Central Bank education loan

Established in 1911, Central bank was the first bank wholly managed and owned by Indians. In line with the guidelines from RBI, Central Bank has been playing an increasingly important role in promotion of agriculture, small scale industries as also medium and large industries. Providing loans for education has also been on the priority list of the Bank since a long time.

 Interest Rates

The interest rate is fixed at (base rate + 2%) for all loan amounts.

Charges

Other allied charges have not been disclosed on the website.

Flexibility

• Eligibility: To avail the education loan from Central Bank, the student should be an Indian citizen having a secured admission to professional / technical courses, through entrance test/ selection process.

• Loan Amount: The maximum amount sanctioned under educational loan would go up to Rs 10 lakh for studies in India and Rs 20 lakh for studies abroad. Computers purchased from the loan amount will be hypothecated with the bank.

• Repayment options:

1. Repayment to commence 12 months after completion of studies or 6 months after securing job, whichever is earlier.
2. The maximum period of repayment can go up to 5-7 years.

• Margin is the percentage of study cost that borrower has to pay. There is no margin applicable for loan amount up to Rs 4 lakh; whereas for loans worth above Rs 4 lakh, 5 per cent of the study cost has to be paid by borrower for studying in India, and 15 per cent for studying abroad. Scholarship, if any, may be included in the 15 per cent amount.

• Time taken for processing: The bank will take around 7 to 10 days to process your application and revert back on the status of the same.

• Security:

1. Co-obligation of parents/ guardian/ parent-in-law/ spouse will work for loan of up to Rs 4 lakh.
2. Co-obligation of parents/ guardian/ parent-in–law/ spouse along with the collateral security in the form of suitable third-party guarantee will be applicable for loans between Rs 4 lakhs and Rs.7.50 lakhs.
3. Co-obligation of parents/ guardian/ parent-in–law/ spouse along with tangible collateral security of suitable value, and the assignment of future income of the student for payment of installments will be taken as security for loans worth more than Rs 7.5 lakhs.

• Special options: One per cent interest concession will be given, if the interest is serviced during study period, i.e., repayment holiday. Interest is calculated at simple basis during repayment holiday/ moratorium period. In addition, half per cent rebate will be given on interest rates to women applicants, SC and ST applicants, and applicants having secured admission to IITs and IIMs.

Example

Other Details

• Pre-Sales Information: The website does not contain detailed information about the terms and conditions applicable to the loan. Charges, other than the processing fee, have not been disclosed. Apart from this, the documents required to apply for loan are not mentioned on the website. You can download the forms from the website and have to visit the branch nearest to you to apply for loan.

• Customer Support: Customer care numbers, dedicated to loan customers, have not been mentioned on the website. In case you have complaints, you can fill the online form available and get in touch with the bank authorities.    

Documents Required

Not disclosed on the website.

Ratings