Brief Description:

The Cent Vidyarthi Education Loan Scheme is an initiative by the Central Bank of India. Under this scheme, education loan of up to INR 20 lakh is offered to undergraduate and postgraduate students at a maximum interest rate of 11.50%. This scheme is aimed at helping students to pursue higher education in India and abroad.

Eligibility

• The applicants must be Indian nationals.
• Candidates should have secured admission to a higher education course in recognized institutions in India or abroad.
• Admission should be based on an entrance test or a merit-based selection process after completing Class 12 or an equivalent qualification.
• In cases where there is no entrance test or merit-based selection process, admission will be based on qualifying examination marks.
• The student should have scored a minimum of 50% marks in the qualifying examination.
Note – Candidates who come under the Schedule Caste (SC) or Scheduled Tribe (ST) categories are eligible for a relaxation of 10% in the minimum qualifying marks

Benefits:

• INR 10 lakh for students pursuing higher education in India
• INR 20 lakh for students pursuing higher education abroad
Note: Loan amount of up to INR.200 lakh can be considered/sanctioned on case to case basis by the concerned authority on merits, subject to the condition that the loan amount is backed by 100% collateral security.
Candidates must fulfill the following margin as per the percentages mentioned below:
• Up to INR 4 lakh – 0% margin money to study in India and abroad
• Above INR 4 lakh – 5% margin money to study in India
• Above INR 4 lakh – 15% margin money to study abroad

Note

• The bank may provide a 1% interest reduction on education loans if the interest is paid during the entire study period, including the moratorium period before repayment begins.
• Throughout the repayment holiday or moratorium duration, interest will be calculated using he method of simple interest. However, the interest will be calculated using compound interest method once a month, which will begin from the due date of the first installment.

Documents

1. For Salaried Individuals:

• Income Tax Returns (ITR) – The applicant must submit their filed income tax returns for the previous two financial years.
• Form-16 – A certificate issued by the employer that provides details of the employee’s salary, deductions, and taxes paid.
• Salary Slips – The applicant should provide their payslips from the past three months, which indicate the monthly salary and deductions.
• Bank Statements – The applicant needs to provide their bank statements for the last six months which reflect income credits and other financial transactions.

2. For Non-salaried Individuals

• Income Tax Returns (ITR) – Non-salaried individuals must submit their filed income tax returns for the previous two financial years.
• Audited Balance Sheet – A financial statement that presents the assets, liabilities, and equity of the business or profession, audited by a chartered accountant.
• Bank Statements – The applicant should provide their bank statements for the previous year, showing financial transactions and income sources.

3. Other Documents Required

• Admission Proof – A copy of the admission letter or offer letter from the educational institution where the applicant has secured admission.
• Certificates of Class 10 and 12 – Educational certificates of the applicant’s Class 10 and 12.
• Fee Structure – A document stating the detailed fee structure of the course or program for which the loan is being applied.
• Receipt of Payments Made – Any receipts or evidence of payments made towards admission fees, tuition fees, or other course-related expenses.
• Entrance Exam Scores – If admission to the course is based on an entrance examination, the applicant needs to provide the scores or rank obtained in the exam.

How can you apply?

Online application process
• Visit the Vidya Lakshmi portal – vidyalakshmi.co.in
• Click on the “Register” tab and fill out the required details to create an account.
• After submitting the details, click the “Student Login” tab and enter the registered email ID, password, and captcha code.
• After successful registration, navigate to the “Login” tab and fill out the application form which includes name, email ID, phone number, and other important documents.
• After submitting, download the application form for future reference.
Offline application process
• Obtain the Loan Application Form – Visit the nearest branch of the Central Bank of India to make a request regarding the application form for an education loan.
• Fill in the Application Form – Provide accurate and complete information in the application form.
• Gather Supporting Documents – Collect necessary documents as per the document checklist provided by the bank. This may include income proof, academic certificates, admission letters, fee structures, and other relevant documents.
• Visit the Bank Branch – Take the duly filled application form along with the supporting documents to the nearest branch of the Central Bank of India. Approach the designated loan officer or staff to apply for an education loan.
• Submit the Application – Hand over the completed application form and supporting documents to the bank representative.
• Loan Disbursal – If the application meets the bank’s education loan criteria and is approved, candidates will receive an offer letter specifying the approved loan amount, interest rate, repayment terms, and other relevant details. Once the candidate accepts the offer, the loan amount will be disbursed directly to the educational institution or as per the agreed disbursement process.