New India Co-Operative Bank Education Loan Rate of Interest
The bank's flexible repayment terms are a point of attraction.
- There is no security required for a loan up to INR 5Lacs.
- Interest is calculated on daily reducing balance.
- No prepayment or commitment charges.
The bank charges interest as per the RBI guidelines.
- For loan up to INR 4 Lacs, the RoI is 12%.
- For loan between INR 4 Lacs and INR 10 Lacs, the RoI is 12.5%.
- For loan between INR 10 Lacs and INR 20 Lacs, the RoI is 13%.
- A concession of 0.5% is given for without interest moratorium.
CALCULATE YOUR EDUCATION LOAN EMI
1,000 per month
1,000
1,000
Looking for admission for India and Abroad?
New India Co-Operative Bank Education Loan Eligibility
- Indian National. Student must be Indian National or an NRI holding Indian Passport.
- 10+2. Candidates should have passed their 10+2 or equivalent examination.
- Co-signer. Applicant for a loan must have a co-signer to act as co-borrower while applying for the education loan.
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| Bank / Financer |  Change bank |  Change bank |  Change bank |  Change bank |  Change bank |
| Applicable Rate of Interest | Up to INR 4 Lacs : 12% Between INR 4 Lacs and INR 10 Lacs, the RoI is 12.5% Between INR 10 Lacs and INR 20 Lacs, the RoI is 13% | Up to INR 7.50 Lacs: 10.55% Above INR 7.50 Lacs: 10.80% | up to INR 7.5 Lacs: MCLR + 2.00% above INR 7.5 Lacs: 2.60% | Upto 4 Lacs- 16.50% Upto 7.5 Lacs- 17.50% Above 7.5 Lacs- 15.50% | |
| Max Loan with Collateral | For India: INR 10 Lacs For Abroad: INR 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Max loan without collateral | For India: INR 10 Lacs For Abroad: INR 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Processing Fee | Nil | Up to INR 4 Lacs: Nil Above INR 4 Lacs: INR 5000 | Nil | Nil | |
| Repayment Period | 15 Years | 15 years | 15 years | 7 years | |
| Loan for top institutions | No | Yes, SBI Scholar Loan Scheme | Yes, PNB Pratibha | No | |
| Margin | Up to 4 Lacs: No margin Above 4 Lacs: For India-5% For Abroad-15% | For loan above INR 4 Lacs In India: 5% In abroad: 15% | Up to INR 4 Lacs - NIL Above INR 4 Lacs - 5% | Upto loan 4 Lacs: No margin Above 4 Lacs: for India: 5% for Abroad: 15% | |
| Age Limit | No age criteria | no age limit | No age limit | No | |
| Loan Security | Up to INR 5 Lacs: No collateral or security is required. Above INR 5 Lacs:Satisfaction guarantee in the form of collateral security. | Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee Above INR 7.50 Lacs: Tangible security along with parents as co borrower | Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required. Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank. | Third party guarantee Collateral security Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount Assignment of Future salaries in favor of Axis Bank | |
| Eligibility concession for SC/ST | No | No | 50% for SC/ST, and;60% for General category. | No | |
| Processing Time | N.A | 20 days | 15 days | 14 Days | |
| Prepayment charges | Nil, if paid during the repayment period. | Nil | Nil | Nil | |
| Penal charges | Nil | Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period | Nil | @ 2% per month on the overdue installment/s | |
| Mandatory insurance cover | Yes | Yes | yes | yes | |
| Travel expeneses | Yes | yes | yes | yes | |
| Bank transfter allowance | Available (penalty charged as per bank's discretion) | available | available | No such clause mentioned | |
| Top up loan availability | No | yes | available | unavailable | |
| Interest Subsidy Schemes | CSIS Skill Loan Scheme Padho Pradesh | Padho Pardesh CSIS Skill Loan Scheme | Padho Pardesh CSIS Skill Loan Scheme | CSIS | |
| Tax benifit | Yes | yes | yes | yes | |
| Concession/benefits | Interest calculated on daily reducing balance. No prepayment/commitment charge levied unless the liability is taken over by another financial institution. | Concession to girl students 1% concession if interest is serviced during moratorium period including course period | 0.5% concession to girl students 0.5% concession if interest is serviced during moratorium period including course period Online application | There is no processing fee charged No pre- payment charges are applied No pre- closure charges are applied Loan Disbursal period is 15 working days from the date of final submission of documents |
How to apply for New India Co-Operative Bank Education Loan ?
