Central Bank of India Education Loan

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Advantages of Central Bank of India Education Loan

The following are the list of key advantages to avail an Education Loan from Central Bank of India:

1. Minimal paperwork
2. Zero processing fee
3. Speedy disbursal
4. Zero repayment charges
5. Minimum interest rate

How to Apply for Central Bank of India Education Loan?

You will need to visit the bank to avail an education loan from the Central Bank of India. Once the application form and the relevant documents are submitted, the bank will check if you meet the eligibility criteria before providing the loan.

Various factors such as the university you have secured admission to, the marks that you have scored, and the collateral that is provided will be considered before the loan is provided.

Central Bank of India Education Loan EMI Calculator

You can use BankBazaar's education loan Equated Monthly Instalment (EMI) calculator to check the monthly instalments in case you wish to avail a loan from the Central Bank of India. The calculator is easy to use and correct results are given for the details that are entered.

When compared to manual calculations, you can save time. Once details such as the processing fee, rate of interest, tenure, and loan amount are entered, the total interest that is paid and the EMIs will be displayed immediately.

Documents Required for Central Bank of India Education Loan

The following documents are required to avail Central Bank of India Education Loan:

Salaried

1. Income Tax Returns (ITR) for the last two years.
2. Form-16.
3. Salary slips for the last three months.
4. Bank statements for the previous six months.

Non-salaried

1. ITR for two years.
2. Audited balance sheet.
3. Bank statements for the previous year.

Cent Vidyarthi Scheme

Cent Vidyarthi Scheme is one of the variants of education loan offered by the Central Bank of India. The details regarding the loan are as follows:

1. Eligibility Criteria: The student is required to be an Indian national. The student must secure admission into higher education courses in recognized institutions either in India or abroad through entrance test/merit-based selection process after completing HSC (10 plus 2 or equivalent studies).
2. Maximum Loan Amount: Rs.2 crores.
3. Required Margin: Zero margin for amount up to Rs.4 lakh. 5% margin for amount above Rs.4 lakh for courses in India. 15% margin for amount above Rs.4 lakh for courses abroad.
4. Repayment Tenure: The maximum period offered by the bank for all categories is 15 years after the moratorium period (Moratorium period is the course period + one year).
5. Required Security: For loans above Rs.4 lakh and up to Rs.7.5 lakh, the required security is mandatorily covered under the NCGTC Guarantee Scheme. For loans above Rs.7.5 lakh, parents/guardians must be joint borrowers. Collateral equivalent to the loan amount also should be submitted.
6. Incentive: The bank may provide 1% interest concession if the said interest is serviced during the study period and subsequent moratorium period, before the beginning of the repayment tenure.
7. Loan Disbursement: The loan will either be paid directly to the college/hostel/mess/airlines, etc. If satisfactory evidence is submitted, the loan amount will be disbursed directly to the borrowers.

Cent Vidyarthi for Executive MBA

The details regarding Cent Vidyarthi for Executive MBA education loan from Central Bank of India are as follows: 

1. Eligibility Criteria: The student must be an Indian national with a minimum work experience of two years in any Government, corporate or multi-national company  
2. The student should be at least 23 years old. 
3. The student must secure or at least receive an intimation of their selection into an Executive MBA programme in a reputed institution in India
4. Loan can either be sanctioned individually or jointly 

1. The maximum loan amount offered is Rs.40 lakh, with no margin and processing charge 

1. No security required. The bank, however, will assess the present as well as the future income of the student 

1. The repayments of EMIs will start three months after the completion of the course 

1. The maximum repayment period for loan amounts up to Rs.7.5 lakh is 8 years and 12 years for amount above Rs.7.5 lakh (excluding moratorium period)  

Cent Skill Loan

The details regarding the Cent Skill Loan provided by Central Bank of India are as follows: 

1. Eligibility Criteria: The student must be an Indian national and should have secured an admission in a course run or supported by the Government
2. The minimum loan amount offered is Rs.5,000 and the maximum loan offered is Rs.1.5 lakh 
3. The required margin is 5% 

1. Loan will be sanctioned jointly to the student and parent/guardian 

1. No collateral is required, and no processing fee is charged 

1. Loans up to Rs.50,000 the maximum repayment tenure is 3 years. For amounts above Rs.50,000 to Rs.1 lakh the repayment tenure is 5 years. For amounts above Rs.1 lakh, the repayment tenure is up to 7 years (Loans can be repaid in the form of EMIs after the moratorium period)  

1. The present Rate of Interest offered by the bank is 11.15% for low risk and 11.20% for medium risk category 

Cent Vidyarthi Loan for Students Pursuing MBA in IIMs and Other Premier Management Institutes

The details regarding the loan are as follows:

1. The loan can either be sanctioned individually or jointly with parents/guardian/spouse as joint borrowers 

1. The maximum loan provided by the bank is Rs.50 lakh 

1. No collateral is required. However, the bank will assess the future income of the student before sanctioning the loan 

1. No margin is required 

1. The maximum repayment tenure is 15 years after the moratorium period 

EMI Payment Methods 

The following are the EMI payment methods in Central Bank of India education loan: 

Standing Instruction (SI):

1. It is convenient for its target group of the Central Bank of India’s customers with an existing account. 
2. EMI amount is right debited from your Central Bank of India account towards the end of every month. 

Electronic Clearing Service (ECS):

1. For the particular district and for people who do not have Central Bank of India account. 
2. Like most installation plans, the EMIs are withdrawn from the account you provide at the close of every month. 

Post-Dated Cheques (PDCs):

1. Endorsed EMI cheques at the Central Bank of India Loan Centre from a non-Central Bank of India account only after the stipulated post dates. 
2. New PDCs must be delivered promptly to replace the old ones. 

Expenses Covered Under Central Bank of India Education Loans

The following are the list of expenses considered under various education loans offered by Central Bank of India 

1. College, School, and Hostel Fees
2. Examination, Library, or Laboratory Fees
3. Travel expenses or passage money for students pursuing courses abroad 
4. Insurance premium for the student borrower, if applicable
5. Caution deposit, building fund or refundable deposit are sanctioned if provided with institution bills or receipts 
6. Purchase of books, equipment, or uniforms 
7. Computer purchase at reasonable cost if required for the course  
8. Any necessary and reasonable expenses for academic and administrative purposes such as study tours, project work, thesis, etc. 
9. Loan Computation: To determine the necessary loan amount, to consider for any eligible scholarships, options for fee waiver, or other financial assistance

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