Corporation Bank launched the “online request facility for the education loan product”- Corp Vidya at Corporation office in Mangalore on Friday. The facility was launched by Manipal University Vice-Chancellor Dr R P Warrier.

Speaking on the occasion, Corporation Bank Executive Director K L Gopalakrishna said Corporation Bank has endeavoured to launch this facility for the convenience of the students who have secured admission to professional courses on merit basis.

He said in the online request facility, an applicant has to log onto the Bank’s website www.corpbank.in and click the “online request for Corp Vidya” button on the home page.

The applicant then has to fill in the relevant details in the columns like name, address, previous examination, proposed course, course expense, loan amount requested and click the submit button.

The bank will scrutinise the details and give in-principle sanction to the applicant through e-mail, with a copy of it to the nearest branch and Zonal office. The applicant will be requested to approach the nearest branch along with the original documents. The loan will be sanctioned within seven days, he added.

Mr Gopalakrishna said that the online request facility with in-principle sanction ensures a hassle free and timely credit dispensation to the needy students.

The bank will provide a maximum of Rs 10 lakh education loan to study in India and Rs 20 lakh for the study abroad.

There is no security required for the education loan upto Rs 4 lakh. Above Rs 4 lakh and upto Rs 7.50 lakh, collateral security in the form of a satisfactory third party guarantee is needed.

For above Rs 7.50 lakh, a collateral security of suitable value or third party guarantee along with the assignment of future income of the student for payment of installments is needed.

The rate of interest for above Rs 4 lakh for studies in India is 5 per cent and above Rs 4 lakh for studies abroad is 15 per cent.

Rate of interest with effect from June 1, are as follows: Upto Rs 7.50 lakhs (11.25%); above Rs 7.50 lakhs (10.25%) and above Rs 7.50 lakhs (11.25%). One per cent concession is available during repayment holiday period if the interest is serviced promptly as and when debited.

The repayment of the loan is very flexible, he said and added: During the last fiscal, the education loan portfolio of the bank leaped a 63 per cent growth.

Speaking after launching the facility, Dr R P Warrier said the education loan provides a scope for the students to pursue their higher education. With the increase in fees, it is very difficult for the parents from lower class and middle class to send their children to pursue higher education.

He said Indian banks should become international and compete with the global banks. General Manager A Mohan Rao was present.