New India Co-Operative Bank Education loan application form can be available online or offline at Bank branches.
Visit the official website for the New India Co-Operative Bank Education Loan.
Click on Apply Now.
Fill out the form with your details.
Upload the mandatory documents required.
Submit the form and take out a print out of the application.
Visit the bank branch for further formalities.
Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.
New India Co-Operative Bank Education Loan Details
For Abroad: INR 20 Lacs
Above 4 Lacs:
For India-5%
For Abroad-15%
Above INR 5 Lacs: A satisfaction guarantee in the form of collateral security(eg. insurance policies, shares, IVP, land, bank deposits, building, and more)
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Expenses covered under New India Co-Operative Bank Student Loan Scheme
- Tuition Fee
- Examination Fee
- Library/ Laboratory Fee
- Hostel Fee
- Cost of books, equipment, instrument or uniforms
- Miscellaneous expenses- study tours, project work, thesis, etc.
- A reasonable cost of computer or laptop (if required)
- Passage money (for abroad)
Courses Covered Under New India Co-Operative Bank Student Loan Scheme
In India
Graduate/ postgraduate degree/ diploma courses conducted by renowned institutions/ universities recognized by UGC, Government, AICTE, AIBMS or ICMR.
Academic courses such as CA, CFA, and ICWAI.
Courses conducted by NIFT, IITs, IIMs, XLRI, IISc, and NID.
Degree or diploma courses like shipping, pilot training, and aeronautical offered by Director General of Civil Aviation or Shipping (only if it is pursued in India).
Courses for noble causes such as teaching training (like B.Ed.), nursing courses, and from other training institutions approved by Central Government or by State Government
Reputed foreign universities offering approved courses offered in India.
Courses Covered Under New India Co-Operative Bank Student Loan Scheme
In Abroad
Job Oriented Professional and technical courses
Post-graduation courses such as MBA/ MCA
Courses that are offered by CIMA, London and CPA, USA
Pilot Training, Shipping, aeronautical etc. courses that lead to a diploma or degree.
Education Loan Documents Required ?
Admission letter with all essential details
Attested copies of id proof, residence proof and birth date
Self-attested passport size photograph of applicant, co-applicant, and guarantor.
Marksheet of qualifying courses
Proof of Income and/or a copy of income tax return file of co-applicant, parents, and guarantor (if any).
Details of collateral security
Bank account statement of the applicant.
Copy of passport and visa for abroad courses
Interest Subsidy Schemes
Skill Loan Scheme
The bank offers a 'Skill Loan Scheme' for students who aspire to gain knowledge and specialized training in one specific field.
Central Scheme of Interest Subsidy (CSIS)
Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.
Padho Pradesh
Formulated under the Prime Minister's 15 point programme, this subsidy scheme benefits the students of the minority community who want to study abroad. Such students are provided 100% interest subsidy.
Frequently Asked Questions
What schemes does New India Co-operative Bank considers for its education loans?
+ -There are no such schemes offered by New India Co-operative Bank apart from the basic education loan.
In whose name is the loan granted?
+ -The loan is granted in the name of the student.
What is the age limit for availing loan in New India Co-operative Bank?
+ -There is no restriction on age. Student must clear the other eligibility criteria's stated by the bank.
What does margin on any loan mean?
+ -Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.
Where can I avail New India Co-operative Bank Education Loan?
+ -You can either contact your nearest branch for the application form or details regarding the loan or apply online.
Is there any provision to apply for loan online?
+ -Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Is there any minimum aggregate marks to meet the eligibility criteria to avail New India Co-operative Bank education loan?
+ -No, there is no set minimum aggregate score which serves as eligibility criteria for New India Co-operative Education Loan scheme.
What is the discount/ rebate offered by New India Co-operative Bank ?
+ -No concessions/rebate mentioned by the bank.
What all is included in tangible collateral security?
+ -Mostly New India Co-operative Bank asks tangible security for loan amount above INR 4 Lacs. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.
Is scholarship or assistantship included in the margin?
