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Central Bank of India Education Loan

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Fees & Charges

Promised Interest Rate

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Responsiveness

Overview:

Central Bank of India was established in 1911 and was the first commercial bank in India to be wholly managed by Indians. Central Bank of India caters to a diverse clientele by offering banking and financial services including agri banking, MSME services, deposits, loans and NRI banking. Education loans offered by Central Bank of India, CentVidyarthi, empowers meritorious students to pursue a professional course of their choice without money being a constraint.

Features and Benefits of Central Bank of India Education Loan:

Central Bank of India offers education loan for pursuing higher studies at educational institutions in India and abroad. The following are the features of Central Bank of India education loan.

  • Expenses considered for Central Bank of India Education Loan
  • The expenses that will be covered under the loan will include the fees payable to college, hostel fees. Examination & laboratory fees, travel expenses & passage money for studies abroad, caution deposit, building fund or refundable deposits with bills, cost of books, equipment & instrument costs. Any other expenses required to complete the coursework like study tour costs, project work cost will also be covered. The scholarships and fee waivers available to the student will be taken into account while computing the loan required.
  • Amount of Education Loan
  • A maximum loan amount of Rs.10 lakh is offered for studies in India. For studies abroad, the loan amount is capped at Rs.20 lakh. However, regional managers can consider higher loan quantum depending on the course basis and subject to condition that the loan amount should be backed by 100% collateral security.
  • Interest Rates

    Borrower Type

    Interest Rate

    Male Students

    Base Rate + 2.00%

    Female, SC, ST & students admitted to IIM/IIT

    Base Rate + 1.50%

  • Processing Fees
  • Central Bank of India charges no processing fees and upfront charges for education loans in India. For studies abroad, a fee of Rs. 500 is charged for loan amounts up to Rs.10 lakh. For loan amount exceeding Rs.10 lakh, a fee of Rs.1000 will be levied. The fees will be refunded within 6 months of the loan being sanctioned.
  • Repayment Tenure
  • The repayment of Central Bank of India Education Loan will commence 12 months after the course completion or 6 months after securing a job, whichever is earlier. For loans up to Rs.7.50 lakhs, the maximum repayment period is 10 years. The maximum repayment tenure is 15 years for loans above Rs.7.50 lakh. The repayment is done on easy monthly instalment basis.
  • Security
  • For loans up to Rs.4 lakhs

    Parent or guardian is to be the joint borrower for the loan. Also, the future income of the student is to be assigned to the branch for payment of loan instalments.

    For loans above Rs.4 lakhs and up to Rs.7.5 lakhs

    Besides parents or guardian being the joint borrower and assignment of income, a third-party security will be taken as collateral security. If satisfied with the net-worth of the joint borrower, the bank manager may waive off the security.

    For loans above Rs.7.5 lakhs

    Parent or guardian should be the joint borrower and future income of the student is to be assigned to the branch. Also, a tangible collateral security of minimum value equal to the loan amount is to be made.

  • Margin
  • For loans up to Rs.4 lakhs, there is no margin. For loan amounts above Rs.4 lakhs, the margin is 5% for studies in India and 15% for studies abroad.

Eligibility & Documentation for Central Bank of India Education Loans

In order to be eligible for Central Bank of India education loan, the applicant must satisfy the following conditions.

  • The applicant should be an Indian National.
  • The applicant should have secured an admission to a professional course in approved institutions in India or abroad through a merit based selection process after completion of SSC or HSC.
  • When there is no merit based selection process involving an entrance test and the admission is based on marks secured in qualifying examinations, the applicant must have scored at least 50% mark in the qualifier test.
  • In cases where an entrance exam or a qualifying exam is not the criteria for admission (ex- research programs), the loan eligibility is based on the employability and reputation of the institution.

The following documents will be required to procure an education loan from the Central Bank of India.

  • Address Proof like Utility bills, Ration card, Voter ID
  • Identity proof like PAN Card, Voter ID, Passport
  • Income documents like income tax return statements, salary slips and income proof as authorized by a CA, Form 16 and Form 60
  • Educational documents like HSC and SSC certificates, mark sheet etc.,

Do ask the bank about the complete set of documents that are required for your course to avail an education loan.

Interest Subsidy Scheme for Education Loan:

For students from economically weaker sections with gross annual income of parents not more than Rs.4.50 lakhs, the ministry of HRD has come with an interest subsidy scheme. Under this scheme, interest subsidy is provided for 12 months after the completion of course or six months after securing a job, whichever is earlier.

Some salient features of this scheme are as follows.

  • This interest subsidy scheme is available to the eligible students only once whether for the first undergraduate course or the postgraduate course in India.
  • This scheme cannot be availed by students who discontinue the course midstream or who are expelled from the university on disciplinary or academic grounds.
  • If the discontinuation is due to medical reasons, relevant medical documents has to be submitted to avail the benefits of this scheme.
  • The maximum eligible loan amount to avail the central scheme for interest subsidy on education loans is Rs.10 lakhs.

