Scheme for Education Loan for higher Education in India and Abroad
PURPOSE
Studies in India (Indicative List)
- Approved courses leading to graduate/post graduate degree and PG diplomas conducted by recognized colleges / universities recognized by UGC / Govt. / AICTE / AIBMS / ICMR etc.
- Courses like ICWA, CA, CFA etc.
- Courses conducted by IIMs, IITs, IISc, XLRI. NIFT,NID etc.
- 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.
- Approved courses offered in India by reputed foreign universities.
The above list is indicative in nature. Bank may approve other job oriented courses leading to technical / professional degrees, post graduate degrees / diplomas offered by recognized institutions under this scheme
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.
- Degree / diploma courses like aeronautical, pilot training, shipping etc provided these are recognized by competent regulatory bodies in India / abroad for the purpose of employment in India / abroad.
Expenses considered for Loan
- Fee payable to college / school / hostel
- Examination / Library / Laboratory fee
- Travel expenses / passage money for studies abroad
- Insurance premium for student borrower, if applicable
- Caution deposit, Building fund / refundable deposit supported by Institution bills / receipts.
- Purchase of books / equipments / instruments / uniforms
- Purchase of computer at reasonable cost, if required for completion of the course,
- Any other expense required to complete the course - like study tours, project work, thesis, etc
- While computing loan required, scholarships, fee waiver etc.,if any available to the student borrower may be taken into account.
- If the scholarship component is included in the loan assessment, it may be ensured that the scholarship amount gets credited to the loan account when received from the Government
MAX. AMOUNT
- Studies in India : Upto Rs. 10.00 Lakh
- Studies Abroad : Upto Rs. 20.00 Lakh
Which ever is lower.
ELIGIBLITY Student Eligibility :-
- The student should be an Indian National
- Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test / Merit Based Selection process after completion of HSC(10 plus 2 or equivalent). However, entrance test or selection purely based on marks obtained in qualifying examination may not be the criterion for admission to some of the post graduate courses or research programmes. In such cases, Bank will on its own criteria judge the employability and reputation of the institution concerned.
Joint Borrower
- The joint borrower should normally be parents / guardian of the student. In case of a married person, joint borrower can be either spouse or the parents / parents-in-law.
REPAYMENT
Moratorium period = Course Period + maximum period of 1 year.
However, if student gets employment within 6 months of his/her course completion, EMI shall be pre-poned and will be fixed after 6 months from the date of getting employment.
Requirement of the loan will be in equated monthly installments for period of 15 years.
RATE OF INTEREST Click here
MARGIN
Upto Rs. 4.00 Lakh -Nil
Above Rs. 4.00 Lakh -
Studies in India 5%
Studies in Abroad 15%
- Scholarship/assistantship to be included in margin
- Margin should be brought on year to year basis as and when disbursements are made on a pro-rata basis.
- All outward Remittances shall be routed through our Forex Dept.
MEMBERSHIP
- Regular membership for the applicant and Co- Applicant, As per extant Shareholdings Norms.
- Nominal Membership for sureties.
SECURITY & SURETIES
- Upto Rs. 4 Lakh
Parents to be joint borrower(s).No Security.One surety with net income /Salary of Rs. 15,000/- and above p.m.
- Above Rs. 4 Lakh and upto Rs. 7.50 Lakh
Besides the parents to be joint borrower (s), One surety with net Salary/income of Rs.20,000/- and above p.m. and collateral of tangible security covering loan amount.
- Above Rs. 7.50 Lakh
Besides the parents to be joint borrower(s), One Surety with net Salary/income of Rs.25,000/- and above p.m. and collateral of tangible security covering loan amount..
- SERVICE CHARGES
Nil
DOCUMENT REQUIRED
- Latest photograph, Photo Identity Proof, Pan Card Copy, Residence Proof of the applicant & Guarantors,
- Parents/ Guardians having regular source of income to justify servicing monthly interest.
- Declaration / an affidavit confirming that no education loans are availed from other banks.
- Offer letter from university / college / institutes stating details of course and admission procedure/s.
- Passport copy (in case of education abroad) or identity proof.
- Latest academic mark sheets.
OTHERS
- Insurance: Bank shall arrange for Term Life Insurance policy on the students availing Education Loan.
- Capability/Capacity Certificate: On application Bank may issue the capability certificate for students going abroad for higher studies. For this purpose financial and other supporting documents shall be obtained from applicant, if required.
- Prepayment Period: No prepayment penalty will be levied for prepayment of loan any time during the repayment period.
- Minimum Age: There is no specific restriction with regard to the age of the student to be eligible for education loan. However, if the student is a minor while the parents executed documents for the loan, the bank will obtain a letter of ratification from him / her upon attaining majority.
The security can be in the form of land / building / Govt. securities / Public Sector Bonds / Units of UTI, NSC, KVP, life policy, gold, our bank deposit in the name of student / parents / guardian / any other third party or any other tangible security acceptable to the bank with suitable margin. In case of Third Party securities/properties are mortgaged, the security/property owner shall be made as Guarantor/s.
Vidya Laxmi Link