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EDUCATION LOAN
Summer project submitted

In

Partial Fulfilment of the Requirements for the Award of

Post Graduate Diploma in Management
(Recognized by AICTE, Ministry of HRD, Govt. of India)

SUBMITTED TO

INTEGRATED ACADEMY OF MANAGEMENT AND TECHNOLOGY

GHAZIABAD

SUBMITTED BY

Ankush Khandelwal
UNDER THE GUIDANCE OF

MR. AMIT KUMAR SINGH

MS. SHIKHY KHANNA

1
 Acknowledgement

This project report bears the imprint of those who had rendered their wholehearted
support and encouragement without whose help this effort of mine would be in
vain. I express my deep sense of gratitude and sincere thanks to my project guide
Mr. Amit Kumar Singh and Ms.Shikhy Khanna for his directions, suggestion and
information provided which were of utmost importance for the successful
completion of the project. I am also thankful to Pro. Balraj Singh for his proper
guidance.

At last, I also thank the employees of National HDFC Bank for assisting me
in the timely completion of project.

Ankush Khandelwal

2
 CONTENT

S.No. Topic Page No.

1. Company Profile 4
2. Businesses 6
3. Balance Sheet 8
4. Profit and Loss Account 9
5. Cash Flow Statement 10
6. Board of Directors 11
7. Synopsis 12
8. Comparative Analysis of Education Loan Policies of 13-25sss
Nationalized Banks in Delhi

3
 COMPANY PROFILE
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered
office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank
in January 1995.

Promoters

HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and also has
a large corporate client base for its housing related credit facilities. With its experience in the
financial markets, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

Mission

HDFC Bank's mission is to be a World-Class Indian Bank.

Objective

The objective is to build sound customer franchises across distinct businesses so as to be the
preferred provider of banking services for target retail and wholesale customer segments,
and to achieve healthy growth in profitability, consistent with the bank's risk appetite.

The bank is committed to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank's business
philosophy is based on four core values - Operational Excellence, Customer Focus, Product
Leadership and People.

Capital Structure

The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital
is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and
about 19.4% of the equity is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign
Institutional Investors (FIIs) and the bank has about 190,000 shareholders. The shares are
listed on the “The Stock Exchange”, Mumbai and the National Stock Exchange. The bank's

4
American Depository Shares are listed on the New York Stock Exchange (NYSE) under the
symbol "HDB".

Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over
761 branches spread over 327 cities across India. All branches are linked on an online real-time
basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's
expansion plans take into account the need to have a presence in all major industrial and
commercial centres where its corporate customers are located as well as the need to build a
strong retail customer base for both deposits and loan products. Being a clearing/settlement bank
to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE
have a strong and active member base.

The Bank also has a network of about over 1977-networked ATMs across these cities. Moreover,
all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and
American Express Credit/Charge cardholders can access HDFC BANK’s ATM network.

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 BUSINESSES
HDFC Bank offers a wide range of commercial and transactional banking services and treasury
products to wholesale and retail customers. The bank has three key business segments:

Wholesale Banking Services

The Bank's target market ranges from large, blue chip manufacturing companies in the Indian
corporate to small & mid-sized corporates and agri-based businesses. For these customers, the
Bank provides a wide range of commercial and transactional banking services, including
working capital finance, trade services, transactional services, cash management, etc.

The bank is also a leading provider of structured solutions, which combine cash management
services with vendor and distributor finance for facilitating superior supply chain management
for its corporate customers. Based on its superior product delivery / service levels and strong
customer orientation, the Bank has made significant inroads into the banking consortia of a
number of leading Indian corporates including multinationals, companies from the domestic
business houses and prime public sector companies. It is recognized as a leading provider of cash
management and transactional banking solutions to corporate customers, mutual funds, stock
exchange members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-stop window for all his/her banking
requirements. The products are backed by world-class service and delivered to the customers
through the growing branch network, as well as through alternative delivery channels like ATMs,
Phone Banking, Net Banking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the
Investment Advisory Services programs have been designed keeping in mind needs of customers
who seek distinct financial solutions, information and advice on various investment avenues. The
Bank also has a wide array of retail loan products including Auto Loans, Loans against
marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider
of Depository Participant (DP) services for retail customers, providing customers the facility to
hold their investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank
launched its credit card business in late 2001. By September 30, 2005, the bank had a total card
base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading players in
the "merchant acquiring" business with over 50,000 Point-of-sale (POS) terminals for debit /
credit cards acceptance at merchant establishments.
6
Treasury
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the
financial markets in India, corporate need more sophisticated risk management information,
advice and product structures. These and fine pricing on various treasury products are provided
through the bank's Treasury team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio.

7
8
9
10
 BOARD OF DIRECTORS
Mr. Jagdish Capoor, Chairman
Mr. Keki Mistry
Mr. Vineet Jain
Mrs. Renu Karnad
Mr. Arvind Pande

Mr. Ashim Samanta

Mr. C. M. Vasudev

Mr. Gautam Divan

Dr. Pandit Palande

Mr. Aditya Puri, Managing Director

Mr. Harish Engineer, Executive Director
(w.e.f. 12.10.2007 subject to approval of RBI)
Mr. Paresh Sukthankar, Executive Director
(w.e.f. 12.10.2007 subject to approval of RBI)

Senior Management Team

Mr. A Parthasarthy
Mr. A. Rajan
Mr. Abhay Aima
Mr. Bharat Shah
Mr. C. N. Ram
Mr. G. Subramanian
Mr. Kaizad Bharucha
Mrs. Mandeep Maitra
Mr. Pralay Mondal
Mr. Sudhir M. Joshi
Mr. Vinod Yennemadi
Mr. Sashi Jagdishan

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 SYNOPSIS
Title – Education Loan

Objective – To do the market analysis of comparative credit of Education Loan in Delhi.

Null Hypothesis (H0) – Education Loan policies of HDFC Bank is not better than other
Nationalized Banks in Delhi.

Alternate Hypothesis (H1) - Education Loan policies of HDFC Bank is better than other
Nationalized Banks in Delhi.

Data Collection

1- Questionnaire

2- Secondary sources – Published books, Internet

Research Design

• Problem identification

• Data collection related to Education Loan Policies in Nationalized Banks in Delhi.

• Studying the Education Loan Policies of HDFC Bank.

Sampling Technique

Convenience sampling

• It is purposive or non-probability sampling.

• This sampling method involves deliberate or purposive selection of particular units of the
universe for consulting a sample, which represents the universe and when elements are
selected for inclusion in the sample based on the ease of access, it is called convenience
sampling.

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 Education Loan Schemes Of Various Nationalized Bank

Eligible Courses

All courses having employment prospects are eligible.

• Graduation courses/ Post graduation courses/ Professional courses

• Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan

• Fees payable to college/school/hostel

• Examination/Library/Laboratory fees
• Purchase of Books/Equipment/Instruments/Uniforms
• Caution Deposit/Building Fund/Refundable Deposit (maximum 10% Tution fees for
the entire course)
• Travel Expenses/Passage money for studies abroad
• Purchase of computers considered necessary for completion of course
• Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc.

Amount of Loan

• For studies in India, maximum Rs. 10 lacs

• Studies abroad, maximum Rs. 20 lacs

Interest Rates

For loans up to Rs.4 lacs - 12.25% p.a. Floating

For loans above Rs.4 lacs - 13.25% p.a. Floating

Processing Fees

• No processing fee/ upfront charges

• Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in
the margin money

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Repayment

Repayment will commence one year after completion of course or 6 months after securing a job,
whichever is earlier.

Repayment Period
Place of Study Loan Amount
in Years

Studies in India Rs. 10.0 lacs 5-7

Studies Abroad Rs. 20.0 lacs 5-7

Security

For loans upto Rs. 10.00 lacs for Studies in

Amount India and upto Rs. 20.00 lacs for studies
abroad

Upto Rs. 4
No Security
lacs

Collateral security in the form of suitable third

party guarantee. The bank may, at its
Above Rs. 4
discretion, in exceptional cases, weive third
lacs to Rs.
party guarantee if satisfied with the net-
7.50 lacs
worth/means of parent/s who would be
executing the documents as "joint borrower".

