Corporation Bank Education Rate of Interest

Low-interest rates, easy application process, and minimal documentation make the scheme attractive.

  • No security for a loan up to INR 7.5 Lacs.
  • A person is not eligible for an education loan if already in gainful employment unless they wish to pursue an evening course which is covered under the scheme of approved Institute.
  • No processing is charged for studying in India.

The interest rates are in accordance with the guidelines of RBI.

  • For a loan up to INR 7.5 Lacs, the RoI is 10.95%.
  • For a loan above INR 7.5 Lacs, the RoI is 11.30%.
  • For vocational courses, the RoI is 10.45%.

CALCULATE YOUR EDUCATION LOAN EMI

Fill the Loan Amount
Fill the Interest Rate
Fill the Loan Tenure
EMI Payable

188 per month

Total Interest

1,280

Payable Amount

11,280

Total Interest
Principal Loan Amount

Looking for admission for India and Abroad?

Know Fees

Corporation Bank Education Loan Eligibility

loan eligibility image
  • Indian national. The student should be a citizen of India or hold the Indian passport.
  • 10+2 pass. The student should have cleared 10+2 with essential grades.
  • Admission Basis. Entrance exam/ merit-based admission to any higher education course.
  • Qualification. Minimum 60% in last qualifying examination. 5% relaxation for SC/ST students.

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Applicable Rate of Interest Up to INR 7.5 Lacs : 10.95%
Above INR 7.5 Lacs : 11.30%
For vocational courses : 10.45%
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 For India:INR 10 Lacs
For Abroad:INR 20 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 For India:INR 10 Lacs
For Abroad:INR 20 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 For India:Nil
For Abroad: INR 2,000
Up to INR 4 Lacs: Nil
Above INR 4 Lacs: INR 5000
Nil
Nil
Repayment Period 15 Years
15 years
15 years
7 years
Loan for top institutions No
Yes, SBI Scholar Loan Scheme
Yes, PNB Pratibha
No
Margin Up to INR 4 Lacs: Nil
Above INR 4 lacs:
For India:5%
For Abroad:15%
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
No
Loan Security Up to INR 7.50 Lacs: Co-obligation of any of the two Parents.
Above INR 7.50 Lacs: Co-obligation of any of the two Parents and Assignment of future income of the student along with tangible collateral security for payment of loan installments.
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 5% concession in aggregate Marks
No
50% for SC/ST, and;60% for General category.
No
Processing Time N.A
20 days
15 days
14 Days
Prepayment charges Nil
Nil
Nil
Nil
Penal charges Nil
Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period
Nil
@ 2% per month on the overdue installment/s
Mandatory insurance cover Not mandatory
Yes
yes
yes
Travel expeneses Yes
yes
yes
yes
Bank transfter allowance No such clause mention
available
available
No such clause mentioned
Top up loan availability Unavailable
yes
available
unavailable
Interest Subsidy Schemes CSIS
skill Loan Scheme
Padho Pradesh
Padho Pardesh
CSIS
Skill Loan Scheme
Padho Pardesh
CSIS
Skill Loan Scheme
CSIS
Tax benifit yes
yes
yes
yes
Concession/benefits No Loan upto INR 4 Lacs
No security in lieu of loan sanctioned upto amount INR 7.50 Lacs
No processing charges for studies in India
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
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How to apply for Corporation Bank Education Loan ?

Corporation Bank Education loan application form can be available online or offline at Bank branches.

Visit the official website for Corporation Bank Education Loan.

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 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.

Corporation Bank Education Loan Details

Loan Limit
For India:INR 10 Lacs
For Abroad:INR 20 Lacs
Margin
Up to INR 4 Lacs: Nil
Above INR 4 lacs:
For India:5%
For Abroad:15%
Processing Fee
For India:Nil
For Abroad: INR 2,000
Loan Security
Up to INR 7.50 Lacs: Co-obligation of any of the two Parents, or in case the parents are deceased, Grandparents can fill in. No other security is required.
Above INR 7.50 Lacs: Co-obligation of any of the two Parents, or in case the parents are deceased, Grandparents can fill in. Apart from that, the bank will require the assignment of future income of the student along with tangible collateral security for payment of loan installments.
(In case of a married person, co-obligate can be either spouse or the parents or parents-in-law)
Loan Repayment
15 years

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Expenses covered under Corporation Bank Student Loan Scheme

  • Cost of equipment, books, uniforms, instruments, and computer (should be purchased at a reasonable price)
  • Tuition/ examination/ laboratory/ hostel/ library Fee
  • Miscellaneous expenses under the maximum limit permitted by the loan scheme.
  • Travel expenses when studying abroad

Education Loan Documents Required ?

Completely filled application form

Attested copies of age proof, residence proof and identity proof

Self-attested passport size photograph

Admission letter(Selection Letter) with all essential details

Marksheet of previous qualification

Salary slips of parents and ITRs.

College brochure or any other official document to calculate the expenses.

Copy of passport (if required)

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

Corporation Bank Skill Loan Scheme is launched to provide monetary support to students who wish to pursue courses to develop skills and prepare for job industry.

Padho Pradesh

Corporation Bank offers Corp Padho Pardesh scheme founded under the initiative of Prime Ministers new 15 point programme to benefit the minority community.