Central Bank of India Education FAQs:

  1. I have secured admission to a profession course under the Management Quota as offered by the college. Can I avail Central Bank of India’s education loan?
  2. Yes. Education loans under management quota are considered based on the employment potential and the reputation of the institution. Also, it should be ensured that the student has the financial resources to meet the funding gap between management seats and government approved fees structure.
  3. Am I eligible for Central Interest subsidy scheme if I procure an education loan under management quota?
  4. No. Education loans under management quota are not eligible for interest subsidy scheme of MoHRD.
  5. Do I require a life insurance policy while applying for a loan?
  6. Yes. You need to have a comprehensive life insurance policy equivalent to the loan amount for a minimum period covering the loan term, course term and moratorium period. The insurance policy should be assigned in favour of the bank.
  7. What is the disbursal mode for Central Bank of India’s education loan?
  8. The payment will be directly disbursed to the college, mess or airlines on submission of original receipts. Only in selected cases, the disbursement will be made to the borrowers subject to suitable evidence.
  9. Can I avail any interest concession on Central Bank of India education loan?
  10. Yes. 1% interest concession is offered by the bank during the study period if the interest is serviced during the same period and moratorium period before the commencement of repayment.

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Central Bank of India Education Loan Reviews

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  • Central Bank of India Education Loan
    "Not satisfactoy"
    CENTRAL BANK OF INDIA
    0.5 3.0/5 "Satisfactory"
    Long back, I have taken a Educational loan for my college studies in Central Bank of India which was closed. This is the one bank where I get this help, their services are not good. They don't have online facility every time I need to visit the branch. The staffs are not helping the customer in a good manner. The interest rate is low.
    Was this review helpful? 1
    , bangalore
    Reviewed on Sep 09, 2019
  • Central Bank of India
    Central Bank of India Education Loan
    "Good"
    CENTRAL BANK OF INDIA
    0.5 4.0/5 "Great!"
    I have taken a educational loan in Central Bank of India couple of years back and am paying the yearly premium approx 1.5L through online. The interest rate is affordable and no charges for processing. The customer service and response was very good. They processed the loan immediately and there was no hassle.
    Was this review helpful? 4
    , mumbai
    Reviewed on May 04, 2019
  • Central Bank of India Education Loan
    "Good for education"
    CENTRAL BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    I do have education loan with Central Bank of India, the experience was good. I studied in reputed college hence the service was door step. The bank response is some what lacking, they need to improved. I took the principal amount of Rs. 6.80 lakhs, the interest rate is very less compared to all.
    Was this review helpful? 2
    , bangalore
    Reviewed on Apr 22, 2019
  • Central Bank of India Education Loan
    "Best Service"
    CENTRAL BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    I have taken an education loan with CBI and my experience was good, the loan amount was based on my requirement and the rate of interest was nominal when compared to others. Customer service was good with CBI and tenure period for this loan is 5 years.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 08, 2019
  • Central Bank of India Education Loan
    "Need improvement on process"
    CENTRAL BANK OF INDIA
    0.5 3.5/5 "Pretty good"
    Central Bank of India interest rate was very flexible, the loan process very inconvenient, I kept visiting to the bank with different documents, they taken lots of time finally it got processed. The process is slow they need to improve on that part.
    Was this review helpful? 4
    , hyderabad
    Reviewed on Dec 07, 2018
  • Central Bank of India Education Loan
    "Good service"
    CENTRAL BANK OF INDIA
    0.5 4.0/5 "Great!"
    I have taken an Education loan with Central Bank of India and my experience was good, the processing time was nominal and i received my loan amount on time. Customer service was good with this bank. Loan amount was for Rs 1.84 lacs with nominal interest rate and tenure period is 10 years.
    Was this review helpful? 2
    , thane
    Reviewed on Nov 26, 2018
  • Central Bank of India Education Loan
    "Good service"
    CENTRAL BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    I have educational loan from CENTRAL BANK OF INDIA , the services and process was good with this bank . They provide nominal rate of interest and processing fee was good . The tenure period is 25year and they gave foreclose option but they charge on that .
    Was this review helpful? 2
    , bangalore
    Reviewed on Oct 04, 2018
  • Central Bank of India Education Loan
    "Best Service"
    CENTRAL BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    I have taken education loan from Central bank of India . Am satisfied with promising rate of interest with nominal processing fees . They instantly approved the loan i am not sure about the tenure period . , Am satisfied with their customer service and response as they approved in 10 days .
    Was this review helpful? 1
    , bangalore
    Reviewed on Aug 06, 2018
  • Central Bank of India Education Loan
    "Excellent Service"
    CENTRAL BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    The process in getting this loan had been simple and has been easy. The services which they had been providing had been excellent and the interest rate with them had been less and there has not been any hassle faced with the banking services of them. Their staff and the customer support had been very good.