Above Rs. Tangible collateral security of suitable value,

7.50 lacs. along with the assignment of future income of
the student for payment of installments.
All loans should be secured by parent(s)/guardian of the student borrower. In case of married
person, co-obligator can be either spouse or the parent(s)/ parents-in-law

Margin

• For loans up to Rs.4.0 lacs : No Margin

• For loans above Rs.4.0 lacs:
o Studies in India: 5%
o Studies Abroad: 15%

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Documentation Required

• Completed Education Loan Application Form.

• Mark sheets of last qualifying examination
• Proof of admission scholarship, studentship etc
• Schedule of expenses for the specified course
• 2 passport size photographs
• Borrower's Bank account statement for the last six months
• Income tax assessment order, of last 2 years
• Brief statement of assets and liabilities, of the Co-borrower
• Proof of Income (i.e. Salary slips/ Form 16 etc)

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Baroda Gyan

A loan product specially designed for students pursuing Graduation, Post - Graduation,
Professional & Other courses in India. Bank of Baroda extends a helping hand to energize your
studies and promote education of the youth.

• No processing charges.

• No Margin on loans upto 4 lacs.

• Free Debit Card.

Terms & Conditions

Courses Eligible:

• All Graduation courses.

• All Post Graduation courses & Doctorate courses.

• Professional Courses viz. Engineering, Medical, Agriculture, Veterinary, Law, Dental,

Management, Computer, Ayurved, Homeopathy, Physiotherapy, Hotel Management,
Hospital Management, Interior Designing, Architecture, Event Management, Mass
Communication, Fashion Technology, etc.

• Computer certificate courses of reputed institutes accredited to Dept. of Electronics or

institutes affiliated to Universities.

• Courses like C.A, ICWA, CFA, CS, etc.

• Courses offered in India by reputed foreign Universities.

• Evening courses of institutes approved by

State/Central/Govt./UGC/AICTE/AIBMS/ICMR/ICAR.

• Courses offered by National Institutes and other reputed private institutions. The
College/Institute must have been approved by the State/Central Govt./UGC/AICTE,etc.

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Student Eligibility :

• Should be Resident Indian.

• Secured admission to either of above courses

Coverage of expenses:

• Fee payable to college / Institution / University.

• Examination / Library / Laboratory Fee.

• Fee and other charges payable to hostel.

• Purchase of books / equipments / instruments.

• Personal Computers / Laptops wherever required.

• Caution deposit / building fund / refundable deposit supported by institution bills /

receipts.

• Any other expenses required to complete the course - like study tours, project works,
thesis, etc.

Maximum Loan Amount: Rs.7.50 Lacs.

Margin:

Upto Rs. 4.00 lacs :- NIL

Above Rs. 4.00 lacs :- 5%

• Margin is to be contributed on pro rata basis on year to year basis as and when
disbursements are availed.

Repayment Holiday / Moratorium Period:

• Course period + 1 year or 6 months after getting job, whichever is earlier.

Repayment Period:

• The loan is repayable in 5-7 years after the above period.

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Security:

• Upto Rs.4 lacs: No security

• Above Rs. 4 lacs: Collateral in the form of a suitable third party guarantee alongwith
assignment of future income.

Rate of Interest:

• Simple interest to be charged at monthly rests during the repayment holiday / moratorium
period.

• 1% interest concession is provided if interest debited during repayment holiday is

serviced.

• 1% Concession in rate of interest to loans for girl student.

• Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds Rs.4.00 lacs

Baroda Scholar
Bank of Baroda presents financial assistance to students going abroad for Professional /
Technical studies. The loan offering is designed to empower you with the financial
capability to realize your dreams... Achieve your goals... Reach out to the maximum limits...

Terms & Conditions

Eligibility of Courses:

Graduate/Post Graduate / Doctorate / Job Oriented Professional / Technical Courses

offered by reputed Universities overseas.

Student Eligibility:

• Should be an Indian National.

• Secured admission to Professional/Technical Courses at foriegn Universities/Institutions.

Coverage of expenses (for overseas studies):

• Admission/Tuition fees to College/University.

• Hostel/Mess charges.

• Examination/Library/Laboratory fee.

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 • Purchase of books/equipments/instruments.

• Caution deposit/building fund/refundable deposit supported by institution bills/reciepts.

• One way travel expenses/Passage money.

• Purchase of computers if essential for completion of the course.

• Any other expense required to complete the course e.g. study tour, project work, thesis
etc.

Maximum amount of loan:

Graduation & Other Courses up to 3 years duration: Rs.10 Lacs

Post graduation and other advanced studies: Rs.15 Lacs

Margin: 15%

Repayment Period /Moratorium Period:

• Course period + 1 year or 6 months after getting job, whichever is earlier.

The loan is repayable in 5-7 years after the above period.

Security:

• Upto Rs.4.00/- lacs : No security

• Above Rs. 4.00/- lacs upto Rs. 7.5 lacs : Collateral in the form of a suitable third party
guarantee.

• Above Rs. 7.5 lacs : Collateral security equal to 100% of loan amount.

Rate of Interest:

• Simple interest during repayment holiday/moratorium period.

• 1% interest concession, if interest debited during the repayment holiday is serviced.

• 1% Concession in rate of interest to loans for girl student.

• Penal interest @ 2% p.a. on overdue amount if loan exceeds Rs.4/- lac

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 Oriental Bank of Commerce
Eligibility:
Indian nationals not above 45 years of age those who secured admission in a recognized course
of an approved university (AICTE approved institutions).

Amount of Loan:
Education in India - Max. Rs.7.50 lacs.
Education Abroad - Max. Rs.15.00 lacs.

Security:
For Loans upto Rs.4.00 lac-No Collateral Security

Co-obligation of parents/guardian if student is minor.

For Loans above 4 lacs and upto Rs.7.50 lacs

No Collateral Security required,

Co-obligation of parents/guardian

One satisfactory third party guarantee

Above Rs.7.50 lacs

Co-obligation of parents/guardian is obligatory.

Mortgage of immovable property or any other tangible security like pledge of NSC/UTI/LIC
(Surrender Value)/Bonds etc. having value at least equal to 100% of loan. Extension of charge on
property already mortgaged subject to adequate residual value of security.

Co-obligations of parents is must for loans to students studying abroad irrespective of the amount
of loan/age of the borrower.

Margin:
Upto 4 lacs - NIL
Above 4 lacs for education in India - 5%
Education Abroad - 15%

Rate of Interest:
10% per annum

Concession on Rate of Interest :

Simple Interest shall be charged during study/moratorium period. The concession of 1% in rate
of interest to be allowed, if interest is serviced regularly during the study/moratorium period. S

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Repayment:
Within 84 EMIs commencing 12 months after course or 6 months after getting the job,
whichever is earlier?

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 PANJAB NATIONAL BANK

EDUCATION LOAN - "VIDYALAKSHYAPURTI"

The Scheme enables all type of needy students viz., students of +2 stage, Graduation courses –
B.A., B.Com., B.Sc., etc., Post-Graduation courses, Masters in Ph.D; Professional courses,
Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.,
Computer Certificate courses of reputed Institutes accredited to Department of Electronics or
institutes affiliated to University; Courses like ICWA, C.A., CFA, etc., courses conducted by
IIM, IIT, IISc, XLRI, NIFT, etc., Evening Courses of reputed Institutes; Diploma/Degree courses
conducted by Colleges/Universities approved by UGC/Govt./AICTE/AIBMS/ICMR, etc.,
Courses offered by National Institutes and other reputed Private Institutes.

Students should approach the branch nearest to the place of domicile.

Punjab National Bank is now offering concession in interest in education Loan Scheme. The
concession in interest rates is available to new borrowers who will avail education loan from the
bank w.e.f. 01.04.2007.

The bank has taken this step to make education loan scheme more customer friendly thus
facilitating aspirant students to avail education loan on comfortable & affordable terms. .

Further, Interest is charged monthly on simple basis during the repayment holiday/moratorium
period & concession of 1% in rate of interest is also allowed provided the same is serviced
regularly during study period.

