The Scheme aims to provide loan assistance to meritorious students keeping in mind their financial circumstances for pursuit of higher studies in India or Abroad. The loan amount will cover admission fees, tuition fees, examination fees, and cost of books stationery, instruments and equipment, Boarding and mess expenses etc.
Unlike other personal loan, students eligible for the loan should not be more than 30 years of age as on July 1st of the year of commencement of course of year of application, whichever is later and not gainfully employed.
The eligible courses for educational loan are Diploma / Certificate courses approved by All India Council for Technical Education, Graduate / Post Graduate courses in Engineering, Medicines, Biotechnology, Pure and applied sciences courses, commerce, social studies and languages by Recognised Universities & Institutions etc.
The Loans may be sanctioned subject to margin amounts as follows. The margin amount may be varied by the Bank at its discretion.
Margin amount for Studies in India
| Upto Rs.25,000/- | Nil |
| Upto Rs.1,00,000/ | 12 % |
| More than Rs.1,00,000/- | 12.50 % |
For Studies Abroad – 20 %
Scholarship amount will be accepted as margin money.
Rate of Interest
w.e. from 1st February, 2011
| Rate | |
| Upto Rs.1,00,000/ | 12.00% |
| More than Rs.1,00,000/- | 12.50% |
| For Studies Abroad | 13.00% |
Interest will be calculated at monthly rests. The Bank may permit at its discretion, recovery of interest in suitable installments.