MODEL EDUCATION LOAN SCHEME

 

I. INTRODUCTION: 

The Model Education Loan Scheme formulated by RBI/IBA aims at providing financial support from the Banking System to "Deserving / Meritorious Students" for pursuing “Higher Education” in India and Abroad

II.  ELIGIBLE COURSES:

Professional / Management Courses :  Engineering, Medical, Agriculture, Vet erinary, Law, Management, Computer Courses, etc., conducted by the "Approved" Colleges /Universities / Govt  AICTE / etc. 

III. STUDENT ELIGIBILITY:

Admission secured through Entrance Test or Counseling or Selection Process. 

IV.  ELIGIBLE STUDY:

Studies in India & Abroad  eligible.

V. QUANTUM OF FINANCE :

Need based finance subject to repaying capacity of the parents / students

VI. MARGIN:

Upto Rs.4.00 lakh     – NIL

VII. SECURITY:

Upto Rs. 4.00 lakh – No security

Above Rs. 4.00 lakh

– Collateral Security equal to 100% of the loan amount or Guarantee of 3rd person for 100% of loan amt.

VIII. RATE OF INTEREST:

Stipulated by Bank from time to time, depending upon their PLR.

IX. SANCTION/ DISBURSEMENT:

Sanctioned preferably by the Branch nearest to the place of domicile.

Disbursement in stages as per scheme/ directly to the Institution / Instruments.

X. REPAYMENT:

The loan is to be repaid in 5 to 7 Years, after commencement of repayment.

XI. REPAYMENT HOLIDAY:

Course Period + 1 Year or 6 Months, after getting Job whichever is earlier.

XII. LIST OF DOCUMENTS REQUIRED:

1.      Bonafide Certificate issued by Inst.

2.      Approved Fees structure.

3.      Fees paid Receipt / Challans.

4.      Residential Proof (Ration Card/etc)

5.      SSLC, HSC, Degree Mark Statement

6.      Community Certificate

7.      Income Proof.

8.      Transfer Certificate.

9.      For Professional / Management courses / Technical Courses – Govt. / AICTE / University Approval where ever

         required by the Bank.

XIII. TIME NORMS:

15 days to 30 days or as stipulated by  RBI / Bank.