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Loans


To provide the much needed financial support to deserving students for pursuing higher professional or technical education in India and abroad. The education loan would be provided to those students who have obtained admission to career-oriented courses e.g. medicine, engineering, management etc., either at the graduate or post-graduate level.

Right support at right time ensures success for students. No deserving students should be stopped to pursue their dreams due to lack of money.

Eligibility:

Indian nationals of age between 16 to 35 years, pursuing graduate/postgraduate degree and PG diplomas
Confirmed admission in a college/universities recognized by UGC/Govt./AICTE etc., such as Management, Engineering, Medicine, Computer science, Architecture, Hotels and hospitality, Agriculture, Fine arts and design, Pure science/BA/MA/B.Com/ M.Com, Some vocational training and technical training courses such as aviation and air-hostess training are sometimes included too.
If you are taking a loan of more than Rs. 7.5 Lakh, a collateral security will be required.
Co-applicant: A co-applicant is mandatory for all full time programs. Co-applicant could be Parent/ Guardian or Spouse (if married) / Parent-in-law (if married).

Education loan covers:

100% College Tuition Fees payable
Accommodation charges
Exam and library fees
Books and equipments including computer
Travelling expenses abroad
Other reasonable expenses required to complete course
Timeline for application approval:

Bank will convey its decision within 15 working days from the date of receipt of the application provided the application is complete in all respects.

Disbursement:

The student loan will be disbursed in full or in suitable installments taking into account the requirement of funds and/or fee schedule as assessed by the Bank directly to the educational institution or vendor of books or equipment or instruments.

Quantum of finance:

Rs. 10 lakh for study in India
Rs. 20 lakh for study abroad.
Banks may consider lending higher amount in special cases at their discretion.

Security :

Upto Rs. 4 lakh – No security, but in this case parents needs to be a joint borrower
Between 4-7.5 lakhs- along with parents collateral security in form of third party guarantee
Above 7.5 lakhs- Parents to be joint borrowers + tangible collateral security of suitable value required.
Security for the Loan is determined by the quantum of amount required and the credit worthiness of the principal borrower. Following types of Collateral are accepted:

Residential property ( house/flat/apartment)
Fixed Deposit
Life insurance (sum assured being at least 100% of the education loan amount)
Non agricultural land
Moratorium period for repayment:

Course period + 1 year or 6 months after getting job, whichever is earlier

Margin money:

Nil for loan up to Rs. 4 lakh
5 percent for study in India on loan above Rs. 4 lakhs.
15 percent for study in abroad on loan above Rs. 4 lakhs.
Tenure of loan:

upto 15 years for loan up to Rs 7.5 lakhs and above respectively.