A Class members of the bank are eligible for availing loan for pursuing the courses in institutions approved by Union or State Governments and All India Council for Technical Education (AICTE) – students can take a loan jointly with his guardians/parent, if he is over 18 years of age and otherwise the loan will have to be taken by the guardian/parent. Student should have first class in the qualifying examination
Graduate courses (BA,BSc,Bcom) post graduates courses and professional courses in Engineering, Medicine, Nursing, law, Management, Agricultural Science, Computer Science, fashion technology, Hotel Management and similar other courses.
Degree, Diploma and certificate courses in Chartered Accountancy (Institute of Chartered Accountants of India) Cost Accountancy (Institute of cost and works Accountants of India) CFA (Institute of Chartered Financial Analysts of India) and CMA (Chartered Institute of Management Accountants). Students those who are studying in recognized institutions and universities abroad are also eligible to apply.
Maximum limit for loan for pursuit of studies within the country and outside are 5 lakhs and 25 lakhs respectively
Loan upto 85% of the total expenditure covering tuition fee, cost of books and equipments, Hostel fee, Exam fee, project cost and study tour will be provided.
Advance is made against the mortgage of landed property, plant and machinery and other fixed assets or the hypothecation of goods in trade, raw material in production and finished goods. Deposit of title deed can also be applied if the original prior documents are submitted along with the title to be mortgaged
Students those who studying in abroad can also include airfare.
Amount will be disbursed directly to the university or Institute as and when required. Cost of books and equipments will be disbursed on the production of purchase bill and exam fee etc against declaration of the applicant
Repayment period will be 7 years after completion of the course. Loanees have the flexibility to choose for a shorter repayment period
Repayment of Principal Amount will begin within one year of the completion of the course or six months after getting employment which ever is earlier. Till then, only interest need to be paid on monthly basis. There will be no penality for premature payment
The outstanding under the cash credit will carry interest at the rate of 16.00% per annum with monthly rests. Interest subsidy will be available
Interest subsidy extended for other types of loans is not eligible for this loan
Amount will be decided after evaluating the credentials of the applicants and the performance of the students in the examinations cleared. For loans upto 1 lakhs personal surety of employed persons will be applicable and for amount more than 1 lakhs, in addition to personal surety landed property to be mortgaged as equitable mortgage/Registered Mortgage. An amount equivalent to the 75% of the market value will be sanctioned as loan
Share linking will be 3.5% and 5% of the limit sanctioned in respect of secured & unsecured advances respectively
Application to be submitted to the Branch Manager and Board of Directors will be the sanctioning authority. Proof of admission, certificates of examinations completed, proof of address, income statement of Co-applicant etc are to be submitted along with the salary certificates and necessary documents regarding the landed property
In all cases the legal and technical charges, stationary charges, registration charges and all other incidental changes shall be borne by the borrower