Corporation Bank Indian and Foreign Education Loan – Corporation Bank is a 110 years old bank, headquartered in the city of Mangalore, India. It is a public sector bank that bids a widespread variety of banking services to clienteles across the country. Corporation Bank Education Loan authorizes students to secure their forthcoming and seek educational courses of their choice in India or abroad. Low interest rates, simple application process, minimum certification are some of the features that make education loans from Corporation Bank very popular with students in India.
Features and Benefits of Corporation Bank Education Loan
Purpose of the loan:
The determination of Corporation Bank Education Loan is to aid Indian students seek studies in India or abroad, without having to apprehension about the cost of education.
Expenses Considered for Corporation Bank Education Loan:
- The expenses considered for the education loan from Corporation Bank include:
- School, college, examination, hostel, laboratory and library fee
- Travel expenses and passage money when studying abroad
- Purchase of equipment, books, uniforms, instruments, computer (purchased at reasonable price)
- Expenses involving study tours, thesis, project work etc. under the maximum limit permitted by the loan scheme.
Amount of Education Loan
The maximum loan amount offered is Rs.10 lakhs for pursuing courses in India and Rs.20 lakhs for pursuing courses abroad.
The interest rates for Corporation Bank Education Loan are as follows:
- 10% for loan amounts of Rs 4 lakhs or below
- 10% for loan amounts of Rs 4 lakhs – 7.50 lakhs
- 60% for loan amounts above Rs 7.50 lakhs
Only simple interest is charged during the reimbursement holiday or moratorium period.
Girl students get a concession of 50 bps on the interest rate (which includes 25 bps for SC, ST and women students) for all education loans. Physically defied students get a concession of 0.50% for all education loans.
There are no processing fees for seeking courses in India but for seeking courses abroad, there is a processing fee of Rs 2,000 which is repaid when the loan is availed.
|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 installment 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 seeking courses in India and 15% for seeking 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 accessible by institutions, colleges or universities documented 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 sanctioned degree and diploma courses in the field of Civil Aviation, Aircraft Maintenance, Pre-sea training etc. (in India)
- Ed., Nursing and teachers training courses (only degrees and diplomas) accessible by institutes that are recognized by State Governments or the Central Government.
- Courses accessible by renowned foreign campuses 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. is accessible by documented universities abroad.
- Courses that are conducted by CPA, USA and CIMA, London etc.
- Sanctioned 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 succeeding examinations
- The student should have secured minimum 60% marks (55% for SC/ST students) in the succeeding examinations.
- The student should have completed HSC or its corresponding qualification.
- The student should have been acknowledged to a documented college, institution 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)