Financial
assistance to needy and meritorious Indian students
for pursuing studies from High School onwards including
graduation, technical and professional courses.
Loans
are also provided for study abroad for job oriented
courses at degree level and advanced studies in all
areas for post-graduation.
Purpose
of loan
For
payment of fees to school/college and for purchase of
books, hostel fees, examination fees, etc.
Eligibility
Conditions
Need
based finance is permitted within a maximum of Rs.7.50
lakhs for inland study and Rs.15 lakhs for study abroad.
Institutions
offering courses should have approval of Central Govt.
& State Govt./University affiliation/Autonomous
Institutes/AICTE/DOEACC.
Margin
Upto
Rs.4.00 Lacs
Nil
for both inland and Foreign Studies
Above
Rs.4.00 Lacs
5%
for inland studies 15% for studies abroad
Rate
of Interest
(As
on 20th June 2001)
(subject to changes as advised by Bank/RBI from time to
time)
(1)
Student satisfying DRI norms
(irrespective of quantum of loan)
(DRI:annual income less than Rs 7200 p.a)
4.00%
(2)
Others - Upto Rs.4 lakhs
- Above Rs.4 lakhs
11.75%
12.75%
Disbursement
Directly
to University/College/Hostel/book supplier/ etc.
Security
Loans upto Rs.4.00 lacs
Joint documentation with parents/guardian.
Loans above Rs.4.00Lacs
Collateral security of suitable value or Co-obligation of
Third Party having required networth with Assignment
of future income of the student.
Repayment
Conditions
To
be repaid in 5 to 7 years.
Initial
repayment holiday of One year both for principal &
interest from the date of completion of course or
six months of getting a job whichever is earlier.
Interest
will be debited quarterly on simple basis during the
repayment holiday/moratorium period. After commencement
of repayment,the accrued interest is added to the
principal amount and EMIs fixed on total outstanding
amount.
Penal
Interest @ 2% will be charged for above 2.00 Lacs
for the overdue amount and overdue period.
Credit
Delivery
The
loan can be availed from the branch nearest to the place
of permanent domicile.
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