Studies in India: (Indicative list)

• Graduation courses: BA, B.Com., B.Sc., etc.
  
  
• Post Graduation courses: Masters & Ph. D
  
  
• Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.
  
  Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to university.
  
  Courses like ICWA, CA, CFA etc.
  
  Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.
  
  Regular Degree/Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation/Shipping, if the course is pursued in India.
  
  In case the course is pursued abroad, the Institute should be recognized by the competent local aviation/shipping authority
  
  Courses offered in India by reputed foreign universities.
  
  Evening courses of approved institutes.
  
  Other courses leading to diploma/ degree etc. conducted by colleges/ universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc
  
  Courses offered by National Institutes and other reputed private institutions. Banks may have the system of appraising other institution courses depending on future prospects/ recognition by user institutions.
  
  Courses, which are not covered under the criteria mentioned above, individual banks may take a view to consider extending education loan under the scheme taking into account the future prospects/recognition by user institution.

Studies Overseas

• 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.

Expenses considered for loan

• Fee payable to college/ school/ hostel.
• Examination/ Library/ Laboratory fee.
• Purchase of books/ equipment/ instruments/ uniforms.
• Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
• Travel expenses/ passage money for studies abroad.
• Purchase of computers - essential for completion of the course.
• Insurance premium for student borrower
• Any other expense required to complete the course - like study tours, project work, thesis, etc.

Quantum of Finance:
Need based finance subject to repaying capacity of the parents/ students with margin and the following ceilings.

• Studies in India - Maximum Rs.10.00 lacs.
• Studies abroad - Maximum Rs.20 lacs

Margin :
Upto Rs 4 lacs Nil
Above Rs. 4 lacs : Studies in India 5%
Studies Abroad 15%

Scholarship/ assistantship to be included in margin. - Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.

Security to be Offered

Upto Rs 4 lacs	Co-obligation of parents. No other security is required.
Above Rs.4 lacs and upto Rs7.5 lakhs	Co-obligation of parents together with collateral security in the form of suitable third party guarantee. The bank may, in exceptional cases, waive third party guarantee if satisfied with the net-worth / means of parent/s who would be executing the document as "joint borrower".
Above Rs.7.5 lakhs	Co-obligation of parents together with tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments

Note:-

• The loan documents should be executed by both the student and the parent/ guardian as joint-borrower.
• The security can be in the form of land/ building/ Govt. securities/ Public Sector Bonds/Units of UTI, NSC, KVP, life policy, gold, shares/mutual fund units/debentures, bank deposit in the name of student/ parent/ guardian or any other third party with suitable margin.
• Wherever the land/ building is already mortgaged, the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount.
• In case the loan is given for purchase of computer, the computer has to be hypothecated to the Bank.

RATE OF INTEREST

Upto Rs 4 lacs	Base Prime Lending Rate, BPLR
Above Rs. 4 lacs	BPLR + 1%
For Girl Students	A reduction of .50% from the applicable rate

Simple interest to be charged during the currency of loan / Moratorium period.