Sanction & Disbursement

• In the normal course, while appraising the loan the future income prospects of the student are looked into. However, where required, the means of parent / guardian is also taken into account to evaluate re-payment capability.
• The loan is disbursed in stages as per the requirement/ demand directly to the Institutions / Vendors of books / equipment / instruments to the extent possible.
  
  

Repayment

• Repayment holiday/Moratorium - Course period + 1 year or 6 months after getting job, whichever is earlier. In case of B.Tech it is course period; 4 years plus moratorium of 1 year. In case of integrated course of 5 years duration, the repayment holiday is 5 years plus moratorium of 1 year, totaling 6 years after the start of the program.
• The loan to be repaid in 5-7 years after commencement of repayment.
• 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 may at his discretion consider such extensions as may be deemed necessary to complete the course.
• The accrued interest during the repayment holiday period is added to the principal and repayment in Equated Monthly Installments (EMI) is fixed at the time of sanction.
• 1% interest concession may be available to studnets, if the interest is serviced during the study period.

Insurance

Students may take life insurance policy or Banks may work out the modalities with insurance companies

Tracking:

College authorities may send the progress report to the bank at regular intervals in respect of students who have availed loans.

Processing Charges

No processing / upfront charges are payable by the students for educational loans for studies in India.

Capability Certificate:

Banks can also issue the capability certificate for students going abroad for higher studies. For this purpose financial and other supporting documents may be obtained from applicant, if required.(Some of the foreign universities require the students to submit a certificate from their bankers about the sponsors' solvency/ financial capability, with a view to ensure that the sponsors of the students going abroad for higher studies are capable of meeting the expenses till completion of studies.)

Other Conditions:

• Meritorious Students- Some Banks may waive off the requirement of security in case of exceptionally meritorious/ deserving students.
• Multiple Loans- In case of receipt of application for more than one loan for student borrower from a family, the 'family' as a unit is taken into account for considering the loan and security taken in relation to the total quantum of finance disbursed, subject to margin and repaying capacity of the parent/student.
• Minimum Age - There is no specific restriction with regard to the age of the student to be eligible for education loan.
• Top up loans - Banks may consider top up loans to students pursuing further studies within the overall eligibility limit, with appropriate re-schedulement, subject to taking required security.
• Co-obligator - The co-obligator should be parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/parents-in-law.

Category	Institution	Website
Members of Minority Community	[NMDFC] National Minorities Development & Finance Corporation	http://www.nmdfc.org
Scheduled Castes	[NSCFDC] National Scheduled Castes Finance & Development Corporation [NSKFDC] National Safai Karamchari Finance & Development Corporation	http://www.nsfdc.nic.in http://nskfdc.nic.in
Backward Castes	[NBCFDC] National Backward Castes Finance & Development Corporation	www.nbcfdc.org.in
Handicapped Persons	[NHFDC] National Handicapped Finance & Development Corporation	http://www.nhfdc.org