Education
Loan
A term loan granted to Indian Nationals for pursuing
higher education in India or abroad where admission
has been secured.
Education Loan Comes under three categories i.e. Farmer,
serviceman, Businessman. and as per bank norms documentation
is different for all three categories Interest is charged
monthly on simple basis during the repayment holiday/moratorium
period & concession of 1% in rate of interest is
allowed provided the same is serviced regularly during
study period.
Initially Every Applicant shall apply online to any
nationalize banks like (PNB, IDBI, Vijaya bank, Bank
of Baroda)
CENTRAL BANK
PNB
ALAHABAD BANK
BANK Of BARODA
Eligible Courses:
All courses having employment prospects are eligible.
Graduation courses/ Post graduation courses/ Professional
courses
Other courses approved by UGC/Government/AICTE etc.
Expenses considered for loan :
1. Fees payable to college/school/hostel
2. Examination/Library/Laboratory fees
3. Purchase of Books/Equipment/Instruments/Uniforms
4. Caution Deposit/Building Fund/Refundable Deposit
5. Travel Expenses/Passage money for studies abroad
6. Purchase of computers considered necessary for completion
of course
any other expenses required to complete the course like
study tours, project work etc.
Amount of Loan :
As per RBI (Reserve Bank of India) Norms:
| Up
to Rs.4.00 lacs:
| Co-Obligation
of Parents. No Security.. |
Above
Rs 4.00 lacs and Up to Rs 7.5 lacs:
| Co-Obligation
of Parents. 3rd party guarantee acceptable to
the Bank. |
Above
Rs 7.5 lacs:
| Co-Obligation
of Parents. Collateral Security of suitable value
along with Assignment of future income of the
student for payment of installments. |
The security can be in the form of land / building / Govt.
Securities / Public Sector Bonds / Units of UTI, NSC,
KVP, LIC Policy, Gold, Shares/ Mutual Funds/ Debentures,
Bank Deposit in the name of the student parent / guardian
or any other third party with suitable Margin.
The document should be executed by both the student
and the parent/guardian.
Repayment Tenure:
Repayment will commence one year after completion of
course or 6 months after securing a job, whichever is
earlier. (As per Bank Norms)
Documentation Required
1) Category: Farmer
Applicant's requirement - Student
1. Dully filled Education Loan Application Form.
2. Mark sheets of last qualifying examination
3. Proof of admission scholarship, studentship etc
4. Schedule of expenses for the specified course
5. 2 passport size photographs
6. Age proof
7. Photo ID proof
8. Residence Proof
Co-Applicant Requirement- Father
1. Two passport size photographs
2. Age proof
3. Photo ID proof
4. Residence Proof
5. Land Valuation Report (Government Report)
6. Borrower's Bank account statement for the last six
months
7. Income tax assessment order, of last 2 years
2) Category: Serviceman
Applicant's requirement - Student
1) Applicant Requirement is same as per above.
Co-Applicant Requirement- Father
1. Two passport size photographs
2. Age proof
3. Photo ID proof
4. Residence Proof
5. Latest Three Months Salary Slip
6. Borrower's Bank account statement for the last six
months
7. Income tax assessment order, of last 2 years
3) Category: Businessman
Applicant's requirement - Student
1) Applicant Requirement is same as per above.
Co-Applicant Requirement- Father
1. Two passport size photographs
2. Age proof
3. Photo ID proof
4. Residence Proof
5. Latest Three Months Salary Slip
6. Business Proof with Details
6. Borrower's Bank account statement for the last six
months
7. Income tax assessment order, of last 3 years (Min.1.3lakhs)
8. Profit and Loss Balance sheet for 2 years (Verified
by CA or
Tax Department)
