Central Bank of India Education Loans Interest Rates in 2024

Central Bank of India Education Loan: Interest Rate and Other Details

As important as education is, the expenses associated with it are challenging to bear for many Indian families and students. This is why the Central Bank of India education loans provide 100% financing for students pursuing an MBA, thus ensuring that financial constraints do not hinder their academic aspirations. 

Want to know what all the Central Bank of India education loan covers and how it can help you? Dive in. 

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Central Bank of India Education Loan: Overview

The Central Bank of India provides education loan schemes designed to support both domestic and international students pursuing higher education. Below are some key benefits of the Central Bank of India's education loans:

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Types of Central Bank of India Education Loans

Let's take a look at the loans CBI offers to students who wish to study in India, as well as the options they have for students looking to study abroad:

1. Central Bank of India Education Loan to Study in India

The Central Bank of India provides a variety of student loan schemes tailored to meet the needs of those pursuing education in India. These loans cover undergraduate, postgraduate, and, in some cases, vocational or skill-based courses. 

Each loan scheme offers distinct features and benefits, as summarised in the table below.

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2.Central Bank of India Education Loan for Studying Abroad

If you are aspiring to study abroad, the Central Bank of India offers several education loan schemes designed to meet your financial needs. These loans are structured to cover a wide range of expenses, ensuring that you can focus on your studies without worrying about financial constraints. 

To finance your study abroad, you can apply for the education loan schemes listed below.

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You might be interested in this blog: Education Loan for Girl Students in India - How to apply | Propelld

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Interest Rates for Central Bank of India Education Loans

The Central Bank of India education loan interest rate varies from 8.10% to 10.60% as of 2023, making it a competitive option for students. 

Here's a breakdown of the interest rates for various education loan schemes offered by the Central Bank of India as of 2023:

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Also read: SBI Education Loan - Eligibility and Interest Rates (2024)

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Eligibility Criteria for Central Bank of India Education Loans

Here’s a detailed look at the primary types of education loans offered by the Central Bank of India and the eligibility requirements for them: 

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CBI Education Loan Schemes: Comparison

Comparing different education loan schemes can help you understand which one offers the best terms and benefits for your specific needs. 

Here is a comparison of different Central Bank of India education loan schemes on the most important features, i.e. the CBI education loan interest rate and its amount.

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Central Bank of India Education Loan: Features

This table highlights the key features of a CBI education loan. Have a look and make an informed decision: 

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Benefits of Central Bank of India Education Loan

The Central Bank of India offers a range of education loans that cater to the diverse needs of students pursuing higher education in India and abroad. The advantages of these education loans include the following:

1. Low Interest Rates: 

The CBI education loan interest rate is quite low compared to its alternatives, starting at just 8.10%.

2. Higher Loan Amounts

Education loans offer higher loan amounts, with the maximum loan amount for studying in India being ₹40 Lakhs and for studying abroad being ₹2 crore.

3. Easier EMI Options

Education loans provide easier EMI options, allowing you to manage your repayment obligations more effectively.

4. Early Approvals

Education loans are known for their early approvals, which can be beneficial for students who need timely financial assistance for their education.

5. Tax Benefits

Education loans offer tax benefits, which can help you reduce your tax liability and make your education more affordable.

6. Better Repayment Options

Education loans provide better repayment options, including a repayment period of up to 15 years.

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CBI Education Loan: Expenses Covered

The Central Bank of India's education loans are comprehensive, covering a wide range of expenses related to both education and living. Here's a detailed look at what these loans cover:

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CBI Education Loan: Documents Required

To apply for a Central Bank of India Education Loan, both students and their co-applicants or guarantors must submit various documents. These documents help the bank assess the eligibility, financial standing, and academic credentials of the applicants. 

Below is a summary of the required documents:

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Central Bank of India Education Loan Calculator

Use the Central Bank of India education loan interest rate calculator to get an amortisation table that breaks down your EMIs in full.

This easy-to-use online EMI calculator displays your EMI details immediately on the screen. In order to use this calculator, follow the steps listed below:

1. Access the EMI Calculator:

• Visit the Central Bank of India website and navigate to the education loan section.
• Locate the online EMI calculator.

2. Enter Loan Details:

1. Loan Amount: Input the total loan amount you wish to borrow.
2. Tenure: Specify the loan repayment period in months or years.
3. Interest Rate: Enter the interest rate approved or requested for your loan.
4. Include Prepayments: Decide on any prepayments you plan to make and input these amounts.

3. Calculate EMI:

• Click the 'Calculate' button to view your EMI details.
• The calculator will immediately display the monthly EMI amount and provide an amortisation table showing the breakdown of each EMI.

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Let’s give you an example!

Suppose you want to pursue a Master's degree programme abroad that costs ₹30 lakhs per year. You have already secured ₹5 lakhs in scholarships and grants and plan to contribute ₹3 lakhs from your savings

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Using the Central Bank of India education loan interest rate calculator, we can calculate the following:

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Based on this information, the Central Bank of India education loan interest rate calculator will determine the loan amount required.

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The calculator will then provide the estimated monthly EMI based on the loan amount, interest rate, and repayment period.

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How to Apply for a Central Bank of India Education Loan? 

Applying for a Central Bank of India education loan can be done through both offline and online channels. Each method has its steps and required documentation. 

Here’s an overview of both.

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How to Transfer Your Education Loan to the Central Bank of India?

