Central Bank Education Loan to Study Abroad

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The Central Bank of India is one of the popular public-sector banks that offers multiple services. One of the popular services availed is the Central Bank of India education loan due to competitive interest rates. Under the Cent Vidyarthi Scheme, the banks offer education loans to study abroad and in India. In this blog, we will discuss the features of Central Bank education loans to study abroad, eligibility, documents required, and how to apply.

Central Bank of India Abroad Education Loan

Central Bank of India offers financial assistance to study abroad aspirants under its Cent Vidyarthi Scheme. The maximum loan that is provided under this scheme is up to INR 2 crores. The bank aims to cover expenses like tuition fees, examination expenses, accommodation and travel expenses, insurance premiums for student borrowers, and much more. 

The loan can be repaid in a maximum of 15 years for all categories after the moratorium period. The moratorium period is the holiday period during which no payment towards education loan repayment is required. It is the course duration plus one year. The Central Bank education loan processing time is 7-10 days.

Check out more features in the table given below.

Maximum Loan AmountUp to INR 2 crores
Interest Rates10.30% p.a
Interest Concession1% interest concession if the interest is paid during the moratorium period 
Margin MoneyUp to INR 4 lakhs- NILAbove INR 4 lakhs- 15% (for study abroad)
DisbursementThe amount is disbursed directly to the college/ hostel/ mess/ airlines etc.
Repayment PeriodUp to 15 years
CollateralUp to INR 7.5 lakhs- Security to be mandatorily covered under NCGTC Guarantee SchemeAbove INR 7.5 lakhs- Tangible collateral security of the minimum realizable value equivalent to the loan amount
Loan InsuranceComprehensive life insurance policy for the student availing of education loan

Also Read: Check out the blog on student loan debt and understand the relief process, application, calculator, and different plans.

CBI Education Loan Interest Rates

The current Central Bank education loan interest rate is 10.30% p.a. However, the interest rate is subject to change based on RBI guidelines and economic conditions as these are based on RLLR. This rate applies to loans provided under the Cent Vidyarthi D category scheme, encompassing prestigious global institutes in medical, engineering, and management.

  • The interest rates for education loans are determined by the Central Bank by combining the repo or RBLR (repo-based lending rate) with a spread determined internally by the bank following RBI directives. 
  • Additionally, the loan amount can influence the interest rate, with higher amounts resulting in lower rates.
  • For loans up to INR 7.5 lakhs, the interest rate charges are higher than those above INR 7.5 lakhs.
  • Female students are offered a concession of 0.50%.

Eligibility Criteria

To be eligible for a Central Bank of India abroad education loan, the applicant must fulfil the eligibility criteria. The most basic criteria to be fulfilled relate to nationality and securing admission through far means. Check out who is eligible for Central Bank of India education loan-

  • The student should be an Indian National.
  • Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC (10 plus 2 or equivalent.

Eligible Courses

  1. Graduation: For job-oriented professional/ technical courses offered by reputed universities.
  2. Post-graduation: MCA, MBA, MS, etc., Courses conducted by CIMA-London, CPA in USA etc.; Degree/diploma courses like aeronautical, pilot training, shipping etc provided these are recognized by competent regulatory bodies in India/abroad for employment in India/abroad.

Also Read: Check out the details of Chase Bank international student account and enjoy multiple benefits of this account which is designed specifically for international students studying in the US.

Documents Required

Applicants must be ready with a list of documents required for the Central Bank education loan. These documents are related to academic qualifications, income, creditworthiness of the applicant/ co-applicant, identification, course, and university chosen, and other relevant parameters. Based on the documents submitted, the bank verifies if the loan is approved or rejected, and if approved, what will be the terms and conditions.

