Central Bank of India Education Rate of Interest

Additional benefits like zero margin and no collateral security for loan up to INR 4 Lacs are some attractive features.

  • The maximum loan limit is INR 10 Lacs.
  • A margin of 5% is charged for a loan above 4 Lacs.
  • The loan is sanctioned only co-jointly to the applicant and their co-borrower.

The interest rates are charged as per the guidelines of the RBI.

  • The RoI for male students is 1-year MCLR+2.00%.
  • For female students and the students belonging to SC/ST community, the rate of interest is 1-year MCLR+1.50%
  • Students of IIT are also charged 1-year MCLR+1.50%
  • 1% concession is provided if interest is serviced properly during the period of study.


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EMI Payable

188 per month

Total Interest


Payable Amount


Total Interest
Principal Loan Amount

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Central Bank of India Education Loan Eligibility

loan eligibility image
  • Indian National. The student should be a citizen of India or should hold the passport of India.
  • 10+2. The student should have cleared their 10+2 with at least 50% marks. (10% relaxation for SC/ST students).
  • Admission Basis. The admission should have been on the basis of an entrance exam or merit.

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Applicable Rate of Interest Male students: 1-year MCLR+2.00%
Female students and SC/ST community : 1-year MCLR+1.50%
For IIT students: 1-year MCLR+1.50%
Up to INR 7.50 Lacs: 10.55%
Above INR 7.50 Lacs: 10.80%
up to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
Max Loan with Collateral 10 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Max loan without collateral 10 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Processing Fee Nil
Up to INR 4 Lacs: Nil
Above INR 4 Lacs: INR 5000
Repayment Period 15 years
15 years
15 years
7 years
Loan for top institutions Yes, Cent Vidyarthi for IIMs and 4 other reputed institutes
Yes, SBI Scholar Loan Scheme
Yes, PNB Pratibha
Margin Up to INR 4 Lacs: Nil
Above INR 4 Lacs: 5%
For loan above INR 4 Lacs
In India: 5%
In abroad: 15%
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 5%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
Age Limit No age criteria
no age limit
No age limit
Loan Security Upto INR 4 Lacs: No Collateral required
From INR 4 to 7.5 Lacs: Guarantee of a bank approved third party
Above INR 7.5 Lacs: Collateral Security equal to the amount of loan
Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
Above INR 7.50 Lacs: Tangible security along with parents as co borrower
Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
Third party guarantee
Collateral security
Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount
Assignment of Future salaries in favor of Axis Bank
Eligibility concession for SC/ST No
50% for SC/ST, and;60% for General category.
Processing Time N.A
20 days
15 days
14 Days
Prepayment charges Nil
Penal charges Nil
Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period
@ 2% per month on the overdue installment/s
Mandatory insurance cover Yes
Travel expeneses Yes
Bank transfter allowance No such clause mention
No such clause mentioned
Top up loan availability unavailable
Interest Subsidy Schemes Padho Pradesh
Skill Loan Scheme
Padho Pardesh
Skill Loan Scheme
Padho Pardesh
Skill Loan Scheme
Tax benifit Yes
Concession/benefits No margin required for loan upto INR 4 Lacs
No security required for loan upto INR 4 Lacs
0.50% concession to girl students
Concession to girl students
1% concession if interest is serviced during moratorium period including course period
0.5% concession to girl students
0.5% concession if interest is serviced during moratorium period including course period
Online application
There is no processing fee charged
No pre- payment charges are applied
No pre- closure charges are applied
Loan Disbursal period is 15 working days from the date of final submission of documents

How to apply for Central Bank of India Education Loan ?

Central Bank of India Education loan application form can be available online or offline at Bank branches.

Visit the official website of Central Bank of India.

Select Cent Vidyarthi and then click on Apply Now.

Fill out the form with your details

Upload the mandatory documents required.

Submit the form and take out a print out of the application.

Visit the bank's branch for further formalities.

Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable

Central Bank of India Education Loan Details

Loan Limit
10 Lacs
Up to INR 4 Lacs: Nil
Above INR 4 Lacs: 5%
Processing Fee
Loan Security
Upto INR 4 Lacs: No Collateral required
From INR 4 to 7.5 Lacs: Guarantee of a bank approved third party
Above INR 7.5 Lacs: Collateral Security equal to the amount of loan
Assignment of students future salary towards the bank
Loan Repayment
15 years

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Expenses covered under Central Bank of India Student Loan Scheme

  • Tuition Fee including hostel fee
  • Examination/ library/ laboratory fee
  • Cost of books, equipment's, instruments or uniforms
  • Cost of a computer (if required)
  • Caution deposit/ building fund/ refundable deposit
  • Insurance premium of the student (if applicable)
  • Miscellaneous expenses

Education Loan Documents Required ?

