The Educational Loan Scheme aims to provide financial support to
deserving/meritorious students for pursuing higher education in
India and abroad. The Scheme also aims to provide financial
assistance to the needy poor to undertake basic education.
Eligible Courses of Study in India
1. Graduation courses – B.Sc, B.A, B.Com etc
2. post graduation courses- Masters & Ph.D
3. Professional courses – Engineering, Medical, Agriculture,
Veterinary, Law, Dental, Management, Computer etc
4. Computer certificate courses of reputed institutes accredited to
Dept. of electronics or Institutes affiliated to University
5. Courses like ICWA, CA, CFA etc
6. courses conducted by IIM, IIT, IISc, XLRI, NIFT etc
7. Regular degree/diploma courses like aeronautical, pilot training,
shipping etc approved by Director general of Civil Aviation /
shipping, if the course is pursed in India. In case the course is
perused abroad, the institute should be recognized by
the competent local aviation/shipping authority
8. courses offered in India by reputed foreign universities
9. evening courses of approved institutes
0. 10. Other courses leading to diploma / degree etc., conducted by
colleges / universities approved by UGC / Govt. / AICTE / AIBMS /
ICMR etc
Eligible Courses of Studies abroad:
1. Graduation : For job oriented professional / technical courses
offered by reputed universities
2. Post-Graduation - MCA, MBA, MS, PhD etc.
3. Courses conducted by CIMA-London, CPA in USA etc
Student Eligibility:
1) Should be an Indian Resident.
2) Secured admission to Professional/Technical courses through
Entrance Test/Selection Process and should produce proof.
3) Secured admission to Foreign University / Institutions and should
produce proof.
4) No specific age restriction with regard to age of the student
to be eligible for educational loan
Purpose of the Loan:
1) For payment of College / School/ Hostel Fees.
2) For payment of Examination / Library / Laboratory Fees.
3) For purchase of books/equipments/instruments.
4) For payment of Caution Deposits (caution deposit not to exceed
10% of total tuition fees for the entire course)
5) For making Travel Expenses / Passage Money for studies abroad.
6) For purchasing inputs essential for completion of the course.
7) Any other expenses required to complete the course like study
tours, project work, thesis, etc.
8) for purchase of computer / laptop of uniforms
10) Insurance premium for student borrower
Quantum of Finance:
Need based finance subject to the repayment capacity of
parents/guardian subject to
a) Max. upto Rs.10 Lakhs for studies in India.
b) Max. upto Rs.20.00 Lakhs for studies abroad.
Scale if Finance:
Based on the demand received from the college / Institutions,
keeping the required margin. The disbursement towards fees etc to
college / purchase of equipments should be direct to the College /
Institution / supplier
Margin Suggested:
Upto 4 lakhs – Nil
Above Rs. 4.00 lakhs
Studies in India - 5 % and
Studies abroad – 15 %
1. Scholarship / Assistantship to be included in Margin.
2. Margin may be brought in on a year to year basis as and when
disbursements are made on a pro-rata basis.
Securities Suggested:
Up to Rs 4.00 lakhs : Parents / Guardian should join the
execution of documents.
Security need not be insisted uponAbove 4.00 lakhs and upto Rs 7.50 lakhs ,
Above Rs.4.00 lakhs and Upto Rs.7.50 lakhs:
1. Co-obligation of parents / guardian together with collateral
security in the form of suitable third party guarantee. If we are
satisfied about the net worth of the parents/means of parents
/guardian, we may waive the condition of obtaining third party
guarantee
2. However if the party offers security of immovable property and or
guarantee from third party on a voluntary basis, it may be accepted
for the loans upto Rs.7.50 lakhs
Above Rs.7.50 lakhs
1. Third party guarantee and immovable security equal to 100% of
the loan amount.
2. Assignment of future income of the student for payment of
instalments
. The document should be executed by both the student / and the
parent / guardian.
4. The security can be in the form of land / building / Govt.
securities / Public Sector Bonds / NSCs / KVPs / LIC Policies, Gold,
shares / MF units / debentures, bank deposits in the name of the
student/parent/guardian or any other third party. If land/bldg is
already mortgaged, the unencumbered portion can be taken as security
on second charge basis, provided it covers the loan amount. In case
of married person, coobligator can be either spouse or
parent/parent-in-law
6. In case the loan is given for purchase of computers, the
same is to be hypothecated to the bank.
1. The student/parents have the option to repay the interest during
the holiday period.
2. If the student / parent do not opt for the same, the principal
o/s together with interest payable should be clubbed and should be
repaid in EMIs.
3. The EMI amount should be fixed at the time of commencement of
repayment
4. The loan to be repaid in 5 – 7 years after commencement.
5. Holiday Period: Course period + 1 year (or) 6 months after
getting job whichever is earlier.
Processing Fees:
No processing fees / upfront charges may be collected for studies in
India. For studies abroad, processing fee @ 0.20% should be
collected
Capability Certificate:
The bank can also issue the Capability Certificate for students
going abroad for higher studies after obtaining the relevant
supporting documents from the applicant.
Other Conditions:
1) Life of student should be insured for the loan value
2) Life insurance policy should be assigned in favour of the bank.
3) No Due certificate need not be insisted upon as a precondition
for considering educational loan. However, branches may obtain a
declaration / an affidavit confirming that no loans are availed from
other banks.
4) Loan applications have to be disposed of within a period of 15
days to one month
General :
- If the fees have already been paid to the college on account of
urgency/payment before the stipulated date by borrowing from the
friends/relatives/outsiders/institutions by availing loans, the bank
may consider the loan under the scheme for payment of such dues
provided sufficient material proof is provided for payment of such
fees and also for availment of loans from
friends/relatives/outsiders. In such case, the payment should be
made direct to the persons from whom borrowed and receipts should be
obtained and kept on record.
- If the college/institution indicates arrears of fees for the
previous year (not yet paid by the student) it may also be
considered for finance.
- If the student has paid fees for certain semester/s and seeks loan
for subsequent semesters, the fees paid for earlier semester may be
taken as margin and full (100%) fees may be advanced for subsequent
semester/ years, provided original receipts for earlier years are
provided to the bank for verification and Xerox copies thereof have
to be obtained for our records.
In case student/parents approach for educational loan after
having completed one/two semesters/years, such loans based on future
expenses can be considered, provided the student has cleared all the
papers in the previous exams.
- If any of the loans of the borrower/co-obligant / guarantor is in
default, no loan
will be entertained under this scheme till account/s become regular.
