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Education Loan

Corp Vidya Scheme
This Corporation Bank loan scheme for education loans is offered to meritorious students who pursue professional course study in India and abroad. Corporation Bank education loans ensure that deserving students are not held back because of lack of finances. It helps them to complete higher education from recognized educational institutions in India and abroad.

  • The loan is granted to individuals who are keen to pursue higher education in India or abroad
  • The loan is offered in the form of a term loan
  • For  education in India, a loan of up to Rs. 10 lakhs is granted, while for studies abroad, the quantum is increased to Rs. 20 lakh
  • Loans which are up to Rs. 4 lakh do not have a margin requirement but loans of higher values do. The margin depends on where the education is taken. If in India, the margin is 5% and if abroad, the margin increases to 15% of the loan value.
  • Co-obligation of the parents would be required as a security for any amount of loan taken. For higher amounts of loans, the bank insists upon additional security. For loans above Rs. 4 lakhs and up to Rs. 7.5 lakhs, a suitable third party guarantee is required from an individual whose net worth is equivalent to the loan amount or higher. This guarantee acts as a collateral security. For loans higher than Rs. 7.5 lakh, a tangible collateral security would be required whose value would be equivalent to the amount of loan taken. Moreover, the student’s future earnings should also be assigned to the bank as additional security.
  • The loans would be secured by providing for the margin requirement
  • If the student is married, the co-obligant can also be the spouse, parents or parents-in-law
  • No processing fee would be charged if the student is pursuing higher education in India. If the education is taken abroad, a processing fee of Rs. 2,000 would be charged which would be refunded when the loan is sanctioned.
  • The loan can be prepaid anytime since there is no prepayment penalty chargeable on the loan
  • A moratorium period or a loan repayment holiday is allowed for  the borrower which would be equivalent to the course duration plus one year post the completion of the course
  • The tenure of loan is uniform and does not depend on the amount of education loan. The repayment tenure begins once the permissible moratorium period is over. It is a maximum of 15 years, irrespective of the location of study – India or abroad.
  • The scheme offers a loan for courses in India which yield a graduation or post graduation degree, diploma or post graduate diploma. Such courses should be conducted by institutes approved by AICTE, government, UGC, AIBMS, etc. It also covers professional courses like CA, integrated CA on virtual or video mode, ICWA, CFA, etc., courses run by IITs, IIMs, XLRI, IISc, NIFT, NID, etc., regular degree or diploma courses in the fields of aeronautical, shipping, pilot training, etc. It is applicable for courses that are taken  up in India and are approved by the Director General of Civil Aviation or Shipping, degree courses approved by universities or diploma courses approved by state bodies in the field of aircraft maintenance engineering or pre-sea training, degree or diploma courses run by institutes approved by the central or state government in teacher training, nursing or B.Ed., approved courses by foreign universities in India.
  • If studying abroad, the eligible courses include graduation courses which are professional and job-oriented and are offered by reputed universities, post graduation courses like MCA, MBA, MS, etc., specialized courses conducted by CIMA, London or CPA, USA, degree or diploma courses in the fields of aeronautical, shipping, pilot training, etc. which are recognized by competent authorities in India or abroad and provide a job in India or abroad, post graduation diploma courses
  • The expense which is considered under the loan  nclude college, school or hostel fees, fees payable for examination, library or laboratory, any related travel expense or passage money for studying abroad, cost of purchase of books, uniform or instruments, cost of the purchase of a computer if it is reasonable and pertains to the completion of the education, any other related costs like for thesis, study tours, etc.
  • The student availing the loan should insure himself with a life insurance policy

Corp Skill Loan Scheme

This is a student loan scheme where Corporation Bank vocational education and training loans are offered to students who want to pursue a select set of vocational education and training courses.


  • The Corporation Bank vocational education and training loan amount offered under this scheme is in the range of Rs. 5,000 and Rs. 1.5 lakh. It is provided in the form of a term loan.
  • There is no margin required for a loan for vocational education
  • Security in terms of co-obligation of parent(s) or grandparent(s) if the parents are not alive
  • Corporation Bank loan for vocational education and training does not entail processing and prepayment charges
  • The moratorium period for vocational education and training courses having a duration of up to 1 year is the course period plus 6 months. The moratorium period for courses which span more than 1 year is the course period plus 12 months.
  • Step-up EMI and balloon payment options are available for repayment of vocational education and training loans. A loan of up to Rs. 50,000 has to be paid within 3 years after the moratorium period. Similarly, a loan greater than Rs. 50,000 but up to Rs. 1 lakh has to be repaid in a maximum of 5 years. If the loan amount is greater than Rs. 1 lakh, it has to be paid within a period of 7 years.
  • The vocational education loan covers tuition and course fee. Corporation bank directly pays such fee to the training institute. The vocational training loan also covers any other reasonable expenditure required for the completion of the course. Examples of such expenses are assessment fee, examination fee, library charges, laboratory fee, caution deposit, cost of books purchased, cost of equipment and instruments, etc.

