Purpose: This personal loan finances higher education.
Quantum of Loan:The maximum loan amount is Rs. 10 lakh. The minimum loan amount is Rs. 10,000 for studies in India and Rs. 50,000 for studies abroad.
Margin: 90% of the cost of studies in India and 85% of cost of abroad studies is granted as loan.
There is no margin for loan amount up to Rs. 2.00 lakhs and 100% secured loans.
Rate of Interest:
For Moratorium Period – 11.00 % per annum
For repayment period – 12.00 % per annum
There is a 1% reduction for female students.
Repayment: (including moratorium period)
If course period is less than 3 Years – 84 Months
If course period is more than 3 years – 120 months
Course period +6 months (No moratorium period for loan amount below Rs. 1.00 Lakh)
Security:
- If Loan Amount is up to Rs. 2.00 Lakhs – No Collateral Security.
- If Loan Amount is up to Rs. 5.00 Lakhs – Tangible Securities worth at least 60% of loan amount.
- If loan amount is above Rs. 5.00 Lakhs – Tangible Securities worth the complete loan amount.
Guarantee: Two Guarantors (except in case of 100% secured loans)