Education and Career Forum

Sir,
I am going to apply for an Education Loan in Central Bank of India. I want to study MBA course and it costing Rs. 7 Lacs. I just want to know about the Interest Subsidy scheme available in this Bank for an amount of Rs. 7 Lacs? Please tell me asap.

There are many schemes under which subsidy is given in education loan interest. It depends on the scheme based on which you are getting the subsidy. You can get subsidy on various factors like co-borrower is a senior citizen, you are a single girl child, etc. and the amount of subsidy varies accordingly. Hence, approach the bank, consult the branch manager and get to know whether you are eligible for any subsidy or not. If eligible, know the details and complete the requisite formalities to get it.

The interest subsidy scheme of Central government of India for education loan states that while pursuing any degree for which education loan has been sanctioned, whatever interest has been charged on principal amount of education loan will be paid by Central government of India.

Central government also gives a window period of one year after completion of course to repay loan without interest amount. After that window period, whatever interest is charged on education loan, candidate will have to pay along with principal amount, no interest waiver will be given. For sanction of seven lacs rupees, you will need a guarantor without him/her, education loan of seven lacs rupees cannot be sanctioned.