Punjab National Bank has tied up with Kotak Mahindra Insurance to provide life insurance cover
for education loan borrowers.

The insurance would cover study period as well as repayment period, he said, adding in case of
any mishap, the insurance company would take care of the loan repayment rather than the
aggrieved parents.

Eligibility
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 Student eligibility

• Should be an Indian National.

• Secured admission to Professional / Technical courses through

Entrance Test / Selection process.

• Secured admission to foreign University / Institutions.

• Student should have secured pass marks in the qualifying

Examination for admission to Graduation Courses.

Expenses considered for Loan

• Fee payable to College / School / Hostel

Examination / Library / Laboratory fee.

• Purchase of books / equipments / instruments / uniforms. Secured

admission to foreign University / Institutions.

• Caution Deposit / Building Fund / Refundable Deposit supported by

Institution Bills / Receipts.

• Travel Expenses / Passage money for studies abroad.

• Purchase of computers - essential for completion of the Course.

• Boarding and lodging expenses in recognised Boarding Houses /

private accommodations

• Any other expense required to complete the course - like study

tours, project work, thesis etc.

Quantum of Finance

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Need based finance, subject to repaying capacity of the parents / students with margin and the
following ceilings: -

• For studies in India: Maximum Rs.7.50 lacs.

• For studies abroad: Maximum Rs.15.00 lacs.

Margin

• Upto Rs.4.00 lacs: • Nil.

• Studies in India • 5%
• Above Rs.4.00 lacs:
• Studies Abroad • 15%

Security

• Upto Rs.4.00 lacs: No Security.

• Above Rs 4.00 lacs and Upto Rs 3rd party guarantee acceptable to the
7.5 lacs: Bank.

Collateral Security of Suitable value or

• Above Rs 7.5 lacs:
suitable 3rd party guarantee.

The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units
of UTI, NSC, KVP, LIC Policy, Gold, Shares / Debentures, Bank Deposit in the name of the
student parent / guardian or any other third party with suitable Margin.

The document should be executed by both the student and the parent/guardian.

Rate of Interest

Upto Rs. 4 lacs BPLR+Term Premia minus 1.25

Above Rs.4 lacs BPLR + Term Premia

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 • Term premia of 0.50% p.a. shall be added for repayment period of 3 years & above.
• The interest shall be debited monthly on simple basis during the Repayment holiday/
Moratorium period.
• Penal Interest @ 2% be charged for above Rs.4.00 lacs for the overdue amount and
overdue period.
• 1% Interest concession for servicing of interest during the study period regularly is
allowed at the time of start of repayment period of loan.

Repayment

Repayment Holiday / Moratorium Course period + 1 year OR 6 months after getting

job, whichever is earlier.

• The Principal and interest is to be repaid in 5-7 years after commencement of repayment.
If the student is not able to complete the course within the scheduled time, extension of
time for completion of course may be permitted for a maximum period of 2 years.

Upfront Fee

Nil

Documentation Charges

Upto Rs. 4 lacs Rs.270/- + Service Tax & Education Cess

Above Rs.4 lacs Rs.450/- + Service Tax & Education Cess

Additional Benefits provided to the students by PNB

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 • Reimbursement of related expenses such as admission fee, monthly fee,
Boarding and lodging expenses in recognized Boarding Houses etc. already
incurred by way of loan taken from own sources (to meet the contingency) by
the applicant, if claimed within 3 (three) months of such payment and before
consideration of the loan by the Bank.

• Second time Education Loan can be sanctioned to the same student borrower
for completion of next higher course.

Check List

While applying for the loan, the borrower is required to furnish the following information/papers:

• Loan application on Bank's format.

• Passport size photograph

• Proof of Address (Permanent) / ID Proof.

• Proof of Age.

• Proof of having secured pass marks in last qualifying examination.

• Letter of admission in professional, technical or vocational courses.

• Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel
Charges etc. are mentioned.

• Details of Assets & Liabilities of parents.

In case loan amount is above Rs.4.00 lacs:

• • Particulars of Guarantors and details of their Assets & Liabilities.

• • If immovable property offered as Collateral Security - copy of Title Deed, Valuation

Certificate and Non-encumbrance Certificate from approved Lawyer of the Bank.

• Photocopy of Passport & Visa, in case of study abroad.

• Any other document/information, depending upon the case and purpose of the loan.

(The above CHECKLIST is only illustrative, not exhaustive. For details, please contact our nearest Branch
Office).

EDUCATION LOAN SCHEME – ‘PNB SARVOTTAM SHIKSHA’

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OBJECTIVE

The Scheme aims at providing financial assistance to deserving students who have secured
admission for pursuing/are pursuing regular courses in the IDENTIFIED educational institutions.

Punjab National Bank is now offering concession in interest in education Loan Scheme. The
concession in interest rates is available to new borrowers who will avail education loan from the
bank w.e.f. 01.04.2007.

The bank has taken this step to make education loan scheme more customer friendly thus
facilitating aspirant students to avail education loan on comfortable & affordable terms. Bank has
reduced interest rates on education loan up toRs.4.00 lac under PNB Sarvottam Shiksha Scheme

Further, Interest is charged monthly on simple basis during the repayment holiday/moratorium
period & concession of 1% in rate of interest is also allowed provided the same is serviced
regularly during study period.

Punjab National Bank has tied up with Kotak Mahindra Insurance to provide life insurance cover
for education loan borrowers

The insurance would cover study period as well as repayment period, he said, adding in case of
any mishap, the insurance company would take care of the loan repayment rather than the
aggrieved parents.

Eligibility

a) All types of professional/technical courses conducted by identified institutions as per list

annexed

b) A student is eligible for loan provided he/she is an Indian National

Secured admission to Professional / Technical courses of one of the identified educational

institutions through Entrance Test / Selection process.

• In case of education in the foreign University / Institution (for which HO approval is

required for its coverage under the Scheme), the student should have got necessary
Passport / VISA formalities completed.

c) Expenses considered for Loan

• Fee payable to College / Institute / Hostel.

• Examination / Library / Laboratory fee.
• Purchase of books / equipments / instruments.
• Boarding & Lodging expenses in Boarding Houses subject to production of Bills verified
27
 by the student borrower.
• Travel Expenses / Passage money for studies abroad.
• Purchase of computers - essential for completion of the Course.
• Any other expense required to complete the course - like study tours, project work, thesis,
etc.

QUANTUM OF FINANCE

Need based finance, subject to repaying capacity of the parents / students, arranging margin and
the following ceilings

Studies in India Maximum Rs. 7.50 lacs.

Studies abroad Maximum Rs.15.00 lacs.

Margin

Upto Rs.4.00 lacs Nil

Studies in India 5%
Above Rs.4.00 lacs
Studies Abroad 15%

• Note: Margin may be brought-in on year-to-year basis as and when disbursements are
made on a pro-rata basis.

Security

Upto Rs. 4.00 lacs No security

Above Rs.4 lacs & upto A suitable 3rd party guarantee, which can be waived if parents of the
Rs.7.50 lacs student has sufficient means

Above Rs 7.5 lacs Collateral Security of Suitable value or suitable 3rd party guarantee.

NOTE:

28
 • The documents should be got executed by both the student and the parent / guardian.

• The security can be in the form of land / building / Govt. Securities / Public Sector Bonds /
Units of UTI, NSC, KVP, LIC Policy, Gold, Shares / Debentures, Bank Deposit in the
name of the student parent / guardian or any other third party with suitable Margin.

• Wherever the land / building is already mortgaged, the unencumbered portion can be taken
as security on II charge basis provided it covers the required Loan amount.

• In case the loan is given for purchase of Computer, the same to be Hypothecated to the
Bank.

Rate of interest

Upto Rs.4.00 lacs BPLR –2.25%+0.50% term premia

Above Rs.4.00 lacs & upto Rs.15 lacs BPLR + 0.5% term premia –0.75%

• The interest to be debited monthly on simple basis during the Repayment holiday/
Moratorium period.

