Purpose :
To provide financial support to deserving/meritorious students for pursuing higher professional/technical education in India and abroad.
Eligibility (wards of the following categories of customers) :
A) Salaried Individuals
i) Any individual who is in permanent service in Government / reputed companies and having his / her salary account with our branch with a net minimum salary of Rs. 7500/-
OR
ii) Any individual with a minimum net monthly salary of Rs.10000/- p.m.
B) Self Employed Individuals
In case of self employed individuals, minimum net annual income of Rs.2 lacs.
The age of the father/guardian in all cases should be 60 years or less at the time of commencement of repayment |
Quantum of Loan :
The quantum of finance under the scheme is capped at Rs. 7.5
lacs for studies in India and
Rs. 15 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books, etc. The minimum amount of loan would be Rs.
50,000/-.
Expenses Considered for the Loan:
- Fees payable to college/university/hostel
- Examination/Library/Laboratory fees
- Purchase of Books/Equipment/Instruments
- Caution/refundable deposits supported by the Institution’s bills/receipts
- Travel expenses/passage money for studies abroad
- Purchase of computers (when essential for the completion of the course)
Any other expenses required to complete the course, like study tours/project work/thesis, etc.
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Margin:
No margin for loans upto Rs. 4 lacs. For loans above Rs. 4 lacs, 5% margin for studies within India and 15% for higher studies overseas.
Rate of Interest:
| Quantum of Loan |
Rate of Interest |
| up to Rs.4 lacs |
At PLR, currently not exceeding 12% p.a. |
| above Rs.4 lacs. |
At 1% above PLR, currently not exceeding 13% p.a. |
Repayment:
The loan would be repayable in a maximum of 84 instalments from the commencement of repayment. The 1st instalment would be due 1 year after the completion of the course or 6 months after getting a job, whichever is earlier. However the total tenure of the scheme, i.e. from the date of the 1st disbursement to the date of the last instalment, should not exceed 12 years. The periodical interest applied on the loan account, prior to the commencement of the actual repayment, should be recovered from the account of the co-applicant, as and when due.
Role of the Guardian:
The parent(s)/guardian of the student would be treated as a co-applicant of the loan. His/her role would be, necessarily, like the primary debtor. He/she would be responsible for the payment of the interest accrued on the loan account, prior to the commencement of the EMIs.
Security
(a) For Loans of upto Rs.4 lacs, no collateral security or third party guarantee is necessary to have a 3rd party guarantee agreement in place. The guarantor should not be a close relation of the student (i.e. parents/siblings/spouse, etc.) and should be good for 100% of the loan amount. Computers and other related hardware financed under the scheme would have to be, necessarily, charged to the Bank as primary
security.
(b) For Loans above Rs.4 lacs, collateral security/ third party guarantee would be necessary, to the minimum extent of 100% of the loan amount. Such collateral securities would include –
- First charge on unencumbered land and building
- Govt. Securities / PSU Bonds
- Surrender value of ‘paid-up’ insurance policies
- Demat shares/securities
- Units and other pledgeable securities like NSCs
- Bank FDs
- Other freely transferable securities like KVPs and IVPs
(c) Insurance Policy : In educational loans, since the ultimate exposure is on the earning capacity of the student, post-completion of the course, it is essential to organize a LIC policy assuring the life of the student, the sum assured being at least 100% of the loan amount. This policy should be assigned in the name of the Bank and it must be ensured that the policy is kept alive during the currency of the loan. To ensure this, the insurance premium for the entire repayment period may be included in the computation of the loan requirement, along with the tuition fees and other recurring charges. Further, the future income of the student needs to be assigned in favour of the Bank for meeting the instalment obligations.
Disbursement
The loan will be disbursed in full or in suitable instalments taking into account the requirement of funds and/or fee schedule as assessed by the Bank directly to the educational institution/ vendor of books/equipment/instruments to the extent possible.
Processing Charges/ Admission Fee : NIL
Penalty for early closure NIL
Other Conditions:
- Bank reserves the right to reject any application without assigning reasons thereof
- The applicant will undertake to inform the Bank as and when there is a change in address / employment
- The terms & conditions mentioned above and elsewhere under the scheme are subject to modification from time to time solely at Bank's discretion
| Purpose |
Salaried |
Others |
| Proof of Identity |
Passport / Voter's Card / Driving License & Photograph |
Passport / Voter's Card / Driving License & Photograph |
| Proof of Income |
Latest salary slip showing all deductions or Form 16 along with current dated salary certificate. |
IT Returns for the last 2 years and Computation of income for the last 2 years certified by a CA |
| Proof of Residence |
Ration Card/Latest Electricity Bill/Latest Telephone Bill/Passport/Latest Credit Card Bill |
Ration Card/Latest Electricity Bill/Latest Telephone Bill/Passport/Latest Credit Card Billing |
| Bank Statement / Pass Book where salary/income is credited
|
Last 6 Months |
Last 6 Months |
| Other Documents |
As per Annexure |
As per Annexure |
Documentation at Branches:
- Educational Loan Application Form
- Admission Letter from college/ institute indicating the schedule of
fees
- Educational Loan Scheme Appraisal Form
- Agreement for Term Loan for Educational Loan (tripartite between the Student, the Guardian and the Bank)
- DP Note
- DP Note Delivery Letter
- Letter of Waiver
- Deed of Ratification (to be executed and obtained in case the Student is a minor at the time of sanction/disbursement of the loan)
- Deed of Assignment of Future Income of the Student to meet the EMI Obligations
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Click Here To Download the - Study
Power Application Form
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