education loan

Purpose

  • Loans for Indian nationals- meritorious students for pursuing higher education in India or abroad.
Eligible courses
  • Studies in India
    • Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt./AIBMS/ICMR. Etc
    • Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM, NIFT, IISc etc
    • Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping.
    • Courses like ICWA, CA, CFA etc.
  • Studies abroad
    • Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities and Courses conducted by CIMA-London, CPA in USA etc.
Expenses considered for loan
  • Fees payable to college/school/hostel.
  • Examination/Library/Laboratory fees.
  • Purchase of Books/Equipment/Instruments/Uniforms, Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course).
  • Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the entire course).
  • Travel Expenses/Passage money for studies abroad.
  • Fee payable to college for Indian School of Business.
Quantum of loan (maximum)

For
Amount
Studies in India
Rs. 10 lakhs
Studies Abroad
Rs. 20 lakhs
Education Loan to Indian School of Business student
Rs. 20 lakhs
Education Loan to the students of Premier Central Institutions such as IIMs, IITs etc
Rs. 20 lakhs

Repayment

For
Amount
Tenure
Moratorium
IBA Scheme
Up to Rs. 7.50 lakhs
Up to 10 years
Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.
 
Rs. 7.50 lakhs & above
Up to 15 years
Management Quota (Non IBA)
Irrespective of loan amount
Up to 10 years
Education Loan to the students of Premier Central Institutions such as IIMs, IITs etc
Irrespective of loan amount
Up to 7 years
Education Loan to Indian School of Business student
Irrespective of loan amount
Up to 7 years
Repayment will commence after completion of 18 months or soon after the placement, whichever is earlier.

Margin

For
Loan Amount
Margin
IBA Scheme
Up to Rs.4 lakhs
Nil
Above Rs. 4 lakhs
5% (studies in India)
15% (Studies abroad)
Management Quota (Non IBA)
Irrespective of loan amount
15%
Education Loan to Indian School of Business student
Irrespective of loan amount
5%
Education Loan to the students of Premier Central Institutions such as IIMs, IITs etc
Up to Rs.4 lakhs
Nil
Above Rs. 4 lakhs
15%

 Rate of interest
  • 1% Interest concession will be provided, if the interest is serviced during the study period and the moratorium period, till the commencement of repayment.
 
Processing charges
  • No processing / upfront charges upto the loan amount of Rs10 lakhs.
  • Upfront fee of 0.75%+ST for education loans exceeding Rs.10.00 lakhs
Security

For
Loan Amount
Security
IBA Scheme
Up to Rs.4 lakhs
No Security
Above Rs. 4 lakhs & up to Rs. 7.5 lakhs
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(s).
Above Rs. 7.5 lakhs
Tangible collateral security of suitable value acceptable to bank, along with the assignment of future income of the student for payment of installments.
Management Quota (Non IBA)
Irrespective of loan amount
Tangible collateral security, acceptable to bank, to the extent of 150% of loan amount, along with assignment of future income of the student for payment of installments.
Education Loan to Indian School of Business student
Irrespective of loan amount
Assignment of future income of the student for payment of installments.
Education Loan to the students of Premier Central Institutions
Up to Rs. 10 lakhs
Assignment of future income of the student for payment of installments.
Above Rs. 10 lakhs
100% tangible collateral security, along with the assignment of future income of the student for payment of installments.

 Central Scheme to provide Interest Subsidy on Education Loan – Addition of Central and state Institutes
 
 

 

 

*0.50% interest concession for Girl Students.

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