Revised IBA Model Education Loan Scheme

1

Purpose

For pursuing higher studies in technical and professional courses both in India and Abroad.

2

Eligibility

Student should be Indian National having secured admission to a higher Educational Course in India/Abroad through entrance test/merit based selection process.

The following institutions are considered as Top Rated Institutions and few concessions are extended to students admitted to these institutions:

IITs, IIMs, IISc Bangalore, ISB Hyderabad, BITS, AIIMS, NITs, IIFT Delhi, IMI Delhi, ISM Dhanbad, IRM Anand, SIBM Pune and XLRI Jamshedpur.

3

Nature of facility

Term Loan

4

Quantum of Loan minimum/maximum

Minimum Amount: No limit

Maximum Amount:

Rs.10.00 lakhs for studies in India

Rs.20.00 lakhs for studies abroad

5

Margin

Nil for loans up to Rs.4.00 lakhs

Loans above Rs.4.00 lakhs:

Studies in India – 5%

Studies abroad – 15%

6

Rate of interest

Click here

7

Guarantor

Suitable third party guarantee to be obtained for loans above Rs.4.00 lakhs for students admitted to other domestic institutions and for studies abroad.

Third party guarantee is waived if loan is eligible to be covered under Credit Guarantee Scheme of NCGTC i.e. for loans up to Rs.7.50 lakhs.

8

Security

No security for loans up to Rs.10.00 lakhs for students admitted to Top Rated Institutions.

For students admitted to other domestic institutions and for studies abroad:

a.   Parents to be joint borrower (s) for loans up to Rs.4.00 lakhs.

b.   Collateral security in the form of suitable third party guarantee to be taken for loans above Rs.4.00 lakhs and up to Rs.7.50 lakhs besides taking parents as joint borrowers (s).

c.   Tangible collateral security acceptable to the Bank along with assignment of future income of the student for loans above Rs.7.50 lakhs besides taking parents as joint borrower (s).

9

Processing fees/other charges

i)             0.75% + GST for loans above Rs.10.00 lakhs.

ii)           Rs.250 + GST payable to NSDL for each application sanctioned through Vidya Lakshmi Portal irrespective of loan amount.

10

Moratorium Period

Course period + 1 year.

11

Repayment Period

Up to 15 years for all loans (after moratorium period)

12

Application with checklist

Click Here for Application Form

13

Any other relevant matter

Central Scheme of Interest Subsidy for Education Loans (CSIS): The loans up to Rs.10.00 lakhs for studies in India are eligible for interest subsidy under CSIS scheme provided the annual family income of the student borrower does not exceed Rs.4.50 lakhs per annum. The entire moratorium interest charged to the account is reimbursed by the Govt. of India. Income Certificate from the Competent Authority to be submitted.

Padho Pardesh: The loans up to Rs.20.00 lakhs for studies abroad for pursuing Masters, M.Phil and Ph.D courses are eligible for interest subsidy under Padho Pardesh scheme provided the annual family income of the student borrower does not exceed Rs.6.00 lakhs per annum and belongs to minority community. The entire moratorium interest charged to the account is reimbursed by the Govt. of India. Income Certificate from the Competent Authority to be submitted.

Dr Ambedhkar Central Sector Scheme of Interest Subsidy on Educational Loans for  Overseas Studies for Other Backward Classes (OBCs)- ACSISOBC: The loans up to Rs.20.00 lakhs for studies abroad for pursuing Masters, M.Phil and Ph.D courses are eligible for interest subsidy under ACSISOBC scheme provided the annual family income of the student borrower does not exceed Rs.3.00 lakhs per annum and belongs to OBC category. The entire moratorium interest charged to the account is reimbursed by the Govt. of India. Income Certificate from the Competent Authority to be submitted.

Dr Ambedhkar Central Sector Scheme of Interest Subsidy on Educational Loans for  Overseas Studies for Other Backward Classes (OBCs)- ACSISOBC:The loans up to Rs.20.00 lakhs for studies abroad for pursuing Masters, M.Phil and Ph.D courses are eligible for interest subsidy under ACSISEBC scheme provided the annual family income of the student borrower does not exceed Rs.1.00 lakh per annum. The entire moratorium interest charged to the account is reimbursed by the Govt. of India. Income Certificate from the Competent Authority to be submitted.