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Corporation Bank Education Loan

Last Modified : June 27, 2018

Corp Vidya is a distinctive education loan scheme extended by Corporation Bank. The bank provides various benefits such as zero margin for loan upto INR 4 lacs and no processing charges for students pursuing studies in India. 

The bank provides Education Loan for India and Abroad for graduate or post graduate studies. Students can easily apply through online mode of application from the official website for corporation bank or vidyalakshmi portal

Interested students can also avail for the schemes like Corp Skill Loan scheme and Padho Pardesh scheme to ease their loan liability

Why Corporation Bank?

With interest rate of 12.10% for loan amount up to INR 4 Lacs, 13.10% for the amount between INR 4 to 7.50 Lacs and 12.60% for the amount above INR 7.50 Lacs, the interest rates prove to be a key factor in choosing a bank for education loan.

Are you eligible for Corporation Bank Education Loan?

  • Indian National. Student must be citizen of India or a holder of Indian passport.
  • 10+2 qualified. One must have cleared 10+2 from a recognized board of institutions.
  • Entrance Exam/ Merit Based. Students must have secured admission through merit or entrance exam
  • Co-Signer. A co-borrower is a must while applying for an education loan.

How can you apply for Corporation Bank Education Loan?

There are two paths to apply for Corporation Bank Education Loan. You can apply either through vidyalakshmi portal or offline by visiting the nearest branch and asking for the application form.

In both cases, the bank representative will assist you with the application form and guide you about the interest rate and terms and conditions of an education loan.

1. Corp Vidya Education Loan Scheme

Corp Vidya Education Loan is offered by Corporation Bank to offer financial assistance to students who wish to pursue studies in India or Abroad. The loan aims at promoting basic education amongst students and attaining academic excellence.

Corporation Bank is quite popular with students in India due to its low-interest rates, simple application process, minimum documentation are some of the features that make education loans more accessible to the masses.

What makes you eligible for Corp Vidya Education Loan Scheme?

  • Indian national.
  • 10+2 pass
  • Entrance exam/ merit-based admission to any higher education course
  • Minimum 60% in last qualifying examination
  • 5% relaxation for SC/ST students


  • 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.
  • If an employed person wants to either take a study leave or resign from their present employment to pursue full-time education, their proposals will be considered provided the applicant submits the proof in this regard to the sanctioning authority before disbursement of the loan.

Present Rate of Interest

Amount of Loan

Rate of Interest

Loan amount upto INR 4 Lacs


Loan amount between INR 4 to 7.50 Lacs


Loan amount above INR 7.50 Lacs


Quick Facts about Corp Vidya Education Loan Scheme


Up to INR 4 Lacs:  Nil

Above INR 4 Lacs:

Studies in India: 5%

Studies Abroad: 15%

Maximum Loan Limit

For India: INR 10 Lacs

For Abroad: INR 20 Lacs


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 a 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)

Moratorium Period

Initial Repayment Holiday/Moratorium is one year after the Course Period

Repayment (Maximum)

The repayment tenor is after completion of moratorium/Initial Repayment Holiday, at a uniform tenor of 15 years irrespective of loan amount

Prepayment Charges

No Prepayment charges

Processing charges

Studies in India: Nil

Studies abroad (Refundable): INR 2000

Additional Facts about Corp Vidya Education Loan Scheme

  • No margin on loan upto INR 4 Lacs
  • No security upto INR 7.50 Lacs
  • No processing charges for studies in India

Courses Covered under Corp Vidya Education Loan Scheme

For India

  • Graduate/post graduate/ diploma/ degree courses offered by institutes/ universities recognized by Government/UGC/CMR/AIBMS/AICTE etc.
  • ICWA, CFA, CA (regular and integrated) courses etc.
  • Courses conducted by IIMs, XLRI, NID, NIFT, IITs, IISc etc.
  • Degree/ Diploma courses in the field of Civil Aviation, Aircraft Maintenance, Pre-sea training etc. (in India)
  • B.Ed., Nursing and teachers training courses 
  • Courses offered by recognized foreign universities in the country.
  • Vocational and skill development courses

For Abroad

  • Job-oriented technical/professional graduate courses and postgraduate courses like MBA, MS, MCA etc. 
  • Courses that are conducted by CPA, USA and CIMA, London etc.
  • Approved degree/ diploma courses in the field of Civil Aviation, Shipping, Pilot Training etc. (in India or abroad)

Documents required for Corp Vidya Education Loan Scheme

  • Application form
  • Identity proof
  • College brochure or any other official document which states the fee structure of the course
  • Proof of admission (admission or selection letter)

Expenses Covered under Corp Vidya Education Loan Scheme

  • Travel expenses when studying abroad
  • 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.

