Purpose – Financial assistance to deserving /meritorious students pursuing higher education in India and abroad
Eligible courses – All courses having employment prospects are eligible. Graduation/Post Graduation/Professional Courses, Other courses approved by UGC/Government/AICTE etc.
Eligible expenses – a) Fees payable to college/hostel
b) Examination/ Library /Laboratory fees
c) Purchase of Books/ Equipment/ Instruments/ Uniforms
d) Caution Deposit/Building Fund/Refundable Deposit
e) Travel Expenses /Passage money for studies abroad
f) Purchase of computer considered necessary for completion of course
g) Any other expenses required to complete the course via: study tours, project work, thesis etc.
Quantum of Loan – For studies in India, maximum Rs. 7.5 Lakhs; for studies abroad, maximum Rs. 15 Lakhs
Margins – Up to Rs.4 lakhs—Nil; Above Rs. 4 lakhs 10% for Studies in India and 15% for Studies abroad
Rate of Interest –
| Up to Rs 2,00,000/- | 11% |
| Above Rs 2,00,000/- to Rs 4,00,000/- | 12% |
| Above Rs 4,00,000/- | 13% |
Repayment – The loan will be recovered in 60 monthly installments from the parent and student one year after completion of the course irrespective of employment by the student.
Security – Personal liability of parent and student for limits up to Rs.4.00lakhs; Collateral security with 200 percent of the loan including third party guarantee for limits above Rs.4.00 lakhs