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6. SECURITY:
Upto Rs. 4 lakh : No security
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 : Co-obligation of Parents together with tangible Collateral security of suitable value 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*: (w.e.f. 28.07.2011) (Floating)
- Upto Rs.7.50 lacs – 3% above Base Rate, presently 13.75% p.a.
- Above Rs.7.50 lacs – 2.50% above Base Rate,presently 13.25% p.a.
- Int. Concession of 0.50%p.a. for woman beneficiaries for limits upto Rs.50,000/- and 1% for limits over Rs.50,000/-
- For Professional courses (like Engg./Medical/ Management, etc.) int. concession : 0.50%
- 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 only)
- Simple interest during the repayment holiday/moratorium period. Penal interest @2% for loans above Rs.4 lakh for the overdue amount and overdue period.
No processing charges.
One time charges for any deviations from the scheme norms including approval of courses outside the scheme -
Upto Rs.4.00 lacs - Rs. 500/-
Over Rs.4.00 lacsupto Rs.7.50 lacs - Rs.1000/-
Over Rs.7.50 lacsupto Rs.20.00 lacs - Rs.2000/-
In respect of loans availed by borrowers from rural areas from the Rural Branches – Charges Nil
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.
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For Studies Abroad – Rs.1000 for issuance of sanction letter for obtention of VISA. Amount refundable on availing loan.
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Document /Stamp Charges
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At Actuals
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Change of Institution
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Studies in India – Rs.250/-
Studies Abroad- Rs.500/-
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One time charges for any deviations from the scheme norms including approval of courses outside the scheme –
Upto Rs.4.00 lacs - Rs.500/-
Above Rs.4.00 lacs to Rs.7.50 lacs - Rs.1,000/-
Over Rs. 7.50 lacsupto Rs.20.00 lacs – Rs.2,000/-
In respect of loans availed by borrowers from rural areas from the Rural Branches – Charges NIL.
11. OTHER CONDITIONS :
i) Loan to be disbursed in stages as per requirement / demand, directly to the Institution/ Vendors of books/equipments/instruments to the extent possible;
ii) Student to produce mark list of previous term/semester before availing next installment ;
iii) Student / Parent to provide latest mailing address, in case of any change ;
iv) Student /Parent to inform Branch immediately on change of course /completion of studies/termination of studies/ any refund of fees by college /institution /successful placement /obtention of job/change of job etc.,
On Line facility available for submission of application, tracking of application status and resume completion of incomplete application .
For further information, you may contact nearest branch of the Bank. Loan at the sole discretion of Bank of India.
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