With effect from 1 April 2020, Corporation Bank has been merged into Union Bank of India.
Corporation Bank Education Loan Interest Rates
The maximum loan amount offered is Rs.10 lakhs for pursuing courses in India and Rs.20 lakhs for pursuing courses abroad.
Corporation Bank Education Loan interest rates are as follows:
|Corp Vidya||Loan amount up to Rs.7.5 lakh including education loans under vocational and skill development courses||10.40% p.a.|
|Corp Vidya Plus||
- 12.10% for loan amounts of Rs 4 lakhs or below
- 13.10% for loan amounts of Rs 4 lakhs – 7.50 lakhs
- 12.60% for loan amounts above Rs 7.50 lakhs
Only simple interest is charged during the repayment holiday or moratorium period.
Girl students get a concession of 50 bps on the interest rate (which includes 25 bps for SC, ST and women students) for all education loans. Physically challenged students get a concession of 0.50% for all education loans.
There are no processing fees for pursuing courses in India but for pursuing courses abroad, there is a processing fee of Rs 2,000 which is refunded when the loan is availed.
For loan amounts of Rs 7.50 lakhs or below, the repayment tenure is fixed at 10 years, excluding the moratorium period.
For loan amounts above Rs 7.50 lakhs, the repayment period is fixed at 15 years, excluding the moratorium period.
Repayment tenure of up to 15 years regardless of loan amount is offered.
Moratorium period (repayment holiday)
Duration of the course plus 1 year or 6 months after getting employed.
For loans up to Rs 7.5 lakhs
No security apart from co-obligation of parents
For loans above Rs.7.5 lakh
Suitable 3rd party guarantee or collateral equivalent to the loan amount along with co-obligation of parents is required as security.
For loans above Rs 7.5 lakhs
Security in the form of tangible collateral, co-obligation of parents and the assignment of the student's future income for making the instalment payment is required.
There is no margin for loans up to Rs 4 lakhs. For loans above Rs 4 lakhs, the margin is 5% for pursuing courses in India and 15% for pursuing courses abroad.
Corporation Bank Education Loan Eligibility and Documentation
Corporation Bank Education Loan eligibility criteria are as follows:
- The student should be a citizen of India
- The student should have cleared all qualifying examinations
- The student should have secured minimum 60% marks (55% for SC/ST students) in the qualifying examinations.
- The student should have completed HSC or its equivalent qualification.
- The student should have been admitted to a recognized college, institute or university in India or abroad.
The following documents are required to apply for Corporation Bank Education Loans:
- Application form
- Identity proof
- College brochure stating the fee structure of the course
- Proof of admission (admission or selection letter)
Corporation Bank Education Loan Eligible Courses
For Study in India:
- Graduate / post graduate diploma and degree courses offered by institutes, colleges or universities recognized by Government/UGC/CMR/AIBMS/AICTE etc.
- ICWA, CFA, CA (regular and integrated) courses etc.
- Courses that are conducted by IIMs, XLRI, NID, NIFT, IITs, IISc etc.
- Government approved degree and diploma courses in the field of Civil Aviation, Aircraft Maintenance, Pre-sea training etc. (in India)
- B.Ed, Nursing and teachers training courses (only degrees and diplomas) offered by institutions that are recognized by State Governments or the Central Government.
- Courses offered by recognized foreign universities in the country.
- Vocational and skill development courses
PhD, research courses, correspondence, off-campus, part time, partnership and certification courses are not eligible for this loan.
For Study Abroad:
- Job-oriented technical/professional graduate courses and postgraduate courses like MBA, MS, MCA etc. offered by recognized universities abroad.
- Courses that are conducted by CPA, USA and CIMA, London etc.
- Approved degree and diploma courses in the field of Civil Aviation, Shipping, Pilot Training etc. (in India or abroad)
PhD, research courses, PG diploma and diploma courses offered by foreign universities are not eligible for Corporation Bank Student Loan.
Expenses Considered for Corporation Bank Education Loan
The expenses considered for the education loan from Corporation Bank include:
- School, college, examination, hostel, laboratory and library fee
- Travel expenses and passage money when studying abroad
- Purchase of equipment, books, uniforms, instruments, computer (purchased at reasonable price)
- Expenses involving study tours, thesis, project work etc. under the maximum limit permitted by the loan scheme.
Please note that caution or refundable deposit, building funds are not considered even if they are supported by relevant receipts.
I am a working professional. Can I apply for an education loan from Corporation Bank for higher studies in India?
Yes, you can apply for a student loan if you pursue an approved evening course offered by a recognized institution, college or university.
Are there any prepayment charges for Corporation Bank Student Loan?
No, there are no prepayment charges for this student loan from Corporation Bank.
I have an education loan with another bank, can I transfer it to Corporation Bank?
No, take over or transfer of loans from other banks is not permitted under the Corporation Bank Education Loan Scheme.
Are there any concessions for physically challenged girl students?
Yes, physically challenged girl students get a concession of 1% on the interest rate charged for the loan.
Are LIC Policies accepted as collateral for the loan?
Yes, LIC Policies, deposits and government securities are accepted as collateral for the loan.