EDUCATION LOAN – STUDY IN INDIA/ABROAD/NRI STUDENTS

PURPOSE

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

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.

AGE OF THE STUDENT:

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.

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

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.

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.

MARGIN

Quantum of loan		Margin
Up to Rs.4 Lakh		Nil
Above Rs.4 Lakh	Studies in India	5%
	Studies abroad	15%
NRI students (irrespective of loan amount)		15%

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

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.

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.

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.

SECURITY

Quantum of loan	Security
Up to Rs.4 Lakh	No security required, if the loan is covered under CGFSEL.
Above Rs.4 Lakh & up to Rs.7.50 Lakh	No security required, if the loan is 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**

INSURANCE

OTHER CONDITIONS

The loan shall be sanctioned / disbursed from the branch nearest to the place of domicile of the student
Loan would be disbursed directly to the institute.

**Conditions apply.
**Contact our nearest branch for further details**