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.

Eligibility:

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

Eligibility for Corp Skill Loan Scheme

  • Indian National
  • Course offered by Industrial Training Institutes (ITIs), Polytechnics schools recognized by State/ Central Boards 
  • Entrance exam/ Merit-based admission

Present Rate of Interest

The rate of interest to all amounts is 1-year MCLR +1.35%

Quick facts about Corp Skill Loan Scheme

MarginNo margin if interest is serviced in moratorium period 10% 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 monthsCourse duration above 1 year: Course period+12 months
Repayment (Maximum)Loan upto 50,000: 3 yearsLoan between 50,000 to 1 Lac: 5 yearsLoan above 1 Lac: 7 years
Prepayment ChargesNil

Courses Covered under Corp Skill Loan Scheme

  • Courses recognized by:
  • Industrial Training Institutes (ITIs)
  • Polytechnics Institutes
  • School recognized by Central or State Education Boards
  • College affiliated to recognized university
  • Training partners affiliated to National Skill Development Corporation (NSDC), Sector Skill Councils, State Skill Mission, and State Skill Corporation
  • Courses leading to a certificate / diploma/degree issued by such organization as per National Skill Qualification Framework (NSQF)
Padho Pradesh

Corp Padho Pardesh scheme of Interest Subsidy on education loans for overseas studies aims to promote the academic advancement of students belonging to minority communities. The scheme provides 100% interest subsidy to students belonging to the minority community.

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Frequently Asked Questions

01

What schemes does Corporation Bank considers for its education loans?

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There are multiple schemes offered by Corporation Bank apart from the basic education loans. These are:

  • Padho Pardesh
  • Corp Skill Loan Scheme
02

In whose name is the loan granted?

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The loan is granted in the name of the student

03

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.

04

What is the age limit for availing loan in Corporation Bank?

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There is no age restriction for the applicant applying for education loan from Corporation Bank. He/ she should only meet the other stated eligibility criteria's.

05

Are minors eligible to apply for Corporation Bank 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.

06

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.

07

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.

08

Where can I avail Corporation Bank 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.

09

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.

10

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 Corporation Bank web portal, you can view all details related to education loan online.

11

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

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Yes, a student must have secured a minimum aggregate of 60% marks in their last qualifying examination (10+2 or Graduation). Relaxation of 5% is given to SC/ ST students

12

What is the discount/ rebate offered by Corporation Bank?

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  • 0.50% concession is given to girl students
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students
13

What all is included in tangible collateral security?

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Mostly Corporation Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Corporation Bank. 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.

14

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.

15

What is Moratorium Period?

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

16

What is tenure of an education loan?

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Tenure of education loan provided by Corporation Bank is maximum 15 years

17

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.

18

What all expenses are covered under this course?

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Answer: Expenses covered by Corporation Bank education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.
19

Will my travel expense will be covered if I take loan from Corporation Bank?

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Yes, travel expenses are covered under this loan

20

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.

21

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)

22

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

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Corporation Bank does not provides any additional concession to students who have secured admission in top rated institutes

23

What is the processing fee or prepayment charges?

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The education loan offered by Corporation Bank does not carry any prepayment charges or processing charges for studies in India. For studies abroad INR 2,000 (refundable) is charged as processing fee.

24

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.

25

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
26

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

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

27

Is a co-borrower necessary for loan?

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

28

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.

29

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).
30

How many guarantors do I need to borrow loan from Corporation Bank?

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You need at least 2 guarantors to avail loan from Corporation Bank.

31

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.

32

What are maximum term for repayment?

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Maximum Term for repayment for Loan amount upto INR 7.50 Lacs is 10 years and maximum term for repayment is 15 years for loan amount above INR 7.50 Lacs

33

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.

34

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.
  • Or simply you can use the EMI calculator provision available on Corporation Bank’s official website.
35

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

36

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.

37

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.

38

What is interest rate of education loan?

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The interest rate is different for different loan offered. Refer the tables below:

Amount of LoanRate of Interest
Loan amount upto INR 4 Lacs12.10%
Loan amount between INR 4 to 7.50 Lacs13.10%
Loan amount above INR 7.50 Lacs12.60%
39

What is interest subsidy on education loan?

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Corporation Bank offers

  • Corp Skill Loan Scheme for students who wish to pursue skill based courses to enhance their knowledge and skills for better career prospects.
  • Padho Pardesh Scheme for minority sector students who wish to pursue their studies abroad.
40

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
41

If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

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No, the interest subsidy scheme is available only for studies applying for studies in India.

42

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.

43

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). You can visit the official website of Corporation Bank to calculate your tax benefit through their tax benefit calculator.

44

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.

45

Can I repay my loan in foreign currency even if my bank is in India?

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Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.

46

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

47

Are there any additional benefits on availing loan from Corporation Bank?

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The bank offers specially designed term insurance cover and the premium is included as an item of finance.

48

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.

49

Are NRIs eligible for the education loan?

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NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

50

Is Visa a necessary document for studying abroad?

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Visa is needed as a document proof but it is not a sole requirement.

51

What all procedures do one have to go through while applying for abroad?

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A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

52

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: 0824 – 2861447

Customer Care Id: horls@corpbank.co.in

Local rates apply on every call

faq image