Study Material: Educational Loan .:: Corporation Bank: Corp Vidya

Eligibility of the Student

Student should be an Indian national.
Should have completed previous qualifying examination.
Secured admission to Professional/ Technical courses in India or abroad through Entrance test / Merit based selection process/ Management quota.
Person already in gainful employment not eligible for loan under the scheme except for pursuing evening course covered under the scheme of approved Institute.
If a gainfully employed person wants to pursue full time education either on study leave or by resigning from present employment, such proposals may be considered provided the applicant submits the proof in this regard to the sanctioning authority before disbursement of loan.

Courses for studies abroad: Graduation:
For job oriented Professional/Technical courses offered by reputed universities & Commercial Pilot / Shipping training course.
Post Graduation:
MCA, MBA, MS etc. Course conducted by CIMA- London, CPA in USA etc.

Other Courses Eligible

Other courses eligible for financial assistance under the scheme should be conducted by the Colleges/ Universities/ Institutions, which are either recognized by the Govt /affiliated to University/ Deemed University or conducted by Autonomous Institutions, like IIT. IIM, etc., or approved by AICTE/ Accredited to Dept of Electronics, Govt of India, courses offered by reputed Universities/ Institutions abroad.
Correspondence courses /Part time /Certificate /Short duration /Vocational training/ Skill development study courses are strictly not eligible for finance under the scheme.

Eligible Expenses

Fee payable to College/School/Hostel /Examination/ Library/ Laboratory/ Purchase of Books/ Equipments/ Instruments/ Uniforms/ Caution Deposit/ Travel expenses/Passage money for studies abroad.
Purchase of computer if essential for completion of course. Confirmation/ recommendation letter from the College/Institution need not be insisted. However, the Branch should consider computer as a part of cost of study, based on the merits of each case.
Hostel fees/expenses considered as an eligible item for finance under the Scheme. Payment of hostel fees will be made directly to the hostel authorities.
In exceptional cases if the student does not get the hostel accommodation due to limited hostel rooms and is required to stay in private accommodation or paying guest accommodation, reasonable amount of lodging and boarding expenses will be considered.
Payment towards accommodation and food will be made directly to the student subject to the condition that the student should declare about the non-availability of accommodation in college hostel supported by a letter from college to this effect and that the student should not be a resident of that place.
Other expenses required to complete the course – like study tours, project work, thesis etc.
Insurance premium for life of student borrower.
Building fund/refundable deposit supported by institution bills/ receipts are Not eligible.

Quantum of Loan

Studies in India - Maximum upto Rs. 10 lakhStudies Abroad - Maximum upto Rs. 20 lakh
Margin
Upto Rs. 4 lakh - Nil
Above Rs. 4 lakh - Studies abroad 15%
Security

Up to Rs. 4.00 Lakh : Co-obligation of Parent/s, Grand Parent/s ( if parents are deceased). No other security.
Above Rs. 4.00 Lakh & up to Rs. 7.50 Lakh : Co obligation of Parent/s Grand Parent/s (if parents are deceased) together with collateral in the form of suitable third party guarantee.
Above Rs. 7.50 Lakh : Co-obligation of Parents/Grand Parents ( if Parents are deceased) together with tangible collateral security along with the assignment of future income of the student for payment of instalments. The loan to be fully secured after maintaining prescribed margin on respective securities.
In case of married person, co obligant can be either spouse, or the parents or parents -in-law.

Security- Margin
Margin for various type of securities is as under:
Immovable property: 35%
Govt Securities ( face value of NSC/KVP etc..) : 25%
LIC Policy ( Surrender Value) : 10%
Deposits ( Balance outstanding) : 10%

Rate of interest
Applicable for fresh loans sanctioned/ initially disbursed on or after 14.08.2009 :
Upto Rs. 4.00 Lakh 11.65%
Above Rs. 4 Lakh & Upto Rs. 7.50 Lakh 12.65%
Above Rs.7.50 Lakh 12.15%

Repayment
The loan to be repaid within a period of 7-10 years after completion of repayment holiday.
Repayment holiday is course period + 1 year OR 6 months after getting the job whichever is earlier.

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