Purpose: This loan finances students with educational merit for higher education in India or abroad.
Eligibility: Any student going for courses having employment prospects are eligible for this personal loan.
Quantum of Loan: For studies in India, a maximum amount of Rs. 7.5 lakhs is granted as loan. For studies abroad, the maximum amount granted as loan is Rs. 15 lakhs.
Margin: Up to Rs. 4 lakhs loan there is no margin. For loans above Rs. 4 lakhs 10% for studies in India and 15% for studies abroad is the margin for the loan.
Rate of Interest: The rate of interest for loans up to Rs. 2 lakhs is 11%, for loans between Rs. 2 lakhs to Rs. 4 lakhs is 12% and for loans above RS. 4 lakhs is 13%.
Repayment: The loan has to be repaid in 60 monthly installments by the parent and student one year after completion of the course irrespective of employment by the student.
Security: Guarantee of parent and student alone is required for loans up to Rs. 4 lakhs. Collateral security with 200% of the loan amount including third party guarantee is needed for loans above Rs.4.00 lakhs.