+ -Yes any scholarship or assistantship will be a part of margin charged on education loan.
What is Moratorium Period?
+ -Course Period plus one year, or six months after getting a job.
What is tenure of an education loan?
+ -Tenure of education loan provided by New India Co-operative Bank is 15 years.
What does MCLR stands for?
+ -MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.
What are all expenses covered under this course?
+ -Expenses covered by New India Co-operative Bank education loan are:
- Tuition/ college/ hostel fee
- Examination/ lab/ library fee
- Books/ uniform/ instruments
- Caution deposit
- Passage money for studies abroad, etc.
Will my travel expense will be covered if I take loan from New India Co-operative Bank?
+ -Yes, travel expenses are covered under this loan.
I have taken admission through management quota. Am I eligible?
+ -Yes, even if you have taken admission through management quota, you are eligible for education loan by New India Co-operative Bank.
What do you mean by reputed or recognized institutes?
+ -Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same).
Are there any special benefits if I have secured admission to one of the top premier institutes?
+ -No, there are no special benefits for students securing admission to top premier institutions.
What is the processing fee or prepayment charges?
+ -The education loan offered by New India Co-operative Bank does not carry any processing fee or any other charges.
Will cost of my computer be covered under the loan sanctioned?
+ -Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Why is Pan Card necessary?
+ -Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
- Easy to assess Income
- Easy to trace borrowers
Are diploma or certificate courses considered under New India Co-operative Bank education Loan (both for India and Abroad)?
+ -Yes diploma or certificate courses are eligible under New India Co-operative Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping
Is a co-borrower necessary for loan?
+ -Yes, it is mandatory to have a co-borrower to avail loan from New India Co-operative Bank.
Who can be my co-borrower?
+ -Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.
What all documents are required from the co-borrower?
+ -Documents required from the co-borrower are:
- Attested copies of age proof, residence proof and birth date.
- Self-attested passport size photograph
- Income proof and/or copy of income tax return file
- Details of collateral security along with government approved valuation certificate (if any).
What is the KYC requirement in education loan?
+ -KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
What are maximum term for repayment?
+ -Maximum term for repayment is 15 years.
How can I repay the loan?
+ -You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
What is EMI? How are they calculated?
+ -EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below:
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
Or simply you can use the EMI calculator provision available on New India Co-operative Bank’s official website.
Is the loan disbursed in name of individual applicant or to the institute/ university directly?
+ -The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee.
If I am unable to complete my course in given tenure, will my repayment term be extended?
+ -It is completely on the banks discretion to extend the moratorium period or not. You can contact your nearest branch for the same.
What is method of application of interest on education loan?
+ -The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.
What is interest rate of education loan?
+ -The interest rate is different for different category of Institutes. Refer the table below:
| Loan Amount | With Interest Moratorium | Without Interest Moratorium |
|---|---|---|
| Upto INR 4 Lacs | 12% | 11.5% |
| From INR 4 to 10 Lacs | 12.50% | 12% |
| Above INR 10 to 20 Lacs | 13% | 12.5%c |
What is interest subsidy on education loan?
+ -There is no Interest subsidy mentioned on the official website to be applied on Education Loan offered by New India Co-operative Bank.
What is employment verification in an education loan?
+ -The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.
Are there any tax benefits in education loans?
+ -Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).
Is it necessary to have bank account with the bank while availing loan from that particular bank?
+ -It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.
Can I repay my loan in foreign currency even if my bank is in India?
+ -Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.
Why do banks require insurance policy as security?
+ -The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy.
Are there any additional benefits on availing loan from New India Co-operative Bank Education loan?
+ -some of the benefits available for borrowers are as follows:
- Interest is calculated on reducing balance
- No prepayment or commitment charges
What is credit score? Is it important for education loan?
+ -Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.
Are NRIs eligible for the education loan?
+ -NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.
Is Visa a necessary document for studying abroad?
+ -Visa is needed as a document proof but it is not a sole requirement.
What all procedures do one have to go through while applying for abroad?
+ -A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.
If a student have any query, where or whom to contact?
+ -student can reach out to the nearest branch in case of any query.
- Customer Care Number: +91-22-66 58 66 58
- Customer Care ID: customercare@newindiabank.in
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