The scheme details are as under :
Should be an Indian national
Secured admission to professional/ technical courses in India or abroad through entrance test/ merit based selection process.
a. Studies in India: (Indicative list)
Graduation courses: BA, B.Com. B. Sc., etc.
Post graduation courses: Masters and PhD
Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.
Computer certificate courses of reputed institutes accredited to Department of Electronics or institutes affiliated to university
Courses like ICWA, CA, CFA etc.
Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc
• Regular degree/diploma courses like aeronautical, pilot training, shipping etc., approved by director general of civil aviation/shipping, if the course is pursued in India. In case the course is pursued abroad, the Institute should be recognized by the competent local aviation/shipping authority
Courses offered in India by reputed foreign universities.
Evening courses of approved institutes.
Other courses leading to diploma/ degree etc. conducted by colleges/ universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc
Courses offered by National Institutes and other reputed private institutions. Banks may have the system of appraising other institution courses depending on future prospects/ recognition by user institutions.
Courses, which are not covered under the criteria mentioned above, individual banks may take a view to consider extending
Education loan under the scheme taking into account the future prospects/recognition by user institution.
Graduation: For job-oriented professional/ technical courses offered by reputed universities.
Post-graduation: MCA, MBA, MS, etc.
Courses conducted by CIMA London, CPA in USA etc.
Purchase of books/ equipments/ instruments/ uniforms.
Caution deposit, building fund/refundable deposit supported by Institution bills/receipts, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
Travel expenses/ passage money for studies abroad.
Purchase of computers - essential for completion of the course.
Insurance premium for student borrower.
Any other expense required to complete the course - like study tours, project.
work, thesis, etc.
Need-based finance subject to repaying capacity of the parents/ students with margin and the following ceilings.
Up to Rs 4 lacs Nil
Above Rs. 4 lacs: Studies in India 5%
Studies Abroad 15%
Scholarship/ assistantship to be included in margin.
Margin may be brought in on year - to - year basis as and when disbursements are made on a pro-rata basis.
Up to Rs 4 lakh co-obligation of parents - No security.
Above Rs.4 lakh and up to Rs7.5 lakh co-obligation of parents, together with collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, waive third party guarantee if satisfied with the net-worth / means of parent/s who would be executing the document as "joint borrower."
Up to Rs 4 lakh - BPLR
Above Rs. 4 lakh - BPLR + 1%
Simple interest to be charged during the repayment holiday/ moratorium period. Penal interest to be charged as applicable to individual banks.
In the normal course, while appraising the loan the future income prospects of the student will be looked into. However, where required, the means of parent / guardian could also be taken into account to evaluate re-payment capability. The loan to be sanctioned as per delegation of powers, preferably by the branch nearest to the place of residence of parents. No application for educational loan received should be rejected without the concurrence of the next higher authority.
Repayment holiday/moratorium course period + 1 year or 6 months after getting job, whichever is earlier. The loan to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course. The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Installments (EMI) fixed. 1% interest concession may be provided for loanee if the interest is serviced during the study period when repayment holiday is specified for interest/repayment under the scheme.
Banks may arrange for life insurance policy on the students availing educational loan. Individual banks may work out the modalities with insurance companies
Banks which wish to support highly and exceptionally meritorious/ deserving students without security may delegate such powers to a fairly higher level authority.
In case of receipt of application for more than one loan for student borrower from a family, the 'family' as a unit has to be taken into account for considering the loan and security taken in relation to the total quantum of finance disbursed, subject to margin and repaying capacity of the parent/student.
There is no specific restriction with regard to the age of the student to be eligible for education loan.
In cases of student staying with parents and where such parents have transferable jobs or there is change in address, the bank may provide in the system of noting the ‘address for correspondence' for tracking purpose.
Banks may consider top-up loans to students pursuing further studies within the overall eligibility limit, with appropriate re-schedulement, subject to taking required security.
The co-obligator should be parent(s)/guardian of the student borrower. In case of married person, co-obligator can be spouse or the parent(s)/parents-in-law.
No due certificate need not be insisted upon as a pre-condition for considering educational loan. However, banks may obtain a declaration/ an affidavit confirming that no loans are availed from other banks.
Loan applications have to be disposed of within a period of 15 days to 1 month, but not exceeding the time norms stipulated for disposing of loan applications under priority sector lending.
In order to bring flexibility in terms like eligibility, margin, security norms, banks may consider relaxation in the norms on a case-to-case basis delegating the powers to a fairly higher level authority.