Eligibility

Any individual who is a bona fide member of the Bank and has secured admission to a recognized professional/technical or graduation/post-graduation course in India or abroad.

In case of a minor student, the natural guardian must be a Bank member and the loan will be sanctioned through them.

Purpose

To meet study expenses such as tuition and other fees, hostel charges, books, equipment, instruments, uniforms, deposits, travel expenses and other necessary student expenses including vocational studies.

Maximum Limit

Up to ₹25.00 Lacs for studies in India and abroad.

Margin

• 5% of study cost if loan amount is up to ₹5.00 Lacs
• For higher amounts:
• 10% for studies in India
• 15% for studies abroad

Type of Facility

Term Loan

Security

Mortgage of immovable property (borrower or third party) or any acceptable security such as assignment of life policies, pledge of Government securities, or Bank deposits of adequate value.

Sureties

Minimum two sureties with satisfactory means.

Rate of Interest

10% p.a. (subject to change from time to time)

Other Charges

As per Bank’s rules from time to time.

Disbursement

Loan will be disbursed in stages as required, directly to the college/institution or vendors for books, equipment, instruments, etc. Receipts must be obtained and kept on record.

Repayment

• Repayable within 7 years from the first disbursement
• First EMI due 6 months after course completion or job placement (whichever is earlier)
• Minimum 60 monthly instalments
• Interest accrued during moratorium may be added to principal or paid separately at borrower’s option