Courses Eligible

a. Studies in India :

• School education including plus 2 stage.
  
• Graduation courses : BA, B.COM., B.Sc.,etc.
  
• Post Graduation courses : Masters & PhD.
  
• 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 conducted by IIM, IISc, IIT, 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- Loan, CPA in USA etc.

Student Eligibility

• Should be an Indian National
  
• Secured admission to professional/ technical courses through Entrance Test / Selection process.
  
• Secured admission to foreign university/Institutions.

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.

• Studies in India - Maximum Rs. 7.50 lacs.
  
• Studies abroad - Maximum Rs. 15 lacs.
  

Margin

Inland (studies in India)

• Upto Rs. 4 lacs : Nil
• Above Rs. 4 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 lacs : No security
  
• Above Rs. 4 lacs : Collateral security of suitable value or co-obligation of parent/guardian/third party guarantee only with the assignment of future income of the student for payment of installments.

* The document should be executed by both the student and the........... ..parent/guardian.
* 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 with suitable margin.
* Wherever the land/building is already mortgaged to the bank, the........ ..unencumbered portion can be taken as security on II charge basis...... ..provided it covers the required loan amount.
* In case the loan is for purchase of computer the same to be................ ..hypothecated to the Bank.

Rate of Interest

• Upto Rs. 4 lacs : PLR
  
• Above Rs. 4 lacs : PLR + 1%
  

Sanction / Disbursement

• The loan to be disbursed preferably by the Branch nearest to the place of domicile.
  
• 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

Repayment holiday/ Moratorium : Course period + 1 year or 6 months after getting job, whichever is earlier.

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.

• The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Installments(EMI) is fixed.
  
• 1% interest concession may be provided for loaners if interest is serviced during the study period when repayment holiday is specified for Interest/repayment under the scheme.

Processing Charges

No processing/upfront charges are charged by the bank on Educational loans.