ELIGIBILITY

  • Should be an Indian national.
  • Secured admission to the concerned institute in India or abroad through appropriate selection process and cleared the qualifying examination, if any courses covered in India.
  • Graduation / post-graduation / diploma courses from recognized universities.
  • Technical / professional / management courses.
  • PhD courses.
  • Courses covered outside India.
  • Graduation / post-graduation degrees offered by recognized universities.
  • Certified degree courses conducted by CIMA, London, CPA, USA and other such institutes
  • PhD courses.
  • Diploma courses abroad are not covered.

LOAN IN SUBSEQUENT YEARS OF COURSE

  • Educational loans can also be considered for eligible students In case they approach the bank in the subsequent years of the course.
  • The loan can be granted provided the student has not availed loan from initial years from any other bank/FI.

MARGIN

Scholarship / assistance to be included in margin

EXPENSES CONSIDERED

  • Tuition fee payable to college / school / university.
  • Hostel / mess charges.
  • Examination / Library / Laboratory fee.
  • Insurance premium for the student borrower.
  • Caution deposit, Building fund/ refundable deposit supported by Institution bills / receipts.
  • Purchase of books / equipments / instruments / uniforms.
  • Purchase of computer / laptop at reasonable cost, if required for completion of the course.
  • Travel expenses / passage money for studies abroad.
  • Admission acceptance fee.
  • Any other expense required to complete the course – like study tours, project work, thesis, etc

REPAYMENT TENURE

  • Moratorium period: Course period + 1 year.
  • Maximum repayment tenure after completion of course / moratorium period is – 15 years irrespective of the quantum of loan.

SECURITY

The security required is as mentioned below.

  • Quantum of loan
  • Security
  • Up to `4 Lakh
  • No guarantee and No security, if the loan is covered under CGFSEL. (In case, if there is any deviation, the third party guaranty with equivalent means to be taken for the loan Above `4 Lakh & up to `7.50 Lakh.)
  • Above `4 Lakh & up to `7.50 Lakh
  • Above `7.50 Lakh
  • Tangible collateral security of minimum value equivalent to the loan amount and interest accumulation during course & moratorium period, acceptable to the bank.

Note: For all the above categories, parent / spouse / parent-in-law to become the co-applicant.

In cases where both the parents are not alive, close relative or guardian to be taken as co applicant.

INSURANCE

Life insurance of the student is mandatory to the tune of the loan amount.

CREDIT GUARANTEE FUND SCHEME FOR EDUCATIONAL LOANS (CGFSEL)

The Ministry Of HRD Has Launched Central Government Scheme Of Interest subsidy on educational loans for economically weaker sections of the society .
The students should satisfy all the following parameters-

Secured admission to any of the approved course , after class XII, in technical and professional streams from recognized institutes in india only.

The students belongs to economically weaker section(EWS) with an annual gross family income not exceeding 4.50 lakh

The other features of the scheme are as below:-

  • Subsidy for loan amount upto Rs. 10 lakhs ( even if loan is more than Rs.10 Lakhs.
  • Students to submit proof of income from the competent authority appointed by the state government. Should be an Indian national.
  • Scheme applicable for disbursements from the academic year 2009 ( even if the loan was sanctioned earlier
  • Subsidy for the course and moratorium period only
  • Student will be eligible for interest subsidy only once either for the first undergraduate degree course or the post graduate degree/ diploma course in India
Type of Studies Maximum Quantum
For Inland Studies Rs. 20 Lakhs
For Studies Abroad Rs. 30 Lakhs
Loan amount beyond maximum quantum of loan to be considered by respective delegate, as per their delegated authority, as deviation.
Quantum of Loan Maximum Quantum
Up to `4 Lakh Nil
Above `4 Lakh Studies in India 5%
Studies abroad 15%
Quantum of Loan Security
Above `4 Lakh No Guarantee and No security, if the loan is covered under CGFSEL. (In case, if there is any deviation, the third party guaranty with equivalent means to be taken for the loan above `4 Lakh & up to `7.50 Lakh.)
Above `4 Lakh & up to `7.50 Lakh
Above `7.50 Lakh Tangible collateral security of minimum value equivalent to the loan amount and interest accumulation during course & moratorium period, acceptable to the bank.