| Students going abroad for studies are treated as Non Resident Indians (NRIs) |
| Purpose |
Financial assistance to deserving / meritorious students for pursuing higher professional / technical studies in India or abroad |
| Persons Eligible |
Resident wards of NRIs |
| Eligible Courses |
Studies in India: School education including plus 2 stage, graduation, post graduation courses, professional courses, courses offered by National Institutes, and repute private institutions, computer courses of reputed institutes, courses like CA, ICWA, CFA, courses conducted by IIM, IIT, IISC, XLRI, NIFT, etc.
Studies abroad: Job oriented professional/technical courses offered by reputed universities and MCA, MBA, MS, etc., courses conducted by CIMA-London, CPA in USA. |
| Eligible Expenses |
- To meet the tuition and other fees payable to college / school / hostel
- Examination / library / laboratory fee
- Purchase of books / equipments / instruments / uniforms
- Caution deposit / building fund / refundable deposit supported by institution bills / receipts
- Travel expenses / passage money for studies abroad
- Purchase of computers essential for completion of course
- Any other expenses required to complete the course like study tours, project work, thesis etc.
|
| Loan Amount |
- Studies in India: Maximum Rs.10.00 lacs
- Studies abroad: Maximum Rs.20.00 lacs
|
| Margin |
Above Rs.4.00 lacs
Studies in India - 5%
Studies abroad - 15% |
| Rate of Interest |
Interest rates as applicable to Resident Education loans½% concession in interest during the moratorium period if
- 0.50% of loan amount is paid every month towards part payment of interest.
- 1% concession in interest during the moratorium period if full interest is paid during the moratorium period.
- The interest to be charged to the account on simple interest basis during the repayment holiday / moratorium period.
|
| Security |
Security up to Rs.4.00 lacs.
For loans above Rs.4.00 lacs to Rs.7.50 lacs collateral security in the form of satisfactory third party guarantee good for the amount.
Above Rs.7.50 lacs collateral security in the form of tangible collateral security.
In case the loan is given for purchase of computer the same should be hypothecated to the Bank
|
| Processing Fee |
No processing charges for studies in India irrespective of loan amount.
Processing charges @ Rs.1,000/- would be collected in all cases for studies abroad at the time of handling over the sanction letter.
Treatment of processing charges so collected would be as under
- If the loan is availed:
- Refund to the student for limits of Rs.4.00 lacs and below.
- Appropriate towards student’s Margin for limits of above Rs.4.00 lacs and up to Rs.10.00 lacs.
- Appropriate to Bank's commission account in respect of loans above Rs.10.00 lacs.
- If the loan is not availed after sanction:
- Appropriate to Bank’s commission account in all cases Irrespective of the loan amount.
|
| Repayment Period |
The loan is to be repaid in 5 to 7 years after commencement of repayment.
Repayment to commence one year after completion of course or 6 months after getting job, whichever is earlier. |
| Papers to be obtained |
- Copies of certificates / mark sheets of examinations passed from SSC / 10th Standard onwards.
- Testimonials from Head of Institution last attended / other respectable persons.
- Copies of letters conferring scholarship, freeship, studentship, etc.
- Proof of admission to the course.
- Schedule of expenses for the course.
- Two copies of passport size photograph of the student and Parent / Guardian.
- Statement of Income of the parent and last Income tax order (if applicable).
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