Bank LoanStudents should approach the branch nearest to the place of domicile.
Central Bank of India is now offering concession in interest in education Loan Scheme. The concession in interest rates is available to new borrowers who will avail education loan from the bank w.e.f. 01.04.2007.
The bank has taken this step to make education loan scheme more customer friendly thus facilitating aspirant students to avail education loan on comfortable & affordable terms.
Further, Interest is charged monthly on simple basis during the repayment holiday/moratoriumperiod & concession of 1% in rate of interest is also allowed provided the same is serviced regularly during study period.
The insurance would cover study period as well as repayment period, he said, adding in case of any mishap, the insurance company would take care of the loan repayment rather than the aggrieved parents.
Eligibility Criteria:Student eligibility
- Student should be an Indian National having secured admission to Professional / Technical courses through entrance test / selection process.
Expenses considered for Loan
- 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.
- Upto Rs. 4 lacs : NIL, Above Rs. 4 lacs:In India - 5% ,Abroad - 15% Margin (scholarship may be included in margin.)
- 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.
- Upto Rs.4.00 lacs: No Security.
Rate of InterestAs per bank rules
- Commences one year after completion of the course or six months after getting employment, whichever is earlier.
Check ListWhile applying for the loan, the borrower is required to furnish the following information/papers:
- Loan application on Bank's format.
- Passport size photograph
- Proof of Address(Permanent) / ID Proof.
- Proof of Age.
- Proof of having secured pass marks in last qualifying examination.
- Letter of admission in professional, technical or vocational courses.
- Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc. are mentioned.
- Details of Assets & Liabilities of parents.
Any other document/information, depending upon the case and purpose of the loan.
*(The above CHECKLIST is only illustrative, not exhaustive. For details, please contact our nearest Branch Office).