Corp Vidya Scheme
This Corporation Bank loan scheme for education loans is offered to meritorious students who pursue professional course study in India and abroad. Corporation Bank education loans ensure that deserving students are not held back because of lack of finances. It helps them to complete higher education from recognized educational institutions in India and abroad.
- The loan is granted to individuals who are keen to pursue higher education in India or abroad
- The loan is offered in the form of a term loan
- For education in India, a loan of up to Rs. 10 lakhs is granted, while for studies abroad, the quantum is increased to Rs. 20 lakh
- Loans which are up to Rs. 4 lakh do not have a margin requirement but loans of higher values do. The margin depends on where the education is taken. If in India, the margin is 5% and if abroad, the margin increases to 15% of the loan value.
- Co-obligation of the parents would be required as a security for any amount of loan taken. For higher amounts of loans, the bank insists upon additional security. For loans above Rs. 4 lakhs and up to Rs. 7.5 lakhs, a suitable third party guarantee is required from an individual whose net worth is equivalent to the loan amount or higher. This guarantee acts as a collateral security. For loans higher than Rs. 7.5 lakh, a tangible collateral security would be required whose value would be equivalent to the amount of loan taken. Moreover, the student’s future earnings should also be assigned to the bank as additional security.
- The loans would be secured by providing for the margin requirement
- If the student is married, the co-obligant can also be the spouse, parents or parents-in-law
- No processing fee would be charged if the student is pursuing higher education in India. If the education is taken abroad, a processing fee of Rs. 2,000 would be charged which would be refunded when the loan is sanctioned.
- The loan can be prepaid anytime since there is no prepayment penalty chargeable on the loan
- A moratorium period or a loan repayment holiday is allowed for the borrower which would be equivalent to the course duration plus one year post the completion of the course
- The tenure of loan is uniform and does not depend on the amount of education loan. The repayment tenure begins once the permissible moratorium period is over. It is a maximum of 15 years, irrespective of the location of study – India or abroad.
- The scheme offers a loan for courses in India which yield a graduation or post graduation degree, diploma or post graduate diploma. Such courses should be conducted by institutes approved by AICTE, government, UGC, AIBMS, etc. It also covers professional courses like CA, integrated CA on virtual or video mode, ICWA, CFA, etc., courses run by IITs, IIMs, XLRI, IISc, NIFT, NID, etc., regular degree or diploma courses in the fields of aeronautical, shipping, pilot training, etc. It is applicable for courses that are taken up in India and are approved by the Director General of Civil Aviation or Shipping, degree courses approved by universities or diploma courses approved by state bodies in the field of aircraft maintenance engineering or pre-sea training, degree or diploma courses run by institutes approved by the central or state government in teacher training, nursing or B.Ed., approved courses by foreign universities in India.
- If studying abroad, the eligible courses include graduation courses which are professional and job-oriented and are offered by reputed universities, post graduation courses like MCA, MBA, MS, etc., specialized courses conducted by CIMA, London or CPA, USA, degree or diploma courses in the fields of aeronautical, shipping, pilot training, etc. which are recognized by competent authorities in India or abroad and provide a job in India or abroad, post graduation diploma courses
- The expense which is considered under the loan nclude college, school or hostel fees, fees payable for examination, library or laboratory, any related travel expense or passage money for studying abroad, cost of purchase of books, uniform or instruments, cost of the purchase of a computer if it is reasonable and pertains to the completion of the education, any other related costs like for thesis, study tours, etc.
- The student availing the loan should insure himself with a life insurance policy