Cent Vidyarthi Education Loan Scheme
Scholarship Amount
About This Scholarship
The Cent Vidyarthi Education Loan Scheme offers substantial financial support for Indian citizens pursuing higher education in India or abroad. This scheme aims to ease the financial burden associated with academic pursuits by covering a wide range of expenses.
Under this scheme, the maximum loan amount is ₹200 lakh. No margin money is required for loans up to ₹4 lakh. For loans exceeding ₹4 lakh, a margin of 5% is applicable for studies within India, and 15% for studies abroad.
Banks may offer a 1% interest concession if interest is serviced during the study period and the subsequent moratorium period before repayment commences. Interest is calculated on a simple basis during the repayment holiday or moratorium period and compounded monthly from the due date of the first instalment.
Payments will be made directly to the college, hostel, mess, airline, or other relevant entities. In specific cases, disbursements can be made to the borrower upon providing satisfactory proof. Original receipts must be submitted.
Loans up to ₹4,00,000 are mandatorily covered under the NCGTC Guarantee Scheme. For loans above ₹4,00,000 but not exceeding ₹7,50,000, additional terms may apply. Loans exceeding ₹7,50,000 require a parent or guardian as a joint borrower. In all cases except for those up to ₹4,00,000, tangible collateral security equivalent to the loan amount is mandatory.
Repayment Period: The maximum repayment period is 15 years for all categories following the moratorium period. The moratorium period equals the course duration plus 1 year.
Insurance: A comprehensive life insurance policy equal to the loan amount must be obtained by the student availing the Educational Loan. This policy must have a minimum term covering the course period, moratorium period, and repayment period and be assigned in favour of the Bank.
The following expenses will be covered under the scheme:
• College/school/hostel fees
• Examination, library, and laboratory fees
• Travel expenses/passage for studies abroad
• Student/borrower insurance premium (if applicable)
• Caution deposit, building fund, or refundable deposit (supported by institution bills/receipts)
• Purchase of books, equipment, instruments, and uniforms
• Purchase of computer at reasonable cost (if required for course completion)
• Other expenses for course completion (e.g., study tours, project work, thesis)
Eligibility Criteria
To be eligible for the Cent Vidyarthi Education Loan Scheme, applicants must meet the following criteria:
• Applicants must be Indian citizens.
• Candidates must have secured admission to a higher education course at a recognised institution in India or abroad.
• Admission must be based on an entrance test or a merit-based selection process after completing Class 12 or an equivalent qualification.
• If there is no entrance test or merit-based selection process, admission will be based on qualifying examination marks.
• The student must have obtained a minimum of 50% marks in the qualifying examination.
Note: Candidates belonging to the Scheduled Caste (SC) or Scheduled Tribe (ST) categories are eligible for a 10% relaxation in the minimum qualifying marks.
Required Documents
Applicants are required to submit the following documents, categorized by employment status:
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.
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.
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 to Apply
Eligible applicants can follow these steps to apply for the Cent Vidyarthi Education Loan Scheme:
Online Application Process:
1. Click on the 'Apply Now' button on the official website.
2. Click on the 'Register' button on the right-hand side of the dashboard and fill in the required details to 'Register'.
• Note: If already registered, log in using the registered email ID.
3. Navigate to the 'Apply Now' button on the right-hand side of the dashboard.
4. Fill in the required details and submit to create an account.
5. After submitting the details, click the ‘Student Login’ tab and enter the registered email ID, password, and captcha code.
6. Navigate to the ‘Login’ tab and fill out the application form which includes name, email ID, phone number, and other important documents.
7. After submitting, download the application form for future reference.
Offline Application Process:
To apply for a Cent Vidyarthi education loan offline, applicants should follow these steps:
1. Obtain the Loan Application Form: Visit the nearest Central Bank of India branch and request an education loan application form.
2. Complete the Application Form: Provide accurate and complete information on the application form.
3. Gather Supporting Documents: Collect necessary documents as per the bank's document checklist, including income proof, academic certificates, admission letters, fee structures, and other relevant papers.
4. Visit the Bank Branch: Bring the completed application form and supporting documents to the nearest Central Bank of India branch. Consult with the designated loan officer or staff.
5. Submit the Application: Hand over the completed application and supporting documents to the bank representative.
6. Loan Disbursement: If approved, the applicant will receive an offer letter detailing the approved loan amount, interest rate, repayment terms, and other information. Upon acceptance, the loan amount will be disbursed directly to the educational institution or as agreed.
Note: To apply offline for the Cent Vidyarthi education loan scheme, use the offline application form provided by the Central Bank of India.