EDUCATIONAL LOAN SCHEME
 

Scope: The scheme extends a helping hand to meritorious students desirous of pursuing basic / higher / professional / technical education in India. The parents will become the borrowers with their dependant (student) as co-borrowers for the educational loan.

 
Studies in India only: School education plus 2 stage only.

Graduation courses leading to degrees like B.A., B.Sc., B.Com. etc.

Post Graduate courses leading to Masters degrees as also Ph.D.

Professional courses in Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc.

Computer Certificate courses of reputed institutes accredited to Universities or DOE.

Courses like ICWA, CA, CFA, etc.
 
Eligibility: Applicant must have secured admission to degree / professional/technical course through Entrance Test/Selection Process.
 
Age limit: 16/17 years for plus 2 stages of Education

18 to 21 years for graduation course

21 to 24 years for post-graduation courses etc
 
Quantum of loan: Need based finance subject to repaying capacity of parents/students with following ceilings :

MAXIMUM OF Rs. 5.00 lakh (RUPEES FIVE LAKH ONLY)

The loan amount under the scheme would be for meeting the following expenses :

  1. Course Fees
  2. Hostel/Boarding Fees including caution deposit/building fund etc.
  3. Books, Stationery & Equipment required for the course, including Computers.
  4. Examination/Library/Laboratory fees.
 
Security : Upto Rs. 5 Lac – 50 % by way of FD/RIDC/NSC/KVP/LICP S.V

One Guarantor shall have to be produced who is having creditworthiness and having some deposit accounts in the bank.

 
Service Charge: Processing fees shall be as per prescribed rules of the bank alongwith Service charges as applicable.
 

Interest Rates: 11% p.a (simple reducing)

 
Penalty Interest: @ 2% shall be charged as per usual norms of the bank.
 

Repayment: The loan will be repaid in 5 years since commencement of the loan. There will be no moratorium for repayment during the course period .The monthly instalment shall be calculated on the basis of the period and quantum of the loan to be availed .

 

Disbursement:

  1. The loan shall be directly paid to the College/Institution on semester basis as per their schedule of payment.The loan shall be issued for pursuing education at reputed institutions only having affiliation to reputed preferably Government universities and approved by AICTE and other technical organisations etc.
  2. The Bank shall start payment from 2 nd Instalment onwards directly to the College/Institutions and the 1st semester fees shall be borne by the applicant only.
  3. For General graduation courses where semester system is not followed,the loan shall be disbursed directly to the loanee through their respective accounts with the bank.
 

Documents:

  1. Uptodate I.T.Return file of the loanee and the guarantor
  2. Address proof and Identity proof of the loanee and the guarantor
  3. Letter of Admission of the College/Institution alongwith the prospectus mentioning the schedule of payment of fees.
  4. A certified copy of the receipt of payment of 1 st semester fees
  5. 2(two) copies of recent passport size photographs each of Loanee,the guarantor and the co-applicant.
  6. Statement of Income source to be produced in evidence by the parents.
  7. Any other document as may be required by the bank.