Purpose of Loan
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- For pursuing higher studies in India & Abroad
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Eligibility
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- The student should be an Indian National.
- Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or equivalent).
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Nature of Facility
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Term Loan
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Expenses considered for loan
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- Fee payable to college/ school/ hostel
- Examination/ Library/ Laboratory fee
- Travel expenses/ passage money for studies abroad
- Insurance premium for student borrower, if applicable
- Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts.
- Purchase of books/ equipment's/ instruments/ uniforms
- Purchase of computer at reasonable cost, if required for completion of the course
- Any other expense required to complete the course - like study tours, project work, thesis, etc.
- While computing loan required, scholarships, fee waiver etc., if any available to the student borrower may be taken into account
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Max. loan amount
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Margin
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- Upto Rs. 4 lacs: NIL,
- In India Above Rs. 4 lacs: 5% ,
- In Abroad Above Rs. 4 lacs:15% Margin
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Incentive
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- 1% interest concession may be provided by the bank during the study period, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.
- Interest is calculated at simple basis during Repayment Holiday / Moratorium Period. Interest will be compounded on monthly rests from due date of first installment.
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Disbursement
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Payment directly to college / hostel / mess / airlines etc. In appropriate cases disbursement to be made to borrowers subject to satisfactory evidence. Original receipts to be submitted.
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Repayment
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- Maximum 15 years for all categories after the moratorium period.
- Moratorium Period= Course Period + One Year
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Security
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Up to Rs.4 lakh
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Mandatorily to be covered under NCGTC Guarantee Scheme
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Above Rs.4 lakh and up to Rs.7.50 lakh
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Above Rs.7.50 lakh
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Parent(s)/guardian to be joint borrower(s)
Tangible collateral security of minimum realizable value equivalent to the loan amount
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Insurance
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Comprehensive life insurance policy for the student availing Educational Loan equivalent to loan amount, for a minimum period of loan term (i.e., course period + moratorium period + repayment period) should be obtained and assigned in favor of the Bank.
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Central Sector Interest Subsidy scheme
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- It need to be noted that while the Central Sector Interest Subsidy Scheme of MoHRD is based on 'IBA Model Educational Loan Scheme', the subsidy is applicable only for loans given for Professional and Technical courses (after 12th standard) in India.
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