Objective

The scheme aims at providing financial assistance on reasonable terms -
1) To the poor and needy to undertake basic education.
2) To the student/employed persons to pursue higher education

Course Eligibility

a) Studies in India :

• School education including plus 2 stages.
• Graduation courses - B.A., B.Com., B.Sc. etc.
• Post Graduation courses - Masters & Ph.D.
• Professional courses - Engineering, Medical, Agriculture, Veterinary, Law,
• Dental, Management, Computer etc.
• Computer Certificate course of reputed institutions accredited to
• Department of Electronics or Institutions affiliated to University.
• Courses like ICWA , CA , CFA, etc.
• Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.
• Courses offered in India by reputed Foreign Universities.
• Evening courses of approved institutions.
• Other courses leading to Diploma/Degree etc. conducted by Colleges/Universities approved by UGC/Govt./AICTE/ICMR etc.
  Courses offered by National Institutes and other reputed private institutions. Any other institution courses depending on future prospects/recognition by user institutions deemed proper by the Bank.

b) Studies Abroad :

• Graduation : For job oriented professional/technical courses offered by reputed Universities.
• Post Graduation : MCA, MBA, MS. etc.
• Courses conducted by Chartered Institute of Management Accountants (CIMA) - London , Chartered Public Accountant (CPA) - USA etc.

Students Eligibility

• Should be an Indian National.
• Student should be in the age group of 16 to 40 yrs
• Secured admission to Professional/Technical courses through Entrance Test/Selection Process.
• Secured admission to Foreign University/Institutions.

Expenses Considered for Loan

• Fee payable to College/School/Hostel.
• Examination/Library/Laboratory fee.
• Purchase of books/equipments/instruments/ uniforms .
• Caution deposit/building fund/ refundable deposit.
• Travel expenses/passage money for studies abroad.
• Purchase of computers - essential for completion of the course.
• Any other expenses required to complete the course - like study tours, project work thesis etc.
• To meet insurance premium for the policy on the life of the student.
• Reimbursement of these expenses already incurred/loan taken from identified sources (to meet the contingencies) by the applicant on merits is allowed, subject to production of original receipts within one month if applicant has secured admission in India and within six weeks if the applicant is going abroad.

Quantum of Finance

Need based finance subject to repaying capacity of the parents/students with margin and the following ceilings:
1) Studies in India - Maximum Rs. 7.50 lacs
2) Studies Abroad - Maximum Rs. 15.00 lacs

Margin

Upto Rs. 4 lacs - No margin
Above Rs. 4 Lakhs In India 5%
Abroad 15%
* Scholarship assistance to be included in margin.
** Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.

Security

Upto Rs.4 Lakhs: No security .Only to take co-obligation of either or both parents/guardian

Above Rs.4 Lakhs and upto Rs 7.50 Lakhs: Collateral in the form of satisfacfactory third party guarantee

Above Rs.7.50 Lakhs: 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

Rate of Interest

Concessions

1% interest concession, if the interest is serviced during study period.

The interest is charged quarterly/monthly on a simple interest basis during Repayment /Moratorium period.