Purpose: This loan finances higher studies of students in India or abroad.
Eligibility: The student should not be more than 30 years of age. There is a set of the courses that are listed by the bank for which the loan would be granted.
Quantum of Loan: The maximum amount that could be attained by this kind of personal loan varies with the course chosen and also whether the course is pursued in India or abroad.
Rate of Interest: The rate of interest for studies in India is 12% for loans up to Rs. 1 lakh and 12.5% for loans above Rs. 1 lakh. In case studies abroad, the rate of interest is 13%.
Margin: For studiesabroad the margin is 20%. For studies inland, loans of Rs. 25,000/- to Rs. 1 lakh, the margin is 12% and 12.5% for loans above Rs. 1 lakh.
Security & Guarantee: Personal Guarantee of Parents / Guardian is required for loans up to Rs.25,000/- and an additional guarantee of a person acceptable of Bank is required for loans more than Rs.25,000. The Student will have to be insured to the extent of loan amount sanctioned bank would pay the premium of it from the loan amount.