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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 : 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*: (w.e.f. 01.04.09)
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Upto Rs.4.00 lacs – 2.50% below BPLR., Min. 9.50% p.a.
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Above Rs.4.00 lacs upto Rs.7.50 lacs – 2.00% below BPLR, Min. 10.00% p.a.
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Above Rs.7.50 lacs - 1.25% below BPLR, Min. 10.75% p.a.
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Simple interest during the repayment holiday/moratorium period. Penal interest @2% for loans above Rs.4 lakh for the overdue amount and overdue period.
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Int. Concession of 0.50%p.a. for woman beneficiaries for limits upto Rs.50,000/- and 1% for limits over Rs.50,000/-
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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)
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 lacs upto Rs.7.50 lacs - Rs.1000/-
Over Rs.7.50 lacs upto 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:
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Processing/upfront charges
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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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Agreement(copy to borrower) Xerox charges
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Loan upto Rs.2 lacs- Rs. 25/-*
Loan over Rs.2 lacs- Rs.100/-*
Plus copying charge of Rs.1 per page
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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 lacs upto 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 :
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i) Loan to be disbursed in stages as per requirement / demand, directly to the Institution/ Vendors of books/equipments/instruments to the extent possible;
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ii) Student to produce mark list of previous term/semester before availing next installment ;
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iii) Student / Parent to provide latest mailing address, in case of any change ;
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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.,
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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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