Education Loan for Individual

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Education Loan for Individual

Purpose of Loan

The object of the policy is to provide fund to the Individual for higher educational purpose in India (Pursuing higher Education in Premier institutes of the country Which Include (a) Business School, (b) Engineering Colleges (c) Medical colleges in full time diploma/graduate/post-graduation/research programs).

Eligible Person

Parents/ Guardians of the Student who has Pursuing higher Education in Premier institutes of the country Which Include (a) Business School, (b) Engineering Colleges (c) Medical colleges in full time diploma/graduate/post-graduation/research programs.); or

A permanent salaried employee of any Govt. Sponsored Secondary / Primary School or Sr./Jr. Madrasah / College whose salary is disbursed in our bank account through salary disbursement arrangement under e-PRADAN system, as Parents/ Guardians of the Student who has Pursuing higher Education in Premier institutes of the country Which Include (a) Business School, (b) Engineering Colleges (c) Medical colleges in full time diploma/graduate/post-graduation/research programs; or

Staff of Malda District Central Cooperative Bank, as Parents/ Guardians of the Student who has Pursuing higher Education in Premier institutes of the country Which Include (a) Business School, (b) Engineering Colleges (c) Medical colleges in full time diploma/graduate/post-graduation/research programs.

Terms and conditions:

Deduction Criteria for determination of quantum of Loan (Salaried Individual)

Total deduction per month inclusive of the instalment is restricted to 60% (Inclusive ECCS loan) of gross pay. Whereas, in deserving cases, where Gross Salary is `35,000/- or more, such deduction may be relaxed up to 70% (Including ECCS Loan) for eligible person under 3(b) and 3(c).

Joint Borrower

The loan will be issued jointly in favour of the student and Parents / Guardians.

Expenses Considered for Loan

Fee payable to College / Hostel including Admission fee, Tuition fees, Examination fees, Capitation fees, Hostel Charges (offered by the Institution). In case the student choose for outside accommodation other than that provided by college/University, the expenses not to be considered for loan.

Quantum of Loan

80% of the expenses considered for loan subject to maximum amount of `10,00,000/- .

Moratorium Period

NIL .

Repayment Period

Maximum Period of Loan shall be 10 Years (120 months). Repayment period of salary account holder of our Bank who is/are joint borrower as Parents/ Guardians of the Student, restrict to 6 months prior to their retirement.

Nominal Membership :

0.50 per thousand subject to minimum of `50.00 & maximum of `5,000.00 (As per bye-law of the bank). Provided that such membership fee as above shall be collected once only at the time of the first sanction of the loan & shall not be collected consequent upon enhancement of the loan component on subsequent occasions.

Securities

i) Salary of the Employee, Leave Salary, Gratuity and all other receivables; or

ii) Equitable/Registered Mortgage of immovable property in India in the name of Parents /Guardian with value of at least 125% of loan amount (must be mortgageable immovable property) or 100% liquid Security as collateral security for the loan is mandatory. Collateral security in the shape of Immovable Property should be enforceable under SARFAESI Act).

Insurance

i) Loan should be fully covered by our Group Insurance Policy.

ii) Group Insurance Policy is optional for Staff.

Charges

Form Cost `400/- but not applicable for staff of Malda District Central Co-operative Bank.

Additional Document

i) Allotment letter or equivalent document for pursuing the course.

ii) Prospectus of the course where in charges like Admission fee, Tuition fees, Examination fees, Capitation fees, Hostel Charges are mentioned.

iii) Valuation Certificate and non-encumbrance Certificate from approved lawyer of the Bank.

iv) Any other documents/information depending upon the case and purpose of the loan.

Documentation

Document	Form No	Purpose of use
Common Application Form		Part of Application Form
KYC Details of Borrower/ Co-Borrower / Guarantor		Part of Application Form
Verification of Service, Pay etc. of Borrower/ Co-Borrower		Applicable for salary account holder
Application for Nominal Membership		Processing of Loan
Worth Assessment of Borrower/ Co-Borrower / Guarantor
SI / ECS Instruction		As a part of Loan Documents.
Agreement Bond		Part of Application Form
Letter of Guarantee		Letter of Guarantee
Lien/Assignment/Pledge
Time Promissory Note		On Rs.1/- Revenue Stamp
Mortgage agreement	FORM -21
Loan Processing & Assessment of Amount of Loan that may be Sanctioned	Education-I	Processing of Loan
Sanction Letter	Education- II	Processing of Loan

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.