Purpose – A loan for parents of students pursuing school education i.e. Nursery to Senior Secondary School. The end use of the loan may be for any of the following: Fee payable to college / school, Examination / Library / Laboratory Fee, Fee and other charges payable to hostel, Purchase of books / equipments / instruments / uniforms, Personal Computers / Laptops wherever required, Caution deposit / building fund / refundable deposit supported by institution bills / receipts.
Eligibility – The applicant should be an Indian national residing in India and the student should have secured admission to a recognized school / High school / Jr. College (including CBSE / ICSE / State Board) for any of the following courses
1. Stage I: Nursery to Vth STD.
2. Stage II: VIth to VIIth STD.
3. Stage III: IXth to XIIth STD.
Quantum of Loan – Upto a maximum of Rs. 4 lakhs.
Security – In case the loan is given for purchase of computer the same is to be hypothecated to the bank.
Repayment – Loan for each yearly sub limit is repayable in 12 equal monthly instalments. First instalment to be due 12 months after first disbursement of each year’s loan component.
Other Features – 1% concession in rate of interest to loans for girl students.
– Penal Interest @ 2% on overdue amount if the loan amount exceeds Rs. 2/- lakhs.
– No processing and documentation charges.