This is a student loan scheme where Corporation Bank vocational education and training loans are offered to students who want to pursue a select set of vocational education and training courses.
- The Corporation Bank vocational education and training loan amount offered under this scheme is in the range of Rs. 5,000 and Rs. 1.5 lakh. It is provided in the form of a term loan.
- There is no margin required for a loan for vocational education
- Security in terms of co-obligation of parent(s) or grandparent(s) if the parents are not alive
- Corporation Bank loan for vocational education and training does not entail processing and prepayment charges
- The moratorium period for vocational education and training courses having a duration of up to 1 year is the course period plus 6 months. The moratorium period for courses which span more than 1 year is the course period plus 12 months.
- Step-up EMI and balloon payment options are available for repayment of vocational education and training loans. A loan of up to Rs. 50,000 has to be paid within 3 years after the moratorium period. Similarly, a loan greater than Rs. 50,000 but up to Rs. 1 lakh has to be repaid in a maximum of 5 years. If the loan amount is greater than Rs. 1 lakh, it has to be paid within a period of 7 years.
- The vocational education loan covers tuition and course fee. Corporation bank directly pays such fee to the training institute. The vocational training loan also covers any other reasonable expenditure required for the completion of the course. Examples of such expenses are assessment fee, examination fee, library charges, laboratory fee, caution deposit, cost of books purchased, cost of equipment and instruments, etc.