    Was this review helpful? 5
    , hyderabad
    Reviewed on Jul 13, 2018
  • Central Bank of India Education Loan
    "Good service"
    CENTRAL BANK OF INDIA
    0.5 4.0/5 "Great!"
    I have taken Education Loan from Central Bank of India and my loan experience was good. I am not sure about the loan amount but the rate of interest was nominal when compared to other banks. The tenure of this loan is 7 years, documents were collected on time. There was no issues with the customer service, it was good and they responded on time.
    Was this review helpful? 5
    , kolkata
    Reviewed on Dec 05, 2017
  • Central Bank of India Education Loan
    "Its Good"
    CENTRAL BANK OF INDIA
    0.5 4.0/5 "Great!"
    Central Bank of India gave me 11.60% of Education loan for my under graduation, I took the loan of Rs. 1.80 lakh for the tenure of 10 years. They disbursed the loan amount every semester their documents process was very simple and easy. Now EMI is going well without any hassles.
    Was this review helpful? 2
    , ludhiana
    Reviewed on Nov 07, 2017
  • Central Bank of India Education Loan
    "Fast process"
    CENTRAL BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    Central bank helped me lot on my studies, they gave me demand draft to make payment to my college. Interest rate was very high. I took the loan amount of Rs.2.5 lakhs with the tenure of four years and then I closed my loan on 2014, then I got my NOC from them.
    Was this review helpful? 8
    , indore
    Reviewed on Apr 26, 2017
  • Central Bank of India Education Loan
    "Wonderful"
    CENTRAL BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    I have closed the education loan with the Central bank of India and the interest rate was okay for me. Response was a good one with them, also they are having enough number of branches. I have don't the foreclosure for this loan.
    Was this review helpful? 9
    , pune
    Reviewed on Mar 24, 2016
  • Central Bank of India Education Loan
    "Not recommended"
    CENTRAL BANK OF INDIA
    0.5 2.0/5 "Expected more"
    I have closed the educational loan with the Central bank of India and the interest rate was around 12%. The services were average with them because there is no transparency and the customer service is not flexible with them.
    Was this review helpful? 10
    , mumbai
    Reviewed on Jan 21, 2016
  • Central Bank of India Education Loan
    "Fair enough"
    CENTRAL BANK OF INDIA
    0.5 4.0/5 "Great!"
    CENTRAL Bank educational loan is fine. Grace period was for a period of 2 years. After 3 years I have repaid the loan completely. This loan is closed. My feedback would be , I had to submit lot of mortgage documents for availing this loan and I had to speak with lot of seniors and for repayment Government has provided a discount on interest for the loan which was taken before 2010.
    Was this review helpful? 4
    , mumbai
    Reviewed on Dec 01, 2015
  • Central Bank of India Education Loan
    "My experience with Central Bank"
    CENTRAL BANK OF INDIA
    0.5 4.0/5 "Great!"
    I had no other go , as I did not get loan from any other bank I was forced to accept the offer from Central bank for the educational loan. I had submitted my parents documents like pay slip and other documents. I did not submit any collateral security for availing this loan., I have got any closure letter and NOC for this loan.
    Was this review helpful? 9
    , nagpur
    Reviewed on Oct 07, 2015
  • Central Bank of India Education Loan
    "Awesome..."
    CENTRAL BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    Pretty easy it was to avail the education loan and I closed the loan very recently. I havenâ??t faced any challenges with Central Bank of India as they just asked for school documents. I was told that the interest would be calculated once I complete the graduation and that too waived off by government so I paid only the outstanding amount. Interest is very less here for any loans.
    Was this review helpful? 5
    , bangalore
    Reviewed on Oct 07, 2015
  • Central Bank of India Education Loan
    "Pretty good.."
    CENTRAL BANK OF INDIA
    0.5 3.5/5 "Pretty good"
    Would like to say customer service of Central Bank of India as good. As they are nationalized bank so they are sanctioning educational loan with low interest rate. Depending on the loan amount, the bank is reducing the sanctioning amount. Infact they are sanctioning only 65% where it should be given like 90% because all the people cannot pay from their own hands. Foreclosure charge is nil. I would like to thank Central Bank of India for sanctioning the loan amount.
    Was this review helpful? 12
    , hyderabad
    Reviewed on Jul 16, 2015
  • Central Bank of India Education Loan
    "education loan needs to be improved in a better way"
    CENTRAL BANK OF INDIA
    0.5 3.0/5 "Satisfactory"
    I got the educational loan with central bank of india .I got it at the time of 2010.It was a good experience and I gave the collateral copies but that is not necessary.Its hard to take the loan with government banks but my friend who was working there so I got the help from him.
    Was this review helpful? 13
    , new delhi
    Reviewed on May 22, 2015
  • Central Bank of India Education Loan
    "Poor!!!!"
    CENTRAL BANK OF INDIA
    0.5 4.0/5 "Great!"
    Central bank of India is not giving proper response to customers as every time customer have to visit the branch office to get things done. Fee structure for educational loan are very high as it is above 13%. Documentation process was less but the issue is that they are not introducing the government rules immediately where they are very slow on implementing so it should be taken care.
    Was this review helpful? 13
    , pune
    Reviewed on Mar 14, 2015
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