EDUCATION LOAN – STUDY IN INDIA/ABROAD/NRI STUDENTS

1. PURPOSE

• To the meritorious students to pursue higher / professional/ technical education in recognized institution in India & Abroad.

2. STUDENT ELIGIBILITY

• Should be an Indian national.
• Should have secured admission in India or abroad to pursue higher / professional/ technical education, through appropriate selection process and cleared the qualifying examination, if any.
• NRI student should hold Indian Passport & has secured admission to a course for studies in India only.

3. AGE OF THE STUDENT

• No restriction with regard to the minimum and maximum age.

4. CO-APPLICANT

• The parent(s) of the student has to compulsorily join in as co-applicant.
• In case of a married person, co-applicant can be spouse/parent(s)/parent(s)-in-law.
• In cases where both the parents are not alive, close relative or guardian to be taken as co-applicant.
• The co-applicant should be Indian national

5. ELIGIBLE COURSES**

• Courses covered in India:
  • Graduation / post-graduation / diploma courses from recognized universities
  • Technical / professional / management courses
  • PhD courses
• Courses covered outside India:
  • Graduation / post-graduation degrees offered by recognized universities
  • Certified degree courses conducted by CIMA, London, CPA, USA and other such institutes
  • PhD courses
  • Diploma courses abroad are not covered

6. LOAN IN SUBSEQUENT YEARS OF COURSE

• Educational loans can also be considered for eligible students in case they approach the bank in the subsequent years of the course provided the student has not availed loan for initial years from any other bank / FI.

7. QUANTUM

• Need based finance to meet the expenses will be considered taking into account margins norms.
• There is no restriction on maximum amount of loan that can be sanctioned under the education loan scheme.
• For NRI students Maximum quantum Rs.20 Lakhs & Rs.30 Lakhs for premium institutes.

8. MARGIN

Scholarship / assistance to be included in margin

Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis

9. EXPENSES CONSIDERED

• Tuition fee payable to college/ school/ university
• Hostel / mess charges
• Examination/ Library/ Laboratory fee
• Insurance premium for the student borrower
• Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts
• Purchase of books/ equipment’s/ instruments/ uniforms
• Purchase of computer/laptop at reasonable cost, if required for completion of the course
• Travel expenses/ passage money for studies abroad
• Admission acceptance fee
• Any other expense required to complete the course - like study tours, project work, thesis, etc.

10. REPAYMENT TENURE

• The maximum repayment tenure will be 15 years (after course & moratorium period) Irrespective of quantum of loan.
• The accrued interest during the moratorium period (if not serviced) will be added to the principal amount while calculating Equated Monthly Installments (EMI) for repayment.

11. RATE OF INTEREST

• Please click here to know our latest interest rates
• If interest is regularly serviced during the course and moratorium period, i.e. prior to the commencement of repayment, then the student is eligible for interest rebate**.
• Simple interest will be calculated during course / moratorium period; subsequently compounding interest will be charged.

12. EDUCATION LOAN SECURITY

• The security required is as mentioned below:

Quantum of loan	Security
Up to Rs.4 Lakh	No security is required. However, loan has to be compulsory covered under CGFSEL
Above Rs.4 Lakh & up to Rs.7.50 Lakh	Suitable third party guarantee acceptable to the bank to be taken OR Loan to be covered under CGFSEL
Above Rs.7.50 Lakh	Tangible collateral security of minimum value equivalent to the loan amount and interest accumulation during course & moratorium period, acceptable to the bank**

13. INSURANCE

• Life insurance of the student is mandatory to the tune of the loan amount.

14. EDUCATION LOAN EMI CALCULATOR

• Please click here for EMI Calculator

15. OTHER CONDITIONS