Corporation Bank

Overview


"Corporation Bank is a 110 years old bank, headquartered in the city of Mangalore, India. It is a public sector bank that offers a wide range of banking services to customers across the country. Corporation Bank Education Loan empowers students to secure their future and pursue educational courses of their choice in India or abroad. Low interest rates, simple application process, minimum documentation are some of the features that make education loans from Corporation Bank very popular with students in India."

Loan Interest Rates:


Loan Amount Interest Rate
Rs 4 lakhs or below 12.10%
Rs 4 lakhs - 7.50 lakhs 13.10%
Above Rs 7.50 lakhs 12.60%

Loan Eligibility:


Courses Eligible For Loan:
    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.
  • 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.
    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.

Documents Required:
  • Application form
  • Identity proof
  • College brochure stating the fee structure of the course
  • Proof of admission (admission or selection letter)

Candidate Education Loan Eligibility:
  • 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.

Processing Fees:
"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."

Expenses Covered under 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.

Loan Repayment:


Period Scheme
Repayment Period 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.
Moratorium period (repayment holiday) Duration of the course plus 1 year or 6 months after getting employed.

Security Required:


Loan Type Security Required
For loans up to Rs 4 lakhs No security apart from co-obligation of parents.
For loans of Rs 4 lakhs - 7.5 lakhs 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.

FAQs:


1.I am a working professional. Can I apply for an education loan from Corporation Bank for higher studies in India?
Ans. Yes, you can apply for a student loan if you pursue an approved evening course offered by a recognized institution, college or university.

2.Are there any prepayment charges for Corporation Bank Student Loan?
Ans. No, there are no prepayment charges for this student loan from Corporation Bank.

3.I have an education loan with another bank, can I transfer it to Corporation Bank?
Ans. No, take over or transfer of loans from other banks is not permitted under the Corporation Bank Education Loan Scheme.

4.Are there any concessions for physically challenged girl students?
Ans. Yes, physically challenged girl students get a concession of 1% on the interest rate charged for the loan.

5.Are LIC Policies accepted as collateral for the loan?
Ans. Yes, LIC Policies, deposits and government securities are accepted as collateral for the loan.