GUDELINES OF EDUCATION LOAN
Education loan aimed at extending financial assistance to the students belonging to poor family of Minority and OBC who are undergoing professional/Technical/medical courses at the level of graduation/post-graduation/any other courses approved by UGC/Government/AICTE etc. It is the term loan granted to Indian Citizens for Education in India or abroad where admission has been secured.
The expenses considered for loan are:
1. Fees payable to college/school/hostel.
2. Examination/library/laboratory Fees.
3. Purchase of Books/Equipment/instruments/Uniform.
4. Contain deposits/Building Fund/Refundable deposits.
5. Travel expenses/package money for studies abroad.
6. Purchase of computers considered necessary for completion of course.
7. Any other expenses required tocomplete the course like study tours, project works, etc.
Amount of Loan
For studies in India, maximum Rs. 50,000/-.
7% per annum for Loan up to Rs.50,000/-
No processing fees/upfront charges.
Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier. Payment of interest will commence after one year of loan availed by the loanee.
Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parents who would be executing the documents as “joint borrower”.
All the loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/parents-in-law.
• Completed Education Loan Application Form.
• Mark sheets of last qualifying examination.
• Proof of admission scholarship, studentship etc.
• Schedule of expenses for the specified course
• 2 passport size photographs
• Borrower’s Bank account statement for the last sixmonths.
• Income tax assessment order, of last 2 years.
• Brief statement of assets and liabilities, of the Co-borrower.
• Proof of Income (i.e. Salary slips/ Form 16 etc.)