• Penal interest @ 2% be charged for amounts above Rs.4 lacs for the overdue amount and
overdue period.

• 1% Interest concession for servicing of interest during the study period regularly is allowed
at the time of start of repayment period of loan.

Repayment

Course period + 6 months.

Repayment Holiday/
Moratorium In case of medical students, course period will include internship and
house job period, if any.

The loan is to be repaid in 5-7 years after commencement of repayment

The accrued interest during the repayment holiday period to be added to the principal and
repayment in Equated Monthly Instalments (EMI) be fixed.

1% interest concession may be provided by Incumbents to loanee for servicing of interest during
study period regularly, when repayment holiday is specified for interest / repayment under the
29
Scheme.

Interest concession to student borrowers for servicing of interest during study period regularly is
to be allowed to borrowers at the time of start of repayment period of the loan and the rate of
interest/EMI be fixed accordingly.

UPFRONT & PROCESSING FEE:

Nil

DOCUMENTATION CHARGES

• Rs.300/- for loan amount upto Rs.4.00 lacs

• Rs.500 for loan amount over Rs.4.00 lac

CHECK LIST

To facilitate expeditious disposal of applications, a check-list regarding documents, security etc.,

alongwith application forms for Education Loans be provided to intending borrowers. An
illustrative check-list is given below :

• Loan application on Bank's format.

• Passport size photograph.
• Proof of Address.
• Proof of Age.
• Proof of having secured pass marks in last qualifying examination.
• Letter of admission in professional, technical or vocational courses.
• Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel
Charges etc. are mentioned.
• Details of Assets & Liabilities of parents.
• In case loan amount is above Rs.4.00 lacs :
· Particulars of Guarantors and details of their Assets & Liabilities, wherever applicable.
30
 · If immovable property offered as Collateral Security - copy of Title Deed, Valuation
Certificate and Non-encumberance Certificate from approved Lawyer of the Bank.
• Photocopy of Passport & Visa, in case of study abroad.

• Any other document/information, depending upon the case and purpose of the loan

Allahabad Bank Education Loan Scheme

31
Eligibility Criteria:

(a) Student eligibility:

• Student be an Indian National

• Secured admission to professional/ technical courses in India or Abroad through Entrance
Test / Merit based Selection process.

(b) Courses Eligible:

Studies in India

• Graduation Courses- B.A, B.COM, B.Sc. etc.

• Post Graduation Courses: Masters Courses, Ph D, etc.
• Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental,
Management, Computer etc.
• Computer Certificate Courses of reputed Institutes accredited to Department of
Electronics or Institutes affiliated to University.
• Courses like- ICWA, CA, CFA etc.
• Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.
• Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc.,
approved by Director General of Civil Aviation/ Shipping, if the course pursued abroad,
the Institute should be recognised by the competent local aviation/ shipping authority.
• Courses offered in India by reputed foreign universities.
• Evening Courses of approved Institutes.
• Other Courses leading to diploma/degree etc conducted by the Colleges/ Universities
approved by UGC/Govt/AICTE/AIBMS/ICMR etc.

Studies Abroad:

• Graduation: For Job oriented professional/technical courses offered by reputed

Universities.
• Post Graduation: MCA, MBA, MS etc.
• Courses conducted by CIMA London, CPA in USA etc.
• Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., the
Institute should be recognised by the competent local aviation/ shipping authority.

32
Quantum of Loan:

Need based finance subject to repaying capacity of the parents / students with following ceilings:
Studies in India: Maximum Rs 10.00 lacs
Studies abroad: Maximum Rs. 20.00 lacs.

Expenses Considered for Loan

• Fee payable to College / School /Hostel

• Examination/Library/Laboratory Fee
• Purchase of Books / Equipments/ Instruments/ Uniforms.
• Caution Deposit/ Building Fund/ Refundable Deposit supported by Bills/Receipts of the
Institution, subject to the conditions that amount does not exceed 10% of the total tuition
fees for the entire course.
• Travel Expenses/Passage Money for studies abroad.
• Purchase of Computers essential for completion of the course.
• Insurance premium for student borrower.
• Any other expenses required to complete the course, such as- Study Tours, Project Work,
and Thesis etc.

Margin:

• For loan upto Rs 4.00 lacs: NIL

• For loan above Rs 4.00 lacs:
(i) Studies in India: 5%
(ii) Studies abroad: 15%
• Scholarship / Assistantship to be included in Margin.
• Margin Money to be brought on year-to-year basis and disbursements are made on a pro-
rata basis.

• Rate of Interest:

33
Loan Upto Rs. 4.00 lacs

For students of IIT / IIM/ ISB* PLR-1.75%

For Others PLR-0.75%

Loan above Rs. 4.00 lacs

For students of IIT / IIM/ ISB* PLR-1.75%

For Others PLR-1.00%

*ISB means Indian School of Business; Hyderabad

Girl students may be provided a special relief of 1.00% in all cases as above.

Application of Interest:

Simple interest during moratorium period.

Service interest during moratorium period regularly and avail a special discount of 1.00% in
interest rate.

Repayment:

Repayment Holiday / Moratorium is Course Period + 1 year or 6 months after getting job,
whichever is earlier.

Loan to be repaid within a maximum period of 7 years after commencement of repayment.

Security:

For IIT/IIM/ISB*

For loan upto Rs 10.00 lacs- No collateral security is required. Co-obligation* of parents/
guardian required

*ISB means Indian School Business, Hyderabad

For others

For loan upto Rs 4.00 lacs: No collateral security is required. co-obligation* required For loan
above Rs 4.00 lacs and upto Rs 7.50 lacs: Satisfactory third party guarantee & Co-obligation*
required.

For loan above Rs 7.50 lacs: (a) Co-obligation * of parents/ guardian together with tangible
collateral security of suitable value covering full loan amount, alongwith the assignment of future

34
income of the student for payment of installments.

*(The loan documents would be executed by both the student and the parent/ guardian as joint-
borrower i.e. co-obligator. The co-obligation should be parent / guardian of the student borrower.
In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law.)

Processing Fee:

Processing Fees/ Documentation Charge:

For studies in India- Nil

For studies abroad -Rs.500/- upfront subject to the conditions that this amount would be adjusted
against the loan amount once the loan is availed from us.

Mortgage Charges:

Actual expenses, if any, will be borne by the Student/Parent or Guardian.

Delivery Channel

From all of our branches (Presently more than 2150) spread throughout the country.
On-line sanction for leading 250 institutions within 72 hours.

Value added Service

FREE Debit Card

-For SB account holders in networked branches.

Insurance:

Group Life Insurance Cover

-For entire loan liability in tie-up with LICI
(One time upfront premium, can also be financed by adding into project cost.), Prospective
borrowers, who are not covered under the group insurance scheme, will be allowed to take a
single premium term insurance cover equal to the loan amount, individually on their own or
premium being a component of project cost for financing.

Others

a. The parent / guardian would become co-borrower with the student and application for
education loan will also be signed by the parent / guardian alongwith the student while
availing loan under Educational Loan Scheme.
b. Education Loan would preferably be sanctioned through branches / RBBs nearest to the
place of residence of parents.

c. Second time education loan is available for higher studies / escalation of cost.

35
36
 Andhra Bank
Eligibility:

Age: 12-30 years for studies in India

18 to 35 years for study in other countries

Quantum of Loan:
Maximum Rs. 10.00 Lacs for studies in India

Rs. 20.00 Lacs for Studies Abroad

Purpose of Loan:

To meet cost of Tuition fee, Hostel fee, Examination fee, Books, Project work, Study tours,
and Refundable deposits.

PLUS

AIR PASSAGE AND MAINTENANCE, FOR ABROAD STUDIES.

Margin:

Upto Rs.4.00 Lacs Exempted

Above Rs.4.00 Lacs 5% In India 15% for Abroad Studies.

