AB Education Loan
Objective of the Scheme:

• To provide financial support to meritorious students for pursuing higher education in India and abroad.
• Meritorious Students under management Quota are eligible for Education Loan.

Student eligibility:

• The student should be an Indian National and should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/Merit Based Selection process after completion of HSC (10 plus 2 or equivalent).
• Where the admission is purely based on the marks scored in qualifying examinations then the cutoff marks for loan eligibility is 60%.
• Students admitted under management quota are also eligible for loan.

Course eligible
Studies in India (Indicative list)

• 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.
• Teacher training Courses / Nursing courses / B.Ed is also eligible for Education loan provided the Training Institutions are approved either by Central Government or by State Government and such courses should lead to Degree or Diploma Course and not to a Certification Course.
• Approved courses offered in India by reputed foreign universities.

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.
• 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.

Age
There is no specific restriction with regard to the age of the student to be eligible for education loan.
Quantum of Finance
Need based finance to meet the expenses worked out will be considered taking in to account margins subject to the following ceilings:

• Studies in India - Maximum up to Rs. 20 Lac. Institutes are graded and loan amount depends upon the grading of the institute.
• Studies Abroad - Maximum up to Rs. 20 Lac.

Expenses considered for Loan

• Fee payable to college / hostel.
• Exam / Library / Laboratory Fee.
• Passage money for study for abroad.
• Purchase of books / equipments / uniforms
• Purchase of computers, if required for completion of course.
• Reimbursement of fee paid at the time of counseling (If the student applies for loan within 60 days of such payment).

Margin

• Up to Rs. 4.00 lacs Nil
• Above Rs. 4.00 lacs
  • In India 5%
  • Studies Abroad 15%
• Scholarship/ Assistantship to be included in Margin.
• Margin Money to be brought on year-to-year basis as and when disbursements are made on a pro-rata basis.

Rate of Interest:
Rate of Interest is institute specific varies from BR+1.50 to BR+3.00 (11.70% to 13.20%). Simple interest during the course & moratorium period. 0.50% rebate in Rate of Interest for girl students.1.00% concession during moratorium period if interest is serviced during moratorium period

Moratorium
"Course Period plus one year" or "Six Months after getting Job", whichever is earlier.

Repayment Period:

• For loans up to Rs. 7.5 Lac - up to 10 years
• For loans above Rs. 7.5 Lac - up to 15 years

The accrued interest during the repayment holiday period is to be added to the Principal Amount. Accordingly, Equated Monthly Installments (EMI) should be fixed.
No prepayment penalty will be levied for prepayment of loan any time during the repayment period.
Processing Fee/ Mortgage Charges:
Processing Fees/ Documentation Charge: For studies in India - NIL
Mortgage Charges: Actual expenses, if any, will be borne by the Student/Parent or Guardian.

Disclaimer:
     Since the rules, regulations, eligibility conditions, repayments and interests rates etc are revised by the banks from time to time in keeping pace with the changing capital market conditions, students and parents are advised to thoroughly check the terms and conditions of educational loan scheme on offer at the time of application.