• Finance the requirements for higher studies in India or abroad.
  • Should be an Indian National
  • Should have secured admission to a higher education course in recognized institutions  in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or equivalent).
  • There is no specific restriction with regard to the age of the student to be eligible for education loan.
  • The upper age limit shall be capped at 50.
  • STUDIES IN INDIA(INDICATIVE LIST)
      • Approved courses leading to graduate/ post graduate degree and P G diplomas conducted by recognized colleges/universities recognized by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc.
      • Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.
      • Courses like ICWA, CA, CFA etc. besides those conducted by IIM, IIT, IISc, XLRI, NIFT, NID etc.
      • 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.
      • Approved courses offered in India by reputed foreign universities.
      • Courses offered by National Institutes and other reputed private institutions.

     

    • Studies abroad: -
      • Graduation: For job oriented professional/ technical courses offered by reputed Universities.   
      • Post-graduation: MCA, MBA, MS, etc.
      • Courses conducted by CIMA- London, CPA in USA etc.
      • 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.
  • In India                   :               Rs 10.00 Lacs ( Maximum)
  • Abroad                   :               Rs 20.00 Lacs ( Maximum)
  • Upto Rs 4 lacs :     Nil
  • Above Rs 4 lacs :
    • Studies in India -   5%
    • Studies abroad -    15%
  • Repayment of the loan will be in equated monthly installments upto period of 15 years.
  • Repayment shall start after Repayment holiday/Moratorium period, which shall be as under;
  • Repayment holiday/Moratorium
  • Course period + 1 year
  • Servicing of interest during study period and the moratorium period till commencement of repayment is optional for students.The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Installments (EMI) fixed.
    1% interest concession shall be provided by the bank for the entire tenure of the loan, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment. 
  • Education Loans with tenure up to 5 years ( at fixed interest rate)
    Up to Rs. 10.00 lacs                                                                                          RLLR+ 2.00%
    Above Rs.10.00 lacs and up to Rs.20.00 lacs                                                     RLLR +3.00%
    Above Rs.20.00 lacs                                                                                          RLLR +3.50%
  • Education Loans with tenure exceeding 5 years( Floating rate) 
    Upto Rs 10.00 lacs                                                                                            RLLR+1.50% 
    Above Rs 10.00 lacs and upto Rs 20.00 lacs                                                      RLLR+2.25%
    Above Rs 20.00 lacs                                                                                          RLLR+2.75%

*Fixed Interest Rate to be provided for Education Loans of tenure (door to door) up to 5 years only
Concession of 0.50% on interest rate shall continue to be allowed in case of education loans availed by girl students.

  • NIL during the repayment period.
  • Pre-payment penalty of 0.25% of the outstanding loan amount shall be applicable, for repayment before the repayment period.
  • For studies in India - Nil.
  • For Studies abroad –Processing fee (upfront) @ 1% of the loan amount sanctioned with a maximum of Rs.10,000 for considering loans for studies abroad. The fee would however, be refunded upon the student taking up the course (loan is disbursed) or if the loan is not sanctioned by the bank. The fee would not be refunded if a sanctioned education loan for studies abroad is not availed by the student.

Up to 4.00 lakhs

No Security
Parents to be joint borrower(s).

Above 4 lakhs and up to
7.5 Lakh.*

Besides the parent(s) executing the documents as joint borrower(s), collateral security in the form of third party guarantee of two persons will be taken. No third party guarantee for education loans granted under Credit Guarantee Fund Scheme. Guarantee Fee to be borne by the bank.

Above 7.5 Lakh.*

Parent(s) to be joint borrower(s) Tangible collateral security having fair market value of not less than 100% of sanctioned limit and interest payable (capitalized) during moratorium, along with the assignment of future income of the student for payment of installments.

*For Loans up to ` 10.00 Lakh for pursuing courses in IIT/IIM/ISB: Co-obligation of parents/ guardian, 3rd party guarantee of 2 persons and assignment of future income of the student. No collateral security is required. However, for education loans up to Rs. 7.5 Lakh third party guarantee shall be waived if the loan is covered under Credit Guarantee Scheme.
*For Loans above ` 10.00 Lakh for pursuing courses in IIT/IIM/ISB: Tangible Collateral security having fair market value of not less than 50% of sanctioned limit and interest payable (capitalized) during moratorium.
(ISB means Indian School of Business, Hyderabad).