Cent Vidyarthi, Cent Skill Loan
Central Bank of India offers an education loan known as Cent Vidyarthi, which can be utilized to fund the expenses of education for students studying either in India or abroad. With a loan amount of up to ₹20 lakhs and a repayment period of up to 15 years, this loan presents an attractive option. The interest rate begins at 8.10% per annum. Eligibility criteria include an age range of 18 to 65 years, a valid passport, a favorable credit score, and an acceptance letter from a recognized educational institution. The loan covers various expenses such as tuition fees, hostel fees, travel expenses, and more. Additionally, the interest paid on the loan is eligible for tax benefits as per Section 80E of the Income Tax Act, 1961. To apply, individuals can either visit the Central Bank of India website or their nearest branch. Notable benefits include a maximum loan amount of ₹20 lakhs, a repayment tenure of up to 15 years, a starting interest rate of 8.10% per annum, life insurance coverage for the borrower and co-borrower, and tax benefits under Section 80E.
Education loan Eligibility:
- Citizenship: The student must be an Indian national.
- Admission: The student should have secured admission to a recognized higher education course in India or abroad. This can be done through an entrance test or a merit-based selection process after completing HSC (10+2) or its equivalent.
- Qualifying Examination: In cases where there is no entrance test or merit-based selection process, and admission is solely based on the marks obtained in the qualifying examinations, the student must have scored a minimum of 50% marks in the qualifying examination. There is a relaxation of 10% for SC/ST categories.
Documents Required:
Personal documents:
- Passport size photograph of the borrower and co-borrower (if applicable)
- Proof of identity of the borrower and co-borrower (such as PAN card, Aadhaar card, voter ID card, etc.)
- Proof of address of the borrower and co-borrower (such as electricity bill, telephone bill, rent agreement, etc.)
- Income proof of the borrower and co-borrower (such as salary slips, IT returns, bank statements, etc.)
- Educational documents:
- Admission letter from the educational institution
- Course details
- Fee structure
- Mark sheets for Class X or equivalent onwards
Security documents:
- In case of a secured loan, the following security documents may be required:
- Property title deed
- Title insurance
- NSC/KVP
- Third-party guarantee
Note: The exact documentation requirements may vary depending on the borrower's individual circumstances. You can contact Central Bank of India for more information.
Here are some additional documents that may be required:
- Letter of intent from the educational institution
- Bank statement for the last 6 months
- IT returns for the last 2 years
- Life insurance policy
Process to apply for education loan:
Expenses Covered in education loan scheme:
- Fee payable to college/ school/ 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/ equipment's/ 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
Courses covered in education loan scheme:
- Undergraduate courses
- Postgraduate courses
- Doctoral courses
- Professional courses (e.g., MBA, CA, CS)
- Technical courses (e.g., engineering, medicine, law)
- Language courses
- Art and design courses
- Music and dance courses
- Additionally, the loan can be used to cover living expenses, including rent, food, and travel.
The loan also extends to specific courses offered by renowned institutions such as:
- Indian Institutes of Technology (IITs)
- Indian Institutes of Management (IIMs)
- National Institutes of Technology (NITs)
- All India Institutes of Medical Sciences (AIIMS)
- Other government-recognized universities and institutions.
Schemes:
Central Bank of India offers two schemes of education loan:
- Cent Vidyarthi
- Cent Skill Loan
- Cent Vidyarthi is a scheme for education loan for studies in India or abroad. The loan amount is up to ₹20 lakhs and the repayment tenure is up to 15 years. The interest rate is starting from 8.10% p.a.
- Cent Skill Loan is a scheme for education loan for skill development courses. The loan amount is up to ₹5 lakhs and the repayment tenure is up to 10 years. The interest rate is starting from 8.10% p.a.
Note: The information provided about education loans is sourced from official guidelines. However, for complete satisfaction and up-to-date details, we recommend visiting the official website of the respective financial institution. The official website will provide comprehensive and accurate information regarding eligibility, application process, documentation requirements, terms, and conditions.