Security:

Upto Rs.4.00 Lacs guarantee of parent

Rs.4.00 to 7.50 lacs - guarantee of the parent

Above Rs.7.50 Lacs--Collateral Security of suitable value & guarantee of the parent

Interest:

Upto Rs.4.00 Lacs--(BMPLR -1.25) - Presently 11.75%

Above Rs.4.00 lacs--(BMPLR + 0.50) presently 13.50%

(BMPLR at present: 13.00%)

Concession of 0.50% for women for sanctions after 01.07.2005

DIFFERENT RATES OF INTEREST - DIFFERENT INSTITUTES 37

Syndicate Bank’s involvement in education dates back to the decades prior to the Nationalization
of Banks. The Bank was also the first to set up a string of Rural Training Institutes aimed at
empowering the young India in rural areas through entrepreneurial education and
training.

Continuing this commitment to education, the Bank has introduced a comprehensive Education
Loan Scheme-SyndVidya, which is more student responsive and parent friendly. The Scheme
covers the entire spectrum of educational needs from the school education to super specialty
courses including overseas courses. The scheme makes available need based finance to cover
expenses related to education such as fees payable to College, Hostel, Examination, Library,
Laboratory fees, caution deposit/building fund/refundable deposit upto 10% of tuition fee, Cost
of Books, Equipments, Travel expenses for studies abroad etc. Only capitation fees, donation or
external coaching fee are not covered. The loan scheme carries liberal limits of Rs.10.00 lac for
courses within the country and Rs.20.00 lac for overseas courses. The scheme which is
attractively priced at the Bank's prime lending rate and other details are furnished below :

Eligibility Criteria

Any student who is a major representing himself or a minor student represented by parent or
guardian of Indian nationality.

Must have secured admission on the basis of merit to professional/ technical/other courses
through entrance test/selection process. Deviation/relaxation is also permitted under special
circumstances.

Must have secured admission to Foreign universities/Institution (for studies abroad).

Courses Eligible

a) Studies in India.

Graduation: B.A., B.Com, B.Sc., etc.

Post graduation: Masters & Phd.

Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental

Management, and Computer etc. In respect of Management studies, apart from
University affiliation, All India Council for Technical Education should also approve
course. For Computer education, the recognised training Institute should have accreditation
38
of DOE, Govt of India to conduct the course under Department of Electronics Accreditation of
Computer Course (DOEACC) Scheme.

Computer certificate courses of reputed institutes accredited to Department of Electronics or

Institutes affiliated to Universities.

Courses like ICWA, CA, CFA etc.

Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.

Courses offered in India by reputed foreign universities.

Evening courses of approved institutes.

Other courses leading to Diploma / Degree etc. conducted by colleges / universities approved by
UGC / Govt./ AICTE / AIBMS / ICMR etc.

Courses offered by National Institutes and other reputed private institutions acceptable to the
Bank.

b) Studies abroad.

• Graduation : For job oriented professional/technical courses offered by reputed

universities.

• Post Graduation: MCA, MBA, MS. Etc.

• Courses conducted by CIMA-London, CPA in USA etc.

• Other Foreign Diploma courses are not eligible.

Student Eligibility

• Should be an Indian National.

• Secured admission on the basis of merit to professional/technical courses through

Entrance Test/Selection process. Deviations/relaxations are also permitted under special
circumstances.

• Secured admission to foreign university / institutions.

• The student who is a major representing himself or a minor student represented by parent
or guardian.

Quantum of Loan

Need based finance to meet expenses such as fee payable to college / school / hostel, examination
fee, cost of books, travel / passage fare for studies abroad etc.

39
Capitation fee / donation / external coaching fee are not eligible for finance.

Maximum of Rs.10.00 lac for studies in India and Rs.20 lac for studies abroad.

Margin

• For loans upto Rs.4 lac - No Margin required.

• For loans above Rs.4 lac - 5% for study in India and 15% for study abroad.

Security

• For loans upto Rs.4.00 lac - NIL.

• For loans above Rs.4.00 lac and upto Rs.7.50 lac - Collateral in the form of satisfactory
third party guarantee acceptable to the Bank.

• For loans above Rs.7.50 lac - Collateral security with 25% margin covering the loan
amount and assignment of future income of the student for payment of loan installments.

NOTE: In all the above cases, the parent / guardian shall join the transaction as co-borrower

Interest

• (PLR presently 13.00%)

• For loans upto Rs.7.50 lacs - PLR minus 1.00%

• For loans above Rs.7.50 lacs - PLR minus 1.50%

• No processing charges/service charges are levied for educational loans

Repayment

• In 5 to 7 years commencing one year after completion of the course or 6 months after
securing the job whichever is earlier.

40
1.OBJECTIVE & PURPOSE:

The Star Educational Loan Scheme aims at providing financial support from the bank to
deserving/ meritorious students for pursuing higher education in India and abroad. The main
emphasis is that every meritorious student is provided with an opportunity to pursue education
with the financial support on affordable terms and conditions.

2. ELIGIBILITY CRITERIA:

a) STUDENT'S ELIGIBILITY:

• Should be an Indian National;

• Secured admission to professional/technical courses in India or Abroad through Entrance
Test/Merit based selection process.
• Good academic career.
• The student should not have outstanding education loan from any other Institution.
• Father/Mother should be co-borrower.
• Branch nearest to the permanent residence of student will consider the loan.

b) ELIGIBLE COURSE:

(i) Studies in India (Indicative list):

• Graduation courses: BA, B.Com., B.Sc., etc.

• Post Graduation courses: Masters & Phd.
• Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental,
Management, Computer, etc
• Computer certificate courses of reputed institutes accredited to Department of Electronics
or institutes affiliated to university.
• Courses like ICWA, CA, CFA, etc.
• Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID and other Institutes set up by
Central/State Govt.
• Evening courses of approved institutes.
• Other courses leading to diploma/degree, etc. conducted by colleges/universities
approved by UGC/Govt./AICTE/AIBMS/ ICMR, etc.
• Courses offered by National Institutes and other reputed private institutions with prior
approval of Head Office.
• Courses offered in India by reputed foreign universities with prior approval of Head
Office.
41
Note:
• Professional courses not approved by AICTE and conducted by Institutes not recognised
by State Universities is outside the purview of the eligibility under the scheme.
• Special scheme for students admitted to IITs, at concessional rate of interest.

(ii) Studies abroad:

• Graduation: For job oriented professional/technical courses offered by reputed

universities.
• Post Graduation: MCA, MBA, MS, etc.
• Courses conducted by CIMA - London, CPA in USA, etc.

3. EXPENSES CONSIDERED FOR LOAN:

• Fee payable to college/school/hostel*

• Examination/Library/Laboratory fee.
• Purchase of books/equipments/instruments/uniforms.
• Caution deposit/building fund/refundable deposit supported by Institution bills/receipts.
• Travel expenses/passage money for studies abroad.
• Purchase of computers - essential for completion of the course.
• Insurance cover for the student.
• Any other expense required to complete the course - like study tours, project work, thesis,
etc.

* As per brochure/ demand letter from the institution.

4. QUANTUM OF FINANCE :
Need based finance subject to repaying capacity of the parents/students with margin and the
following ceilings :

• Studies in India - Maximum Rs.10.00 lakh

• Studies abroad - Maximum Rs.20.00 lakh.

5. MARGIN :
Upto Rs.4 lakh : Nil
Above Rs.4 lakh - Studies in India : 5%
Studies Abroad : 15%
· Scholarship could be included in margin.

· Margin to be brought in on year to year basis as and when disbursements are made.

6. SECURITY:
Upto Rs. 4 lakh : No security
42
Above Rs.4 lakh & upto Rs.7.5 lakh : Collateral security in the form of a suitable third party
guarantee.
Above Rs.7.5 lakh : Collateral security of suitable value or at the discretion of the Bank suitable
third party guarantee alongwith the assignment of future income of the student for payment of
installments.

Note : The security can be in the form of land/building/Govt. Securities/Public Sector

Bonds/NSC/KVP/LIP/ Banks Term Deposit etc.,in the name of
Student/Parent/Guardian/Guarantor with suitable margin.

7. RATE OF INTEREST*:

• Upto Rs.7.50 lacs - 1.75% below BPLR, Min. 11.00% p.a.

