Eligibility Criteria
Student Eligibility
Student should be an Indian National.
Should have completed previous qualifying examination.
Secured admission to professional/ technical courses in India or Abroad through Entrance Test/Merit Based Selection process.
Person already in gainful employment are not eligible for loan under the scheme except for pursuing evening course covered under the scheme of approved institute.
Courses Eligible
a. Studies in India
Graduation Courses : BA, B.Com, B.Sc., etc
Post Graduation Courses : Masters & Phd.
Professional Courses : Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.
Courses like ICWA, CA, CFA etc
Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc
Regular Degree/Diploma courses like Aeronautical pilot training, shipping etc., approved by Director General of Civil Aviation/Shipping, if the Course is pursued in India. In case the course is pursued abroad, the Institute should be recognized by the competent local aviation/shipping authority.
Courses offered in India by reputed foreign universities
Evening courses of approved institutes.
Nursing/Teachers training courses for periods of one year & above from recognized colleges/institutes leading to Diploma/Degree.
Other Courses leading to diploma/degree etc. conducted by Colleges/universities approved by UGC/Govt /AICTE /AIBMS/ ICMR etc
Courses offered by National Institutes and other reputed private institutions.
Vocational Training and skill development study courses will not be covered under the model educational loan scheme, as the scheme is framed to provide Bank loans for higher studies
Courses Eligible
b. Studies abroad
Graduation : For job oriented professional/ technical courses offered by reputed universities
Post Graduation : MCA, MBA, MS etc
Courses conducted by CIMA - London, CPA in USA etc
c.Other conditions:
The courses eligible for financial assistance under the scheme should be conducted by the colleges/ universities/ institutions which are either recognized by the government /affiliated to a university/deemed university or conducted by autonomous institutions like IIT, IIM etc or approved by AICTE /accredited to Department of Electronics, Government of India, courses offered by reputed universities/institutions abroad.
Correspondence courses / computer part time /certificate courses are not eligible for finance under the scheme.
Expenses considered for loan
Fee payable to college/school/hostel
Examination/Library/Laboratory fee
Purchase of books/equipments/instruments/ Uniforms
Caution deposit*
Travel expenses/ passage money for studies abroad
Purchase of computers - essential for completion of the course
Insurance premium for student borrower
Any other expense required to complete the course - like study tours, project work, thesis etc.
* building fund/refundable deposit supported by Institution bills/ receipts stands deleted
Quantum of Finance
Need based finance subject to repaying capacity of the parents/students with margin and the following ceilings:
Studies in India - Maximum upto Rs.10 lakhs
Studies in Abroad - Maximum upto Rs.20 lakhs
Margin
Upto Rs.4 lakhs - Nil
Above Rs.4 lakhs - Studies in India 5%
Studies abroad 15%
- Scholarships / assistantship to be included in margin
- Margin may be brought-in on year-to-year basis as and when disbursement are made on a pro-rata basis
Security
Upto Rs.4 lakhs : Co-obligation of parent/s. No other collateral Security
Above Rs.4 lakhs and upto Rs.7.50 lakhs : Co-obligation of parents together with collateral security in the form of suitable third party guarantee.
Above Rs.7.5 lacs : Co-obligation of parents together with tangible collateral security along with the assignment of future income of the student for payment of installments
Note:
The loan documents should be executed by both the student and the parent/guardian as joint-borrower
The security can be in the form of land/building/ Govt. securities/Public Sector Bonds/Units of UTI, NSC, KVP, life policy, gold, shares/mutual fund units/ debentures, bank deposit in the name of student/ parent/ guardian or any other third party with suitable margin.
Wherever the land/building is already mortgaged, the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount with prescribed margin of 35%
In case the loan is given for purchase of computer, the computer has to be hypothecated to the Bank.
Rate of interest With effect from 03rd February, 2009:
| Upto Rs.4.00 Lakh | Applicable for fresh loans sanctioned/initially disbursed on or after 03.02.2009 | 12.50% |
| Above Rs. 4 Lakh & Upto Rs.7.50 Lakh | Applicable for fresh loans sanctioned/initially disbursed on or after 03.02.2009 | 13.50% |
| Above Rs.7.50 Lakh | a) Secured: | |
| New Loans disbursed on or after 03.02.2009 | 12.00% | |
| b) Unsecured: | ||
| New Loans disbursed on or after 03.02.2009 | 13.50% |
Simple interest to be charged during the Repayment holiday/Moratorium period
1% interest concession may be provided for loanees if the interest is serviced as and when debited.
Appraisal / Sanction / Disbursement
The loan to be sanctioned as per delegation of powers preferably by the Branch nearest to the place of domicile of parents
Repayment
Repayment holiday/Moratorium : Course period + 1 year, or 6 months after getting the job, whichever is earlier
The loan has to be repaid within a maximum period of 10 years after completion of repayment holiday period.
Insurance
The student borrower may be covered under the Banks insurance scheme Corp Suraksha.
Processing Charges
No processing/upfront charges shall be collected on educational loan for studies in India. For studies abroad, processing charges @ 1% of total loan limit sanctioned may be collected for fresh loan. These charges are scheme specific & inclusive of applicable Service Tax.
" Wherever immovable property is offered as security, property valuation charges, legal opinion charges and insurance premium of immovable property will have to be borne by the applicant."
Other Conditions:
a. Multiple loans
In case of receipt of application for more than one loan for student borrower from a family, the family as a unit has to be taken into account for considering the loan and security taken in relation to the total loan limit sanctioned, subject to margin and repaying capacity of the parent/student.
b. Take over of loans from other Banks
Student should avail education loan from any one Bank/branch.Take over of education loan availed with other bank is not permitted.
Co-obligant
The co-obligant should be parent[s]/guardian of the student borrower. In case of married person, co-obligant can be either spouse or the parent[s]/parent-in-law
Disposal of application
Loan applications have to be disposed off within a period of 7 days of receipt of application complete in all respects
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