Education Loan




Education loan is a special kind of loan granted by banks under which some amount of money is granted to students at special rates. With the help of education loan, the students can achieve higher and costly studies at cheaper rates.

The object of the loan policy is to provide fund to the ward (dependent son or daughter) of the Teaching & Non Teaching staff of the Govt. aided Schools,Colleges and Primary Teachers, those who are getting salary through our bank under the salary disbursement arrangements.The object of this loan is to extent the scope of higher education after passing Class-XII or higher examination related to technical/professional qualification and involves high cost relating to payment of Tution Fees, Capitation Fees and related charges. The higher education will be considered according to acceptability of the course by UGC, State/Central Government Technical Education Board/Department, Medical Council,etc and the Board of Directors of the Bank will be competent authority for giving clarification in the matter.

 

Eligibility for Education Loan

  • The ward (dependent son or daughter) of the Teaching & Non Teaching staff of the Govt. aided Schools,Colleges and Primary Teachers, those who are getting salary through our bank under the salary disbursement arrangements.
  • Age limit for education loan varies from bank to bank. Generally it is from 16 to 35.
  • Students should have a good academic record
  • Students should not have year lap during their education

 

Joint Responsibility Loan

The loan will be issued jointly in favour of the Guardian and the Ward.Principally the guardian will be held responsible for repayment of loan during his/her period of service.In case of any unfortunate demise of guardian the ward will be responsible for repayment. However it is advisable to pursue the Guardian borrower to cover the loan through Group Loan Insurance.

 

Quantum of Loan

The quantum of loan will be the least of the followings:

  • 70% of the total cost for Tution Fees,Capitation Fees and related charges.
  • Maximum of Rs. 3.00 Lacs
  • Coverage of instalment amount within the maximum deduction criteria 60% of the salary and the deduction of instalment of all types of loan,PF,Insurance and I.Tax of the Employees.In deserving cases for the higher income group maximum 70% deduction may be allowed.

 

Nature of Repayment

Total period of loan shall be 7 years (84 months) subject to the 6 months earlier to the retirement of service of Guardian. The maximum period should not exceed 59 years 6 months period age of the guardian.

 

Requirement of Documents
In order to avail education loan; students have to submit following documents in the respective bank:

  • The details of the course in which student have taken admission.
  • Total expenditure of course
  • Marksheet of previous examination passed
  • Full details of scholarship availed, if any
  • Residential proof
  • Details of the educational institution where the guardian desire to admit the ward by the guardian.
  • Verification of educational institution as to whether the institute is properly recognised by UGC,GOVT,University of Technical Education,etc.
All scheduled and non-scheduled banks – public, private, foreign, cooperative, regional rural and local area banks – will observe public holiday on second and fourth Saturdays from September 01, 2015; and will observe full working days on Saturdays other than second and fourth Saturdays (referred to as working Saturdays in the Press Release). Consequent to this, the Reserve Bank of India has announced the following changes in its functioning with effect from September 1, 2015.


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