Central Bank of India (CBI) Education Loan for Abroad

On Demand Webinar:

Askathon 2022

Ask Anything to Students Abroad


7th to 9th October, 2022

    Updated on: 27 Sep 2022


    Getting admission to a top-notch university was not the only hurdle that Indian students faced in the course of their education abroad journey. Getting a loan on reasonable terms used to be another uphill task but now things have changed. With a wide range of lenders from across the spectrum, the choices have certainly increased for students who wish to study abroad. There is a wide range of loans available for you but choosing the best student loan for abroad education should be your goal. If you are planning to study abroad then you should certainly try to get a loan from a Public Sector Bank(PSB). 

    Among a plethora of choices available in the market, the Central Bank of India education loan gives you the utmost flexibility in repayment, pretty low-interest rates, the maximum loan to value, etc. We will be discussing each and every aspect of the Central Bank of India abroad education loan so that you can make the right choice. 

    Looking For An Abroad Education Loan?

    Fill the form to get free expert help

     

    Central Bank of India (CBI) Abroad Education Loans: Overview & Details 

    Components

    Details

      Loan Amount 

    No cap on the loan amount

    Interest Rate

    Male Students: REPO+ 5.00= 9.00%
    Female Students, SC, ST : REPO+ 4.50= 8.50%

    Margin

    Up to INR 4 lakhs: NIL
    More than INR 4 lakhs: 15% Margin
    Sometimes scholarships are included in the margin.

    Incentive

     1% interest concession during the study period to those paying interest at the time of the study, and during the moratorium period. 
    During the moratorium period, simple interest is calculated. Compound interest from the first instalment

    Processing Fee

    NIL

     Documentation Charges 

    NIL

    Loan Repayment

    Upto 15 years

    Moratorium Period

    12 months after the completion of studies
    6 months after securing the job

     

     

    Out of all the components mentioned in the table, we would also explain some of the terms, and how these components affect the overall structure of your abroad education loan. 

    Interest Rate: The education loan interest rate in the Central Bank of India is certainly the least when compared with any other lender. It helps you in getting an abroad education loan without burdening yourself with an overly high-interest rate post-completion of the studies. 

    Margin: Whenever a lender sanctions the loan amount, they only finance a certain extent of the total expenses. For instance, Central Bans has a 15% margin which implies that the bank will finance up to 85% of the total expense, and the rest 15% will have to be paid by the borrower. 

    Collateral: Public Sector Banks only give secured loans, and the Central Bank of India too offers only those loans that are backed by collateral. So, the moot question is about the type of collateral accepted by the bank. Movable and Immovable both assets are accepted by the bank. In the immovable assets, one can use the land(non-agricultural), flats, house, etc. while in the movable assets one can use gold, fixed deposits, government bonds, etc. 

    The Central Bank also allows students to use third party assets. The third-party can be a friend, family or a close relative who is ready to pledge their asset for the loan. 

    Read Also:

    The Eligibility Criteria for Abroad Education Loan

    For abroad education loans there are certain eligibility criteria that a borrower has to fulfil. We will list all the eligibility criteria so that you can be assured of getting the loan:

    • The loan applicant should be an Indian national. 
    • Students must have secured admission to a recognised university abroad through an entrance test/ merit-based selection process after completion of 12th standard or HSC. 
    • In those institutions wherein the students have to score marks for qualifying the student has to secure a minimum of 50% marks in the qualifying exam. There is a 10% relaxation to students belonging to the SC/ST candidates seeking admission to the universities abroad. 

    Courses for Which Abroad Education Loan is Sanctioned

    Central Bank education loans are available to students who have secured admission to a recognised university in a country. If you are planning to take a loan for your education abroad first you should ascertain that the college/university must be on the list of institutions for which the bank gives loans. Most institutions that have a good reputation are usually on the list of the banks for which they will readily give loans. There is a wide spectrum of courses for which you can get an abroad education loan. 

    Graduation and Post-Graduation: If you have secured admission in a course that has good employability post completion of the course, the chances are very likely that the bank will readily accept the loan request. Courses in Engineering, Medicine, MBA, Law, Journalism are usually one of the most sought courses by Indian students. 

    Diploma Courses: There are many diploma courses for which you can easily get an abroad education loan. In the present times, there are evolving fields wherein there are huge employment opportunities. For instance, if you are planning to do a short-term course in Machine Learning, Supply chain marketing, or any other course that can be a valuable addition to your skills, the bank will readily give you a loan for it. 

    Courses Offered by Institutions: CIMA-London, CPA in the USA, etc.

