Educational Loan

Purpose
Educational Loans for providing financial support to deserving/ meritorious students for pursuing higher education in India and abroad.

Loan type
Amortizing Term Loans in equal installments post moratorium period

Borrower Segments
The student
Individuals of Indian Nationality who have secured admission to recognized courses/universities in India or Abroad through entrance test/selection process

The parent/guardian
a) Salaried
b) Self Employed Professionals
c) Self employed Business

Courses eligible
a) Studies in India

• Post graduation courses from recognised universities
• Professional courses from reputed institutes:.
• Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc.

b) Studies Abroad

• Courses conducted by CIMA – London, CPA – USA, etc.,
• Courses in Universities which take admissions through TOEFL,GMAT,GRE,SAT exams

Only one course at a time will be financed

Loan Amount
a) Studies in India
Minimum – Rs. 25,000
Maximum – Rs. 7,50,000

b) Studies abroad
Minimum – Rs. 1,00,000
Maximum – Rs. 15,00,000

Expenses Considered

• Tuition and other fees
• Maintenance costs, books & equipments, uniform, etc.
• Caution fund/ building fund/ refundable deposit
• Travel expenses/passage money for studies abroad for the first time only
• Any other expense required to complete the course – like study tours, project work, thesis, etc.

All the above expense should be supported by institution bills/receipts

Tenor
Maximum 5 years after commencement of repayment for studies in India and 3 years for studies abroad

Moratorium period
The holiday period enjoyed by the borrower towards repayment of the loan. Moratorium period shall not exceed course duration + 6 months

Margins

• a ) Upto Rs. 4 lacs - Nil
• b) Above Rs. 4 lacs
  • Studies in India: 5%
  • Studies abroad: 15%

Scholarship/assistantship to be included in margin

Security

• Upto Rs. 4 lacs: no security/collateral required
• Above Rs. 4 lacs upto 7.5 lacs: Collateral in the form of a satisfactory third party guarantee.
• Above 7.5 lacs: Collateral security upto 100% of the loan amount and guarantee of an earning acquaintance of the student for 100% of the loan amount.

Collateral can be in the form of:

• Land/ building/,govt. securities/Public Sector Bonds/ Units of NSC, KVP, LIC policy, shares/ debentures, bank deposit in the name of student/ parent/ guardian or any other third party for 100% of the loan.
• In case the loan is given for purchase of computer the same to be hypothecated to the Bank

Interest Rate
Fixed

Repayment during moratorium period
he borrower has to repay the interest accrued during the moratorium period on a monthly basis.

Applicant/Co-applicant
Student
Parent/guardian of the student borrower

Disbursement

• Disbursement of the loan will be made in stages as per the demand directly to the college/institution.
• Student should furnish to the bank after every semester, suitable evidence of his satisfactory progress in the course of his studies. Satisfactory performance will be a pre-requisite for availability of finance for the subsequent years. Bank will have the option to discontinue disbursement of sanctioned loan or recall it at any time if the progress of the student is not satisfactory.

Mode of repayment

• Post Dated cheques
• Standing Instructions, if the customer has bank account with DCB

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.