Purpose – To offer financial education to deserving students of the country to pursue higher education
Eligibility – A Student who has completed previous qualifying examinations/Secured admission to Professional/technical courses through entrance test /selection process /secured admission to university /institution and whose parents should have minimum annual income of Rs,.50000/- will be eligible for loan under Scheme.
Quantum of Finance – The maximum loan amount shall be fixed at Rs.5.00 lakhs for studies in India
Margin – Loan up to Rs.2.00 lakhs there shall be no margin. For amount more than Rs. 2.00 lakhs margin shall be 15%.
Security – Up to loan amount of Rs.2.00 lakhs there shall not be any security. If the amount increases more than Rs.2.00 lakhs collateral security equal to 100% of the loan amount or Guarantee of third party acceptable to the bank.
Rate of Interest – Minimum lending rate up to Rs.2.00 lakhs (at present 10%); Above Rs.2.00 lakhs 1% above the MLR
Repayment Holiday – Course period plus I year or six months after getting job whichever is earlier.
Repayment – Loan to be repaid in 5 to 7 years after commencement of repayment; accrued interest during repayment holiday period to be added to principal and repayment in equated Monthly Installments (EMI) fixed