Central Bank of India Education Loan

Cent Vidyarthi:

Purpose of Loan: For pursuing higher studies, in India & Abroad.

Eligibility: Student should be an Indian National having secured admission to Professional / Technical courses through entrance test / selection process.

Nature of Facility: Term Loan

Calculation of Eligible Loan Amount:

• For payment of Hostel fee caution deposit, refundable deposit, admission, examination, library, laboratory, cost of books, equipments, uniforms, computer (Hypothecated). One-way air passage in case of studies abroad. Reimbursement of admission fee books airfare etc., if already incurred, within 1 month for studies in India / 6 weeks for abroad.

Maximum loan amount:

• Rs. 10 lacs for studies in India.
• Rs. 20 lacs for studies Abroad.

Margin: Upto Rs. 4 lacs : NIL, Above Rs. 4 lacs:In India - 5% , Abroad - 15% Margin (scholarship may be included in margin.)

Incentive:

• 1% interest concession, if interest is serviced during study period when repayment holiday is specified for interest repayment. It should be given at the end of Financial Year i.e. 31st March.
• Interest is calculated at simple basis during Repayment Holiday / Moratorium Period. Interest will be compounded on monthly rests from due date of first instalment.

Disbursement:

• Payment directly to college /hostel /mess /airlines etc. In appropriate cases disbursement to be made to borrowers subject to satisfactory evidence. Original receipts to be submitted.

Repayment:

• Repayment to commence 12 months after completion of studies or 6 months after securing jobs whichever is earlier. Maximum period 5 to 7 years. Repayment on EMI basis.

Security:

• Upto Rs.4 Lakhs: Co-obligation of parents/ guardian/ parent-in-law/spouse.

Above Rs. 4 lakhs and up to Rs.7.50 lakhs:

• Co-obligation of parents/ guardian/ parent-in–law/spouse together with collateral security in the form of suitable third party guarantee.

Above Rs.7.50 lakhs:

• Co-obligation of parents / guardian / parent-in–law /spouse together with tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments.

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