Education Loan


  • The Scheme aims to provide loan assistance to meritorious students considering their financial circumstances for pursuit of higher studies in India or Abroad.
  • The amount of loan would normally cover admission fees, tuition fees, examination fees, and cost of books stationery, instruments and equipment , Boarding and mess expenses etc.

Applicant should not be more than 30 years of age as on July 1st of the year of commencement of course of year of application, whichever is later and not gainfully employed. Students who have applied for or secured admission to one of the following courses shall be eligible for Education Loan.

In India, courses recognised by State / Central Government such as :

  • Diploma / Certificate courses approved by All India Council for Technical Education
  • Graduate / Post Graduate courses in Engineering, Medicines, Biotechnology, Pure and applied sciences courses, commerce, social studies and languages by Recognised Universities & Institutions.
  • Management Courses conducted by Standard Management Institutes recognised and affiliated to a recognised university.
  • Specialised courses like C. A. / ICWA/Ph. D. etc.
  • Computer Education Courses recognised by Department of Electronics and considered by the bank. In case of a student aspiring to study abroad the following courses would be eligible for Finance i.e.
  • Graduate / Postgraduate / Ph. D. by Standard and Recognised Universities and other Specialised Courses approved by the Universities abroad.
  • Management / Computer Education conducted by Standard Management Institutes and affiliated to a recognised Foreign University, subject to approval of the bank.

The following Table gives the maximum amount of Education Loan for various courses. The amount indicated is for the entire course. The sanctioned amount would be disbarred in suitable installments. The Bank may make direct payment to the parties concerned for travel, books and equipment's.

A. For Studies in India :-

Certificate Course
Rs.50,000/-
Graduate / Postgraduate Course
Rs.75,000/- (Except Professional Graduate courses below)
Diploma course in Engineering etc.
Rs.1,50,000/-
Management / Computer Course
Rs.1,50,000/-

Professional / Graduate Courses

Courses
Limit for Free Seat
Limit for Payment Seat
Medicine (MBBS)
Rs.2,25,000/-
Rs.5,50,000/-
Dental
Rs.1,80,000/-
Rs.3,75,000/-
Ayurvedic Medicine
Rs.1,25,000/-
Rs.4,50,000/-
Unani Medicine
Rs.1,25,000/-
Rs.4,50,000/-
Homeopathy
Rs.1,75,000/-
Rs.3,00,000/-
Physiotherapy
Rs.1,50,000/-
Rs.2,00,000/-
Pharmacy
Rs.1,25,000/-
Rs.2,00,000/-
Engineering/Technology
Rs.1,75,000/-
Rs.2,75,000/-
Architecture
Rs.2,00,000/-
Rs.3,50,000/-

B. For Studies Abroad :-

Undergraduate and graduate courses of upto four years duration.
The applicant will be required to submit to the Bank, proof of admission and proof that visa is granted by the country where studies are required to be pursued.

Margin amount for Loan :-

The Loans may be sanctioned subject to margin amounts. The margin amount may be varied by the Bank at its discretion.

b) For Studies Abroad - 20 %

Scholarship amount will be accepted as margin money.
Security required by the Bank for Education Loan.

  • Personal Guarantee of Parents / Guardian - for loans upto Rs.25,000/- and
  • An additional guarantee of a person acceptable of Bank for loans more than Rs.25,000/- and
  • Tangible Security such as FDR / NSC / equitable mortgage of property / surrender value of Life Insurance Policies, etc. - for loans of more than Rs.50,000/- to the extent of 100% of the loan.
  • The Student will have to be insured to the extent of the amount of loan sanctioned and the Bank to pay the premium thereof from the loan amount.
  • The Father/Legal Guardian of the student will have to be joint loanee and loan will be sanctioned taking into consideration the credit worthiness and evaluation of the securities of the father/guardian.

Interest on Education Loan will be payable at rates fixed in accordance with RBI guidelines, and would be subject to change without notice. The present interest rate structure is as under :-

Rate of Interest

w.e. from 1st March, 2014

Rate
Upto Rs.1,00,000/
12.75%
More than Rs.1,00,000/-
13.25%
For Studies Abroad
13.75%

Interest will be calculated at monthly rests. The Bank may permit at its discretion, recovery of interest in suitable installments.

Interest calculated for the moratorium period will normally be accumulated to the Loan amount at the commencement of repayment. The borrower may elect to pay this amount of interest in suitable installments in addition to the repayment installments.