Objective:

The scheme aims at providing financial assistance on reasonable terms

• To poor and needy to undertake basic education
• To the meritorious students to pursue higher / professional / technical education

Eligibility:

A. Students in India

• School education including plus 2 stage
• Graduation/Post Graduation course
• Professional courses
• Technical courses
• Management courses

B. Students Abroad

• Graduation: For job oriented professional / technical courses offered by reputed universities.
• Post Graduation : MCA, MBA, MS etc

• Courses conducted by : CIMA-London, CAP in USA, etc

Loan Amount:

Need based finance subject to repaying capacity of the parents/students with margin and the following ceilings.

• Studies in India – Maximum Rs 7.50 lacs
• Studies abroad  – Maximum Rs 15 lacs

Margin:

No margin may be insisted upon for loan upto Rs 4.00 lacs. However, for loans of higher amounts, the margin requirement may be 5% for inland studies and 15% for studies abroad

• Scholarship/assistance to be included in margin

• Margin may be brought in on year-to-year basis as and when disbursement are made on a pro-rata basis.

Security: 

No collateral security will be insisted upon for loans upto Rs 4.00 lacs. However, for loans above this amount, collateral security of suitable value or co-obligation of  parents/guardians/third party along with the assignment of future income of the student for payment of installments is required.

An LIC Policy/Convertible Whole Life Assurance Policy for a sum not less than loan amount be taken out in the name of the student and got assigned in Bank’s favour.

Repayment:

Repayment holiday/Moratorium: Course period + 1 year 0r 6 months after getting job/starts earning, whichever is earlier.
The loan to be repaid in 5-7 years after commencement of repayment

Rate of Interest

Upto Rs 4.00 lacs : PLR i.e 11.75% presently
Above Rs 4.00 lacs : PLR+1% i.e 12.75% presently -Simple interest to be calculated during Repayment holiday / Moratorium Period.