UNION EDUCATION

(APPLY ONLINE)

Special Education Loan Scheme for IIMs/ XLRI/ MDI/ SPJIMR, click here

For Other Special Education Loan Scheme click here

OBJECTIVE & PURPOSE The scheme aims at providing financial assistance on reasonable terms to the poor and needy students to undertake basic education and to meritorious students that they may pursue higher or professional or technical education.

ELIGIBILITY Student Eligibility : Indian citizen Secured admission to the concerned institute in India or abroad through an appropriate selection process and cleared the qualifying examination,if any Courses Eligibility(Indicative List) : a. Studies in India Graduation/Post-Graduation Professional courses Management courses b. Studies Abroad : Graduation: For job-oriented professional or technical courses offered by reputed universities Post-Graduation: MCA, MBA, MS and such other courses Courses conducted by CIMA, London, CPA, USA., and such other institution   EXPENSES CONSIDERD FOR LOAN   Fee payable to Institute/Hostel. Examination/Library/Laboratory fees Purchase of Books/Equipments/Instruments/Uniforms Caution Deposit,Building Fund/refundable deposit supported by Institution Bills/receipts,subject to the condition that the amount  does not exceed 10% of the total tuition fees for the entire course. Travel Expenses/passage money for studies abroad Purchase of computers-essential for completion of the course Insurance premium for the student borrower Any other expense required to complete the course, such as, Study Tours,Project Work,Thesis, etc.    QUANTUM OF LOAN   Need-based finance subject to repayment capacity of the parent or student with margin and upto the following ceilings For studies in India - Up to Rs. 10 lacs For studies abroad - Up to Rs. 20 lacs   MARGIN   No margin for loans up to Rs. 4.00 lacs . However, for loan of higher amounts, the margin requirement is 5% for inland studies and 15% for studies abroad.   Scholarship/assistance to be included in margin.   Margin maybe brought in on pro-rata basis as and when disbursement is made.   REPAYMENT   Repayment holiday or Moratorium on loan: Course period + 1 year OR 6 months after job placement, whichever is earlier.   Starting from this point, the loan is to be repaid in 5-7 years after completion of course period/moratorium.   RATE OF INTEREST (w.e.f  01.08.2010) The rate of interest is fixed Loan Amount Rate of Interest (Base Rate)   For Male Student For Female Student Upto Rs. 4.00 Lakhs 11.75% 11.25% Above Rs. 4.00 Lakhs and Upto Rs. 7.50 Lakhs 12.25% 11.75% Above Rs. 7.50 Lakhs (Upto Rs. 10.00 lacs for Inland;Upto Rs. 20 lacs for Foreign) 11.50% 11.00%    COLLATERAL SECURITY    Upto Rs. 4.00 Lakhs : No collateral security required Above Rs. 4.00 Lakhs and upto Rs. 7.50 Lakhs : no collateral security required. A suitable third party guarantee is required. Above Rs. 7.50 Lakhs : Collateral security of suitable value is required.  INSURANCE    Life insurance of the borrower is compulsory to the tune of Loan Amount   CONDITIONS   The Parent/Guardian of the student who is availing loan needs to join in as co-obligator/joint borrower. Loan will be sanctioned/disbursed at the branch nearest to permanent residence/place of domicile of the parents.