2. Corp 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.

What makes you eligible 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


No margin if interest is serviced in moratorium period

10% of total cost in other cases

Maximum Loan Limit

INR 1,50,000


No collateral or security is required

Moratorium Period

Course 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 Charges


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)

Expenses Covered under Corp Skill Loan Scheme

  • Tuition Fee
  • Examination Fee
  • Library/ laboratory Fee
  • Hostel Fee and other charges applicable
  • Cost of Books, equipment, instrument or uniforms
  • Caution deposit
  • Miscellaneous expenses required for completion of the course- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)
  • Insurance Premium for Student borrower

Padho Pardesh - Education loan scheme for overseas studies to minority community students

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

How to Avail Corporation Bank ‘Padho Pardesh’ Subsidy Scheme?

Students can yield benefits of the scheme by following the below mentioned procedure:

  • Students are supposed to inform their lending banks about the scheme of Padho Pardesh by Ministry of Minority Affairs.
  • Then the students have to submit the proof of their eligibility for the particular scheme
  • If a student is eligible, the lending bank will feed the students information into the portal of Padho Pardesh.
  • The portal will remain open for the period of two months in every quarter.

Courses covered under Padho Pardesh Scheme

Courses that are covered by Government of India under this scheme are as follows:

Arts/ Humanities/ Social Sciences


Pure Science


Bio- technology/ Genetic Engineering

Industrial Environmental Engineering

Nano- technology

Marine Engineering

Petro-chemical Engineering

Plastic Technology

Cryogenic Engineering


Automation Robotics including artificial intelligence

Laser Technology

Low Temperature Thermal Dynamics

Art Restoration Technology


Dock and Harbour Engineering

Imaging System Technology

Composite Materials Engineering including Decentralized power

Packaging Engineering/ Technology

Nuclear Engineering

Information Technology including Computer Engineering, Software, Software Quality assurance, etc.

Industrial Safety Engineering


Agriculture & Agro Technology


Floriculture & Landscaping

Forestry & Natural Resources

Food Sciences & Technology

Plant Pathology


Energy Studies

Farm Power & Machinery

Veterinary Sciences

Soils & Water Management

Plant Breeding & Genetics

Small- scale Rural Technology

Ocean & Atmospheric Sciences


*The courses might change as per discretion of Ministry


Q.What schemes does Corporation Bank considers for its education loans?

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

  • Padho Pardesh
  • Corp Skill Loan Scheme
  1. In whose name is the loan granted?

Answer: The loan is granted in the name of the student

  1. Is the loan contract executed only in student’s name?

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

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

Answer: 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.

  1. Are minors eligible to apply for Corporation Bank Education Loan?

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

  1. What does margin on any loan mean?

Answer: 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.

  1. Should the student’s margin be paid upfront in the starting?

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

  1. Where can I avail Corporation Bank Education Loan?

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

  1. Is there any provision to apply for loan online?

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

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

Answer: Yes, by creating a login on Corporation Bank web portal, you can view all details related to education loan online.

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

Answer: 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

  1. What is the discount/ rebate offered by Corporation Bank?


  • 0.50% concession is given to girl students
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students
  1. What all is included in tangible collateral security?

Answer: 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.

  1. Is scholarship or assistantship included in the margin?

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

  1. What is Moratorium Period?

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

  1. What is tenure of an education loan?

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

  1. What does MCLR stands for?

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

  1. What all expenses are covered under this course?

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

Answer: Yes, travel expenses are covered under this loan

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

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

  1. What do you mean by reputed or recognized institutes?

Answer: 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)

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

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

  1. What is the processing fee or prepayment charges?

Answer: 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.

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

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

  1. Why is Pan Card necessary?

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

Answer: 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.

  1. Is a co-borrower necessary for loan?

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

  1. Who can be my co-borrower?

Answer: 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.

  1. What all documents are required from the co-borrower?

Answer: 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).
  1. How many guarantors do I need to borrow loan from Corporation Bank?

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

  1. What is the KYC requirement in education loan?

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

  1. What are maximum term for repayment?

Answer: 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

  1. How can I repay the loan?

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

  1. What is EMI? How are they calculated?

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

Answer: 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

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

Answer: 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.  

  1. What is method of application of interest on education loan?

Answer: 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. 

  1. What is interest rate of education loan?

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

Amount of Loan

Rate of Interest

Loan amount upto INR 4 Lacs


Loan amount between INR 4 to 7.50 Lacs


Loan amount above INR 7.50 Lacs


  1. What is interest subsidy on education loan?

Answer: 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.
  1. What documents do I need to submit to avail interest subsidy scheme?

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

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

  1. What is employment verification in an education loan?

Answer: 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.

  1. Are there any tax benefits in education loans?

Answer: 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.

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

Answer: 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.

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

Answer: 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.

  1. Why do banks require insurance policy as security?

Answer: 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

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

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

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

Answer: 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.

  1. Are NRIs eligible for the education loan?

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

  1. Is Visa a necessary document for studying abroad?

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

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

Answer: 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.

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

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

Customer Care Number: 0824 – 2861447

Customer Care Id:

Local rates apply on every call