Objective
of the Scheme
The scheme aims at providing financial assistance on reasonable terms:
- To
the poor and needy to undertake basic education.
- To the meritorious students to pursue higher/ professional/ Technical education
Eligibility Criteria
i. Courses Eligible:
...a. Studies in India
· ...-
School education including plus 2 stage.
· ...- Graduation
courses: BA, B.Com., B.Sc., etc.
· ...- Post Graduation courses:
Masters & Ph.D.
· ...- Professional courses: Engineering,
Medical, Agriculture,............... .......Veterinary,
Law, Dental, Management, Computer etc.
· ...- Computer certificate courses
of reputed institutes accredited to.....
...... Dept. of Electronics or institutes
affiliated to university.
·....- Courses like ICWA, CA,CFA,
etc.
· ...- Courses
like IIM, IIT, IISc, XLRI, NIFT, etc.
· ...- Courses offered in India
by reputed foreign universities.
· ...- Evening courses of approved
institutes.
· ...- Other courses leading to
diploma/degree etc. conducted by...........
.......colleges/universities approved by
UGC/Govt./AICTE/AIBMS/ICMR.. .......etc.
· ...- Courses offered by National
Institutes and other reputed private......
.......institutions . Banks may have the
system of appraising other.........
.......institution courses depending on
future prospects/recognition by.... .......user
institutions.
b. 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.
ii. Student Eligibility
....-
Should be an Indian National
....- Secured
admission to professional/technical courses through.........
......Entrance Test/ Selection process.
....- Secured admission to foreign university/Institutions.
....- No minimum qualifying marks be insisted
upon.
iii. Expenses
considered for loan
....- Fee payable to college/ school/ hostel.
....- Examination/ Library/ Laboratory
fee.
....- Purchase of books/ equipment's /
instruments/ uniforms.
....- Caution deposit/ building fund/ refundable
deposit supported by ...... ......Institution
bills/ receipt.
....- Travel expenses/ passage money for
studies abroad.
....- Purchase of computers-essential for
completion of the course.
....- Any other expenses 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 following
margin and ceilings.
-
Studies in India - Maximum Rs. 7.50 lacs
-
Studies abroad - Maximum Rs. 15.00 lacs
Margin
- Upto Rs. 4.00 lacs
NIL
- Above Rs. 4.00
lacs Studies in India 5%
- Studies Abroad
15%
Scholarship/assistantship to be included in margin. Margin may be brought-in on year to year basis as and when disbursements are made on a pro-rata basis.
Security
- Upto Rs. 4.00 lacs
No security
- Above Rs. 4.00 lacs Collateral security equal to 100% of the loan amount
In case of loan upto 4 lacs, the documents should be executed by the student. No additional security may be insisted upon. However, in case of minor students , the documents are to be executed by the guardian on behalf of the minor and also on his own behalf. The Pronote and the money consideration receipt are to be signed by the guardian in two capacities i.e.
(i) .For self and(ii) On behalf of the minor.
The following documents
should be obtained from the minor students.
i. ..Pronote
ii. .Money Consideration
iii. Agreement of Term Loan
iv. Guarantee by the guardian
v. .Deed of ratification to be executed by
a minor on attaining majority
vi. Letter of waiving presentment of Pronote
vii. Acknowledgement of debt.
In case of loan above
4 lacs, the documents should be executed by the both the student and parent/guardian.
i. The security
can be in the form of land / building / Govt. Securities /
. ...Public Sector Bonds / Units of
UTI, NSC, KVP, LIC policy, gold,...... ...shares
/ debentures, bank deposit in the name of student / parent/....
...guardian or any other third party.
ii. In case the loan is given for purchase of computer the same to be....
...hypothecated to the Bank.
iii. The assignment of future income of the student for payment Of ........
...installments may also be obtained irrespective
of loan amount.
Repayment
Repayment holiday/Moratorium
:
Course
period +1 year or 6 months after getting job, whichever is earlier.
The loan to be repaid within a maximum period of 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.
Loan
together with accrued interest charged during the repayment holiday period
will be repaid in maximum 84 Equated Monthly Installments (EMI).
Concession
of 1.5% of the loan amount may be provided to the loaned if the interest
is serviced during the study period when repayment holiday is specified
for interest/repayment under the scheme. Such concessions will be adjusted
from the last installment/s.
Processing
Charges
No
processing/upfront charges may be collected on educational loans.
Capability
Certificate
Some of the foreign universities require the students to submit a certificate from their bankers about the 'sponsors' solvency/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. Accordingly branches can also issue the capability certificate for students going abroad for higher studies. For this financial and other supporting documents may be obtained from applicant, if required.