Eligible Student :
- Should be an Indian National.
- Secured admission to professional/ technical courses in India or Abroad through Entrance Test / Merit Based Selection process after completion of HSC(10 plus 2 or equivalent).
Courses Eligible :
- Studies in India
- Studies abroad
Approved courses leading to graduate/ post graduate degree and P G diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc. Courses like ICWA, CA, CFA etc. Courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NID 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. Approved courses offered in India by reputed foreign universities. Teacher Training/Nursing/B.Ed. courses will be eligible for education loan provided the training institutions are approved either by the Central Government or by State Government and such courses should lead to degree or diploma course and not to certification course.
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. Degree/diploma courses like aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.
Expenses considered for loan :
- Fee payable to college/ school/ hostel.
- Examination/ Library/ Laboratory fee.
- Travel expenses/ passage money for studies abroad.
- Insurance premium for student borrower, if applicable.
- Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts.
- Purchase of books/ equipments/ instruments/ uniforms.
- Purchase of computers - essential for completion of the course.
- Any other expense required to complete the course - like study tours, project work, thesis, etc.
Quantum of finance :
- Need based finance subject to repaying capacity of the parents/ students with margin and the following ceilings.
- Studies in India - Maximum Rs.10.00 lacs.
- Studies abroad - Maximum Rs.20.00 lacs.
- Upto Rs 4 lacs : Nil.
- Above Rs 4 lacs : Studies in India 5% Studies Abroad 15%.
- Loans Upto Rs 4 lacs - Co obligation of parents.
- Above Rs 4 lacs and upto Rs. 7.5 lacs.
- For cases above Rs 7.5 lacs.
Further wherever parents are not there banks could consider grandparent as co obligator to the loans taking into account their net worth.
Co obligation of parents along with Collateral in the form of a suitable third party guarantee for 100% of the loan amount to be taken.
Co obligation of parents along with Collateral security of 100% value of loan.
Assignment of future income of the student for payment of the loan instalments for all loans.
The co-obligator should be parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/parents-in-law.
Rate of Interest :
- Interest will be Base rate plus applicable margin as decided by bank.
At least 0.50% concession in interest rates on Education Loans to girl students for pursuing higher education in India and abroad
Penal interest @2%
Repayment / Holiday :
- The repayment holiday shall be a year more than the period of the course or 6 months after the borrower gets a job, whichever is earlier.
- The loan shall be repaid in 5 - 7 years after commencement of repayment
- Prepayment permitted without any charges.
Processing Charges : Nil