Purpose
To enable students with academic brilliance to meet tuition and other fees / maintenance costs / books and equipment and cost of passage for studies abroad etc., for pursuing studies at recognised school / college / institution.
Courses Eligible- Higher Studies
Diploma / Graduate / Post-graduate courses in the faculties of Engineering, Technology, Architecture, Medicine, Dental Science, Agricultural Science, Veterinary Science and Computer Certificate courses of reputed institutes accredited to department of electronics or affiliated to university
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Calculators
Limit
| Amount of loan (in Indian Rupees) |
MIN(Rs.) | MAX(Rs.) |
| Higher Education- In India | 10000 | 10.00 lacs |
| Higher Education- Abroad | 10000 | 20.00 lacs> |
Margin
| Upto Rs. 4.00 lacs | Nil |
| Above Rs. 4.00 lacs - | |
| For studies in India | 5% |
| For studies abroad | 15% |
Rate of Interest
| Amount | Rate of interest % (wef 10.04.07) |
| Upto Rs. 4.00 lacs | 12.00 Fixed Only |
| Above Rs. 4.00 lacs | 12.75 Fixed Only |
INTEREST RATES: SCHEMES AND INTEREST RATES ARE SUBJECT TO CHANGES FROM TIME TO TIME.
Second Educational Loan
To enable the students for taking higher education, provided the student secures 60% marks in existing course. The second loan is to be availed only from the branch where the first educational loan has been sanctioned.
Repayment
Technical / Professional Higher studies in India / Abroad
Repayment of loan to commence immediately after disbursal, by the parent / guardian, out of his / her income. Instalments may be nominal (to cover interest portion, atleast) during the period the student is undertaking the studies. The instalments will be stepped up one year after the completion of the course or after the student gets a job, whichever is earlier, so that the loan gets repaid together with interest within a period of 60 to 84 months thereafter.
| Amount | Security |
| Upto Rs. 4.00 lacs | NIL |
| Above Rs. 4.00 lacs and upto Rs. 7.50 lacs | Collateral in the form of a suitable 3rd party guarantee |
| Above Rs. 7.50 lacs and upto Rs. 10.00 lacs | Collateral security by way of immovable property or equal to the loan amount in the form of Government securities / NSCs / Units of UTI |
| Guarantee of parents / guardians (in the case of minors, the parent / guardian will execute the documents on behalf of the minor and also in his capacity as co-borrower) / third party guarantee where sufficient collateral security is not available |
Insurance
An insurance policy will be taken on the life of the student borrower for an amount equivalent to the loan amount and the policy should be convertible whole-life one for 25 / 30 years, convertible after 5 years into one with endowment benefits. The Bank will pay the insurance premia on the policy by debiting it to the loan account. On liquidation of the loan, the policy will be reassigned and delivered to the borrower.
Repayment
Completion of course + 1 year or 6 months after getting a job, whichever is earlier.The interest to be debited monthly on simple basis during the repayment holiday / moratorium period. Penal interest @2% will be charged for amount above Rs.4 lacs for the overdue amount and overdue period. Interest concession of 1% per annum is available, provided the interest is repaid during moratorium period as and when the interest is applied.
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