Central Bank Of India-Education Loan

14 0 Education Loan

Education Loan

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.)

Rate of Interest & Processing Charges

Upto Rs. 25,000 – 12.50%.

Between Rs. 25,000 and Rs. 2.00 Lakhs – 14.00%.

Above Rs. 2.00 Lakhs @ PLR (those whose family income does not exceed Rs. 12,000 p.a. and fall under the DRI scheme, the interest rate is 4.00%.) 1% rebate is granted in the rate of interest for regular repayment of interest and installment and payment of insurance premiums.

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.

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.