procedure after completion of SSC or HSC.
  • When there is no distinction based selection procedure connecting an entrance examination and the admission is based on marks secured in qualifying examinations, the interviewee must have scored at least 50% mark in the finalist examination.
  • In cases where an entrance examination or a succeeding examination is not the norms for admission (ex- research programs), the loan eligibility is based on the employability and reputation of the institute.

The following documents will be required to procure an education loan from the Central Bank of India.

  • Address Proof like Utility bills, Ration card, Voter identification
  • Identity proof like PAN Card, Voter identification, Passport
  • Income official papers like income tax return statements, salary slips and income proof as sanctioned by a CA, Form 16 and Form 60
  • Educational documents like HSC and SSC certificates, mark sheet etc.
D'Souza Sneha 274 Articles
Hello this is Sneha Dsouza! I am happy to help you and to clear your questions and deliver valid info concerning edification matter you can check my other articles as well if you like this :)

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