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MALVIYA NAGAR, NEW DELHI 110017
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Product Brochure
May 27, 2017

Education Loan from Central Bank of India

Cent Vidyarthi is Education Loan offered by Central Bank of India. They
want to offer an opportunity to the students in India so that they can pursue
higher studies in India and Abroad.

Cent Vidyarthi is a Term Loan. It means you will have to repay the loan amount in a
specific time period. Repayment period is upto 10 years for Loan upto Rs.7.50
Lakhs and 15 years for loan above Rs.7.50 Lakh. And, repayment period excludes
Course Period and Repayment Holiday or Moratorium Period.

Under Cent Vidyarthi Scheme, you need to start repaying your loan once
your Repayment Holiday or Moratorium Period expires. this holiday period is 12
months after completion of studies or 6 months after securing job, whichever is
earlier.

Eligibility for Education Loan i.e.Cent Vidyarthi:

You should be an Indian National.
 Also, you should have secured admission to a higher education course in
recognized institutions in India or Abroad through Entrance Test or Merit
Based Selection process after completion of HSC i.e. 10 plus 2 or equivalent.
And, where there is no entrance test or merit based selection process; and
admission is purely based on the marks scored in qualifying examinations; in
such cases, the student should have scored minimum 50% marks in
qualifying examination. In addition, 10% relaxation for SC or ST categories.

Expenses considered for Education loan:

Fee payable to college, school and hostel
Examination/ Library/ Laboratory fee
Travel expenses/ passage money for studies abroad
Insurance premium for student borrower, if applicable
Caution deposit, Building fund/refundable deposit supported by
Institution bills/receipts.
Purchase of books/ equipments/ instruments/ uniforms
Purchase of computer at reasonable cost, if required for
completion of the course
Any other expense required to complete the course like study
tours, project work, thesis, etc.
While computing loan required, scholarships, fee waiver etc., if any
available to the student borrower may be taken into account

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Maximum loan
amount:
Rs. 10 lakh for studies in India.
Rs. 20 lakh for studies abroad.
The ceilings fixed for studies in India and abroad correspond to the limits
fixed by the RBI for treatment as priority sector lending.
And, most of all, there is no maximum ceiling if loan amount secured by
100% collateral security.

Margin:
Upto Rs. 4 lakhs: NIL,
In India Above Rs. 4 lakhs: 5% Margin
In Abroad Above Rs. 4 lakhs: 15% Margin
(Scholarship may be included in margin.)

Rate of Interest:

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While, for male students, rate of interest is MCLR + 2.00%; for female students,
its MCLR + 1.50%. For latest rate of interest, please contact bank.

Incentive
:
Bank may provide 1% concession on interest during the study period,
if you have serviced the interest during your study period; and subsequent
moratorium period before the repayment starts.
During your Repayment Holiday / Moratorium Period, Simple Interest is
applied. From the due date of first installment, Compound Interest will be
applicable.

Disbursement:
Fees goes direct to your college / hostel / mess / airlines etc. In
appropriate cases disbursement of fees can be made to borrowers subject to
satisfactory evidence. You need to submit the original receipts in the bank
once you pay the fees to your institution.

Security for Education Loan:

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 Upto Rs 4 lakhs : Parent(s)/guardian must have to be the joint borrower(s). You
will have to Assign your future income for payment of loan installments;
and, since the loan amount is upto 4 lakh, so you dont have to give any
security.
Above Rs.4 lakhs and upto Rs7.5 lakhs : Here, the Parent(s)/guardian must have
to be the joint borrower(s); and you also need to provide a collateral security
in the form of suitable third party guarantee. In addition, you will have to
assign your future income for payment of installments.
Above Rs.7.5 lakhs : Parent(s)/guardian must have to be the joint borrower(s).
Tangible collateral security of minimum value equivalent to the loan amount
and acceptable to bank needs to be provide, along with the assignment of
your future income for payment of installments.

Insurance
:
You will have to get a Comprehensive life insurance policy. Policy should be
equivalent to loan amount, for a minimum period of loan term. Loan term is total of
course period, moratorium period and repayment period. Also, you will have to
assigned the policy in favor of the Bank.

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Central sector interest subsidy
scheme:
The Central Sector Interest Subsidy Scheme of MoHRD is based on IBA
Model Educational Loan Scheme, is applicable only for loans which are
sanctioned for Professional and Technical courses (after 12th standard) in
India.
Loans up to Rs.10 lakh also qualify for interest subsidy under Central
Sector Interest Subsidy Scheme of MoHRD.

Processing Fees for Education Loan:

Most of all, there are No processing or upfront charges applicable on loans for
studies in India; sanctioned under this scheme.
For studies abroad, Rs.500/- for loan up to Rs.10 lakh and Rs.1000/- for
loan above Rs.10 lakh will be charged while considering the applications but
refunded when loan is availed by the student i.e. within 6 months from the
date of sanction.

Repayment of Education Loan:

Repayment will start after 12 months after completion of studies or 6
months after securing job whichever is earlier.
Maximum repayment period is upto 10 years for loans upto Rs.7.50 lakh
And, maximum repayment period is upto 15 years for loans above
Rs.7.50 lakh. Repayment on EMI basis.

I have tried to cover all the essential points, do comment below, if you want
to add something to it or if you have any queries.

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