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Education Loan Scheme

Salient Features of “Shiksha Sarthi” - Education Loan Scheme 
Synopsis/ Objectives

This is an ideal scheme which provides financial support to deserving and meritorious students for pursuing technical /professional higher education in India as well as abroad. The main emphasis is that every meritorious student even poor is provided with an opportunity to pursue education with the financial support and on liberal / simple terms and conditions.

Eligibility

Student Eligibility:

The student should be an Indian National and secured admission to professional / technical / Graduation / Post Graduation courses in India or Abroad through Entrance Test / Merit Based Selection process. Sanction of loan will be considered on the basis of academic record, net worth & income of family and scope for securing good / gainful employment. The student will have to submit all required documentary evidences including receipts, estimates etc. & progress / performance report to the Bank regularly till completion of the course.
In case of studies abroad, student should submit the Unique Identification Number (UIN) / copy of Identity Card to the branch.
The student / applicant should not be availing / will not avail any education loan during currency of our loan. Necessary Affidavit / Undertaking to this effect to be obtained.
Type of Loan:  Term Loan (To be sanctioned preferably by the Branch nearest to the place of residence of parents).

Borrower:  Student and Parent / Guardian jointly.

Age Limit:  Minimum 16 years and maximum upto 40 years.

Courses eligible for Studies in India: 

Graduation courses – BA, B.Com, B.Sc. etc.
Post Graduation courses - Masters & Phd.
Professional courses – Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, ICWA, CA, CFA etc. Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.
Computer certificate courses of reputed institutes accredited to Dept. of Electronics or Institutes affiliated to University.
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. In case the course is pursued abroad, the Institute should be recognized by the competent local aviation / shipping authority.
Courses offered in India by reputed foreign universities.
Evening courses of approved institutes.
Other courses leading to diploma / degree etc. conducted by colleges / universities approved by UGC / Govt. / AICTE / AIBMS / ICMR / etc.
Courses offered by National Institutes and other reputed private Institutions - depending on future prospects / recognition by the user Institutions.
Courses leading to certification are not to be considered.

Quantum of Loan:

Maximum upto Rs.20.00 lacs for studies abroad.
Quantum of loan will be determined by the Bank on the basis of estimates given by the college / institute (with proper documentary evidence) and repaying capacity of student / parent.
Any monetary benefit / Scholarship / grants / stipend received by the student will be deducted from the total cost.

Margin:

Loan upto Rs.4.00 lacs: No margin
Loan above Rs.4.00 lacs: (i) 5% for studies in India (ii) 15% for studies outside India. (In special / deserving cases for studies abroad bank may consider lesser margin on selective basis at its sole discretion.)
Margin may be brought-in, on year to year basis on pro-rata basis as per disbursements.

Rate of Interest:

As prescribed/ changed by bank from time to time at monthly rests. Presently the rate of interest is 11% (4% below BPLR)(subject to change from time to time)
Penal Interest: As per Bank's circulars in force for overdue amount and period.
Interest as and when debited will be recovered from the parent till repayment commences. (In special / deserving cases interest may be funded for the study period up to a maximum of 2 years on selective basis at its sole discretion.)

Security:

Loan upto Rs.4.00 lacs: No security
Loan above Rs.4.00 lacs and upto Rs.7.50 lacs: Collateral Security in the form of third party guarantee to the satisfaction of bank.
Loan above Rs.7.50 lacs:
Collateral security equivalent to the loan amount comprising of any one or more of the following: NSCs, Govt. Securities, Bank Deposits and Mortgage of Immovable Property (supported with guarantee of the owner) in favour of the Bank and acceptable to the Bank.
In case loan is allowed for computer, the same should also be hypothecated to the bank.

Disbursement :

It will be made in stages directly to the College / Institution / Hostel.
Payment of air fare, books, equipments, Computer etc. will be made directly to authorized travel agent / supplier.
Hostel charges for students studying abroad will be remitted as per prevailing RBI guidelines at the time of remittance.
However, in deserving cases wherein caution deposit / fees for the 1st year has already been paid to the institution the same may be reimbursed.

Processing / upfront / Fore Closure charges:

No Processing / Upfront / Fore closure charges will be collected on education loan.

Repayment :

Loan will be repaid in 5 - 7 years after commencement of repayment in equated monthly installments depending upon quantum of loan and repaying capacity.
Repayment will commence six months after completion of course or one month after the student starts earning, which ever is earlier.
Interest debited will be recovered from the parents till the repayment commences. (In special / deserving cases interest may be funded for the study period up to a maximum of 2 years on selective basis at its sole discretion.)
If the student is not able to complete the course within the schedule time, extension of time for completion of course may be permitted for a maximum period of 2 years.

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