EDUCATION LOAN SCHEME
Purpose
To provide financial support to meritorious students for pursuing higher studies in India & abroad with affordable terms & conditions.

Eligibility For Loan
Student who is / has: -

• 1. An Indian national.
• 2. Meritorious student
• 3. Secured admission to a higher education course in an institute recognized by a statutory body in India or abroad through entrance test/ merit based selection process after completion of HSC (10+2 or equivalent)

Eligible Courses
1. Studies in India

• 1. Approved courses leading to Graduate/ Post Graduate degree and Post Graduate diplomas conducted by recognized Colleges / Universities approved / accredited by Government of India/ State Government/ UGC / Government /AICTE /AIBMS / ICMR or Regulatory bodies.
• 2. Courses like I.C.W.A., C.A., C.F.A., etc.
• 3. Courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NIDetc.
• 4. Approved courses offered in India by reputed foreign universities
• 5. Evening courses of approved / accredited institutes
• 6. Computer Certificate courses of reputed institutes accredited to the Deptt. of Electronics or Institutes affiliated to Universities.
• 7. 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
• 8. Nursing Courses conducted by institutes approved by State / Central Govt./ Regulatory body.

a) Studies in Abroad

• 1. Graduation
  For job-oriented professional/technical courses offered by reputed universities.
• 2. Post Graduation
  Courses like MCA, MBA, MS etc.
• 3. Courses conducted by CIMA-London, CPA in USA etc
• 4. Degree/ Diploma
  Courses like Aeronautical, Pilot training, and Shipping etc. provided these are recognized by competent regulatory bodies in India/ abroad for the purpose of employment in India and abroad.

Two / Dual Courses
Education loan for Diploma and degree courses simultaneously may also be considered for two / dual courses provided by the educational institutions.

Top-up/Second Loan
Second Education Loan can be permitted for pursuing higher education in view of better placement prospects in case the student approaches for top-up/ second loan during the moratorium period of the first education loan subject to compliance of security stipulations, other terms & conditions defined as per extant guidelines of education loan policy.

Components of Finance

• 1. Fee payable to college/ school/ hostel (lodging and boarding). Reasonable Lodging & Boarding charges will be considered in case the student chooses/ is required to opt for outside accommodation.
• 2. Examination/ Library/ Laboratory fee.
• 3. Insurance premium for student borrower, if applicable.
• 4. Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
• 5. Travel expenses/ passage money for studies abroad.
• 6. Purchase of computers-essential for completion of the course*.
• 7. Purchase of books/ equipments/ instruments/ uniforms*.
• 8. Any other expenses required to complete the course-like study tours, project work, thesis, etc*.

*Terms & Conditions apply.

Amount of loan
Up to Rs. 10.00 Lacs for studies in India
Up to Rs. 20.00 Lacs for studies abroad

Margin

• Up to Rs. 4.00 Lacs NIL
• Above Rs. 4.00 Lacs
  5% For studies in India
  15% For studies Abroad

Note:
1) Scholarship/assistantship can be treated as margin.
2) Margin may be brought in on year to year basis as and when disbursements are made on a pro-rata basis.

Penal Interest
2% over the normal rate of interest shall be charged on loan above 4 Lacs on overdue amount for the overdue period. Process Fee For study in India: NIL irrespective of loan limit. For study abroad: Rs.1000/- +Service tax, if any. However, the fee would be refunded to the student on taking up the course (excluding service tax if paid to Government).

Prepayment Penalty
NIL

Security Clause
a)Loan upto Rs. 4.00 Lacs

• 1. No security.
• 2. Parents / guardian to be joint borrower (s) (irrespective of their means and age of student).
• 3. Co-obligation of spouse/ parents-in-law in case of married women.
• 4. In case of commercial pilot course obtaining of Life Insurance Cover shall be obtained.

b) Loan above Rs. 4.00 Lacs & upto Rs. 7.50 Lacs

• 1. Parents / guardian to be joint borrower (s) (irrespective of their means and age of student).
• 2. Co-obligation of spouse/ parents-in-law in case of married women.

c)Loan above Rs. 7.50 Lacs

• 1. Collateral security in the form of one suitable third party guarantee, preferably of other family member / close relative. In case of commercial pilot course Life Insurance policy shall be obtained.
• 1. 1. Parents / guardian to be joint borrower (s) (irrespective of their means and age of student).
• 2. Co-obligation of spouse/ parents-in-law in case of married women.
• 3. Mortgage of immovable property or any other tangible security like pledge of NSCs/UTI/LIC (Surrender Value)/ PSU Bonds etc. having value equivalent to 100% of loan amount.

Insurance
Bank may arrange for Life Insurance policy for the students availing education loan. While obtaining such insurance cover, the prior consent of student / co-borrower shall be obtained and kept on record.
The insurance premium has to be borne by the student / co-borrower. However, sanctioning authority may consider the premium amount as one of the component of finance, if requested by student / co-borrower.

Repayment

• For loan upto Rs. 7.50 Lacs - Upto 10 years
• For Loan above Rs. 7.50 Lacs - Upto 15 years
  Moratorium Period/ repayment holiday (course period + Grace period)

( The moratorium period be permitted within the overall repayment period of respective loan)

Disbursement

• 1. For studies in India:
  Loan shall be disbursed in stages as per requirement / demand, directly to the institutions/vendors of books/ equipments/ instruments etc. to the extent possible.
• 2. For studies abroad:
  In stages as per requirement/demand, directly to the institutions subject to obtention of certified copies of relevant pages of passport and visa of the student.

The Institute eligible under Education loan scheme

• 1. Diploma, Degree courses conducted by Colleges/ Universities/ Educational Institutions approved by UGC / Central or State Governments/ AICTE/AIBMS/ICMR or other regulatory bodies.
• 2. The Education Institute not having approval from above said Regulators, but having Head Office approval and if their names are included in approved Educational Institute list (Annexure- A).

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.