EDUCATIONAL LOAN
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Objective of the Education loan Scheme
The Education loan scheme aims at providing financial assistance on
reasonable
terms:
Eligibility Criteria of Education loan scheme
The Education loan scheme aims at providing financial assistance on
reasonable
terms:
- To the poor and needy to undertake basic education.
- To the meritorious students to pursue higher/ professional/
Technical education.
Eligibility Criteria of Education loan scheme
- Courses Eligible (Studies in India)
- School education including plus 2 stage.
- Graduation courses: BA, B.Com., B.Sc., etc.
- Post Graduation courses: Masters & Ph.D.
- Professional courses: Engineering, Medical, Agriculture,
Veterinary, Law, Dental, Management, Computer etc. - Computer certificate courses of reputed institutes accredited to
Dept. of Electronics or institutes affiliated to university. - Courses like ICWA, CA,CFA, etc.
- Courses like IIM, IIT, IISc, XLRI, NIFT, etc.
- Courses offered in India by reputed foreign universities.
- Evening courses of approved institutes.
- Other courses leading to diploma/degree etc. conducted by
colleges/universities approved by UGC/Govt./AICTE/AIBMS/ICMR
etc. - Courses offered by National Institutes and other reputed private
institutions.
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Security
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Repayment of study loan
Repayment holiday/Moratorium :
Course period +1 year or 6 months after getting job, whichever is earlier.
Loan together with accrued interest will be repaid in maximum 84 Equated
Monthly Instalments (EMI).
Processing Charges for study loan
No processing / upfront charges.
Capability Certificate
Some of the foreign universities require the students to submit a certificate from their bankers about the sponsors’ solvency / financial
capability , with a view to ensure that the sponsors of the students going abroad for higher studies are capable of meeting the expenses
till completion of studies. Accordingly branches can also issue the capability certificate for students going abroad for higher studies. For
this financial and other supporting documents may be obtained from applicant, if required.
The above information is more or less true for most of the nationalised banks which are offering student loans for e.g. State Bank of India,
Allahabad Bank, Central Bank, Bank of India, Saraswat Bank, etc. Private banks like ICICI, HSBC, Citibank, etc. are not known to give
student loans unless you are having a long standing customer relationship with them. With nationalised banks , it is
not necessary to be having an existing relationship with the bank but they would ask you to open an account with them.
The Merchant Navy Certificate of Competency courses do not fall under the normal category of Under-graduate or Post-graduate degree
that the banks give loan for. Hence, do expect some resistance when you approach the banks for loans for these courses as they are
unlikely to understand that what a 6 months 2nd Mates or Class IV engineering course is. For Warsash students we can give you
photocopies of the bank sanction letter of some of our past students who have secured loans for COC courses from nationalised banks
to show to your respective bank personnel. That would make the bank personnel realise that if they do not give you the loan, some
competitor bank may give you the loan and no bank wants to lose out on business in this competitive environment.
Repayment holiday/Moratorium :
Course period +1 year or 6 months after getting job, whichever is earlier.
Loan together with accrued interest will be repaid in maximum 84 Equated
Monthly Instalments (EMI).
Processing Charges for study loan
No processing / upfront charges.
Capability Certificate
Some of the foreign universities require the students to submit a certificate from their bankers about the sponsors’ solvency / financial
capability , with a view to ensure that the sponsors of the students going abroad for higher studies are capable of meeting the expenses
till completion of studies. Accordingly branches can also issue the capability certificate for students going abroad for higher studies. For
this financial and other supporting documents may be obtained from applicant, if required.
The above information is more or less true for most of the nationalised banks which are offering student loans for e.g. State Bank of India,
Allahabad Bank, Central Bank, Bank of India, Saraswat Bank, etc. Private banks like ICICI, HSBC, Citibank, etc. are not known to give
student loans unless you are having a long standing customer relationship with them. With nationalised banks , it is
not necessary to be having an existing relationship with the bank but they would ask you to open an account with them.
The Merchant Navy Certificate of Competency courses do not fall under the normal category of Under-graduate or Post-graduate degree
that the banks give loan for. Hence, do expect some resistance when you approach the banks for loans for these courses as they are
unlikely to understand that what a 6 months 2nd Mates or Class IV engineering course is. For Warsash students we can give you
photocopies of the bank sanction letter of some of our past students who have secured loans for COC courses from nationalised banks
to show to your respective bank personnel. That would make the bank personnel realise that if they do not give you the loan, some
competitor bank may give you the loan and no bank wants to lose out on business in this competitive environment.
Courses Eligible (Studies abroad)
Eligibility
Quantum of Finance
Need based finance subject to repaying capacity of the parents/students with
following margin and ceilings.
- Graduation: For job oriented professional / technical courses offered by reputed universities.
- Post Graduation: MCA, MBA, MS etc.
- Courses conducted by CIMA - London, CPA in USA etc.
Eligibility
- Should be an Indian National
- 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/ equipment’s / instruments/ uniforms.
- Caution deposit/ building fund/ refundable deposit supported by Institution bills / receipt.
- 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.
Quantum of Finance
Need based finance subject to repaying capacity of the parents/students with
following margin and ceilings.
- Studies in India - Maximum Rs.7.50 lacs
- Studies abroad - Maximum Rs.15.00 lacs
Margin
In case of loan above 4 lacs, the documents should be executed by the
both the student and parent/guardian.
The security can be in the form of land/building/Govt. Securities/Public
Sector Bonds/Units of UTI , NSC, KVP, LIC policy, gold shares /
debentures , bank deposit in the name of student/parent/guardian or
any other third party.
Rate of Interest
EDUCATION LOAN
both the student and parent/guardian.
The security can be in the form of land/building/Govt. Securities/Public
Sector Bonds/Units of UTI , NSC, KVP, LIC policy, gold shares /
debentures , bank deposit in the name of student/parent/guardian or
any other third party.
Rate of Interest
EDUCATION LOAN
- For loan up to Rs. 4.00 lacs or above Rs. 4 lacs At PLR with
monthly rests.Interest Rate will be PLR - 1% for loans above Rs.
7.50 lacs if collected security in the form of residential property
upto full value of loan as liquid security for more than 50% of
loan is offered - For all types of Education Loans (for students of IIT, IIM,
Professional courses & others) 0.50% concession in the interest
rate during moratorium period will be allowed if the borrower
services the interest regularly. Simple rate of interest will be
applied till the course period.