Study Material: Educational Loan-HSBC India Student Education Loan Program

Educational Loan

Education is the greatest asset anyone can have. Recognizing this, HSBC, in affiliation with Global Student Loan Corporation® (GSLC) has designed a student education loan program to provide funding for students who are seeking to attain a world-class education at a U.S college or university.

HSBC India Student Education Loan Program can help ease students' financial concerns as they embark on one of the biggest decisions in their life – attending the college / university of their dreams. The program enables you to borrow funds to cover the cost of education – tuition, fees, room charges, boarding, books, and other education-related expenses.
Global Student Loan Corporation® - GSLC - is one of the leading organizations which enables non - U.S. students to find the path to a world-class education. With GSLC, you can access a student-specific Loan Certificate demonstrating adequate funding to attend school - a requirement for securing a U.S student visa. You can receive advice from GSLC's International Student Planner and remain at ease knowing that GSLC has extensive relationships with many U.S colleges and universities. You will also be able to use GSLC's Budget Calculator to calculate how much will be needed towards funding your studies and receive guidance about budgeting for school.

To qualify for an Education Loan, the following criteria apply

Net Income (Rs.) of Primary Applicant / co-applicant: 500,000 per year for Salaried and 750,000 per year for Self employed.
Minimum Age (in years) of Primary Applicant / co-applicant: 18
Maximum Age (in years) of Primary Applicant / co-applicant: 58 or retirement age (whichever is earlier) for salaried at loan maturity.
65 for self-employed. 60 or retirement age (whichever is earlier) for PSU/government salaried employees, at loan maturity.
Minimum Loan Amount (Rs.): 500,000
Maximum Loan Amount (Rs.)10,000,000
Loan to Value Ratio: 65% upto education loan of INR 5 M, 55% for education loan between INR 5-10 M

Processing fees

1% of the loan amount applied for, subject to a minimum of Rs 5000 plus service tax. This fee is payable on application and is not refundable

Additional fees, as charged by GSLC apply. (If applicable)

A one-time administration fee of 1.75% of the principal amount plus service tax (at 10.30%, totally 1.93%) shall be collected by HSBC and payable to GSLC
An upfront non-refundable site usage fee of $75 is payable to GSLC via Credit Card or PayPal through the GSLC websit

Pre-payment charges

No pre-payment charge up to a maximum of 25% of the outstanding loan, once every financial year (April-March)
A pre-payment charge of 4% shall be levied for the amount in excess of 25% of the outstanding loan amount
Loan prepayment can be done only after six months from the disbursal date : Click here

Federal Bank

Purpose: Higher studies in India & Abroad
Loan Amount: Rs 0.50 Lakhs to Rs 25 Lakhs

Eligibility
Students of Indian nationality who intend to join any approved Diploma / Degree / Post Graduate course in India / Abroad

Quantum of finance

Initial expenses like admission fee, entrance fee caution deposit, security deposit etc recurring expenses like tuition fee, exam fee, special fee, hostel fee, cost of books, uniform, etc
Margin
For Courses in India no margin is required and for foreign studies 10 % margin is applicable.
Period
Minimum loan period - 3 years (course time + repayment period)
Maximum loan period - 11 years (course time maximum of 6 years + repayment period maximum of 5 years)
For current Interest Rates http://www.federalbank.co.in/General_RateCharges_RateCharges.aspx
Repayment
Monthly / periodical interest during the holiday period to be serviced and Balance at the end of the course to be repaid in equal monthly installments. And repayment should begin when the student secures employment or within 12 months after the completion of the course, whichever is earlier.

For more details : Click here