Corporation Bank was a major public sector bank in India founded in 1906. It merged with the Union Bank of India and ceased its independent operations in April 2020. Hence, the corporation Bank education loan is the same as the Union Bank of India education loan. The Union Bank of India is a major public sector bank in India and 83.49% of shares of the bank are held by the Indian government. The bank is one of the first in the country to bring about 100% core banking solutions. Keep reading to know more about the corporation bank education loan for abroad studies.
|Maximum loan for Indian students||No limit (based on need)|
|Maximum loan for NRI students||INR 30 lakh|
|Tenure of Loan||15 years|
|Rate of Interest||12.25% p.a for loans up to INR 7.50 lakh|
12.00% p.a for loans more than INR 7.50 lakh
(For female students concession of 0.50% is provided)
|Moratorium Period||Duration of the course +1 year|
|Margin Money||No margin money for loans up to INR 4 lakh|
For more than INR 4 lakh- 15%
|Processing Fees||No processing fee is charged|
Below are the eligibility requirements for a corporation bank education loan for abroad studies.
- The student must be a citizen of India.
- The parent or the guardian of the student must be present at the time of application.
- The student must have received an offer letter from a reputable university abroad. For this, the student needs to follow the appropriate selection process and must have cleared any qualification examination required.
- The NRI needs to have an Indian passport to be eligible for a corporation bank education loan for abroad studies.
- To be eligible for the loan the financial circumstances of the applicant need to be steady.
Relevant Read- Types of Education loan for Indian students
A corporation bank education loan for abroad studies is provided for the following courses. Students who have received letters of acceptance from International universities for these courses can apply for an education loan.
- Graduation degree from a recognised institution
- Post-graduation degree from a recognised university
- PhD from a recognised university abroad
- Certification courses held by CIMA, London, UPA, and USA, and similar institutions
- Diploma courses are not covered by the corporation bank for educational loans for abroad studies
Education loan benefits
A student applying for the corporation bank education loan for abroad studies will receive the following benefits.
- The corporation bank education loan for abroad studies covers expenses such as living expenses, tuition fees, travel expenses, and miscellaneous expenses covered under the education loan scheme.
- The education loan interest rate is generally lower than other types of loan such as taking a personal loan
- The NRI student will receive a maximum loan amount of INR 30 lakh. While the Indian student has no upper limit for seeking an education loan
- As per the Income Tax Act of India (1961), Section 80E an Indian student is eligible for tax benefits on the interest rate.
Relevant Read- Education loan in Canada
Below are the documents required for a corporation bank education loan for abroad studies.
- Academic documents- The student needs to bring academic transcripts as proof. For example, for graduate courses, the 10th/12th mark sheet is required, and for postgraduate courses.
- Address proof- Additionally, the student is required to submit address proof such as a Voter ID, Aadhar card, passport, and so on.
- Family income proof- The financial stability of the student is considered before granting the loan. As a result, the student is required to submit family income proof such as the ITR, salary certificate, or the pension certificate of the guardian.
- Age proof and the community certificate, if applicable
- The admission certificate or I20 along with proof of fee details. It is required as proof of acceptance to an International university
- Finally, the collateral documents are required. The collateral documents include the registry documents, LIC policy, or the valuation certificate.
- The student is also required to submit an affidavit declaring that no education loan is sought from any other bank. It is applicable to the student, the parents, and the guardians.
- For NRI students, a copy of their passport also needs to be submitted
Relevant Read- HDFC education loan
The new name of the Corporation Bank is the Union Bank of India.
Corporation Bank was a bank headquartered in Mangalore. However, in the year 2022, the bank along with the Andhra Bank was merged with the Union Bank of India.
The Corporation Bank education loan for abroad studies is given on the basis of the need of the students. Hence, for Indian students, there is no loan limit.
Yes, the Corporation bank is a government bank in India.
The Corporation Bank is a bank that has merged with one of the largest banks in India. That is the Union Bank. The bank is known for providing the best education loans in the country. For Indian students, no education loan limit is given. The interest rate for a loan above INR 7.5 lakh is 12.00% per annum. To know more about education loans subscribe to fly finance.