Corporation Bank Education Loan

Corp Vidya - Loan to pursue Education

Eligibility of the Student:

• Student should be an Indian national. 
• Should have completed previous qualifying examination.
• Secured admission to Professional/ Technical courses in India or abroad through Entrance test / Merit based selection process/ Management quota.
• Person already in gainful employment not eligible for loan under the scheme except for pursuing evening course covered under the scheme of approved Institute.
• If a gainfully employed person wants to pursue full time education either on study leave or by resigning from present employment, such proposals may be considered provided the applicant submits the proof in this regard to the sanctioning authority before disbursement of loan.

Eligible Courses

For Studies in India:

• Graduation course: BA., B.Com, B.Sc. etc.
• Post Graduation course: Masters & Ph.D.
• Professional courses: Engineering, Medical, Agricultural, Veterinary Law, Dental, Management, Computer etc.
• Courses like ICWA, CA, CFA,etc..
• Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc.
• Regular Degree/Diploma courses like Aeronautical Pilot training, Shipping etc., approved by director General of Civil Aviation/ Shipping , if the course is pursued in India.
• In case the course is pursued abroad, the institute should be recognized by the competent local Aviation/ Shipping Authority of that country.
• Courses offered in India by reputed foreign universities. 
• Evening courses of approved institutes.
• Teachers training course/Nursing/B.Ed courses provided the training institutions are approved either by Central Govt or by State Govt and such courses are leading to Degree or Diploma and not to Certificate course. 
• Other courses leading to Diploma/Degree etc, conducted by Colleges/ Universities approved by UGC/Govt./AICTE/AIBMS/ICMR etc.
• Courses offered by National Institutes and other reputed private institutions.
• Vocational training and skill development study courses are not be covered.

For Studies abroad:

• Graduation: For job oriented Professional/Technical courses offered by reputed universities & Commercial Pilot / Shipping training course.
• Post Graduation: MCA, MBA, MS etc. Course conducted by CIMA- London,CPA in USA etc.

Other Courses Eligible:

• Other courses eligible for financial assistance under the scheme should be conducted by the Colleges/ Universities/ Institutions, which are either recognized by the Govt /affiliated to University/ Deemed University or conducted by Autonomous Institutions, like IIT. IIM, etc., or approved by AICTE/ Accredited to Dept of Electronics, Govt of India, courses offered by reputed Universities/ Institutions abroad.
• Correspondence courses /Part time /Certificate /Short duration /Vocational training/ Skill development study courses are strictly not eligible for finance under the scheme.

Eligible Expenses:

• Fee payable to College/School/Hostel /Examination/ Library/ Laboratory/ Purchase of Books/ Equipments/ Instruments/ Uniforms/ Caution Deposit/ Travel expenses/Passage money for studies abroad.
• Purchase of computer if essential for completion of course. Confirmation/ recommendation letter from the College/Institution need not be insisted. However, the Branch should consider computer as a part of cost of study, based on the merits of each case.
• Hostel fees/expenses considered as an eligible item for finance under the Scheme. Payment of hostel fees will be made directly to the hostel authorities.
• In exceptional cases if the student does not get the hostel accommodation due to limited hostel rooms and is required to stay in private accommodation or paying guest accommodation, reasonable amount of lodging and boarding expenses will be considered.
• Payment towards accommodation and food will be made directly to the student subject to the condition that the student should declare about the non-availability of accommodation in college hostel supported by a letter from college to this effect and that the student should not be a resident of that place.
• Other expenses required to complete the course – like study tours, project work, thesis etc.
• Insurance premium for life of student borrower. 
• Building fund/refundable deposit supported by institution bills/ receipts are Not eligible.

Quantum of Loan:

• Studies in India - Maximum upto Rs. 10 lakh
• Studies Abroad - Maximum upto Rs. 20 lakh

Margin:

• Upto Rs. 4 lakh - Nil
• Above Rs. 4 lakh - Studies in India 5%
• Studies abroad 15%

Security:

• Up to Rs. 4.00 Lakh: Co-obligation of Parent/s, Grand Parent/s ( if parents are deceased). No other security.
• Above Rs. 4.00 Lakh & up to Rs. 7.50 Lakh: Co obligation of Parent/s Grand Parent/s (if parents are deceased) together with collateral in the form of suitable third party guarantee.

• Above Rs. 7.50 Lakh: Co-obligation of Parents/Grand Parents ( if Parents are deceased) together with tangible collateral security along with the assignment of future income of the student for payment of instalments. The loan to be fully secured after maintaining prescribed margin on respective securities.

