Education Loans

i.

Eligibility

a)

Any individual bona fide member of the bank, who have secured admission to any professional / technical course or any other graduation or post-graduation courses in India or abroad, as a regular day time or evening courses in the recognized University / Institutes.

In case of minor student, his/her natural guardian must be member of the bank through whom Loan shall be sanctioned.

ii.

Purpose

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For the purpose of various expenses for the course of study including vocational studies like; tuition & other fees payable to the Collage / Institute / Hostel, Purchase of Books / Equipment / Instruments / Uniforms, any deposit required to be deposited, Traveling Expenses and any other expenses required to be incurred by the student for the said purpose.

iii.

Maximum Limit

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Upto maximum of ` 20.00  Lacs for studies in India and abroad .

iv.

Margin

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@ 5 % of cost of studies in case of loan up to ` 5.00 Lacs and in other cases, @ 10 % and 15 % for studies in India and for studies abroad respectively.

v.

Type of facility

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Term Loan

vi.

Security

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Mortgage of any immovable property owned by borrower or any third party or any other security like; assignment of Life Policies, pledge of any Government securities or Bank’s own deposit as may be acceptable to the bank, of adequate value.

vii.

Sureties

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Minimum of two sureties of satisfactory means.

viii.

Rate of Interest

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As per Bank’s rules from time to time.

ix.

Other charges

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As per Bank’s rules from time to time.

x.

Disbursement

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Loan to be disbursed in stages as per requirement / demand, directly to the concerned College, Institutions , etc.,  as the case may be or to the Vendors of Books / Equipment / Instrument, etc. as far as possible and Receipt of the concern recipient to be obtained and kept on record.

xi.

Repayment

Ø   

Loan is normally to be repayable within a maximum period of 7 years after the date of first disbursement. The first instalment shall become payable 6 months after the completion of respective course of study or getting  a job , whichever is earlier, subject to the condition that minimum of 60 monthly instalments shall be allowed for repayment of the Loan.

Ø   

The interest accrued during the moratorium period shall be added to the Principal and shall be repaid along-with Principal as above or the same may be serviced as and when due at the option of borrower.

xii.

Other conditions

a)

Loan to be sanctioned in the joint names of Student & Parents / Spouse.

b)

Loan for the studies of Minor shall be sanctioned to the Parents /Guardian of the minor student.

c)

Borrower to undertake to execute “Borrowers’ Consent Note” on getting the gainful employment, authorizing the prospective employer to remit to the bank the amount of monthly instalment of Loan or any other sum of money as and when demanded by the bank, to the debit of his/her salary.

d)

While appraising the Loan, prospect of future income of the borrower after completion of the proposed course of study and also the means of the Parents/ Guardian to be considered.

e)

Borrower to undertake that he/she intimate any change of his/ her address to the bank promptly.

f)

Borrower is also to undertake that he/she shall inform the bank promptly about the completion of course of studies and securing employment within period of 15 days with complete details of employment.

g)

All other usual term and conditions.