Objective
The
scheme aims at providing financial assistance on reasonable terms
- To
poor and needy to undertake basic education
- To
the meritorious students to pursue higher / professional / technical
education
Eligibility
A.
Students in India
School education including plus 2 stage
- Graduation/Post
Graduation course
- Professional
courses
- Technical
courses
- Management
courses
B.
Students Abroad
- Graduation:
For job oriented professional / technical courses offered by reputed
universities.
- Post
Graduation : MCA, MBA, MS etc.
- Courses
conducted by : CIMA-London, CAP in USA, etc.
Loan
Amount
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
No
margin may be insisted upon for loan upto Rs. 4.00 lacs. However, for
loans of higher amounts, the margin requirement may be 5% for inland studies
and 15% for studies abroad
- Scholarship/assistance
to be included in margin
- Margin
may be brought in on year-to-year basis as and when disbursement are
made on a pro-rata basis.
Security
No
collateral security will be insisted upon for loans upto Rs. 4.00 lacs.
However, for loans above this amount, collateral security of suitable
value or co-obligation of parents/guardians/third party along with the
assignment of future income of the student for payment of installments
is required.
An
LIC Policy/Convertible Whole Life Assurance Policy for a sum not less
than loan amount be taken out in the name of the student and got assigned
in Bank's favor.
Repayment
- Repayment
holiday/Moratorium: Course period + 1 year 0r 6 months after getting
job/starts earning, whichever is earlier.
- The
loan to be repaid in 5-7 years after commencement of repayment
Rate
of Interest
- Upto
Rs. 4.00 lacs : PLR i.e. 11.75% presently
- Above
Rs. 4.00 lacs : PLR+1% i.e. 12.75% presently -Simple interest to be
calculated during Repayment holiday / Moratorium Period.