GNANAMITRA - EDUCATIONAL LOAN SCHEME

Purpose

To enable students with academic brilliance to meet tuition and other fees / maintenance costs / books and equipment and cost of passage for studies abroad etc., for pursuing studies at recognised school / college / institution.

Courses Eligible - Higher studies

Diploma / Graduate / Postgraduate courses in the faculties of Engineering, Technology, Architecture, Medicine, Dental Science, Agricultural Science, Veterinary Science and Computer courses accredited by DOEACC.

Limit

Margin

• Upto Rs. 4.00 lacs -------- nil
  
• Above Rs. 4.00 lacs
  
• For studies in India ------------- 5%
  
• For studies abroad ------------- 15%
  

Interest

Amount Rate of interest (w.e.f. 01/06/2001)

• Upto Rs. 4.00 lacs 12.50%
  
• Above Rs. 4.00 lacs 13.50%
  

Upto Rs. 4.00 lacs at Bank PTLR
above Rs. 4.00lacs @PTLR+1%

INTEREST RATES: SCHEMES AND INTEREST RATES ARE SUBJECT TO CHANGES FROM TIME TO TIME.

Repayment

Repayment of loan to commence immediately after disbursal, by the parent / guardian, out of his / her income. Installment may be nominal (to cover interest portion, atleast) during the period the student is undertaking the studies. The installment will be stepped up one year after the completion of the course or after the student gets a job, whichever is earlier, so that the loan gets repaid together with interest within a period of 48 months thereafter.

Security

• Upto Rs. 4.00 lacs --------> nil
  
• Above Rs. 4.00 lacs
  
  • Collateral security by way of immovable property or equal to the loan amount in the form of Government securities / NSCs / Units of UTI.
    
  • Guarantee of parents / guardians (in the case of minors, the parent / guardian will execute the documents on behalf of the minor and also in his capacity as co-borrower) / third party guarantee where sufficient collateral security is not available
    

Insurance

An insurance policy will be taken on the life on the student borrower for an amount equivalent to the loan amount and the policy should be convertible whole-life one for 25 / 30 years, convertible after 5 years into one with endowment benefits. The Bank will pay the insurance premia on the policy by debiting it to the loan account. On liquidation of the loan, the policy will be reassigned and delivered to the borrower.

Repayment

• Completion of course + 1 year or 6 months after getting a job, whichever is earlier.
  
• The interest to be debited quarterly / half yearly on simple basis during the repayment holiday / moratorium period
  
• Penal interest @2% will be charged for amount above Rs.4 lacs for the overdue amount and overdue period.