Education Loans

Sr. No. Particulars Details
i Eligibility a) Any individual who is a bona fide member of the bank and has secured admission to any professional/technical or other graduation/post-graduation courses in India or abroad (regular day/evening courses in recognized universities/institutes).

In case of a minor student, their natural guardian must be a bank member through whom the loan shall be sanctioned.
ii Purpose To cover various study expenses including vocational studies: tuition and other fees payable to the college/institute/hostel, purchase of books/equipment/instruments/uniforms, deposits, travel expenses, and any other necessary student expenses.
iii Maximum Limit Up to ₹25.00 Lacs for studies in India and abroad.
iv Margin – 5% of study cost if loan ≤ ₹5.00 Lacs
– Otherwise:
   • 10% for studies in India
   • 15% for studies abroad
v Type of Facility Term Loan
vi Security Mortgage of immovable property (borrower or third party) or any acceptable security like: assignment of life policies, pledge of government securities, or bank deposits of adequate value.
vii Sureties Minimum of two sureties with satisfactory means.
viii Rate of Interest 10% p.a. (subject to change from time to time)
ix Other Charges As per bank’s rules from time to time.
x Disbursement Disbursed in stages as required, directly to the college/institution or vendors for books/equipment/instruments, etc. Receipts must be obtained and recorded.
xi Repayment – Repayable within 7 years from first disbursement.
– First EMI due 6 months after course completion or job placement (whichever earlier).
– Minimum of 60 monthly instalments.
– Interest accrued during moratorium can be added to principal or serviced separately at borrower’s option.
xii Other Conditions a) Loan to be sanctioned jointly in names of student & parent/spouse.

b) For minors, loan shall be sanctioned to parent/guardian.

c) Borrower must sign “Borrowers’ Consent Note” authorizing employer to deduct loan EMI directly from salary.

d) Loan appraisal must consider future income potential and guardian’s financial status.

e) Borrower must promptly notify bank of any address change.

f) Borrower must inform bank about course completion and job placement within 15 days with details.

g) All other usual terms and conditions apply.
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