Student Loans FAQ's

Who is eligible for an Education Loan ?

Students who wish to pursue higher education .You need to be an Indian resident having secured admission in any of the bank’s list of approved course or universities.

Which courses can I take an Education Loan for ?

• Management Courses ( Full-Time + Part Time ) - PostGraduation
• Engineering Courses ( Government + Private ) - Graduation
• Medicine - Graducation + Post Graducation
• Masters in Computer Application ( MCA/MCM) - Post Graduation
• Online / Distance Learning courses.

Wherever it is a private institution,the same has to be recongized by the relevant/competent government body.

• Fine Arts and Designing - Graduation + Post Graduation
• Architecture - Graduation
• Hotel and Hospitality - Graduation + Post Graduation
• Agriculture - Post Graduation
• Pure Science - Graduation + Post Graduation
• B.A./B.Com/M.A./M.Com
• Courses such as SAP , ERP , GNIIT , Air Hostess Training programmes etc.

Besides the above mentioned ,other Institute to be rated on the basis of their listing with the AICTE etc.

Is there any criteria for taking an Education Loan ?

Anyone in the age group of 16-35 years can take this loan.

Which expenses does the loan cover ?

• Fee Payable to College/School/Hostel
• Exam/Library/Lab fees
• Caution deposit / Refundable deposit asked by the institution/Building fund - supported by Institution bills/receipts
• Purchase of Books/equipments/instrument/uniforms
• Travel expenses/passage money for studies abroad
• Purchase of computers - essential for completion of the course

Any other expense required to complete the course - like study tours, project work, thesis, etc.

Do I have to pay part of the fees ?

100% loan is available for select courses. Margin ranges from 5-15 % for courses in India & Abroad .Please contact your nearest branch for further details.

Is there moratorium/repayment holiday available ?

Yes. A moratorium/repayment holiday is available for select courses. Please contact your nearest branch for further details

What is the moratorium period ?

Repayment holiday/ moratorium would be for the course period + 1 year or 6 months after the student gets a job/start earning whichever is earlier.

Is there any kind of repayment that has to be made in the moratorium period ?

Interest would have to be paid during the moratorium, the interest servicing would be of simple interest calculated on the loan amount disbursed payable monthly.

What would be the mode of repayment ?

Customer has the option of paying through Standing instructions/ ECS/Post dated cheques

What would be the tenure of the loan ?

Maximum tenure of the loan can be 7 years including moratarium period.

Is there a need of a co-applicant ?

Yes, a co-applicant is required for all Full-Time courses . The co-applicant can be your parents, siblings, spouse or Family Relative . Loan eligiblity would be calculated on the basis of the co-applicant's income. In case of Part Time courses , No Co-applicant required . However in order to increase the eligibility a co-applicant may be added .

Which document have to be furnished to avail the loan ?

Declaration/Affidavit confirming that no loan has been availed from other Bank/Institution

• Completely filled Application Form with Photographs.
• Letter of admission from the Institute
• Letter from the Institute stating cost break up of the program (term-wise, year-wise)
• Marksheets from SSC onwards till the latest examination passed
• KYC Documents for the Applicant & Co-applicant (Residence Proof , ID Proof , Signature Verfication Proof , Age proof )
• Income Documents of the Co-applicant ( Pay Slips / ITR copy etc )
• Declaration/Affidavit confirming that no loan has been availed from other Bank/Institution

For studies abroad - In addition to the above list of documents – Pls Provide :

• Letter from the Head Of Department ( University)
• Visa approval papers
• Travel papers
• GMAT/GRE/SAT score

I-20 in case of applicant going to the USA

What is the quantum of the loan ?

For loans with Moratorium :

• Studying in India - Max Rs. 10 Lakhs
• Studying abroad - Max Rs. 20 Lakhs

For Loans without Moratorium :

• Studying in India - Max Rs. 7.50 Lakhs
• Studying abroad - Max Rs. 10 Lakhs

Is there any documention required post the sanction of the loan ?

Progress reports to be provided at the time of every disbursement tranch. Progress report includes mark sheets or a letter from the Institute, in case the mark sheet are not available while processing the fresh disbursement tranch.

The following documents have to be submitted post the sanction of the loan

• Education Loan Agreement
• SI/ECS Mandate as applicable
• Post Dated Security Cheques as per Policy

Any other documents which might be required as per policy.

What are the acceptable collaterals for taking an educational Loan?

Collaterals are required only for educational Loans above Rs.7.5 lakhs. The acceptable collaterals are:

• Fixed deposits

Property (Residential)