Student Eligibility

• Scheme is applicable to SC & ST category students only.
• Students who are eligible for respective Government Fee reimbursement and where students pay the initial fees and reimbursement received subsequently.
• Student should have completed HSC (10 plus 2 or Equivalent) are eligible.

Institute Eligibility

• Student should have secured admission in the College/University where reimbursement facility is available for the students from the Government.
• Proof of same is to be obtained from the student/college/university.

Courses Eligible

• Courses within India with fee reimbursement facility from the respective Governments are eligible under the scheme.

Expenses considered for loan

• Tuition Fee payable to College/ University

Quantum of Finance

• Maximum of Rs. 7.50 Lakhs

Margin

• 10% of the tuition fee payable
• Margin may be brought-in on year-to-year basis and when disbursements are made on a pro-rata basis.

Security

• Parents to be joint borrower(s) for the loan
• There is no collateral security or third party guarantee for the loan.
• Assignment of future income of the student is to be obtained.
• The loan documents should be executed by both the student and the parent/guardian as joint-borrower.
• The loans are to be covered under Credit Guarantee Fund Scheme on Education Loans (CGFSEL)

RATE OF INTEREST

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• Simple interest to be charged during the study period and up to commencement of repayment.
• Interest is to be borne by the student. Servicing of interest during study period and the moratorium period till commencement of repayment is optional for students. Accrued interest will be added to the principal amount borrowed while fixing EMI for repayment.

Repayment

• If the reimbursement of the fee is received within moratorium period, the loan has to be closed immediately after collecting the interest.
• If the reimbursement of the fee is not received within moratorium period, the loan has to be treated on par with general education loan even though it is a bridge loan. All terms and conditions as per IBA model Scheme of Education Loans are applicable.
• In case of non-receipt of fee reimbursement from the respective Governments, the principal amount is to be repaid by the student borrower.
• No penalty will be levied for prepayment of loan any time during the repayment period.

Other Terms and Conditions

• Affidavit/ declaration from the student and parents confirming that no loans are availed from other Banks is to be obtained.
• Authorization Letter from the Student and University/ College that the reimbursed fee received from the Government will be directly credited for liquidating the loan is to be obtained.
• Education Loan sanctions are to be covered under Credit Guarantee Fund Scheme on Education Loans (CGFSEL).
• All other terms and conditions as per the existing Scheme on Education Loan (Study in India) to be followed.

Emi Calculator

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