Education Loan
Purpose

• Loans for Indian nationals- meritorious students for pursuing higher education in India or abroad.

Eligible Courses

• Studies in India
  • Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt./AIBMS/ICMR. Etc
  • Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM, NIFT, IISc etc
  • Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping.
  • Courses like ICWA, CA, CFA etc.
• Studies abroad
  • Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities and Courses conducted by CIMA-London, CPA in USA etc.

Expenses considered for loan

• Fees payable to college/school/hostel.
• Examination/Library/Laboratory fees.
• Purchase of Books/Equipment/Instruments/Uniforms, Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course).
• Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the entire course).
• Travel Expenses/Passage money for studies abroad.
• Fee payable to college for Indian School of Business.

Quantum of loan (maximum)

For	Amount
Studies in India	Rs. 10 lakhs
Studies Abroad	Rs. 20 lakhs
Education Loan to Indian School of Business student	Rs. 20 lakhs
Education Loan to the students of Premier Central Institutions such as IIMs, IITs etc	Rs. 20 lakhs

Repayment

For	Amount	Tenure	Moratorium
IBA Scheme	Up to Rs. 7.50 lakhs	Up to 10	Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.
	Rs. 7.50 lakhs & above	Up to 15 years
Management Quota (Non IBA)	Irrespective of loan amount	Up to 10 years
Education Loan to the students of Premier Central Institutions such as IIMs, IITs etc	Irrespective of loan amount	Up to 7 years
Education Loan to Indian School of Business student	Irrespective of loan amount	Up to 7 years	Repayment will commence after completion of 18 months or soon after the placement, whichever is earlier.

Margin

For	Loan Amount	Margin
IBA Scheme	Up to Rs.4 lakhs	Nil
	Above Rs. 4 lakhs	5% (studies in India) 15% (Studies abroad)
Management Quota (Non IBA)	Irrespective of loan amount	15%
Education Loan to Indian School of Business student	Irrespective of loan amount	5%
Education Loan to the students of Premier Central Institutions such as IIMs, IITs etc	Up to Rs.4 lakhs	Nil
Above Rs. 4 lakhs	15%

Rate of interest

For	Loan Amount	Rate of interest
IBA Scheme	For loans up to Rs.4 lakhs	Base Rate + 1.80 = 12.00%
	For loans Rs. 4 lakhs & above	Base Rate + 2.25 = 12.45%
Management Quota (Non IBA)	Irrespective of loan amount	Base Rate + 2.55 = 12.75%
Education Loan to Indian School of Business student	Irrespective of loan amount	11.75% ( Fixed)
Education Loan to the students of Premier Central Institutions such as IIMs, IITs etc	Irrespective of loan amount	11.75% ( Fixed)

Processing charges

• No processing / upfront charges

Security

For	Loan Amount	Security
IBA Scheme	Up to Rs.4 lakhs	No Security
	Above Rs. 4 lakhs & up to Rs. 7.5 lakhs	Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, waive third party guarantee if satisfied with the net-worth / means of parent/s who would be executing the document as joint borrower(s).
	Above Rs. 7.5 lakhs	Tangible collateral security of suitable value acceptable to bank, along with the assignment of future income of the student for payment of installments.
Management Quota (Non IBA)	Irrespective of loan amount	Tangible collateral security, acceptable to bank, to the extent of 150% of loan amount, along with assignment of future income of the student for payment of installments.
Education Loan to Indian School of Business student	Irrespective of loan amount	Assignment of future income of the student for payment of installments.
Education Loan to the students of Premier Central Institutions	Up to Rs. 10 lakhs	Assignment of future income of the student for payment of installments.
	Above Rs. 10 lakhs	100% tangible collateral security, along with the assignment of future income of the student for payment of installments.

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.