Education Loan Scheme for pursuing Higher Education in India
1(i) Student Eligibility
(a) Should be an Indian National.
(b) Should have secured admission to a higher education course in recognized institutions in India through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or equivalent).
(c) While considering the Eligibility–
(i) Where the student has obtained admission in eligible course through merit based selection process, he/she could be considered meritorious.
ii) Where the admission is purely based on marks scored in qualifying examinations, cut off percentage of marks of 50% for SC/ST and 60% for General category be considered.
1(ii) Courses Eligible (Studies in India):
(i) Approved courses leading to Graduate/ Post Graduate degree and PG Diplomas
conducted by recognized colleges/ universities recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR etc.
(ii) Courses like ICWA, CA, CFA etc.
(iii) Courses conducted by IIMs, IITs, IISc, XLRI. NIFT, NID etc.
(iv) Regular Degree/Diploma courses like Aeronautical, pilot training, shipping Nursing or any other discipline approved by Director General of Civil Aviation/Shipping/ Indian NursingCouncil or any other regulatory body as the case may be, if the course is pursued in India.
(v) Advance Diploma in Banking Technology offered by PNB IIT Lucknow.
(vi) Approved courses offered in India by reputed foreign universities.
(vii) Research Programmes recognized by designated academic authority/ regulatory body.
2 Expenses considered for loan:
(i) Fee payable to college#/ school/ hostel.*
(ii) Examination/ Library/ Laboratory fee.
(iii) Insurance premium for student borrower, if applicable.
(iv) Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts. **
(v) Purchase of books/ equipments/ instruments/ uniforms.***
(vi) Purchase of computer at reasonable cost, if required for completion of the course.***
(vii) Any other expense required to complete the course - like study tours, project work, thesis, etc.***
(viii) While computing loan required, scholarships, fee waiver etc., if any available to the
student borrower may be taken into account.
3. Quantum of Finance
Studies in India - Max. Rs.10 lac
4. Re-imbursement of fees:
Branch Manager may permit reimbursement of fees paid by the student/ guardian at the time
of admission or subsequent stages within six months from the date of payment of fees on
individual merits of the case.
Up to Rs. 4 lac - NIL
Above Rs. 4 lac - 5%
(i) Up to Rs. 4 lac:
Parent(s)/guardian be made joint borrower (s). No Security.
(ii) Above Rs. 4 lac and upto Rs. 7.5 lac:
Besides the parent(s)/guardian executing the documents as joint borrower(s), collateral
security in the form of suitable third party guarantee be taken.
Above Rs.7.5 lac:
Parent(s)/guardian be joint borrower(s).Tangible collateral security of suitable value
acceptable to bank.
7. Rate of Interest:
Please view Interest chart posted separately.
(i) Repayment of loan will be in equated monthly installments (EMIs) for period as under:
For loans upto Rs.7.50 lac - upto 10 years
For loans above Rs.7.50 lac - upto 15 years
(ii) Repayment Holiday/Moratorium:
Course period + 1 year or 6 months after getting job, whichever is earlier.
9. Illustrative Check List
(i) Loan application on Bank's format.
(ii) Passport size photograph.
(iii) Proof of Address.
(iv) Proof of Age.
(v) Copy of PAN of student Borrower*.
(vi) Proof of having cleared last qualifying examination.
(vii) Letter of admission.
(viii) Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel
Charges etc. are mentioned.
(ix) Details of Assets & Liabilities of parents/co-obligants/guarantors.
(x) In case loan is to be collaterally secured by mortgage of IP, copy of Title Deed, Valuation
Certificate and Non-encumbrance Certificate from approved Lawyer of the Bank be
obtained at the cost of the borrower.
(xi) Any other document/information, depending upon the case and purpose of the loan.
*If PAN is not available at the time of sanction, the same be obtained within one year of
disbursement of loan