Education loan for CA students – OBC, IDBI, BOM, Corporation Bank, With growing demand to pursue professional courses like CA, CWA and CS every day a new coaching institute is emerging to assist the students to reach their destination by way of providing necessary lectures on various subjects. So for most of the students it has become inevitable to attend the coaching classes for better results in the exams. However these institutes are charging different amounts of fees for various levels. Besides the course registration fee payable to ICAI at various levels one may also has to pay to attend the lectures.

Not everyone can afford to pay the fees to attend these institutes. For those students who are financially back warded, there are many banks in India providing education loan to purse CA. Here in this article we are giving very useful information gathered from various banks.

Education loan for CA students

ICAI has made tie-up with the following Banks under the “Join CA Educational Loan Scheme” to provide the Education loan to its aspiring students to meet out the Course fees etc.

  1. Bank of Maharashtra
  2. Corporation Bank
  3. IDBI Bank
  4. Oriental Bank of Commerce

1. Bank of Maharashtra (BOM):


  1. All those who want to pursue CA either in INDIA or in Abroad can apply for loan to BOM.
  2. The applicant should have secured an admission by qualifying the entrance test. But it is enough to have paid the registration fee for CPT to secure the admission. The letter of acknowledgement of CPT course stands as a testimony for admission.

Maximum Amount of loan:

  1. For study in India : Rs 10,00,000
  2. For study in Abroad: Rs 20, 00,000.

Rate of Interest :


  1. Loans up to Rs. 4.00 lac (Base Rate + 1.75%)
  2. Loans above Rs. 4.00 lac (Base Rate + 2.75%)
  3. Simple interest during moratorium period, there after compounded monthly


  1. For loan above Rs 7.5 lakhs :   Value of collateral security after providing requisite margin as stated below should be equal to the amount of finance + 2 guarantor.
  2. For loan up to Rs 4 -7.5 lakhs :    3rd part guarantee satisfactory to the bank
  3. For loan up to Rs 4 lakhs  :    clean

Margin  :    Up to Rs. 4 lakhs – Nil

  Above Rs. 4 lakhs – 5% for studies in India & 15% for studies abroad

2. Corporation Bank:


  1. Student should be an Indian National
  2. Should have secured at least 60% marks [55% for student belonging to SC/ST category] in the previous qualifying examination.
  3. Should have secured admission in CA course. Receipt of acknowledgement of payment of CPT course fee serves this purpose.

Eligible expense:

  1. Course fee payable to the institute
  2. Travel expenses in case of study abroad
  3. Purchase of computers
  4. Purchase of course materials
  5. Any other expenses directly associated to complete the course

Amount of Loan:

  1. Studies in India : Maximum of Rs.10 lakhs
  2. Studies Abroad : Maximum of Rs.20 lakhs


1. Up to Rs.4.00 Lakh :

Co-obligation of Parent/s or Grand Parent/s (if parents are deceased)

2. Above Rs.4.00 Lakh & up to Rs.7.50 Lakh:

Co obligation of Parent/s, Grand Parent/s (if parents are deceased) together with collateral in the form of suitable third party guarantee with a net worth of at least equal to loan amount.

3. Above Rs.7.50 Lakh:

Co- obligation of Parents/Grand Parents (if Parents are deceased) together with tangible collateral security along with the assignment of future income of the student for payment of instalments. Loan shall be fully secured after maintaining prescribed margin on respective securities offered.

Margin for various securities:

  1. Immovable property – 35%
  2. Government Securities –  25%
  3. LIC Policy or Deposits outstanding – 10%

Margin :

  1. Up to Rs. 4 lakhs : NIL
  2. Above Rs.4 lakhs :     Studies in India – 5%

Studies abroad – 15%

No Processing Charges for studies in India

Rs.2000/- +Tax in case of studies abroad refundable once the loan is availed. However the amount of Tax should not be refunded.

Repayment of the loan:

  1. For loans up to Rs.7.5 lakhs : 10 years – Fixed – excluding initial repayment holiday
  2. For loans above Rs.7.5 lakhs : 15 years -Fixed – excluding initial repayment holiday

Repayment holiday is the course period + 1 year OR 6 months after getting the job whichever is earlier

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3. Oriental Bank of Commerce:


  1. Student should be an Indian national
  2. Should have secured admission in ICAI before applying for the loan.
  3. Should have meritorious academic record.

Eligible expense:

  1. Course fee payable
  2. Purchase of books & computers which are essential to complete the course
  3. Travel expenses in case of study abroad
  4. Any other expense required to complete the course

Amount of Loan:

  1. Up to Rs. 10 Lakhs for studies in India
  2. Up to Rs. 20 Lakhs for studies abroad


  1. Up to Rs. 4 Lacs  –  Nil
  2. Above Rs. 4 Lacs –     5% For studies in India

 15% For studies Abroad

Rate of interest :

  1. Up to Rs.4 lacs – Base rate + 2.5%
  2. Above Rs.4 lacs but not exceeding 7.50 lacs withThird party Guarantee   –  Base rate + 3%
  3. Above Rs.4 lacs but not exceeding 7.50 lacs withImmovable property or tangible assets – Base rate + 1.75%

Penal interest:

2% over the normal rate of interest shall be charged on loan above 4 Lacs on overdue amount for the overdue period.

Security clause:

1. Loan up to Rs.4 Lakhs:

  • No security.
  • Parents or guardian to be joint borrower
  • Co-obligation of spouse or parents-in-law in case of married women.

2. Loan of Rs 4 – 7 lakhs:

  • Parents or guardian to be joint borrower
  • Co-obligation of spouse or parents-in-law in case of married women. AND Collateral security in the form of one suitable third party guarantee, preferably of other family member or close relative. In case of commercial pilot course Life Insurance policy shall be obtained.

3. Loan above Rs 7 lakhs:

  • Parents / guardian to be joint borrower
  • Co-obligation of spouse/ parents-in-law in case of married women
  • Mortgage of immovable property or any other tangible security having value equivalent to 100% loan amount or Extension of charge or 2nd charge on unencumbered portion of land and building already mortgaged with Bank or other Banks provided the residual value of the property is equivalent to the proposed amount of loan and the conduct of honoring the existing loan is satisfactory.


  1. For loan up to Rs. 7.50 Lakhs – Up to 10 years
  2. For Loan above Rs. 7.50 Lakhs – Up to 15 years

4. IDBI:

1. This bank offers very low amount of loan among all the 4. It sanctions maximum Rs 2 lakhs

2. Co-applicant is mandatory. Loan document should be executed by the co-applicant along with the student.

3. Expenses covered:

  • Loan amount covers only initial registration for each course/stage.
  • Purchase of Computers/ Laptop, essential for completion of the course, will be allowed only after passing IPCC/ PCC. The Loan amount not to exceed Rs.40, 000.
  • Coaching fees will not be covered under the educational loan

4. Collateral security: Nil

5. Margin : Nil

6. Rate of interest: Base rate + 3%

7. Repayment:

Repayment of loan should be completed in Maximum of 84 months after commencement of repayment.

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Latest Comments

  1. If one applies for loan then what will be the duration of course? I went to Sbi but they denied me by saying that the ca course has no duration limit.


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