Eligible Persons
-
A Student of Indian Nationality is eligible to apply for the loan provided he / she has secured admission to the institution / college / university.
Eligible
courses
- Full time courses (Diploma, Teachers' Training, graduation or Post graduation and Doctorate studies) in all branches of medicine, engineering, agriculture, CA/ ICWA/ ACS, Computer Science,
- Architecture,
Business Administration, Law, Arts, Science, Commerce, Hotel Management,
Nursing and Pharmacy (except Foreign University Degree courses offered
in India)
Duration of the course
- Normally
not exceed 5 years
Loan
amount (Quantum of loan)
- The
bank provides a loan of Rs.10000/- for a student's education at a
junior college; teacher's training course and other short-term courses
that are approved by the Government.
- Loans
worth Rs.50,000/- are also offered to students who wish to do a polytechnic
course/computer course, or desired to pursue graduation/post-graduation
in any discipline, such as arts, commerce, science, pharmacy, agriculture
& fisheries.
- A
maximum amount of Rs.4 lakhs for graduation/post-graduation in engineering,
architecture, dental science, medicine, chartered/cost accountancy
& business administration courses, offered by an reputed institution.
Security
-
The bank does not insist on security for loans up to Rs.25000/-, however, a 3rd party guarantee is a pre-requisite. Minors are to be represented by parents/guardians along with a separate guarantor.
-
For loans above Rs.25,000/-, collateral security by way of an unencumbered property/asset equal to 150% of the value of the loan or NSC/IVP/KVP, the maturity value of which should not be less than the loan amount, or LIC policy the surrender value of which should not be less than the loan amount. LIC policy in the name of the borrower equal to the loan amount will also be obtained and assigned to the bank.
-
A guarantee of the parent/guardian will also be taken.
Margin
- No margin for loans up to and inclusive of Rs.25,000/- and
- A
minimum margin of 25% for loans above Rs.25,000.
Repayment
Repayment
of the loan commences from the 6th month after the student completes his/her
course or the 3rd month of securing a job, whichever is earlier. The loan
is to be repaid within a maximum period of 6 months depending upon the
repayment capacity.
FOR
STUDIES ABROAD
Eligibility
- Meritorious
students who have been selected for any course in foreign universities
are eligible to avail of the foreign education loans.
Loan
amount (Quantum of loan)
- The
bank provides Rs. 10,00,000/- as a loan for his/her education at a foreign
university.
Security
- A third party guarantee is required.
-
Also, a life insurance policy with a sum equivalent to the loan amount
should be provided.
Margin
- 25%
(To be brought prorata as and when disbursements are made)
Repayment
The
loan is repayable in 60 monthly installments. Repayment of the loan is
to commence 6 months after the student completes the course or completion
of 3rd month after securing a job, whichever is earlier.