Star Education loan that cares for careers
1. OBJECTIVE & PURPOSE :
The Star Educational Loan Scheme aims at providing financial support from the bank to deserving/ meritorious students for pursuing higher education in India and abroad. The main emphasis is that every meritorious student is provided with an opportunity to pursue education with the financial support on affordable terms and conditions.

2. ELIGIBILITY CRITERIA :
a. STUDENT'S ELIGIBILITY:

• Should be an Indian National;
• Secured admission to professional/technical courses in India or Abroad through Entrance Test/Merit based selection process.
• Good academic career.
• The student should not have outstanding education loan from any other Institution.
• Father/Mother should be co-borrower.
• Branch nearest to the permanent residence of student will consider the loan.

b. ELIGIBLE COURSE :
i. Studies in India (Indicative list) :

• Graduation/ Post Graduation courses
• Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc.
• Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID and other Institutes set up by Central/State Govt.
• Other courses leading to diploma/degree, etc. conducted by colleges/universities approved by UGC/Govt./AICTE/AIBMS/ ICMR, etc.

Note : Professional courses not approved by AICTE and conducted by Institutes not recognized by State Universities is outside the purview of the eligibility under the scheme.
ii. 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.

3. EXPENSES CONSIDERED FOR LOAN :

• Fee payable to college/school/hostel*
• Examination/Library/Laboratory fee.
• Purchase of books/equipment’s/instruments/uniforms.
• Caution deposit/building fund/refundable deposit supported by Institution bills/receipts.
• Travel expenses/passage money for studies abroad.
• Purchase of computers - essential for completion of the course.
• Insurance cover for the student.

Any other expense required to complete the course - like study tours, project work, thesis, etc.
* As per brochure/ demand letter from the institution.

4. 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 lakh
• Studies abroad - Maximum Rs.20.00 lakh.

5. MARGIN :

• Upto Rs.4 lakh : Nil
• Above Rs.4 lakh - Studies in India : 5%
• Studies Abroad : 15%• Scholarship could be included in margin.• Margin to be brought in on year to year basis as and when disbursements are made.

6. SECURITY :

• Upto Rs. 4 lakh : No security
• Above Rs.4 lakh &upto Rs.7.5 lakh : Collateral security in the form of a suitable third party guarantee.
• Above Rs.7.5 lakh : Co-obligation of Parents together with tangible Collateral security of suitable value along with the assignment of future income of the student for payment of instalments.

7. Note :
The security can be in the form of land/building/Govt. Securities/Public Sector Bonds/NSC/KVP/LIP/ Banks Term Deposit etc., in the name of Student/Parent/Guardian/Guarantor with suitable margin.

8. RATE OF INTEREST* :
(Floating, p.a. at monthly rests)

• Upto Rs.7.50 lacs – 3% above Base Rate, (presently 13.25 %)
• Above Rs.7.50 lacs – 2.50% above Base Rate, ( presently 12.75 %)
• Int. Concession of 0.50%p.a. for woman beneficiaries for limits up to Rs.50,000/- and 1% for limits over Rs.50,000/-
• For Professional courses (like Engg./Medical/ Management, etc.) int. concession : 0.50% (Maximum under a) and b), above is 1%)
• 1% int. concession if interest is serviced during moratorium period, where repayment holiday is specified for interest/repayment under the scheme (concession available for moratorium period only)

9. Simple interest during the repayment holiday/moratorium period. Penal interest @2% for loans above Rs.4 lakh for the overdue amount and overdue period.

10. INSURANCE :
All the student borrowers are offered a specially designed OPTIONAL Term Insurance covers and the premium can be included as an item of finance.

11. REPAYMENT :
Repayment holiday/Moratorium: Course period + 1 year or 6 months after getting job, whichever is earlier.

• After commencement of repayment :
• Loan amount up to Rs.7.50 lacs: 10 years.
• Loan amount over Rs.7.50 lacs: 15 years.

12. BANK CHARGES :

Processing/upfront charges	No processing Charges. In respect of loans for foreign study letter of sanction may be issued for obtaining VISA, upon recovery of processing charges of Rs. 1000/- However this can be refunded if the actual loan is availed. One time charges for any deviations from the scheme norms including approval of courses outside the scheme: Up to Rs. 4 lacs, Rs. 500/- Over Rs. 4 lacs up to Rs 7.50 lacs Rs. 1,500/- Over Rs. 7.50 lacs up to Rs 20.00 lacs Rs. 3,000/-
Document /Stamp Charges	At Actuals
Change of Institution	Studies in India – Rs.250/- Studies Abroad- Rs.500/-

13. One time charges for any deviations from the scheme norms including approval of courses outside the scheme applicable @ Rs.500 for loan up to Rs. 4 lacs, Rs.1000 for loan up to Rs.7.50 Lacs and Rs.2000 for Loan over Rs.7.50 Lacs. In respect of loans availed by borrowers from rural areas from the Rural Branches – Charges NIL.

14. OTHER CONDITIONS :

• Loan to be disbursed in stages as per requirement / demand, directly to the Institution/ Vendors of books/equipment’s/instruments to the extent possible;
• Student to produce mark list of previous term/semester before availing next instalment ;
• Student / Parent to provide latest mailing address, in case of any change ;
• Student /Parent to inform Branch immediately on change of course /completion of studies/termination of studies/ any refund of fees by college /institution /successful placement /obtention of job/change of job etc.,
• On Line facility available for submission of application, tracking of application status and resume completion of incomplete application.

For further information, you may contact nearest branch of the Bank. Loan at the sole discretion of Bank of India.

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.