Duly filled Application Form

Attested copies of age proof, residence proof and identity proof

Self-attested passport size photograph

Marksheet of last qualifying exam

Income Proof of parents/ guardians along with income tax statement of the last 2 years

Institute brochure/ prospectus to calculate expenses.

Confirmation of admission to the Institute

Interest Subsidy Schemes

Central Scheme of Interest Subsidy (CSIS)

Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.

Skill Loan Scheme

Cent Skill loan is education loan for pursuing Vocational Education and Training. Loan of up to INR 1,50,000 can be obtained under this scheme.

Central Scheme of Interest Subsidy (CSIS)
  • The gross annual parents’ income should be less than INR 4.50 Lacs
  • Repayment of the loan has to be done after 12 months of course completion or 6 months after getting the job (whichever is earlier).

This scheme is applicable for technical and professional courses from govt. recognized institutes for courses after class XII.

Under IBA education loan scheme, the maximum loan limit is INR 10 Lacs.


The subsidy is provided for a moratorium period of 1 year after course completion or 6 months after getting a job (whichever is earlier). After this, the loan amount should be paid in accordance with the education loan scheme.

Scheme Applicable Year:

  • This scheme is implemented in the academic year 2009 – 2010 from April 1, 2009.
  • Loan disbursed after April 1,2009, irrespective of the date of sanction shall only be covered under the scheme.
  • In case of loans sanctioned prior to April 1, 2009, for the courses beginning prior to the academic year 2009-10, the interest subsidy is available to the extent of disbursements made after April 1, 2009.

Canara Bank has been appointed as the nodal bank by the government to facilitate this scheme.

Skill Loan Scheme

Vocational courses help candidates to enhance their skills and prepare them for better career opportunities.

Eligibility to avail Cent Skill Loan Scheme

  • Indian National
  • Course offered by Government Organization or supported by National Skill Development Corporation, State Skills Missions or State Skills Corporations
  • Degree/ Diploma/ certificate courses
  • No minimum age criterion 
  • Qualification should be as required

Present Rate of Interest

Rate of Interest on all amount is MCLR + 1.5%

Quick Facts about Cent Skill Loan Scheme

MarginNo margin if interest is serviced in moratorium period 5% of total cost in other cases
Maximum Loan LimitINR 1,50,000
SecurityNo collateral or security is required
Moratorium PeriodCourse duration upto 1 year: Course period+6 months Course duration above 1 year: Course period+12 months
Repayment (Maximum)Loan upto 50,000: 3 years Loan between 50,000 to 1 Lac: 5 years Loan above 1 Lac: 7 years
Prepayment ChargesNil

Frequently Asked Questions


What schemes does Central Bank of India considers for its education loans?

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There are multiple other schemes offered by Central Bank of India apart from the basic education loans viz. Cent Vidyarthi, Cent Vidyarthi for IIMs and 4 Reputed Institutions, and Cent Vidyarthi for Executive MBA. These are:

  • CSIS Scheme
  • Padho Pardesh
  • Skill Loan Scheme

In whose name is the loan granted?

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The loan is granted in the name of the student


Is the loan contract executed only in student's name?

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No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.


What is the age limit for availing loan in Central Bank of India?

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There is no age restriction as stated by Central Bank of India. Borrowers must fulfil other eligibility criteria mentioned.


Are minors eligible to apply for Central Bank of India Education Loan?

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Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.


What does margin on any loan mean?

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Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.


Should the student's margin be paid upfront in the starting?

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Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.


Where can I avail Central Bank of India Education Loan?

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You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.


Is there any provision to apply for loan online?

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Yes, you can apply online through Vidyalakshmi portal to avail for this loan.


Can I view my loan statement online if I am an existing education loan borrower?

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Yes, by creating a login on Central Bank of India web portal, you can view all details related to education loan online.


Is there any minimum aggregate marks to meet the eligibility criteria to avail Central Bank of India education loan?

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Yes, a student must have secured a minimum 50% marks in their last qualifying examination (10+2 or Graduation). Relaxation of 10% in the marks is given to SC/ ST students


What is the discount/ rebate offered by Central Bank of India?

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  • 0.50% concession is given to girl students
  • 1% concession to students who have secured admission to any top premier institutes listed under List A and B provided by the bank
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students

What all is included in tangible collateral security?