Here’s a breakdown of the documents required before loan sanction:

Academic Documents

  • Marksheet of secondary and senior secondary exams
  • Details of the university and course you intend to pursue
  • Marksheet of any undergraduate courses completed (if applicable)
  • Scorecard of entrance exams like GRE, GMAT, or IELTS (if required)
  • Proof of admission (if needed before loan sanction)
  • Details of any scholarships or grants available

KYC Documents

  • Aadhaar Card of applicant and co-applicant
  • PAN Card
  • Voter ID Card
  • Passport of the student
  • Passport size photograph
  • Copy of ID Card issued by the College or University
  • Address proof (Telephone Bill/Electricity Bill/Ration Card/Property Card)

Financial Documents

  • Last 6 months’ bank statement
  • Last 3 months’ salary slip (for salaried individuals)
  • Last 2 years IT return
  • Statement of assets and liabilities
  • Copy of sale deed (for secured loans)

Documents Required after Disbursement

After the loan sanction, additional documents are needed to facilitate the Central Bank education loan disbursement process. Here’s what you’ll need:

  • Loan Sanction Letter
  • Visa Approval Letter
  • Travel and Health Insurance Details
  • Admission Letter
  • Fee Breakdown

Also Read: Are you aware of the difference between sanction and disbursement letters? Check this blog and learn the difference between a loan sanction letter and a loan disbursement letter.

How to Apply

Applicants can visit the nearest bank branch to apply for a CBI education loan. However, you can apply for a Central Bank education loan online through Vidya Lakshmi Portal Central Bank of India. The process is completely online, simple, and hassle-free which saves you from bank branch visits. Follow the given steps to apply-

  • Visit the Vidya Lakshmi Portal’s homepage.
  • Register by creating a username and password.
  • Confirm your email address using the registration email.
  • Log in with your details.
  • Choose the ‘student login’ option.
  • Please note, the login session lasts for 10 minutes.
  • Navigate to the ‘search and apply for loan scheme’ tab and filter for Central Bank of India.
  • Select the loan program offered by the Central Bank of India.
  • Click on ‘Apply Now.’
  • Fill out the Common Educational Loan Application Form.
  • Keep track of your application status.
  • Ensure you select the correct branch as it cannot be changed after submission.

This was all about the Central Bank of India education loan to study abroad. The best practice is to compare the different lenders and then decide which lender offers the best terms and conditions with the lowest interest rates.

To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.


What is the maximum loan amount offered on the Central Bank of India education loan?

The maximum loan amount provided by the Central Bank of India for education abroad is up to INR 2 crores under its Cent Vidyarthi loan scheme.

What are the interest rates for Central Bank of India education loans?

The current interest rate for Central Bank of India education loans is 10.30% p.a. However, this rate is subject to change based on RBI guidelines and economic conditions.

Is there any interest concession available for Central Bank of India education loans?

Yes, there is a 1% interest concession if the interest is paid during the moratorium period. Also, a concession of 0.50% is offered to girl students.

What is the margin money requirement for Central Bank of India education loans?

For loans up to INR 4 lakhs, no margin money is required. For amounts above INR 4 lakhs, a margin of 15% is required for studying abroad.

How is the loan disbursed under the Central Bank of India education loan scheme?

The loan amount is disbursed directly to the college, hostel, mess, airlines, etc., as per the requirement. Besides, the Central Bank’s education loan disbursement process is simple, online, quick, and hassle-free.

What is the repayment period for Central Bank of India education loans?

The repayment period for Central Bank of India education loans can extend up to 15 years, including the moratorium period.

Can I get collateral-free Central Bank of India education loans to study abroad?

For loans up to INR 7.5 lakhs, security must be mandatorily covered under the NCGTC Guarantee Scheme. For amounts above INR 7.5 lakhs, tangible collateral security of the minimum realizable value equivalent to the loan amount is required.

How can I apply for a Central Bank of India education loan?

You can apply for a Central Bank of India education loan both online and offline. Online applications can be submitted through the Vidya Lakshmi Portal by following a simple registration and application process. Alternatively, you can visit the nearest Central Bank of India branch to apply offline.

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About Shubhika Garg

Hey there! I'm Shubhika- a proud graduate in English Literature and Language from Delhi University. My journey as a content writer transitioned from online teacher into the world of words. Stepping into the domain of blogs and articles, I discovered my passion for writing growing deeper and stronger. Having said that, I have experience of writing for diverse industries in automobile, technology, ed-tech, finance and mental-health; crafting details to help you find the solution to what you are looking for. Join me as I invite you all explore and learn together.

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