STUDIES IN INDIA

Eligibility

• Must be an Indian National
• Must be over 12 years of age but within 30 years
• Secured admission to Professional/ Technical courses through Entrance Test/ Selection Process.
• No minimum qualifying marks.

Eligible Courses

School Education/ Intermediate/ Graduation Courses/ Post Graduation Courses/ Professional Courses: Engineering/ Medical/ Agricultural/ Veterinary/ Dental/ Physiotherapy/ Nursing/ Law/ Management/ PGDRIM/ ICWA/CA/CFA/IIM/ IIT/IISC/XLRI/NIFT and other courses approved by State/ Central Government.
All other courses leading to diploma/ degree etc., conducted by colleges/ universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc., and offered by National Institutes and other reputed private institutions.

Quantum of Finanace

Need based finance subject to repaying capacity of the parents/ students with a maximum of Rs. 10.00 lacs.

Margin

Upto Rs.4,00,000/-     -              NIL       ;  Above Rs. 4,00,000/-            -              5%

Mode of Disbursement

The loan amount should be released in proportion to the number of years, depending upon the progress of the student. The scholar should produce a certificate from the competent authority for successful completion of academic year for further releases.

STUDIES ABROAD

Scope of the scheme

The scheme will apply to deserving/ meritorious students who wish to pursue studies abroad.

Eligibility

• Must be an Indian National
• Must be over 17 years of age but within 35 years.
• Must have secured admission in Overseas College/ University/ Institution in any of the following disciplines
• Must be in possession of Admission confirmation letter from the concerned University.
• Must be in possession of a valid Passport and Visa.

Courses Eligible for Finance

• Graduation – For job oriented profession/ technical courses offered by reputed universities.
• Post Graduation – MCA, MBA, MS etc
• Courses conducted by CIMA – London, CPA in USA etc.,
• Graduate/ Post Graduate studies in Arts, Science, Commerce and Business Administration.
• Graduate/ Post Graduate studies in Pharmacy
• Graduate/ Post Graduate studies in any Professional/ Technical courses.
• PhD ( Doctor of Philosophy)

Quantum of Finance

Need based as informed in the admission/ confirmation letter of the University/ College, subject to a maximum of Rs. 20.00 lacs

Margin

Upto Rs. 4,00,000/-  :  NIL       ;              Above Rs. 4,00,000/- :   15%

Mode of Disbursement

Initially an amount equal to the cost of air passage and Foreign Exchange towards the payment of semester fee and hostel expenses as per admission card of the college. Further amounts will be released proportionate to expenses towards semester fees, hostel fees etc. on annual basis

At any point of time there should not be more than two loans outstanding in the name of the student under the scheme.

OTHER ASPECTS COMMON TO INLAND AND ABROAD STUDIES

Purpose

Loan under the scheme should be considered towards:

• Tution Fees
• Examination Fees
• Study Tours, Project work
• Cost of Books, Stationary
• Equipment essential for courses
• Caution Deposits/ Building Funds/ Refundable Deposits supported by institution bills/receipts, subject to the condition that the amount does not exceed 10% of the total tution fees for the entire course
• Hostel Fees.
• In case of studies abroad – Cost of Air Passage to the foreign country and maintenance including Health Insurance as per Foreign Exchange permit and correspondence from the college abroad

Mode of Charging Interest

• The interest to be debited monthly on simple basis during the repayment- holiday / gestation period.
• The accrued interest during the repayment holiday period to be added to the principal and repayment in EMI fixed
• Penal Interest: For the loans above Rs. 2.00 lacs penal interest at 2% be charged on the overdue amount for the over due period

Co-obligation

• Co-obligation of parents. Must be an Indian Citizen.
• Wherever parents are not there, Bank could consider grandparents as co-obligator to the loans taking into account their networth.
• In case of court appointed guardians, their co-obligation shall be obtained
• In case of married person, co-obligator can be spouse or the parents(s)/ Parents-in-law

Collateral Security

• Upto Rs.4.00 lacs – NIL
• Rs. 4.00 lacs to 7.5 lacs – Co-obligation of parent/guardian/third party
• Above Rs. 7.50 lacs – Tangible security of suitable value besides co-obligation of parent.Parent co-obligation and assignment of future income.

Holiday Period

1 year after course period or 6 months after getting job, whichever is earlier.

Repayment

The loan to be repaid in 5-7 years after commencement of repayment

Others

Only one loan will be sanctioned for abroad studies subject to a maximum of Rs. 20.00 lacs.

Multiple Loans in the same family

In case of receipt of application of more than one loan for student borrower from a family the family as a unit will be taken into account for considering the loan and security norms are applicable taking into account the total quantum of finance sanctioned to the family subject to margin, repaying capacity of the student / parent