Corp Tutor Fee Scheme

The purpose of this Corporation Bank student scheme is to provide money for coaching and training for the entrance examination of professional courses. Funds are provided in the form of a short-term demand loan.


  • The amount of education loan offered under this Corporation Bank student loan scheme ranges from Rs. 20,000 to Rs. 2 lakh
  • The margin for this Corporation Bank education loan is 10% of the tuition fee of the coaching institute
  • In cases where the applicant’s salary or pension is routed through a Corporation Bank branch, no form of collateral security is required. However, a third party guarantee is mandatory. In those cases where the salary or pension is not routed through a branch, a loan amount of up to Rs. 25,000 is given without any collateral security. But, a suitable third party guarantee is still required. A suitable third party guarantee is a must for unsecured loans.
  • A Corporation Bank student education loan where the loan amount is greater than Rs. 25,000, the entire loan has to be fully secured by a collateral in the form of financial assets like National Saving Certificate (NSC), LIC policies, deposits, Kisan Vikas Patra (KVP), etc. after maintaining a uniform margin of 10% on such securities. No third party guarantee is required in such cases. However, in exceptional cases, immovable property with a margin of 25% on the value of the property may be necessary.
  • There are no prepayment charges. However, a processing charge of 0.50% of the loan amount, subject to a minimum of Rs. 500 is levied.
  • This Corporation Bank education loan has to be repaid within 2 to 3 years. There is no moratorium period. The repayment period cannot exceed the retirement age of a salaried borrower. Also, the EMI / notional interest of an existing loan and that of a proposed loan together cannot exceed 50% to 70% of the net income of the borrower.

Eligibility for Corp Vidya Scheme

  • The student seeking the loan should be an Indian national
  • He or she must have passed the previous qualifying examination which allows him/ her to pursue higher education for which the loan is sought
  • In that previous examination, the student should have secured at least 60% marks. If the student belongs to the SC/ ST category, the minimum percentage requirement is reduced to 55%.
  • The student must have secured admission to a higher education course through a merit-based selection process or an entrance exam or through management quota only after passing the HSC or 10+2 equivalent examination
  • The qualifications requirements for a loan for vocational education and training are determined by the educational institutions or organizations admitting students as per NSQF
  • There is no minimum course duration
  • Corporation Bank student education loan is offered to an iindividual who is the father, mother or spouse of the student. Such a person should have a regular verifiable income and sufficient funds to pay the tuition fee of his/ her son, daughter or spouse. If the person earns a salary, the repayment period cannot exceed his/ her retirement age.
  • The education loan eligibility criteria mandate that the coaching institute where the student intends to take coaching should be of repute. It should have been in existence and run satisfactorily for a period of at least 3 years.

Rate of Interest

The bank charges a floating rate of interest which is linked to the MCLR. Only simple interest is charged during the moratorium period. A discount of 25 bps is allowed to SC/ ST or women beneficiaries who avail of a loan, girl students can enjoy a discount on the interest rate at 50 bps. Physically challenged students earn a concession of 0.50% in the interest rate when they avail the loan.

The rate of interest for students is given below:

Quantum of Loan

Rate of Interest

Upto Rs. 7.5 lakh

MCLR + 2.00% = 11.50%

Loan above Rs. 7.5 lakh

MCLR + 2.35% = 11.85%

The effective rate of interest charged for loans for vocational and skill development courses is 11%. Simple interest is charged during the initial repayment holiday period.

The rate of interest on educational loans under this scheme is 11.9%. The floating rate of interest is linked to the Marginal Cost of Funds based Lending Rate (MCLR) and revised from time to time.

Applying for Education Loan

Corporation Bank student education loans can be availed in 2 ways – by way of online application and offline branch application. However, application to some student loan schemes can be done only by visiting the branch. Information for such schemes is available on the website.


For online application, one has to visit the website – www.paisabazaar.com .Hover the mouse icon over the ‘Personal’ tab, then choose the ‘Loans’ tab. It opens a page listing all types of loan schemes. Corporation Bank education loan schemes are also part of the list. Click on the ‘apply Online’ tab. This leads to a new page which essentially is a loan application form. One has to enter personal, income and loan details. After filling in the details, it will give an approximate EMI of the loan. If satisfied, the applicant can submit the form and complete the application process. The bank then reviews the application and sanctions the loan, if found satisfactory.


In the case of offline mode, one has to visit a Corporation Bank branch. After completing the loan application form, one has to submit it along with required loan documents and educational documents. The bank reviews the application and if found satisfactory, the loan is sanctioned.


Checking the Status of Loan Application

One can find out the status of the Corporation Bank education loan online by visiting the website of the bank. For this, one has to click on the ‘Know Your Online Loan Application Status’ hyperlink present on the ‘Loans’ page. This opens a new page where the applicant’s loan reference number and the mobile number have to be entered. On submission, it displays the status of the applied loan.