Educational Loans will be available for following students:
1. Indian students attending overseas colleges and
2. Indian students attending colleges in India
Educational Loan covers the following
1. All of the tuition fees as applicable for the college/University
2. Up to 100% of other expenses including
a. Living and hostel expenses
b. Examination fees,
c. Library/laboratory fees,
d. Purchase of books / equipments/instruments/uniforms
e. Purchase of computers / laptops considered necessary for completion of the course.
3. Travel fare restricted to one economy class return ticket between India and the country of study,
1. Borrower must be an Indian citizen and must be 18 years of age or older
2. Co-borrower(s) must be an Indian citizen
3. Co-borrower(s) must have a bank account in any bank in India with cheque writing facilities
4. Confirmed admission in the colleges before Educational Loan disbursement
5. Borrower and Co-borrower(s) to meet Banks/Financial Institution credit and underwriting norms as
applicable from time to time.
It is mandatory to bring in an earning co-borrower(s) based in India to support the Education Loan application.
1. Guarantor/Co-borrower(s) may be any of the following relatives, viz Father / Mother / Brother / Sister
(married) /Spouse, where such co-borrower's income would be considered in determining the loan
eligibility. And property related to: Father-in-law; Mother-in-law; Sister-in-law; Brother-in-law; Maternal
or Paternal Uncle or Aunt, Grandparents also can be accepted.
2. Guarantor/Co-borrower's liability is co extensive with the Student;
3. Guarantor/Co-borrower(s) to provide documentary proof to establish their relationship with the student,
to the satisfaction of Bank/Financial Institution;
Minimum Loan Amount: Rs. 1,00,000 – Rs. 20,00,000
Rate Of Interest:
Rate of interest will be floating rate of Interest, generally linked with the base rate of the banks, Present Scenario the Rate of Interest will be 11.5% to 15.0%.
Rate of Interest vary on account of a number of factors such as student's academic background, employability of the selected course from a selected college and country of study, financial strength of the co-borrower, loan repayment capability, credit history, collateral offered or not.
The loan amount will be disbursed in Indian Rupees
The loan will be disbursed in India in Indian Rupees which can be converted to foreign currency for payment of university fees by the student wherever required.
Bank/Financial Institution disburse the tuition fee to the educational institute either directly or through an authorized servicer.
The tuition fee will be disbursed in instalment as per the requirement of the specific educational institute.
Repayments of the loan to be made by the borrower in Indian rupees only.
Loan Re-payment Terms:
Loan interest re-payment will start immediately after disbursement of the first instalment of the loan.
Tenure of an education loan consists of:
Duration of Study + free look Period after the Study + Repayment tenor
Maximum tenure upto 10 years
The loan tenure is however, subject to the factors such as the repayment capacity of the customer/s, future prospects of the course, age of the co-applicant, etc. and further subject to credit and underwriting norms as applicable from time to time.
Monthly repayment amount will be deducted from the bank account of the borrower/co-borrower using Electronic Clearing System (ECS).