Q.1.  What is Education Loan?

Ans.  Loan sanctioned to a meritorious / deserving student to pursue higher

        education in India or abroad.

Q.2.  Who are eligible for Education Loan?

Ans. Indian Nationals secured admission to professional / technical courses

        through Entrance test / selection process in India / abroad.

Q.3.  What are the eligible courses for studies in India?

Ans.   School education including plus two stage, Graduation, Post-Graduation

          courses and Phd.  Courses offered in India by reputed Universities,           

          Evening courses of approved institutions, other courses leading to Diploma

          / Degree etc., conducted by Colleges / Universities approved by UGC                 

          / Govt. /AICTE/AIBMS/ICMR Etc.

Q. 4.  What are the eligible courses for studies abroad?

Ans.  Graduation:  For job oriented professional / technical courses offered by

          reputed Universities.

          Post-Graduation:  MCA, MBA, MS etc., courses conducted by CIMA – 

          London, CPA in USA etc.

Q. 5.   What is the quantum of finance?

Ans. Upto Rs. 7.50 Lakhs for studies in India and upto Rs. 15.00 Lakhs for

         studies abroad.

Q.6.    Whether the second loan is available for higher studies?

Ans.  Yes, second loan can also be sanctioned subject to the ceiling of Rs.7.50

         Lakhs for studies in India and Rs. 15.00 Lakhs for studies abroad.

Q.7.     What is the margin to be borne  by the student?

Ans. Upto Rs. 4.00 Lakhs no margin, above Rs4.00 Lakhs 5% for studies in India 

         and 15% for studies abroad.

Q.8.   What type of security is required?

Ans. Upto Rs. 4.00 Lakhs no security would be insisted upon. Above Rs. 4.00     

         Lakhs upto Rs. 7.50 Lakhs collateral security in the form of Satisfactory

        Third Party Guarantee and above Rs. 7.50 Lakhs Collateral security of

        suitable value or co-obligance of parents / guardians /third party along with

        the assignment of future income of the student for payment of

        installments. 

         For all types of Education Loans irrespective of quantum of loan, the Parent                    

         / Guardian should sign the application / loan document as co-obligor.

Q.9.    What are the expenses that can be considered for Education Loan?

Ans. Fee payable to College / school / hostel / Examination / Library / Laboratory

        etc., would be considered.  Purchase of books / equipments / Air tickets

        (Travel expenses etc.) would also be computed for arriving at the loan

        amount.

Q.10.   What is the repayment period?

Ans. Repayable in 5 – 7 years. Repayment commences one year after

        completion of course or 6 months  after getting gainful employment

        whichever is earlier.

Q.11.   Is there any concession in interest for prompt re-payment of loan?

Ans. Yes, 0.5% concession in interest, if 0.50% of loan amount is paid every

        month towards part payment of interest and 1% concession in interest

        during the moratorium period if full interest is paid during the moratorium

        period.

Q.12.   Is there any processing charge?

Ans.  Processing charges of Rs. 5000/- for loans above Rs.4.00 lakhs  for studies

        abroad.