This is scheme of choice for parents who wish to educate their children in professional courses in India / Abroad and help them get graduation / post graduation in any field of choice of the student. The cost of the education can be born by the loan from our bank Student Eligibility

• Should be an Indian National.
• Secured first class and wish for admissions in Professional / Technical / Other Courses of various studies.
• Secured admission to foreign University Institutions.
• Any Student who has attained the age of 18 years or Parent of the Student can avail the loan.

Eligible course of study
Studies in India

• School education / Graduation / Post Graduation Courses.**
• Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc. Courses like ICWA, CA, CFA etc Courses conducted by IIM, IIT, IISc, XLR1, NIFT etc.
• 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.

**When the age of the student is below 18, Loan may be sanctioned to his parents by complying the relevant condition mentioned further below.

Expenses considered for Loan?

• Fee payable to College / School / Hostel.
• Examination / Library / Laboratory fee.
• Purchase of Books / Equipments / 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.
• Any other expense required to complete the course - like study tours , project work, thesis etc.

Quantum of Finance
Need based finance subject to repaying capacity of the parents / students with margin and the following ceilings: For Studies in India - Max. Rs. 10 Lakhs, For Studies Abroad - Max. Rs. 20 Lakhs.

Margin

• Upto Rs. 4 Lakhs - Nil.
• Above Rs. 4 Lakhs - Study in India - 5%.
• Above Rs. 4 Lakhs - Study Abroad - 15%.

Security

• Upto Rs. 4 Lakhs - No Security
• Above Rs. 4 Lakhs upto Rs. 7.50 Lakhs Suitable Third Party Guarantee
• Above Rs. 7.50 Lakhs and upto Rs. 20 Lakhs - 100% collateral in any of the form of Immovable property / NSC / Units of UTI / LIC policy / RBI Bonds or any transferable Government securities.

Capability Certificate
Foreign Universities require the students to submit a certificate from their bankers about the sponsor’s solvency and financial capability, with a view to ensure that the sponsors of the students going abroad for higher studies are capable of meeting the expenses till completion of studies. Charges: Rs. 100.00 per Lakh or part there of. Minimum Rs. 100.00, Maximum Rs. 500.00

Rate of Interest

• Upto Rs. 4 Lakhs - BR + 3.50% (14.25% p.a.).
• Above Rs. 4 Lakhs upto Rs. 7.50 Lakhs - BR + 3.50% (14.25% p.a.) *.
• Above Rs. 7.50 Lakhs upto Rs. 20 Lakhs (With 100% Collateral Only) - BR + 3.00% (13.75% p.a.).
• * Interest Rate Concession by 0.50% if covered by 100% and above collateral security.
• Additional Incentive of 1% in R.O.I for servicing the interest during study and moratorium period.
• Current Base Rate for Lending (BR) is 10.75% p.a.

Penal Interest
Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest or at such rates prescribed by the bank from time to time on the balance outstanding.

Disbursement
The loan will be disbursed in staged as per the requirement / Demand directly to the institutions / Vendors of books / Equipments / Instruments.

Sanction/Disbursement
All usual documents as per Bank’s Rule should be obtained. The Loan to be disbursed in stages as per the requirement / demand directly to the institutions / vendors of books / equipments / instruments to the extent possible.

Repayment

• Holiday / Moratorium Period: Course period + 1 year after completing the course. If the student got employed within 1 year after completion of the course, the repayment should start immediately after the expiry of one month from the date of employment.
• Maximum Repayment period of Loan: The loan to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course

Follow Up
Branch to contact college / university authorities to send the progress report at regular intervals in respect of students who have availed loans.

Guarantee / Co-obligant

• Guarantee of Parents.
• In case, the loan is sanctioned to Parents suitable third party guarantee is to be obtained.
• Wherever loan is sanctioned to Parents, guarantee is to be obtained from the student on attaining his majority.

Interest Payment
Payable at monthly rests from the date of availment of loan. A separate Letter of undertaking is to be obtained from the Parent / Guarantor that the monthly interest will be paid from the income of the Parent / Guarantor.

Processing Charges
1.00% of Limit sanctioned without any maximum cap for studies abroad. No processing / upfront charges may be collected on educational loans for studies in India.

All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Service Tax on All Service Charges extra wherever applicable.
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.