Educationa Loans

Various Nationalized banks in India offer bank loans to students for education. The terms and conditions, requirement of security deposit and guarantor etc.

Purpose:
 1. Payment of course fees
 2. Purchase of books, equipments, instruments, uniforms.
 3. Payment of hostel fees, examination fees, study tours, passage expenses(for abroad)     etc.

Eligible Courses:
Graduation, post-graduation including technical/ professional courses with employment potential, conducted by colleges/ Universities approved by UGC/ Govt/ AICITE/ Dept. of Electronics/ Indian Medical Council, Autonomous institution like IIT, IIM, etc.

For studies, job-oriented technical/ professional Courses (Graduation/ Post Graduation)

Quantum of finance:
 1. Need based
 2. Max Rs. 7.50 Lacs for studies within India
 3. Studies abroad Max Rs. 15.00 lacs.

Own contribution:
Up to Rs. 4 lacs    : Nil
Above Rs. 4 lacs   : Studies in India – 5%
                           : Studies Abroad –15.

Security:
Loan shall be given jointly with parent / guardian Assignment of future income of the student . Up to 4.00 no security, above Rs. 4.00 lacs and up to 7.50 lacs( for meritorious students in respect of higher education/ professional Courses) students in respect of higher education/ professional Courses satisfactory third party guarantee to be extended, wherever required.

For others – Collateral security equal up to 100% of the loan amount.

Rate of Interest:
Up to Rs. 4.00 Lacs-presently 10.75% per/annum, above Rs. 4.00 Lacs – presently 11.75% per annum. Simple interest is charged during the period of study. 0.5% concession allowed where interest is charged during the period of study. 0.5% concession allowed where interest is services during study period.

Repayment:
Commences one year after completion of the courses or six months after getting om employment. Whichever is earlier loan with interest to be repaid in equated monthly installments within 5 to 7 years.

Documents to be submitted :
 1.Marks sheet of qualifying examination.
 2. Proof of admission from the educational institution.
 3. Schedule of expenses issued by the educational institution.
 4. passport size photograph (2 copies)
 5. Proof of residence ( voters ID Card, passport, Driving License. Etc)
 6. Proof of income (Parent / Guardian)
 7. Mortgage documents wherever required.

General:
Loans extended by the Bank branch nearest to the place of permanent residence of the parent. Loans disbursed directly to the Institution/hostel authorities in stages based on requirements.

Check list for study loan:
 1. Documents to be submitted along with application for bank loan:
 2. Marks sheet of the qualifying examination for school or college.
 3. Copies of letters confirming scholarship, studentship, etc.
 4. Proof of admission to the course.
 5. Schedule of course expenses.
 6. Two pass port size photos of the barrower/ gurantor.
 7. A copy of foreign exchange permit(if applicable)
 8. The Borrower's bank account statement for the last six months.
 9. Proof of residence.
10. Income-tax assessment orders not more than two year old and bank statement of       assets and liabilities of the borrower.
11. Salaried person has to show the latest salary slip with all deductions.

For further details contact the nearest branch of any of these banks in your area.