VIDYA EDUCATIONAL LOAN SCHEME (for educational courses within India)

1. Purpose : To provide financial assistance to the meritorious & indigent students to undergo professional courses including hostel accommodation with a view to acquire technical skills & training in any specialized discipline like :
• Medical & Dental
• Engineering
• Computer Science
• Management
• Sports field
• Courses like NIFT, NID etc

2. Eligibility
• The student should be an Indian National
• Where the applicant is not having any income source, any one Parent/Guardian having a regular source of income should apply as a borrower.
• Where the student is minor, any one in favour. Parent/Guardian having a regular source of income should apply as a borrower.

3. Maximum Finance
• Rs. 10.00 Lakhs
• 30 times Net monthly salary in case 4 times of average annual income in case parents are professionals / businessman.parents/guardians are salaried.

4. Rate of Interest
• @13.5% p.a. (upto 2 Lakh)
• @ 14% p.a. (above 2 Lakh)
• Interest during moratorium period will be charged on monthly basis. The same should be immediately serviced.

5. Margin
• Maximum 80% of course fee, payment of books, Examination /Library

6. Tenure
• Maximum 60 to 120 months on EMI basis. (Repayment to commence after one month of getting employment or one year completion of course whichever is earlier.

7. Security
• Where the loan amount is more than Rs.1.00 Lakh then any one of the following security will be obtained.
• Surrender value of LIC Policies
• Government / Tangible Securities such as NSC, RBI bonds etc.
• Term Deposit
• Mortgage of immovable Property

8. Guarantors
• Two guarantors having a regular source of income which can include one family member filing regular Income Tax Returns acceptable to the Bank.

9. Processing Charges
• Nil -

10. Insurance
• Comprehensive Life Insurance policy for the student availing Educational Loan to be assigned in favour.

11. Share Linkage
• 2.5% of Loan amount OR 5% of Loan amount where recovery u/s 49 or security is not available.

12. Documents to be submitted with the Loan application.
• Proof of age & educational qualification such as Mark sheet, Degree Certificate.
• Proof of admission to the course with fee structure & proforma invoice of book to be purchased.
• Proof of employment of co-borrower with last 6 month salary slip & of student if employed
• Bank A/c statement where salary is credited of last 1 year.

13. Documentation
• D. P. Note
• Loan Agreement
• Letter of Lien & set-off
• Personal guarantee bond
• Equitable Mortgage /Registered Mortgage of Property
• Undertaking from employer u/s 49 of MCS Act for deduction of monthly installment from salary.
• Default guarantee from borrower, sureties u/s 49 of MCS Act in case of salaried persons

14. Sanctioning Authority
• Loan Committee /Board

15. Mode of Disbursement
• Margin money of 20% of course fee to be deposited in the A/c. 100% of course fee will be remitted by payorder in favour of the institutions as per their course fee/payment schedule

*Conditions Apply

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