Education Loan Scheme

• The Scheme aims at providing financial support from the Bank to students for pursuing higher education in India and Abroad.
• This scheme shall be applicable to students who are not covered/eligible/financed under PM-Vidyalaxmi Scheme (PMVS).
   

• 15 years including moratorium period.

• IN INDIA (Indicative list only)
  1. Approved regular courses leading to Graduate/ Post graduate degree and PG diplomas conducted by Recognized Colleges/ Universities recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR etc.
  2. Professional Courses in Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.
  3. Courses like ICWA, CA, CFA etc.
  4. Courses conducted by IIM, IIT, IISc, XLRI. NIFT, NID etc.
  5. Regular Degree/Diploma courses like Aeronautical, pilot training, shipping, degree/diploma in nursing or any other discipline approved by Director General of Civil Aviation/Shipping/Indian Nursing Council or any other regulatory body as the case may be, if the course is pursued in India.
  6. Approved courses offered in India by reputed Foreign Universities.
  7. Courses offered by National Institutes and other reputed private institutions.
  8. Courses as initiated under various Govt. Subsidy Schemes
  
   
• ABROAD (Indicative list only)
  1. Graduation: For job oriented professional/ technical courses offered by reputed Universities.
  2. Post-Graduation: MCA, MBA, MS, etc.
  3. Courses conducted by C IMA- London, CPA in USA etc.
  4. Degree/diploma courses like aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.
  5. Courses as defined under various Govt. Subsidy Schemes
  
  Note: oriented courses leading to Technical/ Professional Degrees, Post Graduate Degrees/Diplomas offered by Recognized Institutions under this scheme. by reputed Institutions may also be considered on the basis of future prospects, employability and reputation / recognition by Educational Institution. -time courses, research work and job oriented specialized programs could be considered based on merit and placement records at Bank’s discretion. mentioned above, Zonal Offices shall take a view for extension of education loan under the scheme taking into account the future prospects, employability and reputation / recognition by Educational Institution. In such cases, sanctioning powers shall lie with Zonal Head. Offices can refer to:
   http://mhrd.gov.in/technical-education-1
   http://mhrd.gov.in/institutions-national-importance
   http://mhrd.gov.in/index.php/en/2-uncategorised/32-accreditation-status
   www.nbaind.org/accreditationprogram/aAccreditedProgram
   www.ugc.ac.in
   www.education.nic.in
   www.aicte.org.in
  o For ascertaining the eligibility of courses abroad, operative levels can refer to:
   www.webometrics.
   www.topuniversities.com
   www.qs.com
  
  Note: Such websites are, however, indicative only.
   

Studies in India: ₹20 Lacs*Studies abroad: ₹40 Lacs**Higher quantum as per the course & employability. 

a. Fee payable to college/ school/ hostel (Reasonable lodging and Boarding  charges  shall  be  considered  if  the  student  chooses/  is required to opt for  outside accommodation subject to a ceiling of
20% of tuition fee). 
b. Examination/ Library/ Laboratory Fee.
c. Travel expenses/ passage money for studies abroad. d. Insurance premium for student borrower.
e. Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts.
f. Purchase of books/ equipment’s/ instruments/ uniforms.
g.  Purchase  of  computers  at  reasonable  cost,  if  required  for completion of the course.
h. Any other expense required to complete the course - like Academic & Maintenance fees, study tours, project work, thesis, exchange programme etc.

Notes:

* It is likely that all these expenditures may not be available in the schedule of fees and charges prescribed by the college authorities. Therefore, a realistic assessment may be made of the requirement under these heads. However, the maximum expenses included under
these heads may be capped at 40% of the total tuition fees payable for completion of the course.
* For courses under Management quota seats considered under the scheme, fees as approved by the State Government/Government approved Regulatory Body for payment seats will be taken, subject to viability of repayment
* Fees mentioned from serial No “c” to “h” shall be restricted to a maximum of 20% of tuition fee for entire course.
* While computing loan required, scholarships, fee waiver etc., if any available to the student borrower may be taken into account.
* If the scholarship component is included in the loan assessment, it may be ensured that the scholarship amount gets credited to the loan account when received from the Government.

Course period + 1 Year

Prepayment shall be allowed without any prepayment penalty.

Ministry of Human Resources Development, Govt of India has floated Central Sector Interest Subsidy Scheme on Education loans for students belonging to EWS category. As per this scheme full interest subsidy during the moratorium period on education loans is extended by Govt The main terms and conditions of this scheme, as updated from time to time are enumerated below:
i)   W.e.f 01.04.2022, subsidy available for loan quantum of Rs
10.00 lacs. However, to be eligible for interest subsidy, loans with quantum upto Rs 7.50 lacs must be extended without any collateral/ TPG.
ii)  Annual parental income of the beneficiary should be less than or equal to Rs
4.50 Lacs (EWS).
iii) The  income  certificate  obtained  shall  be  certified  by  Sub  divisional Magistrate (SDM) but not below the rank of Tehsildar (Where SDM does not exist) which should be properly put on record by the Branch.
iv)  The subsidy shall be claimed only for the course period & moratorium if any.
No subsidy beyond expiry of the moratorium shall be claimed.
v)   Subsidy is admissible only once, i.e either for undergraduate course or post graduate course or integrated course.
vi)  Agreement on non-judicial stamp paper duly notarized by the notary public
& jointly signed by the borrower/co-borrower & the authorized signatory of the bank shall have been executed & placed on record by the concerned Branch.
vii) The subsidy is available for a maximum loan amount of Rs. 10 Lacs. In case
of loans above 10 lacs, the subsidy claim shall be restricted to the interest charged on loan amount up to Rs. 10 Lacs only, if otherwise eligible.
viii)Only students studying within India are eligible for subsidy under this scheme
(CSIS).
ix)  The Aadhaar number of the student has been made mandatory for the subsidy claim. No claim shall be accepted without Aadhaar number of the borrower.

To ensure that the benefits of this scheme are passed on to all the eligible students, the operative levels shall ensure that they:
i)     Brief students about the availability and eligibility criteria for subsidy under CSIS at the time of processing the loan application for sanction.
ii)    Send a proper intimation letter immediately after sanctioning the loan to borrower/Co-Borrower, through registered letter/email about submission of income certificate/other related documents for lodgment of subsidy claims, maximum within 45 days from loan sanction date, with the clause that if not submitted, non-lodgment of subsidy claims shall be at the risk and responsibility of the loanees and not the bank.
iii)  Maintain  proper  record  of  communication  regarding  submission  of documents in Case File to avoid any customer complaints.