Central Bank Of India


"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."

Loan Interest Rates:

Type Interest Rate
Male Students Base Rate + 2.00%
Female, SC, ST & students admitted to IIM/IIT Base Rate + 1.50%

Base Rates Are:

Loan Eligibility:

Courses Eligible For Loan:
"Central Bank of India offers education loan for pursuing higher studies at educational institutions in India and abroad."
Documents Required:
  • 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.

Candidate Education Loan Eligibility:
  • 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.

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."

Expenses Covered under 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."

Loan Repayment:

"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 Required:

Loan Type Security Required
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.
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.


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?
Ans. 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.

2.Am I eligible for Central Interest subsidy scheme if I procure an education loan under management quota?
Ans. No. Education loans under management quota are not eligible for interest subsidy scheme of MoHRD.

3.Do I require a life insurance policy while applying for a loan?
Ans. 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.

4.What is the disbursal mode for Central Bank of India’s education loan?
Ans. 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.

5.Can I avail any interest concession on Central Bank of India education loan?
Ans. 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.