• In case of married person, co obligant can be either spouse, or the parents or parents -in-law.

Security - Margin:

Margin for various type of securities is as under:
(i) Immovable property : 35%
(ii) Govt Securities (face value of NSC/KVP etc.) : 25%
(iii) LIC Policy (Surrender Value) : 10%
(iv)Deposits (Balance outstanding) : 10%

Rate of interest:

Applicable for fresh loans sanctioned/ initially disbursed on or after 14.08.2009:

• Upto Rs. 4.00 Lakh - 11.65%
• Above Rs. 4 Lakh & Upto Rs. 7.50 Lakh - 12.65%
• Above Rs.7.50 Lakh - 12.15%

• Simple interest will be charged during repayment holiday period.
• Note: 1% interest concession is available during repayment holiday period if the interest is serviced as and when debited, but not later than 30 days of debit. In the event of intermittent default, concession will be extended for the period of regular interest servicing.
• Concession in rate of interest at 25 bps below the applicable card rate is extended to SC/ST/ Women beneficiaries for fresh loans sanctioned/ disbursed on or after 15.08.2008. 
• Concession in rate of interest at 50 bps (inclusive of 25 bps available for SC/ST/Women) below the applicable card rate for girl students for new loans sanctioned/ disbursed w.e.f. 04.03.2009.
• Concession in rate of interest at 50 bps below the applicable card rate is extended to physically challenged students to pursue studies in India and Abroad. This concession is applicable for all fresh loans sanctioned/initially disbursed on or after 20.09.2010.

The aggregate concession that may be extended are as below :

• Men - 0.25%
• Physically challenged Men -  0.75%
• Women - 0.50%
• Physically challenged Women - 1.00%

Other Than SC/ST Category:

• Men - NIL
• Physically challenged Men - 0.50%
• Women - 0.50%
• Physically challenged Women - 1.00%

Processing Charges:

• No Processing Charges for studies in India
• Rs. 2000/- only for studies abroad to be refunded once the loan is availed (Charges are inclusive of service tax)

Prepayment Charges - NIL

Repayment:

• The loan to be repaid within a period of 7-10 years after completion of repayment holiday.
• Repayment holiday is course period + 1 year OR 6 months after getting the job whichever is earlier.

Other Guidelines:

• Loan should be availed at the Branch situated near to the place of domicile of the parents. 

• Where more than one loan is given in same family, family shall be treated as a single unit for the purpose of loan, rate of interest & security etc..
• Take over of loan from other banks strictly not permitted.

• Second loan considered for higher study in India or Abroad. In such case repayment period/ holiday period of the existing loan can be extended.
• Reimbursement of fees only for the first year of the course permitted.

• Wherever carry over system prevails in the college, fees for the next year of the course will be released even though the student has failed subject to the condition that the student shall complete the course during the following year.

• In exceptional cases, food / accommodation charges will be reimbursed to the student against genuine bills/ vouchers, for his staying outside the college hostel, provided he submit a letter from college for non availability of hostel accommodation.

• There is no age restriction for students seeking loan. However, Sanctioning Authority shall ensure that his age is not barred, to be eligible for job after completion of the course.

• In case of Teachers training /Nursing /B.Ed courses, the fees considered for the purpose is the fees structure as approved by the State Govt or Central Govt or a Government approved Regulatory body for merit seats in Government Colleges/Private Self Financing Colleges, Co-operative and Colleges run by universities as the case may be. In respect of admission through Management Quota for Nursing courses, the fees considered is within the fees structure as approved by the Govt for Merit seats in Govt colleges/Private Self Financing colleges/Co-operative College and colleges run by Universities as the case may be. 

• In cases where the previous qualifying exam’s results are yet to be announced but the applicant has secured admission for study abroad & is applying for VISA, the Sanctioning Authority, may consider the application for sanction, based on the merits, subject to complying other eligibility criterion. However, disbursement of loan will be made only after student’s submitting proof of passing previous qualifying exam.

• Agricultural property is obtained as security provided Law of the concerned State does not prohibit the same. 

• Student can get cover under Bank’s Corp Suraksha Insurance scheme, at his option.

• In deserving cases and based on merits, extending second education loan to the borrower will be considered, immediately after the successful completion of the first course or at a later date, for pursuing higher studies in India/Abroad, subject to compliance of all other Scheme guidelines such as eligibility, security, margin etc. In such case repayment holiday period of existing loan can be extended.

• Student securing admission through Management Quota considered based on the merits of each case. However, amount paid/payable towards Donation/Capitation etc., to secure admission through Management Quota not considered for eligible loan amount.

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