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Mostly Central Bank of India asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Central Bank of India. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.


Can I place my family property as collateral?

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Yes, but it will need consent of all family members involved.


Is scholarship or assistantship included in the margin?

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Yes any scholarship or assistantship will be a part of margin charged on education loan.


What is Moratorium Period?

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Course Period plus one year, or six months after getting a job


What is tenure of an education loan?

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Tenure of education loan provided by Central Bank of India is maximum 15 years


What does MCLR stands for?

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MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.


What all expenses are covered under this course?

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Expenses covered by Central Bank of India education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.

I have taken admission through management quota. Am I eligible?

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This depends totally on bank's discretion as whether a student meets other eligibility criteria or not.


What do you mean by reputed or recognized institutes?

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Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)


Are there any special benefits if I have secured admission to one of the top premier institutes?

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Central Bank of India offers 1% concession to students who secure admission to top premier institutes. Also, there is no margin implied and no collateral security asked while availing education loan from Central Bank of India.


What is the processing fee or prepayment charges?

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The education loan offered by Central Bank of India does not carry any prepayment charges/ processing fee/ documentation charges.


Will cost of my computer be covered under the loan sanctioned?

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Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.


Why is Pan Card necessary?

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Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers

Are diploma or certificate courses considered under Central Bank of India education Loan (both for India and Abroad)?

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Diploma courses are eligible under Central Bank of India Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.


Is a co-borrower necessary for loan?

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Yes, it is mandatory to have a co-borrower to avail loan from Central Bank of India.


Who can be my co-borrower?

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Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.


What all documents are required from the co-borrower?

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Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).

How many guarantors do I need to borrow loan from Central Bank of India?

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You need at least 2 guarantors to avail loan from Central Bank of India.


What is the KYC requirement in education loan?

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KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.


What are maximum term for repayment?

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The maximum term for repayment of

  • Cent Vidyarthi Loan and Cent Vidyarthi for IIMs and 4 reputed institutions

Upto INR 7.5 Lacs: 10 years

Above INR 7.5 Lacs: 15 years

  • Cent Vidyarthi for Executive MBA

Upto INR 7.5 Lacs: 8 years

Above INR 7.5 Lacs: 12 years


How can I repay the loan?

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You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.


What is EMI? How are they calculated?

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EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

  • EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
  • Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.

What are the charges for late EMI payment?

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24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.


Is the loan disbursed in name of individual applicant or to the institute/ university directly?

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The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee


If I am unable to complete my course in given tenure, will my repayment term be extended?

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It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student's reason. You can contact your nearest branch for more details.


What is method of application of interest on education loan?

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The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.


If I am joining the course soon after current course, can I get an extension?

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Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher


What is interest rate of education loan?

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The Interest Rate for Cent Vidyarthi is

For Male StudentsMCLR + 2.00%
For Female StudentsMCLR + 1.50%
  • The Interest Rate for Cent Vidyarthi for IIMs and 4 Reputed Institutes

12 months MCLR

  • The Interest Rate for Cent Vidyarthi for Executive MBA

For List A Institutes

Type of BorrowerRate of Interest
Male StudentsMCLR +0.50%
Female StudentsMCLR

For List B Institutes

Interest rate for all students is MCLR + 1.25%


What is interest subsidy on education loan?

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Central Bank of India offers

  • CSIS- Interest Subsidy scheme for economically weaker sections and to promote education amongst them
  • Padho Pardesh scheme for students who wish to pursue studies abroad
  • Skill Loan Scheme for students who wish to pursue courses to enhance their skills and attain better career opportunities.

What documents do I need to submit to avail interest subsidy scheme?

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The documents that need to be submitted are:

  • Income certificate issued by authorised authorities
  • Bonafide student certificate
  • Letter of undertaking or declaration signed by borrower/ co-borrower

What is employment verification in an education loan?

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The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.


Are there any tax benefits in education loans?

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Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).


Is it necessary to have bank account with the bank while availing loan from that particular bank?

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It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.


Why do banks require insurance policy as security?

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The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy


Are there any additional benefits on availing loan from Central Bank of India?

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Central Bank of India provides Group Life Insurance Cover Scheme for education loan borrowers. The premium of which will be borne by the bank


What is credit score? Is it important for education loan?

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Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.


If a student have any query, where or whom to contact?

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student can reach out to the nearest branch in case of any query.

Customer Care Number:1800 22 1911 (Toll Free)/ 022 2264 3056

Local rates apply on every call

Customer Care Id: gmoper@centralbank.co.in

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