MODEL EDUCATION LOAN SCHEME
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
Upto Rs.4.00 lakh – NIL
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.
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.