Transferring your education loan to the Central Bank of India can provide you with better terms and interest rates. Here's a step-by-step guidance on how you can do it. Take a look!

Step 1:

Contact Central Bank of India and inquire about their Takeover of Education Loans* scheme.

Step 2:

Check the terms and conditions of the entire process and make sure you meet the eligibility criteria.

Step 3:

Fill out the Central Bank of India education loan application form for the takeover process and submit it along with the required documents.

Step 4:

Wait for the bank to review and approve your loan transfer application

*Please Note: The Takeover of Education Loans scheme allows you to transfer your existing education loan from another bank to the Central Bank of India, potentially offering you better interest rates and more favourable repayment terms.

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CBI Education Loan: Repayment

Repaying your Central Bank of India education loan is easy and begins based on specific conditions. Here's a brief overview:

1. Repayment Start

Begins one year after course completion or six months after securing a job, whichever is earlier.

2. Loan Term

Up to 15 years for Student and Scholar loans.

3. EMI

Fixed in Equated Monthly Instalments (EMI) and includes interest accrued during the course and moratorium periods.

4. Prepayment

No penalties for prepayment.

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Central Bank of India Education Loan Subsidy Programmes

The Central Bank of India offers several subsidy programmes to make education loans more affordable for students from various backgrounds.

Here’s an overview of these subsidy options. 

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The Central Bank of India education loan is a one stop solution for students who want to pursue higher education in India and abroad. With competitive interest rates, flexible repayment options and wide coverage of educational expenses it is a reliable financial aid.

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FAQs About Central Bank of India Education Loan

Is Central Bank of India education loan for MBBS students available?

Yes, you can obtain an education loan for MBBS for up to ₹30 lakhs. This loan covers tuition fees, hostel fees, and other educational expenses related to MBBS studies. As of 2023, it is one of the popular choices for medical students, providing comprehensive financial support.

Can I get a 50 lakh education loan from Central Bank of India?

Yes, you can get a 50 lakh education loan on a case-to-case basis. The eligibility and approval depend on your academic performance, the course, and other factors. You need to provide comprehensive financial documents for consideration, ensuring you meet the required criteria.

How much does Central Bank of India charge for education loans?

Central Bank of India education loan charges ₹10,000 + GST for processing. Another ₹7,500 is charged for property evaluation. These charges are standard and apply to all education loan applicants as of 2023, ensuring transparency in the loan process.

What is the minimum Central Bank of India education loan?

The minimum education loan offered is ₹7.5 lakh. This amount is suitable for students pursuing higher education both in India and abroad, ensuring coverage for tuition and other academic expenses making higher education accessible.

What percentage is required for education loans in Central Bank of India?

There is no minimum percentage requirement, but overall academic records and performance in entrance exams are considered. Good academic performance can enhance the chances of loan approval and might lead to better interest rates, providing more favourable loan terms.

What are the different types of Central Bank of India Education Loans available?

The bank offers loans for both higher education in India and studying abroad. These include schemes like Cent Vidyarthi and Cent Skill Loan, each catering to different educational needs and financial requirements, ensuring a suitable option for every student.

What is the interest rate and security required for Central Bank of India Education Loans?

The CBI education loan interest rate varies based on the loan amount. For loans up to ₹7.5 lakhs, the rate is 10.55% p.a. with a 0.50% concession for female students. For loans above ₹7.5 lakhs, the rate is 10.80% p.a. The co-borrower must be a parent or guardian, providing financial security and ensuring loan repayment.

Are there any additional interest rate concessions available?

Yes, under certain conditions like economically disadvantaged areas or exceptional academic performance, additional concessions may be available. These concessions help reduce the overall loan burden, making education more affordable for students from various backgrounds.

Can I pay for on-campus accommodation with my education loan?

Yes, education loans can cover tuition, books, equipment, and on-campus housing costs. This ensures that you have a comprehensive financial support package, covering all aspects of your educational expenses and providing peace of mind during your studies.

Will the education loan cover boarding and lodging expenses if you arrange it off-campus?

Yes, education loans typically cover living expenses, including off-campus lodging and board. This allows you to choose accommodation based on your preferences and financial constraints, ensuring flexibility in managing your living arrangements during your studies.

If you enrol in another course after completing the first, will the embargo period be extended?

The embargo period may change if you take additional courses. Check with the bank for specific terms. The terms may vary based on the new course and loan amount, ensuring continuous financial support for your education and allowing you to pursue further studies without financial stress.

When will the education loan be disbursed – all at once or in stages?

Education loans are usually disbursed in stages according to the educational institution’s requirements. This ensures funds are available when needed, matching the academic schedule and financial demands and providing timely support for your educational expenses.

Where can you get the education loan application form?

Applications can be downloaded from the Central Bank of India website or obtained from local branches. The online application process is also available, providing ease of access and convenience, ensuring a smooth application process for students.

What expenses are covered under the Central Bank of India education loan?

The loan covers tuition fees, hostel fees, books, equipment, and travel expenses related to studies. This comprehensive coverage ensures you can focus on your education without financial worries, covering all necessary academic and related expenses.

Are there any special benefits for female students applying for an education loan?

Yes, female students receive a 0.50% interest rate concession. This concession encourages more female students to pursue higher education, making it more affordable and accessible promoting gender equality in education.

Can the loan amount be increased during the course period?

Yes, the loan amount can be increased based on your academic performance and additional course requirements. This flexibility helps you manage unexpected expenses and ensures continuous support for your education, providing financial stability throughout your academic journey.