3.1 Student Eligibility:

• Student should be an Indian National
  
• Secured admission to professional / technical courses in India or abroad through entrance Test / Merit Based Selection process.

3.2 Courses Eligible:

1. Studies in India : ( Indicative List)

• Graduation courses : B.A. B.Com, B.Sc., etc.
  
• Post Graduation courses : Masters & Phd.
  
• Professional Courses: Engg. , Medical, Agriculture , Veterinary, Law ,Dental, Management , Computer etc.
  
• Computer certificate courses of reputed institutes accredited to Dept. of *electronics or institutes affliated to university.
  
• Courses like ICWA , CA , CFA etc.
  
• Courses conducted by IIM, IIT, IISc , XLRI, NIFT, etc.
  
• 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 the future prospects/recognition by user institutions.
  

2. Studies Abroad :
   

• Graduation For job oriented professional/technical courses offered by reputed universities.
  
• Post Graduation MCA,MBA,MS etc.
  
• Courses conducted CIMA-Londin, CPA in USA etc.
  

3.3 Expenses considered for Loan

• Fee payable to College/School/hostel.
  
• Examination/library/laboratory fee.
  
• Purchase of books/equipments/instruments/uniforms.
  
• Caution deposit/building fund/refundable deposit supported by institution bills/receipts.
  
• Travel expenses/passage money for studies abroad.
  
• Purchase of computers-essential for the completion of the course.
  
• Any other expense required to complete the course- like study tours, project work, Thesis etc.

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

Studies in India - Maximum Rs. 7.50 lacs
Studies abroad - Maximum Rs. 15.00 lacs.
   

Upto Rs. 4.00 lac : NIL
Above Rs. 4.00 lac : 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.
   

Upto Rs. 4.00 lac : No Security

Above Rs. 4.00 lac & : Collateral in the form of a suitable third party

Upto Rs. 7.5 lac guarantee. The Bank may, at its discretion waive third party guarantee if satisfied with the net worth/means of parent who would be executing the documents as "joint borrower."

Above Rs. 7.5 lac Collateral security of suitable value or suitable third party guarantee alongwith 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,LIC Policy, gold, shares/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 II charge basis provided it covers the required loan amount.
· In case the loan is given for purchase of computer the same is to be hypothecated to the Bank.
Banks who wish to support highly meritorious/deserving students without security may delegate such powers to fairly higher level authority.
   

Repayment holiday/Moratorium : Course period + 1 year or 6 months after getting job, whichever is earlier

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 extension as may be deemed necessary to complete the course.
· The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Instalments (EMI) fixed.
· 1% interest concession may be provided for loanees if the interest is serviced during the study period when repayment holiday is specified for interest / repayment under the scheme.
   

Banks to contact college/university authorities to send the progress report at regular intervals in respect of students who have availed loans.
   

Banks can also issue the capability certificate for students going abroad for higher studies. For this 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).
   

No due certificate need not be insisted upon as a pre-condition for considering educational loan. However, banks may obtain a declaration/an affidavit confirming that no loans are availed from other banks.

Loan applications have to be disposed of within a period of 15 days to 1 month, but not exceeding the time norms stipulated for disposing of loan applications under priority sector lending.

In order to bring flexibility in terms like eligibility, margin, security norms, banks may consider relaxation in the norms on a case to case basis delegating the powers to a fairly higher level authority.

Housing Loan Amendments:

Rate of interest :
Rate of interest in % p.a. on floating basis

Limit under housing loan scheme enhanced from Rs.50.0 lac to Rs.150.0 lac.

Discretionary powers for sanction of housing loan be enhanced as under.