Loan for Higher Amount can be considered on merit and case to case basis
Above Rs.4.00 lakh and below Rs.7.50 lakh: No Collateral except Satisfactory third party guarantee
Above Rs.7.50 lakh: Collateral equivalent to quantum of finance after providing requisite margin
Above Rs.4.00 lac to Rs.7.50 lac – Satisfactory third party Guarantee
Above Rs.7.50 lakh: Parent(s) to be Joint Borrowers/ Guarantor Not to be insisted upon
5% for studies in India
15% for studies abroad
For loan above Rs.7.50 lakh: Up to 15 years, in EMI (Loan + Int. accrued together), after moratorium
Moratorium: Course Period + 1 Year or 6 months after getting job, whichever is earlier
- Loan will be granted to student with parent as Co-borrower/s
- Loan will be disbursed in stages as per requirement directly to Institute / College.
- Pre-approved Education loan(In principle sanction) is available for student applying to multiple universities/Colleges for study abroad.
Interest subsidy on education loans to students from economically weaker sections.
Central Scheme to provide Interest Subsidy for the period of moratorium on Educational Loans taken by students from economically weaker sections.
Government of India has approved a Scheme to provide full interest subsidy during the period of moratorium on loans taken by students belonging to economically weaker sections under the Educational Loan Scheme, for pursuing any of the approved courses of studies in technical and professional streams, from recognized institutions in India.
We are providing hereunder guidelines of the scheme:-
The Scheme would be applicable only for studies in recognized technical and professional courses in India. The interest subsidy shall be linked with the existing Model Educational Loan Scheme of our bank and restricted to students enrolled in recognized technical/ professional courses (after Class XII) in India in Educational Institutions established by Acts of Parliament, other Institutions recognized by the concerned Statutory Bodies, Indian Institutes of Management (IIMs) and other institutions set up by the Central/ State Government.
2.Eligibility for Interest Subsidy
The interest subsidy under the Scheme shall be available to the eligible students only once, either for the first undergraduate degree course or the post graduate degrees/diplomas in India. Interest subsidy shall, however, be admissible for integrated courses (graduate + post graduate).
Interest Subsidy under this scheme shall not be available to those students who discontinue the course midstream, or for those who are expelled from the Institutions on disciplinary or academic grounds. However, the interest subsidy will be available if the discontinuation was due to medical grounds for which necessary documentation to the satisfaction of the Head of educational institution will have to be given.
3.Subsidy Applicable Period
Under the Scheme, interest payable by the student belonging to economically weaker section for availing of the Educational Loan for Technical/ Professional courses in India for the period of moratorium i.e., course period, plus one year or six months after getting job, whichever is earlier, as prescribed under Model Educational Loan Scheme of the bank, shall be borne by the Government of India. After the period of moratorium is over, the interest on the outstanding loan amount shall be paid by the student, in accordance with the provisions of the existing Model Educational Loan Scheme and as may be amended from time to time.
The Scheme shall be applicable from the academic year 2009-10 starting 1st April, 2009. The loan amount taken starting from the Academic year 2009-10 (irrespective of the date of sanction) shall only be covered under the scheme of Interest subsidy.
Note: Interest on any amount disbursed for courses starting before the academic year 2009-10 would not be considered for subsidy.
The benefits under the Scheme would be applicable to those students belonging to economically weaker sections, with an annual gross parental/ family income upper limit of Rs. 4.5 lac per year (from all sources). The scheme is intended to cater to the needs of students belonging to economically weaker sections with the above prescribed upper parental gross income limit of the family from all sources which is based on economic index and not on social background.
6.Competent Authority for Issuing Income Certificate
Income proof shall be required from the students from such public authorities as are authorized by the State Governments for certification of income status for this scheme, including Central and State Sector Schemes.
For the State of Maharashtra, the Tahsildar is the competent authority for issuing the income certificate.
For other States, student borrowers are requested to approach our branch officials for knowing the details of competent authority who are authorized to issue such income certificate.
Interest subsidy should be claimed under the scheme only if subsidy was not being claimed against any other State Government scheme.
All the eligible student borrowers are requested to visit the concerned branches (where they have availed education loan) for enrolling to avail Interest subsidy during moratorium period under the scheme. It is requested to go through the above contents carefully before approaching the branch officials for submitting the application for interest subsidy claim. The scheme is applicable only for those who have availed educational loan on or subsequent to 01.04.2009.
Steps to be followed by the student borrowers for availing the benefit of interest subsidy under the scheme:-
- Procure income certificate as discussed in the point no. 5 as above.
- Ensure having taken all requisite certificates and approach the respective branch.
- Submit the application for claiming subsidy (Application/ Agreement will be supplied by the branch officials)