1. Eligibility of the Student | v | Student should be an Indian national. | | v | Should have completed previous qualifying examination. | | v | Secured admission to Professional/ Technical courses in India or abroad through Entrance test / Merit based selection process/ Management quota. | | v | Person already in gainful employment not eligible for loan under the scheme except for pursuing evening course covered under the scheme of approved Institute. | | v | If a gainfully employed person wants to pursue full time education either on study leave or by resigning from present employment, such proposals may be considered provided the applicant submits the proof in this regard to the sanctioning authority before disbursement of loan. | 2. Eligible Courses For Studies in India: | v | Graduation course: BA., B.Com, B.Sc. etc. | | v | Post Graduation course: Masters & Ph.D. | | v | Professional courses: Engineering, Medical, Agricultural, Veterinary Law, Dental, Management, Computer etc. | | v | Courses like ICWA, CA, CFA,etc.. | | v | Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc. | | v | Regular Degree/Diploma courses like Aeronautical Pilot training, Shipping etc., approved by director General of Civil Aviation/ Shipping , if the course is pursued in India. | | v | In case the course is pursued abroad, the institute should be recognized by the competent local Aviation/ Shipping Authority of that country. | | v | Courses offered in India by reputed foreign universities. | | v | Evening courses of approved institutes. | | v | Teachers training course/Nursing/B.Ed courses provided the training institutions are approved either by Central Govt or by State Govt and such courses are leading to Degree or Diploma and not to Certificate course. | | v | Other courses leading to Diploma/Degree etc, conducted by Colleges/ Universities approved by UGC/Govt./AICTE/AIBMS/ICMR etc. | | v | Courses offered by National Institutes and other reputed private institutions. | | v | Vocational training and skill development study courses are not be covered. | For Studies abroad: | v | Graduation: For job oriented Professional/Technical courses offered by reputed universities & Commercial Pilot / Shipping training course. | | v | Post Graduation: MCA, MBA, MS etc. Course conducted by CIMA- London,CPA in USA etc. | 2.1 Other Courses Eligible | v | Other courses eligible for financial assistance under the scheme should be conducted by the Colleges/ Universities/ Institutions, which are either recognized by the Govt /affiliated to University/ Deemed University or conducted by Autonomous Institutions, like IIT. IIM, etc., or approved by AICTE/ Accredited to Dept of Electronics, Govt of India, courses offered by reputed Universities/ Institutions abroad. | | v | Correspondence courses /Part time /Certificate /Short duration /Vocational training/ Skill development study courses are strictly not eligible for finance under the scheme. | 3. Eligible Expenses | v | Fee payable to College/School/Hostel /Examination/ Library/ Laboratory/ Purchase of Books/ Equipments/ Instruments/ Uniforms/ Caution Deposit/ Travel expenses/Passage money for studies abroad. | | v | Purchase of computer if essential for completion of course. Confirmation/ recommendation letter from the College/Institution need not be insisted. However, the Branch should consider computer as a part of cost of study, based on the merits of each case. | | v | Hostel fees/expenses considered as an eligible item for finance under the Scheme. Payment of hostel fees will be made directly to the hostel authorities. | | v | In exceptional cases if the student does not get the hostel accommodation due to limited hostel rooms and is required to stay in private accommodation or paying guest accommodation, reasonable amount of lodging and boarding expenses will be considered. | | v | Payment towards accommodation and food will be made directly to the student subject to the condition that the student should declare about the non-availability of accommodation in college hostel supported by a letter from college to this effect and that the student should not be a resident of that place. | | v | Other expenses required to complete the course – like study tours, project work, thesis etc. | | v | Insurance premium for life of student borrower. | | v | Building fund/refundable deposit supported by institution bills/ receipts are Not eligible. | Quantum of Loan Studies in India – Maximum upto Rs. 10 lakh
Studies Abroad – Maximum upto Rs. 20 lakh Margin Upto Rs. 4 lakh – Nil
Above Rs. 4 lakh – Studies in India 5%
Studies abroad 15% 6.Security | v | Up to Rs. 4.00 Lakh : Co-obligation of Parent/s, Grand Parent/s ( if parents are deceased). No other security. | | v | Above Rs. 4.00 Lakh & up to Rs. 7.50 Lakh : Co obligation of Parent/s Grand Parent/s (if parents are deceased) together with collateral in the form of suitable third party guarantee. | | v | Above Rs. 7.50 Lakh : Co-obligation of Parents/Grand Parents ( if Parents are deceased) together with tangible collateral security along with the assignment of future income of the student for payment of instalments. The loan to be fully secured after maintaining prescribed margin on respective securities. | | v | In case of married person, co obligant can be either spouse, or the parents or parents -in-law. | 6.1 Security- Margin | v | Margin for various type of securities is as under: | Immovable property : 35%
Govt Securities ( face value of NSC/KVP etc..) : 25%
LIC Policy ( Surrender Value) : 10%
Deposits ( Balance outstanding) : 10% 7. Rate of interest Applicable for fresh loans sanctioned/ initially disbursed on or after 14.08.2009 : | Upto Rs. 4.00 Lakh | 11.00%
| Above Rs. 4 Lakh & Upto Rs. 7.50 Lakh
| 12.00%
| Above Rs.7.50 Lakh
| 11.50%
| | | v | Simple interest will be charged during repayment holiday period. | | v | Concession in rate of interest at 25 bps below the applicable card rate is extended to SC/ST/ Women beneficiaries for fresh loans sanctioned/ disbursed on or after 15.08.2008. | | v | Concession in rate of interest at 50 bps (inclusive of 25 bps available for SC/ST/Women) below the applicable card rate for girl students for new loans sanctioned/ disbursed w.e.f. 04.03.2009. | | v | Note: 1% interest concession is available during repayment holiday period if the interest is serviced as and when debited, but not later than 30 days of debit. In the event of intermittent default, concession will be extended for the period of regular interest servicing. | 8. Processing Charges | v | No Processing Charges for studies in India | | v | Rs. 2000/- only for studies abroad to be refunded once the loan is availed (Charges are inclusive of service tax) | 9. Prepayment Charges – NIL 10. Repayment | v | The loan to be repaid within a period of 7-10 years after completion of repayment holiday. | | v | Repayment holiday is course period + 1 year OR 6 months after getting the job whichever is earlier. | |