- Repayment of the loan will be in equated monthly installments upto period of15 years.
- Repayment shall start after Repayment holiday/Moratorium period , which shall be as under;
Course period + 1 year
- The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Installments (EMI) fixed.
- If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, Sanctioning authority (which has sanctioned the case) may at his discretion consider such extensions as may be deemed necessary to complete the course. In case the student discontinues the course midway, appropriate repayment schedule will be worked out by the Business Unit in consultation with the student/parent
- While EMI based repayment is the generally accepted practice, many times the salary levels at the start of the career may not facilitate comfortable payment of EMI in certain cases (e.g. professionals like Doctors). Telescoping of repayment with stepped up installments with passage of time may be considered in such cases. Such ballooned repayment shall be normally allowed only if allowed at the time of initial sanction, clearly documented in the sanction letter and applicable from the first repayment installment.
- Penal interest @ 2% be charged for non-repayment of loan installments, subject to provisions of priority sector advances, i.e.
Up to Rs 25,000/= Nil
Above Rs 25,000/= As applicable to retail advances, (Presently 2% on default/ irregular portion).