Public sector lender, Corporation Bank has found the void existing in the lending system when it comes to supporting coaching fees of aspiring students. Education loans are in the platform to support education costs of students since quite some time. But the recent times are witnessing the rising effluence of coaching centers to train students to crack the entrance tests and reach out to their dream colleges.

These coaching centers entail huge fees which fall quite tight to the average middle class pocket. Sensing the existing void as well as opportunity in this area, Corporation Bank has decided to introduce a new loan product which would cover coaching fees of students.

The amount of loan available would be in the range of Rs 50,000 to Rs 2 lakh and bear interest of 11%. The repayment period will be of 24 months (2 years). Unlike education loans where repayment lies on the student, recovery in this case would be done from parents as students mostly would still be minors, Mr Ramnath Pradeep, Chairman and Managing Director, Corporation Bank said.

Though all students might not succeed in securing a seat in a professional course, affordability should not be a constraint for getting an admission to these classes."

Mr Ajay Arora, Director of T.I.M.E. - Bangalore (coaching centre for competitive exams), welcomed this initiative by Corporation Bank.

"This is good news for students and we would like to partner with the bank to help them reach out to students."