Central Bank of India Cent Vidyarthi Education Loan Scheme
The Cent Vidyarthi Education loan helps students who want to pursue higher studies in India and abroad afford the cost of the course and related expenses. Students can avail of a loan of Rs. 10 lakh and Rs. 20 lakh to pursue higher education in India and abroad respectively. Maximum ceiling for the loan has not been defined since the bank offers loans of higher amount if the loan is secured by 100% collateral security.
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Features of Cent Vidyarthi Education Loan Scheme for Pursuing Higher Studies in India and Abroad
Why this Loan?
- The loan is meant to help students fulfil their dreams of pursuing higher education in India or abroad
- The loan is disbursed as a series of payments over the required number of years and not as a lump sum
- This is one of the few education loan products in which the loan can be disbursed to the borrower as opposed to directly to the institute. However, the borrower must present satisfactory evidence and original receipts to avail this facility
- The loan can be taken for all institution fees as well as related expenses including purchase of books, laptops, hostel fees, lab fees, examination fees, etc. In short, all expenses required to complete the course undertaken can be met with this Central Bank of India study loan
- The maximum loan amount for pursuing higher education in India is defined as Rs. 10 lakh whereas for studying abroad, it is Rs. 20 lakh. However, the bank may approve a higher loan amount if the loan is coupled with 100% collateral security. It is decided on a case-to-case basis
Apply for your international education loan without any worries
- The effective interest rate for this loan is 9.00% for male students and 8.50% for female students
- Interest is payable even during the moratorium but no loan principal amount needs to be paid during this time. You can avail a concession of 1% for the prompt repayment of interest during the moratorium period
- The moratorium period for this loan scheme is course period plus 12 months after the completion of the course or 6 months after securing a job, whichever is earlier
- Loan up to Rs. 7.5 lakh: The loan amount for each year is payable in equated monthly instalments up to a period of 10 years after the end of the moratorium period
- Loan Above Rs. 7.5 lakh: The loan amount for each year is payable in EMIs up to a period of 15 years after the end of the moratorium period
- This means that you pay only interest during the moratorium period and then, EMIs every month until the complete repayment of the loan
- Loan up to Rs. 4 lakh: Parents must be co-borrowers of the loan. Assignment of future income of the student is also required. No collaterals mandatory
- Loan from Rs. 4 lakh to Rs. 7.5 lakh: Parents must be co-borrowers of the loan. Assignment of future income of the student is also required. And, collateral security in the form of their-party guarantee is required
- Loan Above Rs. 7.5 lakh: Parents must be co-borrowers of the loan. Assignment of future income of the student is also required. And, tangible collateral security with value matching or exceeding the loan amount is mandatory
- The applicant must be a resident Indian national (Indian citizens who have stayed in the country for over 180 days in the last financial year)
- The student must have secured admission into a higher education course at a recognised institute in India or abroad after an entrance test or merit-based selection process
- In cases there are no entrance test or merit-based selection processes, with admission purely based on the marks scored in qualifying examinations, then students should have scored minimum 50% marks in the qualifying examination. There is a 10% relaxation for SC/ST candidates
Margin (Borrower’s Contribution to the Total Cost)
- Loans up to Rs. 4 Lakh: The borrower does not have to offer any margin money to get the loan
- Loans above Rs. 4 Lakh to Study in India: The borrower must offer 5% of the loan amount as margin money to get the loan. Scholarship may be included in margin
- Loans above Rs. 4 lakh to Study Abroad: The borrower must offer 15% of the loan amount as margin money to get the loan. Scholarship may be included in margin
Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a house costs Rs. 40 lakh in which case the borrower usually has to provide a margin money percentage of 15-25% of the total house value while the lender bank offers the rest.
Processing and Other Charges
- Study in India: There are no processing or documentation charges are levied on Central Bank of India Cent Vidyarthi Education loan
- Study Abroad: As an applicant, you have to pay Rs. 500 for loan amount of up to Rs. 10 lakh. For loans above Rs. 10 lakh, the payable processing charges are Rs. 1,000. The processing charges are refunded when the loan is availed by the borrower within 6 months from the date of sanction
Other Features to Know
- The Cent Vidyarthi Loan is granted jointly with the parent/guardian (co-borrower) of the applicant
- The bank may ask the borrower to submit progress report during the course
- The loan is disbursed directly to the school, book seller or publisher, computer seller, and so on and not to the applicant(s). If satisfactory evidence is provided, the bank may disburse the loan to the borrower subject to the submission of original receipts
Before we continue, just to let you know that the content on this page is supported by Zintego Receipt Maker.
- Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
- Two Passport Size Photographs of student, applicant and/or guarantor
- Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
- Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
- Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
- Admission Letter, Course Details and Prospectus
- Fee Details with Demand of Fee by the Institution
- All Proofs of Past Academic Record including Mark Sheets and Certificates
Apply for your international education loan without any worries
- Central Bank of India Website: www.centralbankofindia.co.in and www.centralbank.net.in (net banking)
- Headquarters: Mumbai, Maharashtra
- Call Centre Toll-Free Number: 1800 22 1911, 1800 110 001, 1800 180 1111