• Above Rs.7.50 lacs - 0.75% below BPLR, Min. 12.00% p.a.
• Simple interest during the repayment holiday/moratorium period.
• Penal interest @2% for loans above Rs.4 lakh for the overdue amount and overdue
period.
• Int. Concession of 0.50%p.a. for woman beneficiaries
• 1% int. concession if interest is serviced during moratorium period, where repayment
holiday is specified for interest/repayment under the scheme (concession available for
moratorium period)

8. INSURANCE: All the student borrowers are offered a specially designed Term
Insurance cover and the premium can be included as an item of finance.

9. REPAYMENT:
Repayment holiday/Moratorium: Course period + 1 year or 6 months after getting job, whichever
is earlier.

• The loan is to be repaid in 5-7 years after commencement of repayment.

10. BANK CHARGES:

Processing/upfront charges For Studies in India- NIL.

For Studies Abroad – Rs.1000 for

43
 issuance of sanction letter for

obtention of VISA.

Amount refundable on availing loan.

Document /Stamp Charges At Actuals

Change of Institution Studies in India – Rs.250/-

Studies Abroad- Rs.500/-

Agreement(copy to borrower) Loan upto Rs.2 lacs- Rs. 25/-*

Xerox charges
Loan over Rs.2 lacs- Rs.100/-*

Plus copying charge of Rs.1 per page

44
Indian Bank provides convenient educational loans for meritorious/deserving students to acquire
knowledge and skill in the field of their interest. By playing beacon, new-generation's quest for
success is ably supported, paving way for Generation Banking.

Eligibility

• The applicant should be an Indian National.

• He / She should have secured admission to professional / technical courses in India or
abroad through Entrance Test / Merit based selection process.
• Age of the Student - 15 to 30 Years (For Studies in India)
• Age of the Student - 18 to 35 Years (For Studies in Abroad)

Purpose

 To meet the cost of education covering fee payable to college / school / hostel,
exam fees, purchase of books / equipment’s, travel expenses / passage money for
studies abroad, purchase of computers essential for completion of the course etc.

 Caution Deposit, Building fund/ refundable deposit supported by institution

bills/receipts, subject to a maximum of 10% of total tuition fees for the entire
course.

 Insurance premium for student borrower.

Course of Study

Maximum Permissible Amount

Studies in•India • Place of availment
of Loan
1. Diploma/Graduation/Post-graduation courses in various disciplines.
• 2. For Studies certificate
Computer in India - Rs.10.00*
courses of lakhs
reputed institutes The loan can
accredited to be
Theavailed from the
Department of
Electronics. branch nearest to the place of
• For Studies Abroad - Rs.20.00* lakhs domicile.
Studies* Higher
Abroadquantum of loan also can be
considered in deserving and
1. meritorious
Job-orientedcases.
professional/technical courses offered by reputed universities.
2. MCA,
• Margin MBA, MS etc. • Rate of Interest

Courses
• 3. Upto conducted
Rs.4.00 by CIMA
lacs - NIL – London, CPA •in USA
Uptoetc.
Rs.4.00 lacs -12.50 % p.a. at
present
• Above Rs.4.00 lakhs
For Studies in India - 5% • Above Rs.4.00 lakhs -13.00 % p.a. at
For Studies Abroad - 15% present

• Floating Rate linked with Benchmark

45
 Prime Lending Rate (BPLR) of the
Bank and liable to undergo changes
whenever there is a change in BPLR.

• Holiday Period & Repayment • Insurance

• The course period PLUS 1 year or 6 • Life Insurance cover available to

months after getting a job, whichever is the student borrowers under 'IB Jeevan
earlier. Vidya' Insurance Scheme.

• Repayable in 5– 7 years.

Securities

Documents should be executed both by the student and parent / guardian as joint borrower.

1. Upto Rs. 4 lacs - No security

2. Above Rs. 4 lacs & Upto Rs.7.50 lacs - Collateral in the form of satisfactory third party
guarantee

3. Above Rs.7.50 lacs - Co-obligation of parents / guardians together with tangible collateral
security of suitable value along with assignment of future income of the student for payment of
installments.

* In case of receipt of application for more than one loan from students from a family, the 'family'
as a unit will be taken into account for considering the loan and security will be taken in relation to
the total quantum of finance disbursed, subject to margin and repaying capacity of the
parent/student.

46
Eligibility

You should be an Indian National

You should have secured admission to professional/technical courses in India or abroad

through

entrance test/merit based selection process

Courses
Graduation/Post graduation/Diploma/Computer education in any recognised State/Central
Government/University. Professional courses including Engineering, Medical, Agriculture,
Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA, etc., courses conducted by
IIM, IISC, XLRI, NIFT etc. Courses offered in India by reputed foreign universities/Evening
courses of approved institutes. Regular degree/Diploma courses like Aeronautical, Pilot training,
shipping etc approved by Director General of Civil Aviation/shipping if the course is pursued in
India. In case the course is pursued abroad the competent local aviation/shipping authority should
recognize the institute.
Amount
maximum of Rs. 10.00 lakh for studying in India and Rs. 20.00 lakh for studying abroad.
Interest Rate
Present Interest rate linked to BPLR is as follows:

47
- Up to Rs. 4.00 lakh - 12%
- Above Rs. 4.00 lakh 13.25%.
Margin money

For loans upto Rs. 4.00 lakh Nil

For loans above Rs. 4.00 lakh Studies within India 5%

For studies abroad 15%

Security

For loans upto Rs. 4.00 lakh Co obligation of parents. No security

For loans above Rs. 4.00 lakh and up to Rs.7.50 lakh Co obligation of parents together with
collateral security in the form of
suitable third party guarantee

For loans above Rs.7.50 lakh Coobligation of parents together with

tangible collateral security. Collateral
security in the form of NSC/KVIP, LIC
Policy, Gold, Shares/Debentures or
immovable properties Bank Deposits in
the name of student/Parent/Guardian or
any other third party with suitable
margin. Wherever the land/building is
already mortgaged the unencumbered
portion can be taken as security on
second charge basis provided it covers
the required loan amount. In case the
loan is given for the purchase of
computer, the computer has to be
hypothecated to the bank.

Is there a Holiday period for my loan ?

Yes, there is. You can pay back your loan 6 - 12 months after you complete the course.

How do I repay my loan ?

You can repay the loan in equal monthly Instalments for a maximum period of 5 - 7 years
excluding holiday period.

Whether I have to pay Interest every month during my study period?

It is left to the option of the student either to service the interest during the study period or
48
pay it along with the principal over a period of 5 - 7 years to commence from 12th month
after completion of the study.

In case I opt to service the interest, am I eligible for any concession?

Yes. For prompt servicing of interest for all months during the study period when
repayment holiday is specified for interest/repayment under the scheme, an interest rebate
of 1.0% is allowed. The interest rebate thus calculated will be credited back to loan account
at the time of commencement of repayment of the principal sum.

Courses offered

An installment based loan for all courses mentioned below:

Studies in India:

Graduation courses: BA, B.Com., B.Sc., etc

Post Graduation courses: Masters & Phd

Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management,

Computer etc

Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes

affiliated to university

Courses like ICWA, CA, CFA etc

Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc

Courses offered in India by reputed foreign universities

Evening courses of approved institutes

49
Other courses leading to diploma/ degree etc. conducted by colleges/ universities approved by
UGC/ Govt./ AICTE/ AIBMS/ ICMR etc ,Courses offered by National Institutes and other
reputed private institutions. Banks may have the system of appraising other institution courses
depending on future prospects/ recognition by user institutions.

Studies abroad:

Graduation: For job oriented professional/ technical courses offered by reputed universities. Post
graduation: MCA, MBA, MS, etc. Courses conducted by CIMA- London, CPA in USA etc

Loan amount

• Studies in India - Maximum Rs.10 lacs

• Studies abroad - Maximum Rs.20 lacs

Expanses covered under loan

• Fee payable to college/ school/ hostel

• Examination/ Library/ Laboratory fee
• Purchase of books/ equipments/ instruments/ uniforms
• Caution deposit/ building fund/ refundable deposit supported by Institution bills/ receipts
• Travel expenses/ passage money for studies abroad
• Purchase of computers - essential for completion of the course
• Any other expense required to complete the course - like study tours, project work, thesis,
etc.

