Corporation Bank Vidya scheme education loans for studies in India and abroad

Want to apply to Corporation bank for an education loan to study abroad? This article provides complete information on the Corporation Bank Vidya scheme education loans for studying abroad as well as for studies in India. You will get details of the eligibility requirements to avail of the loan, interest rates and the list of courses which are acceptable for pursuing under the loan scheme.

Corporation Bank is offering a unique education loan scheme called Vidya which offers students financial support for studies in India and for pursuing studies abroad.

Eligibility requirements

  1. You must be an Indian national

  2. You should have passed the previous qualifying exam with a minimum of 60% marks (55% minimum for SC/ST category students)

  3. You should have secured admission to a higher education course in any recognized institution in India or abroad through an entrance test or through a merit based selection process or through the management quota on completing H.S.C. (10+2 or equivalent qualification).

Amount of loan and margin

For studies in India you can avail of an education loan of up to Rs.10 lakhs and up to Rs.20 lakh for studies abroad. Rate of interest is nil for a loan up to Rs.4 lakh, 5% for a loan above Rs.4 lakh for studies in India and 15% for a loan above Rs.4 laks for studies abroad.

For interest rates refer:

Note: Contact the bank for details of concession in rate of interest for SC/ST beneficiaries, Women beneficiaries and physically challenged students.

Courses in India which are eligible for loan application

  1. Any approved course which leads to a Graduate degree or a Post Graduate Degree or a Diploma or a Post Graduate Diploma which is conducted by a college or University recognized by UGC/Govt/AICTE/AIBMS/ICMR etc.

  2. ICWA, CA/integrated CA-on virtual /video mode, CFA and other similar courses.

  3. Courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NID and similar institutes.

  4. Any regular degree course of Diploma course approved by the Director General of Civil Aviation/ Shipping, if the course is pursued in India, such as those in aeronautics, pilot training, ship training, etc. In case you are pursuing an Aircraft Maintenance Engineering course or a pre-sea training courses, then it must be either a Degree course recognized by a competent University or a Diploma course recognized by the appropriate State Body.

  5. A Teachers training course or B.Ed. course or Nursing course through a training institution which is approved either by the Central Government of by the State Government, with the course leading to a Degree or Diploma and not to a certificate course.

  6. An approved courses offered in India by a reputed foreign University.

  7. Vocational/Skill development courses.

You cannot avail of the loan scheme for:
  • Research course/Ph. D courses for studies in India.

  • Correspondence courses

  • Part time courses

  • Certificate courses

  • Short duration courses

  • Off-campus courses

  • On-site/Partnership programs

Courses abroad which are eligible for loan application

  1. At graduate level: Any job oriented professional course and technical course offered by a reputed University

  2. At post graduate level: MBA, MCA, MS etc.

  3. Course conducted by CIMA- London, CPA in USA etc.

  4. A Degree or a Diploma course in the field of aeronautics, pilot training, ship training and similar ones, as long as these are recognized by the competent regulatory bodies in India / abroad for the purpose of employment in India or abroad.

  5. PG diploma courses

You cannot avail of the loan scheme for:
  • Diploma courses for studies abroad

  • Research courses/Ph.D. courses for studying abroad

Security to be provided against loan

  1. For a loan up to Rs.4 lakh: Other than the co-obligation of your parent/parents, you do not have to provide any security as such.

  2. For a loan above Rs. 4 lakh and up to a maximum of Rs.7.50 lakh: Along with the co-obligation of your parent(s), you need to provide collateral in the form of a suitable third party guarantee with a net worth of at least equal to loan amount.

  3. For a loan above Rs.7.50 lakh: Along with the co-obligation of your parent(s), you need to provide tangible collateral security with the assignment of future income of the student for payment of instalments.

Note: If you are married, then the co-obligation can be provided by either your spouse of your parent(s) or parents-in-law.

Loan repayment

Irrespective of the loan amount availed of, there is a uniform repayment tenor of 15 years. This tenor will be after the completion of moratorium/Initial Repayment Holiday. The initial repayment Holiday/Moratorium is Course Period + 1 year

Expenses eligible for coverage with the loan

  1. The fee which is payable to the college/school/hostel/exam fee/library fee/laboratory fee.

  2. The travel expenses/passage money incurred for studies abroad.

  3. The purchase of books/equipment/instruments/uniforms and purchase of a computer at a reasonable cost, if required for completion of the course, along with any other expenses which is necessary to complete the course. This would include expenses incurred for study tours, project work, thesis etc, subject to maximum permissible limit as per the loan scheme availed of.

Note: The caution deposit, building fund/refundable deposit, even if supported by Institution bills/receipts, are not eligible to be considered as expenses to be covered by the loan.

Important guidelines

  1. You should avail of the loan ideally from the bank and branch which is located nearest toe the domicile of your parent(s).

  2. It is mandatory to have life insurance cover of the student availing of the loan.

  3. A take over of loan from another bank is not allowed.

Contact information

Corporate Office
Mangaladevi Temple Road
Mangalore - 575 001
Toll free Ph: 1800 425 3555 (8a.m. to 8p.m. on working days)

Article by Vandana
Vandana is based in India with over 15 years experience as a freelance writer. Writing, no doubt, is her primary passion! Having learned the art of blogging from ISC, Vandana is enjoying the thrills of blogging, taking pleasure in sharing information & getting good pageviews at her various blogs.

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Author: Partha K.04 Jun 2016 Member Level: Platinum   Points : 3

An excellent and informative article! Many students would find this article extremely useful. I have only two comments to offer in this regard:-
(a) Nowadays the rate of interest is linked to the market-rate of return and it changes more than twice in a year. So, I would like to know whether the Corporation Bank (and other PSU banks) gives the loan at fixed rate of interest or at variable rate of interest.
(b) Even 10 years ago, the education loan was provided for a very limited number of courses. Now I am pleasantly surprised to find that this educational loan is being provided for even B.Ed., BNS and other vocational courses. No doubt, many more students would be benefitted from this scheme.
Once again, sincere thanks to the author for this extremely informative article.

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