    Check Your Education Loan Eligibility Click Here

    Expenses Covered by Central Bank of India (CBI) Abroad Education Loan

    Once you plan to study abroad several expenses will come into the picture once you start calculating the expenses. Central Bank Of India understands the need of students, and all your expenses will be taken care of in the loan itself. The cost of living abroad is a pretty pricey affair, and you can’t manage all your expenses by doing a part-time job. For the issuance of visa most countries demand proof about your ability to finance your cost of living at the time of stay in their country. To get a holistic picture of the expenses covered in the abroad education loan, you can see the list below:

    • The tuition fee payable to the college or the university. 
    • Other academic expenses like Examination, Library, and Laboratory fees. 
    • The travel expenses for going abroad. 
    • Other accommodation related expenses will be covered like Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts. You can also choose to live outside the campus but you have to furnish the required documents beforehand. 
    • Expenses for buying a computer, tablet or any other electronic gadget that a student might need for their studies. 
    • Expenses related to the purchase of books/ equipment/ instruments/ uniforms. 
    • The expenses for study tours, project-related travel. If you have any additional expense for your thesis it is also covered in the loan expenses. 

    Maximum Loan Amount Offered by Central Bank

    The loan amount differs largely from one institution to another, and also from one country to another. For example, in Germany, France, Switzerland, etc the tuition fees at public universities are very less. While in countries like the US, the UK, Australia, etc the tuition fee is pretty high. The central bank understands this, and thus they don’t have any cap on the maximum loan amount that can be sanctioned for an abroad education loan. There is no maximum ceiling if the loan amount is secured by 100% collateral security. So, if you have the financial capacity to pledge collateral that is equivalent to the loan amount needed for abroad education then there is no upper limit on the sanctioned loan amount. 

     

    Check Your Education Loan Eligibility Click Here

    Documents Required For the Abroad Education Loan

    The loan applicant needs to have a complete list of documents to online apply for a Central Bank of India education loan.

    The required set of documents needed for the loan are:

    • A valid passport.
    • Letter Of Acceptance from the university. 
    • Documents needed for KYC viz. Aadhar Card or Voter-ID card, or Driving License and PAN Card. 
    • Address proof for which one can give telephone bill, electricity bill, property documents, ration card or any other documents that bank officials might allow. 
    • The transcript of the marks sheet. It varies from case to case basis, and banks will clarify it depending on the course for which the student has applied. 
    • Income proof like Salary Slips or IT Returns. 
    • The details on assets and liabilities of parents or cosigner. 
    • All the details about the collateral that the borrower has pledged. 
    • The details of the qualifying tests like GRE/GMAT/IELTS/TOEFL or any other test that you might have taken to secure admission to the university. This is not required for those students who don’t have to take any admission test.

    Disbursement of the Loan

    The loan disbursal process is very smooth with the Central Bank of India. The bank checks all the documents, and after verification, it clears the loan. You must keep in mind that the process takes somewhere around 15-21 days. So, one must start the process right after receiving the letter of acceptance. The bank disburses the money directly to the college, mess, airlines or any other place where the students might have to pay to initiate their abroad education. You must keep all the original receipts with you so that they can be submitted to the bank. The disbursal can also be done early in case you are planning to take admission in Australia, Canada, Germany, etc wherein the visa is only issued after the transfer of the requisite amount to the university. 

    Central Bank of India (CBI) Education Loan Repayment

    Repayment of the loan commences 12 months after the completion of studies or 6 months prior to the date of getting a job whichever is earlier. The bank will incentivise you by giving a concession of 1% on interest payment at the time of studies, and in the moratorium period. The loan repayment duration is 15 years for abroad education loans. 

    Check Your Education Loan Eligibility Click Here

    How does GyanDhan help with an abroad education loan?

    GyanDhan is an education loan marketplace that connects you with the best lender in the market according to your financial and academic profile. We also help you throughout the loan process leveraging our partnerships with the leading lenders in India including government banks, private banks, NBFCs, and international lenders. What’s more! Our loan assistance is completely free of cost. So, check your education loan eligibility and get our loan assistance. 

    First published date:


GyanDhan is India's first education financing marketplace.

Upcoming Events

Ask Anything to Masters in Australia Students

  Fri, October 07, 2022    17:00 IST

Ask Anything to Masters in the UK Students

  Fri, October 07, 2022    18:00 IST

Ask Anything to MS in CS Students

  Fri, October 07, 2022    19:00 IST




Looking For Help in Foreign Education Loan? Arrange a Call From an Expert:

Enter Mobile no. Without Any Prefix.
By entering my phone number here, I hereby authorize GyanDhan to contact me through call, message or WhatsApp. It will override my registry on the NCPR/NDNC