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Image  UNION EDUCATION

Features

PURPOSE
  • To poor and needy to undertake basic education.
  • To the meritorious students to pursue higher / professional/ technical education, after passing 10+2 or equivalent
ELIGIBILITY
  • Should be an Indian national
  • Secured admission to the concerned institute in India or abroad through appropriate selection process and cleared the qualifying examination, if any
  • Courses covered in India
    • Graduation / post-graduation / diploma courses from recongnized universities
    • Technical / professional / management courses
    • PhD courses
  • Courses covered outside India
    • Graduation / post-graduation degrees offered by recongnized 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.
  • The loan can be granted provided the student has not availed loan from initial years from any other bank/FI.
QUANTUM

Type of studies

Maximum Quantum

For Inland Studies

Rs. 20 lakhs

For Studies Abroad

Rs. 30 lakhs

Loan amount beyond maximum quantum of loan to be considered by respective delegatee, as per their delegated authority, as deviation.

  • Note: The quantum of loan is higher for the institutes covered under Special Education Loan schemes. Please check the Special Offers Tab above for further details.
MARGIN

Quantum of loan

Margin

Up to ` 4 Lakh

Nil 

Above ` 4 Lakh

Studies in India

5%

Studies abroad

15%

Scholarship / assistance to be included in margin

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/ equipments/ 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
  •  
    • Moratorium period: Course period + 1 year
    • Maximum repayment tenure after completion of course / moratorium period is -
    • 15 years irrespective of the quantum of loan
RATE OF INTEREST AND PROCESSING CHARGES
  • Please click here  to know our latest rate of interest
  • 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. Please contact the nearest branch for details.
  • No processing charges.
  • Wherever applicable, Valuation / Legal / Stamp Duty / CERSAI / Memorandum registration charges as per actuals
  • Simple interest will be calculated during course / moratorium period; subsequently compounding interest will be charged.
  • Floating rate of interest will be applicable on all educational loans.
  • Servicing of interest during course/moratorium period is optional for the borrowers.
  • The accrued interest during course/moratorium period will be added to the principal amount borrowed while fixing EMI for repayment, if the same is not serviced.
SECURITY
  • The security required is as mentioned below.

Quantum of loan

Security

Up to ` 4 Lakh

No guarantee and No security, if the loan is covered under CGFSEL. (In case, if there is any deviation, the third party guaranty with equivalent means to be taken for the loan Above ` 4 Lakh & up to ` 7.50 Lakh.)

Above ` 4 Lakh & up to ` 7.50 Lakh

Above ` 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.

    Note:
  • For all the above categories, parent / spouse / parent-in-law to become the co-applicant
  • In cases where both the parents are not alive, close relative or guardian to be taken as co-applicant.
INSURANCE
  • Life insurance of the student is mandatory to the tune of the loan amount
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
  • Loan can be availed during subsequent years of the course
  • Legal  and valuation charges  have to be borne by the borrowers , if any.
  • If the loan is take-over by other bank/FI, then a charge of 2% on the average loan outstanding for the past 12 months will be levied.
CREDIT GUARANTEE FUND SCHEME FOR EDUCATIONAL LOANS (CGFSEL)

The Ministry of HRD has launched Central Government scheme of Interest Subsidy on educational loans for economically weaker sections of the society.

The students should satisfy all the following parameters –

  • Secured admission to any of the approved courses, after Class XII, in technical and professional streams from recognized institutes in India only.

  • The student belongs to Economically Weaker Section (EWS) with an annual gross family income not exceeding ` 4.50 Lakh


  • The other features of the scheme are as follow :
    1. Subsidy for loan amount upto Rs 10 Lakhs (even if loan is more than Rs 10 Lakhs).
    2. Student to submit proof of income from the competent authority appointed by the state government.
    3. Scheme applicable for disbursements from the academic year 2009 (even if the loan was sanctioned earlier).
    4. Subsidy for the course and moratorium period only.
    5. Student will be eligible for interest subsidy only once either for the first undergraduate degree course or the post graduate degree / diploma course in India.

    PADHO PARDESH SCHEME

    SCHEME TO PROVIDE INTEREST SUBSIDY ON EDUCATIONAL LOANS FOR OVERSEAS STUDIES FOR THE STUDENTS BELONGING TO THE MINORITY COMMUNITIES.

    The students should satisfy all the following parameters –

  • Secured admission to higher studies abroad viz. Masters , M. Phil and Ph.D. levels only

  • The student belongs to the Economically Weaker Section (EWS) of Minority communities with an annual gross family income not exceeding ` 6 Lakh.


  • The student has to submit income certificate issued by authorized officers appointed by the respective State Governments

    Subsidy is available for interest charged on the loan amount disbursed during a financial year

    Available for course and moratorium period only

    The scheme is applicable for higher studies abroad.

    The students obtaining benefits under this scheme shall not be given interest subsidy if he gives up Indian Citizenship during the tenure of the loan.

    ACSISOBCEBC Scheme - Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loan For Overseas Studies For Other Backward Classes (OBCs) & Economically Backward Classes (EBCs) 

    SCHEME TO PROVIDE INTEREST SUBSIDY ON EDUCATIONAL LOANS FOR OVERSEAS STUDIES FOR THE STUDENTS BELONGING TO THE OTHER BACKWARD CLASSES (OBCs) & ECONOMICALLY BACKWARD CLASSES (EBCs).

    The students should satisfy all the following parameters –

    • Secured admission to higher studies abroad viz. Masters , M. Phil and Ph.D. levels only
    • The student belongs to the other backward classes (OBC) & Economically backward classes (EBC) with an annual gross family income not exceeding ` 3 Lakh & ` 1 Lakh respectively.

    The student has to submit income proof either of Form-16/ITR/certificate issued by authorized officers appointed by the respective State Governments

    Scheme applicable for loans sanctioned from 01.04.2014 onwards

    Subsidy is available for interest charged on the loan amount disbursed during a financial year

    Available for course and moratorium period only

    The scheme is applicable for higher studies abroad.

    VIDYA LAKSHMI

    Government of India has launched Vidya Lakshmi portal for providing  single window for students to access information and make applications for educational loans. Students can apply education loan through Vidya Lakshmi portal(Click here for Vidya Lakshmi portal

     

    Forms & Documents

    FAQs

    SPECIAL OFFERS


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