Repayment terms
The repayment of loan to begin after the course period + 1 year or 6 months after getting a job,
whichever is earlier. The loan to be repaid within 5-7 years (maximum tenor 84 months) after
commencement of repayment.

50
OBJECTIVE & PURPOSE
The scheme aims at providing financial assistance on reasonable terms:

To the poor and needy students that they may undertake basic education

To meritorious students that they may pursue higher or professional or technical education

51
ELIGIBILITY

The student applying for UNION EDUCATION Loan ought to:

• Be an Indian National

• Has secured admission to professional or technical courses through an appropriate Entrance Test
or selection process

• Has secured admission to a foreign University

• Has passed an appropriate qualifying examination

Studies in India

• School education up to +2

• Graduation/Post-Graduation

• Professional course

• Management course

• Special Education Loan Scheme for Students pursuing courses from approved institutions like
IITs/IIMs/ /NIT XLRI/BITS/VIT/IISc/S.P. Jain Institute Of Management/Symbiosis Institute Of
Management and T.S. Chanakya, Navi Mumbai- Nautical Science and MERI, Calcutta, Marine
Engineering, MERI, Mumbai, Maritime Science.

Studies Abroad :

Graduation: For job-oriented professional or technical courses offered by reputed universities

Post-Graduation: MCA, MBA, MS and such other courses

Courses conducted by CIMA, London, CPA, USA., and such other institution

PURPOSE

• To the poor and needy students to undertake basic education

• To meritorious students to pursue higher or professional or technical education

CONDITIONS
52
 COMPARATIVE ANALYSIS OF EDUCATION LOAN POLICIES OF
NATIONALIZED BANKS
NA Maximum. Moratorium Margin Bran Credit Policy U.S.P.
ME Loan amount period money ches
in
and Rate of
New
Interest Delhi

S.B. Education in Moratorium For Tota Upto Rs. 4 lacs - No Security

I. India - Max. Period :-Course loan l
Period + 1 year s Above Rs. 4 lacs to Rs. 7.50
Rs.10.00 lacs. bran
or 6 months after upto lacs-- Third Party Guarantee
ches
Education getting job, Rs.
-189 Above Rs. 7.50 lacs to Rs. 10
Abroad - Max. whichever is 4.00 lacs (India)/ Rs. 15 lacs
Rs.20.00 lacs. earlier. lacs (Abroad) -- Tangible
Repayment:- :- Collateral security for full
Loan to be repaid Nil value of loan
Interest rate within a Rs 15 lacs to Rs. 20 lacs for
maximum period For
loans Abroad-- Tangible Collateral
Up to Rs 4 of 5-7 years after
above security for full value of loan
lacs- 12.25% commencement
of repayment. Rs. 4.00
P.A.floating,
lacs:-
Above Rs. 4 Studie
lacs-13.25%p.a. s within
floating India
5%
For
studies
abroad
15%

B.O. BARODA Moratorium Upto Tota Upto Rs.4 lacs : No security FREE DABIT
B. GYAN: Period :-Course Rs. l Above Rs. 4.00 Lacs and up CARD,
Period + 1 year 4.00 bran to Rs. 7.5 lacs: Collateral in 1% interest
Education in or 6 months after the form of a suitable third concession is
lacs shes
India - Max. getting job, party guarantee alognwith provided if
whichever is :- -18
Rs.7.5 lacs assignment of future income. interest debited
earlier. Nil Above Rs.7.5 lacs: Tangible
Education during
Abo collateral security equal to
Abroad - Max. repayment
Repayment:- ve 100% of the loan
Rs.20.00 lacs. holiday is
Loan to be repaid Rs. amount along with
Rate of within a serviced
4.00 assignment of future income
Interest- maximum period lacs: 1%Concessi
Upto Rs.4.00 of 5-7 years after - on in rate of

53
 lacs: 11.50%. S interest to loans
Above Rs.4.00 commencement tudi for girl student.
lacs:-13.50%. of repayment. es
with
in
Indi
a
5%
F
or
studi
es
abro
ad
15%

OB. Education in Moratorium Upto Rs. Tota For loan upto rs.4 lacs- 1% interest
C. India - Max. Period :-Course 4.00lacs: l No Collateral Security concession is
Rs.10lacs. Period + 1 year -Nil bran provided if
or 6 months after Above Above Rs. 4 lacs-7.50 interest debited
ches
Education getting job, Rs. 4.00 during
-96 lacs-one satisfactory third
Abroad - Max. whichever is lacs:- repayment
earlier. party guarantee
Rs.20lacs. Studie holiday is
s within serviced
Repayment:- Above Rs.7.50- Co-
Rate of India 5% 0.50%
Loan to be obligation of
Interest: For concession to
repaid within parents/guardian is
For Loan upto studies women
a maximum obligatory.
Rs. 4.00 Lacs: abroad
period of 5-7 beneficiaries,
11.25 % p.a. 15%
years after SC/STs and
Loan above
commenceme disabled
Rs. 4.00 Lacs:
nt of students.
12.00 % p.a.
repayment.

P.N. Education in Moratorium Upto Rs. For loan upto rs.4 lacs- Second time
B. India - Max. Period :-Course 4.00lacs: No Collateral Security Education
Rs.10lacs. Period + 1 year -Nil Loan can be
or 6 months after Above Above Rs. 4 lacs-7.50 sanctioned to
Education getting job, Rs. 4.00 lacs-one satisfactory third the same
Abroad - Max. whichever is lacs:-
earlier. party guarantee student
Rs.20lacs. Studie
Repayment:- borrower for
s within
Loan to be repaid Above Rs.7.50- Co- completion of
India 5%
within a obligation of next higher
For
maximum period parents/guardian is course.
of 5-7 years after studies
54
 commencement abroad obligatory.
of repayment. 15%

I.O. Education in Moratorium Upto Rs. TO Upto Rs.4 lacs:- No An interest

B. India - Max. Period :-Course 4.00lacs: TAL security rebate of 0.5%
Rs.10lacs. Period + 1 year -Nil BR Above Rs. 4.00 Lacs and is allowed. If
or 6 months after Above up to Rs. 7.5 lacs:
AN you pay
Education getting job, Rs. 4.00 Collateral in the form of a
whichever is CH Interest every
Abroad - Max. lacs:- suitable third party guarantee
earlier. ES- quarter during
Rs.20lacs. Studie alognwith assignment of
60 study period?
Rate of s within future income
Repayment: Loan
Interest:- India 5% Above Rs.7.5 lacs: Tangible
to be repaid within
Up to Rs. 4.00 For collateral security equal to
a maximum period
lakh - 12% studies 100% of the loan
of 5-7 years after
abroad amount along with
Above Rs. commencement of
15% assignment of future income
4.00 lakh repayment.:-
13.25%.

IDB Studies in Moratorium Upto Rs. Tota Upto Rs.4 lacs:- No

I India:- Period :-Course 4.00 l security
Maximum Period + 1 year lacs: bran Above Rs. 4.00 Lacs and
Rs.10 lacs or 6 months after -Nil up to Rs. 7.5 lacs:
ches
Studies getting job, Abo Collateral in the form of a
abroad: whichever is -23
ve suitable third party guarantee
Maximum earlier. Rs. alognwith assignment of
Rs.20 lacs 4.00
Repayment:-Loan future income
lacs: Above Rs.7.5 lacs: Tangible
to be repaid within -
a maximum period collateral security equal to
St 100% of the loan
of 5-7 years after
udie amount along with
commencement of
s assignment of future income
repayment.
with
in
Indi
a
5%
F
or
studi
es
abro
ad
15%

Can Studies in Moratorium Upto Rs. Bra Upto Rs.4 lacs : No Special
ara India:- Period :-Course 4.00lacs: nche security benefit for

