| Eligibility | 1) For Higher Education in India the student should have to secure minimum 50% of marks in the qualifying examination. For 1) Technical/Professional/Specialized/Post Graduation studies in India as well as in foreign parts also, in foreign parts the student should have secured admission. 2) Parents/guardian having independent and regular sources of income, traders, self-employed, professionals and persons engaged in agriculture/ allied activities are eligible for availing loan under this scheme. Loans are advanced in joint names of student and parent/ guardian. | |||||||||
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| Eligible Courses | 1) All courses conducted by UGC up to Universities and Autonomous Institutions affiliated to them. 2) Technical/Professional higher studies in India as well as in foreign parts of any recognized Institutes/ Universities. 3) The University course of study and location of University for which applicant has applied shall be recognized as per the records of WORLD HIGHER EDUCATION DATABASE (www.whed.net) | |||||||||
| Amount of Loan | 1) The maximum loan amount component shall be Rs. 25,00,000/- based on 75% of Tuition fee, 60% of Lodging and boarding expenses and 75% of purchase of laptop and books (or) based on the EMI eligibility of Parent/ Guardian. 2) The independent income of both the parents and other near blood relation will be included for arriving at the eligible loan amount provided they stand as Co-obligates for the loan. Even if one of the parents do not have any independent income also they should stand as Co-obligates, where property is offered as collateral security, even in case the property is in the name of one of the parents. | |||||||||
Margin | 25% of the cost of course shall be borne by the applicant/ parents/ guardian. The applicant should furnish the source of margin money. | |||||||||
Rate of Interest | a. Interest will be charged @ 10.50% p.a. b. Fixed rate of Interest is charged c. Penal interest at 2% over and above the normal interest will be charged on the defaulted amount. | |||||||||
| Identity Proofs | All the members, the student and the Co-borrowers or guarantors shall comply with the KYC norms. | |||||||||
| Securities | Collateral security of immovable property to the extent of 100% of loan amount under HMDA limits and Mandal Panchayats standing in the names of Student/Guardian or Parent/Guarantors(near relatives) and 100% agriculture lands standing in the names of Student/Guardian or Parent/Guarantors. Valuation of the Property: 1. Value obtained from SRO/MRO of assurances. 2. Market value certified by officer conducting filed inspection and restricted to 300% item no. 01. 3. Value assessed by panel valuers of the Bank (For House Property) Loan will be restricted 100% average value of the above 3. | |||||||||
Documents required for admission of loan application | The following documents to be furnished along with application at Branch level. a) Proof of identity: KYC(Aadhar card, Passport, Driving licensee, PAN card, employee ID, etc.)of Applicant & Co-obligant. b) Bank statement for preceeding 6 months of applicant and co-obligants. However, Bank statement for one year in case of private employees. c) Passport size photographs of the applicant and co-obligant. d) Proof of income: 6 latest monthly salary slips for employees. e) IT returns for the last three consecutive financial years with Barcode duly acknowledged by the ITO with computation of income, for professionals/ self-employed(all the 3 IT returns should not be filed in the same year) f) Firm and VAT registration copies. g) Educational certificates from SSC of the student/ applicant. h) Admission letter from University. Papers relating to the proposed property: i)Copy of sale deed along with link documents for 13 years (30 years if considered necessary based on the merits of the case) ii)Encumbrance Certificate for 23 years (30 years if necessary) iii)Tax paid receipts (property tax, Municipal tax, Electricity Bill and Water Bill) iv)Copy of the approved plan from appropriate authority v)Road map of the House/Flat vi) BRS for old buildings vii)Location sketch along with land marks, photo of the building with attestation by the property owner. viii)After due verification of KYC of applicant and co-obligant, the Branch Manager should visit the proposed property, residence, work place of the applicant and co-obligant(Address of property should match with the details mentioned in the document) and forward the loan application with due recommendation to HO. ix)Any other documents which may be considered necessary as per requirement of the case. | |||||||||
| CIBIL Score | CIBIL score of the Student/ Parent (Guardian)/ Guarantor should be recorded and minimum score should be 600 as per version 2.0. CIBIL Report should be obtained at Head Office only. CIBIL Reports furnished by the Borrower should not be accepted. ** CIBIL score is checked under the HMDA limit area branches. ** CIBIL score is exempted for the rural area branches. | |||||||||
| Legal Scrutiny | 1. Agriculture Land: The copies of the documents related to the property offered as security for the loan will be first sent to the ADO of Bank for his legal opinion. 2. Commercial Plots: The copies of the documents related to the property offered as security for the loan will be first sent to the Legal Advisor of Bank for his legal opinion. | |||||||||
| Valuer Scrutiny | The copies of the documents related to the property will be sent to the approved Valuer of Bank separately for valuation of the property. | |||||||||
| Legal and Valuer Fees | Borrower has to bear cost of stamping on memorandum of deposit of title deeds plus notification charges and E.C. Charges, as per rules in force. Advocate fee of Rs.2,500/- and Valuer’s fee as per valuer report. | |||||||||
| Physical Verification | One officer from HO conducts verification of employment/ business/ income of the co-obligant and surety and cross check the KYC and also conduct physical verification of the collateral property along with Branch Manager. Basing on the Legal report, Valuer report and repaying capacity of the co-obligant and surety, the branch manager along with FIO will process the loan application. | |||||||||
| Delegation Powers |
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| Coverage of Insurance | The life Insurance policy of the student for period and amount of loan shall be obtained duly assigned in the name of the Bank and be kept on record before release of loan. | |||||||||
| Documents to be obtained before disbursemenet | a) Original registered sale deed of the property offered as security along with link documents. b) Memorandum of Deposit of Title Deeds with the Bank, under equitable mortgage after registration with SRA and link documents. c) Insurance of building financed for a minimum of 100%for full loan period/amount or for total value of the house whichever is higher against risks like fire, terrorist attacks, earthquake, floods etc., d) Notification of Equitable Mortgage and obtain EC with Bank’s interest recorded. | |||||||||
| Other Charges | Nominal share capital of Rs.100/- and admission fee of Rs.10/- each to be collected from the Applicant and Co-applicants and Nominal membership application to be obtained in the prescribed form. | |||||||||
| Disburse-ment of the Loan | 1) The course fee for semester-wise/ year-wise shall be paid to Institution based on proof of their invoice/ letter provided or in case the amount already paid by Parent/ Guardian/ Co-obligate not more than 3 months the same may be reimbursed by credit to SB account standing jointly in the name of Student and parent/ Co-obligate enabling to meet the cost of course. By way of DD to the Institute for semester fee for studies in India. Living expenses and airfare may be disbursed by way of credit to SB account For second and subsequent semesters demand notice for fee along with student’s record of completion of first year should be furnished. Bank can exercise its discretion to stop the disbursement, if performance of the student is not satisfactory, and the amount already disbursed will be recalled. The yardstick for the performance is the marks scored by the student in the preceding semester or year. 2) Based on university/ institution rules and regulations the disbursement will be made in single/ multiple disbursements. | |||||||||
| Processing Fee | 0.5% of the loan amount, subject to a maximum of Rs.15,000/- (+) applicable taxes. | |||||||||
| Repayment Period | The maximum repayment period is 2 + 5 years. (2 years Moratorium Period) Interest payment shall be commencing immediately after disbursement, by parent/guardian. Interest shall be repaid by the Parent/ Guardian/ Co-obligate during the period of study and for grace period of 12 months. And EMI shall be repaid on monthly basis commencing from year after completion of study or getting a job whichever is early. (For Agriculture income source the interest shall be paid every Quarterly/ Half yearly based on the crop for both Agri./Agri. Allied. |