.jpg)
Members who secured admission for professional/higher studies can apply for loan to meet admission fee, tuition fee and other fees including examination library fees/ laboratory fee, cost of books, purchase of equipment’s/computer/instruments, payment of caution fees, building fund, capitation fees, refundable deposits for self-financing institution with supporting receipts, expenses for boarding and lodging of the residential hostels. Any other expenses required to complete the course like study tours, project works thesis etc., will also be eligible for finance under these sub rules.
The candidate must have a strong academic record. The age of the candidate must fall within the bracket of 18 to 35 years at the time of submission of the loan application. The applicant should have secured admission to a College or University affiliated to the University Grants Commission (UGC)/All India Council for Technical Education (AICTE)/Government. etc., if studying in India and equivalent courses offered by reputed overseas Universities, Institutions or Colleges, if studying abroad. The proof of admission such as admission letter shall also be shared to the Bank. Since Banks favour courses that are job-oriented, the applicant's chosen course must be technical or professional in nature. Students pursuing full-time courses need to have a co-applicant who can be either a parent/guardian or spouse/parent-in-law (in the case of married candidates). The co-applicant must have a regular income source to repay the loan. Copy of examination mark sheets of 10th/ 12th /UG/PG as the case may be, shall be submitted along with the statement of course expenses/cost of study and its proof. The copy of the mark sheet (Score Report) of GRE, GMAT, TOEFL, IELTS, etc. whichever is applicable shall also be produced.
Maximum loan amount is ₹ 10 lakhs for studying in India and ₹ 20 lakhs for studying abroad with a loan margin of 15%.
The maximum period of loan shall be 7 years after commencement of repayment.
Collateral security to the satisfaction of the Branch Manager and the sanctioning authority shall be furnished. Landed property, salaried sureties, fixed deposits, pledged insurance policies, gold ornaments etc. can be accepted as securities. The collateral security in the form of landed property shall have a distress value equal to double the loan amount.
Generally disbursement of loan will be made directly to the educational institution in instalments as and when the proof of demand is produced to the satisfaction of the disbursing authority. To meet the preliminary expenses 10% of the sanctioned loan amount will be paid direct to the loanee by crediting the same to the account of the borrower kept in the Bank.
Repayment of loan shall commence after 12 months of completion of the course or 6 months after getting employment whichever is earlier. The loan is to be repaid in 84 monthly instalments after commencement of repayment. Interest accrued during the moratorium period shall be remitted monthly after disbursement of first instalment .The applicant can opt for repayment of the loan in instalments plus interest.
In the event of default in repayment of instalment of loans and the loan account is identified as NPA, the bank reserve the right to proceed against the borrower/sureties for recovery of the loan in part/lump and such actions initiated by the bank shall not be questioned by the borrower of the sureties.
The borrower(student) shall have to submit undertaking that he/she would not participate in any unlawful activity during the course of his study which would debar him/her from prosecuting him/her studies and he/she would follow all the rules and regulations laid down by the educational institution, that he should not enter into any obligations of financial liability during the currency of the loan, that he would strive to secure a suitable employment after completion of course, that he would not change the course of studies or the place of study or the educational institution or take up employment during the period of the course without the Bank’s prior permission in writing. At the time of submission of application for loan, applicant shall submit a detailed projected expenses of the course for the entire period of study of the course together with selection order and prospectus showing free structure and other expenses. Expenses for proposed boarding and lodging of the student shall also be shown in the projected estimate.
The Branch Manager shall review the performance of the student by obtaining half yearly/yearly progress reports from the concerned educational institution. In the course of review, if it is found that the student has discontinued the course the Bank has the lawful right to recall the loan and enforce recovery, if found necessary.