55
ban Maximum Period + 1 year -Nil s-89 those student
k Rs.10 lacs or 6 months after Above Above Rs. 4.00 Lacs and who satisfying
Studies getting job, Rs. 4.00 up to Rs. 7.5 lacs: DRI
abroad: whichever is lacs:- Collateral in the form of a
suitable third
norms(DRI:
Maximum earlier. Studie
party guarantee alognwith annual income
Rs.20 lacs s within
assignment of future income. less than Rs
Rate of Repayment:-Loan India 5%
Interest:-Upto to be repaid within Above Rs.7.5 lacs: 7200 p.a)—
For Tangible collateral security 4%Interest rate.
Rs.4 lacs-- a maximum period
12.50% studies equal to 100% of the loan
of 5-7 years after amount along with
Above Rs.4 lacs abroad
commencement of assignment of future income
upto Rs. 7.50 15%
repayment.
lacs-13.50%
Above Rs. 7.50
lacs upto Rs15
lacs-11.25%
Above Rs.15.00
lacs upto
Rs.20.00:-
lacs10.75%,
U.B. Studies in Moratorium Upto Rs. Total Up to Rs. 7.50 lacs: -NO .50%
I. India:- Max. Period: -Course 4lacs: Nil bran collateral security is needed concession for
Rs.10 lacs Period + 1 year or 6 Above ches- for loans up to However, for
Studies in months after loans above this amount, female student
Rs. 4 lacs:
abroad:Max.Rs. getting job,
15 collateral security of suitable in all cases
Studie
20 lacs whichever is value, along with co-
s within
Rate of interest: earlier. obligation of
Up to Rs.4lacs:- Repayment:-Loan India 5% parents/guardian/third party,
11.75% to be repaid within For accompanied by an
Above Rs.4.lacs- a maximum period studies assignment of future income
Rs.7.5 lacs:-12% of 5-7 years after abroad of the student for payment of
AboveRs.7.5 commencement of 15% installments is required.
lacs:-11.50% repayment.

Syn Studies in Moratorium Upto Rs. Tota Loans upto Rs.4 lac - NIL.
dica India: - Period: -Course 4.00 l Loans above Rs.4 lac and
te Maximum Period + 1 year or lacs: bran
Rs.10 lacs 6 months after upto Rs.7.50 lac -
ban -Nil ches
getting job, Abo Collateral in the form of
k Studies whichever is -136
ve satisfactory third party
abroad:- earlier. Rs. guarantee acceptable to the
Maximum 4.00
Rs.20 lacs Repayment:-Loan Bank.
lacs:
to be repaid within - Loans above Rs.7.50 lac -
Rate of a maximum period Collateral security equal to
St
Interest:- of 5-7 years after
udie 100% of the loan amount
commencement of
For loans upto repayment. s with suitable margin and a
Rs.7.50lacs: - with third party guarantee
10.00 %. in
56
 Indi acceptable to the Bank
For loans a
above 5%
Rs.7.50lacs: -
F
9.50 %.
or
stud
ies
abro
ad
15
%

Indi For Studies in Moratorium Upto Tota Upto Rs. 4 lacs - No

an India:- Period :- Rs. l security
Ban Rs.10.00* lacs Course Period + 1 4.00lacs bran
year or 6 months Above Rs. 4 lacs & Upto
k :- Nil ches
For Studies after getting job, Rs.7.50 lacs - Collateral in
whichever is Above -41 the form of satisfactory
Abroad:-
earlier. Rs. 4.00 third party guarantee
Rs.20.00* lacs
lacs:-
Repayment:- Studie 3. Above Rs.7.50 lacs -
Rate of
s within Co-obligation of parents /
Interest:- Loan to be repaid guardians together with
Upto Rs.4.00 India
within a tangible collateral security
lacs:-12.50 % 5%
maximum period of suitable value along
p.a. of 5-7 years after For with assignment of future
Above Rs.4.00 commencement studies income of the student for
lacs -13.00 % of repayment. abroad payment of installments.
p.a. 15%

Alla Studies in Moratorium Upto For IIT/IIM/ISB* Girl

hab India: Period :- Rs. For loan upto Rs 10.00 students may
Tota lacs- No collateral security
ad 4.00lacs be provided a
Maximum Rs Course Period + 1 :- Nil l For Loan above Rs. 10.00
ban special relief
10.00 lacs year or 6 months bran lacs -
k Above of 1.00% in
after getting job, ches Co-obligation of parents/
whichever is Rs. 4.00 guardian together with all cases of
-60
Studies earlier. lacs:- tangible collateral security Rate of
abroad: Studie of suitable value covering
57
 s within full loan amount, interest
Maximum Rs. Repayment:- India alongwith the assignment
20.00 lacs Loan to be repaid 5% of future income of the
within a student for payment of
For Service
Rate of maximum period installments. For
Interest:- of 5-7 years after studies others:- interest during
commencement abroad For loan upto Rs 4.00 moratorium
Loan Upto Rs. of repayment. 15% lacs: No collateral security period
4.00 lacs is required. regularly and
For students of
avail a special
IIT / IIM/ ISB:- For loan above Rs 4.00
11.25% lacs and upto Rs 7.50 discount of
For Others:- lacs: Satisfactory third 1.00% in
12.25% party guarantee & Co- interest rate.
obligation* required.
Loan above Rs.
4.00 lacs-For For loan above Rs 7.50
students of IIT / lacs:-Co-obligation of FREE
IIM/ ISB:- parents/ guardian together Debit Card
11.25% with tangible collateral
For Others:- security of suitable value
12% covering full loan amount,
alongwith the assignment
of future income of the
student for payment of
installments.

Ban Studies in Moratorium Upto Tota Upto Rs. 4 lakh : No

k of India - Period: -Course Rs. l security
Indi Maximum Period + 1 year or 4.00lacs bran Above Rs.4 lakh & upto Interest
6 months after Concession of
a Rs.10.00 lakh :- Nil ches Rs.7.5 lakh:- Collateral
getting job,
Studies abroad Above -57 security in the form of a 0.50%p.a. for
whichever is
- Maximum earlier. Rs. 4.00 suitable third party woman
Rs.20.00 lakh. lacs:- guarantee. beneficiaries
Repayment:-Loan Studie Above Rs.7.5 lakh:- 1% int.
Rate of to be repaid within s within Collateral security of concession if
58
 India suitable value or at the
Interest:- a maximum period 5% discretion of the Bank interest is
Upto Rs.7.50 of 5-7 years after For suitable third party serviced
lacs:-11.00% commencement of during
studies guarantee alognwith the
p.a. repayment moratorium
abroad assignment of future
15% income of the student for period,
Above Rs.7.50 payment of installments
lacs: -12.00%
p.a.
And Studies in India Moratorium Upto Rs. Tota Upto Rs.4 lacs: No Concession
hra - Maximum Period: -Course 4.00lacs: l security of 0.50% for
ban Rs.10.00 lakh Period + 1 year or - Nil bran Above Rs. 4.00 Lacs and women
Studies abroad - 6 months after Above
k ches up to Rs. 7.5 lacs:
Maximum getting job, Rs. 4.00 -26 Collateral in the form of a
Rs.20.00 lakh. whichever is lacs:- suitable third party guarantee
earlier.
Studie alognwith assignment of
Rate of Interest: Repayment:-
-Upto Rs.4.00 s within future income.
Loan to be repaid
Lacs- 11.75% within a India 5% Above Rs.7.5 lacs:
Above Rs.4.00 maximum period For Tangible collateral security
lacs:- 13.50%, of 5-7 years after studies equal to 100% of the loan
commencement abroad amount along with
of repayment 15% assignment of future income

HD Studies in Moratorium Upto Rs. Tota Up to Rs7.5 lacs-No

FC India - Period: -Course 4lacs:Nil l Collateral required
BA Maximum Period + 1 year or Above bran
6 months after Rs. 4.00 Above Rs. 7.5 Lacs-
NK Rs.10lacs ches
getting job, lacs:- Collateral of full value
Studies abroad whichever is -77
Maximum Studie required
earlier.
s within
Rs.20.00 lacs. Repayment:-Loan
India 5%
Rate of Interest to be repaid
within a For
13%
maximum period studies
+1%processing abroad
of 5-7 years after
charge in 15%
commencement
Foreign cases of repayment

59
60