tag:blogger.com,1999:blog-63028830231876297902024-02-20T09:39:12.310-08:00Education LoanInformation about Educational Loan Scheme for professional and other degree courses from public sector banks in IndiaDr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.comBlogger20125tag:blogger.com,1999:blog-6302883023187629790.post-40208069017770527382012-11-04T17:01:00.000-08:002012-11-04T17:01:06.567-08:00IBA Circular on Model Scheme for Vocational Education and Training<br />
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<b><span style="font-size: 14.0pt; mso-ansi-language: EN-US;"><br /></span></b></div>
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<b><span style="font-size: 14.0pt; mso-ansi-language: EN-US;">Indian Banks Association</span></b></div>
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<b><span style="font-size: 14.0pt; mso-ansi-language: EN-US;"><a href="http://www.iba.org.in/educational_loan.asp">http://www.iba.org.in/educational_loan.asp</a></span></b></div>
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<b><span style="font-size: 14.0pt; mso-ansi-language: EN-US;">Chief Executive</span></b><span style="font-size: 14.0pt; mso-ansi-language: EN-US;"><o:p></o:p></span></div>
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No. CE/209<o:p></o:p></div>
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31<sup>st</sup> May, 2012<o:p></o:p></div>
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<b>To :<o:p></o:p></b></div>
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<b>Chief
Executives of all Member Banks</b><o:p></o:p></div>
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Dear Sirs,<o:p></o:p></div>
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<b>IBA
MODEL LOAN SCHEME FOR VOCATIONAL EDUCATION AND TRAINING<o:p></o:p></b></div>
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<br /></div>
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Please refer to our circular No.
SB/CIR/10-21-VC/4715 dated 20<sup>th</sup> December, 2011 enclosing a ‘Model Educational
Loan Scheme for Vocational Courses. On
subsequent interactions with the Dept. of Financial Services and the Prime
Minister’s National Council on Skill Development under the Chairmanship of Mr.
S Ramadorai brought out the need for bank loans for Skill Development training
involving periods even lesser than 6 months.
It was informed that National
Council on Skill Development has ambitious plans to develop skilled work force
in the country and around 25 lakh persons are expected to avail credit for
vocational / skill development programmes in the next 3 years. The Prime Minister’s office also sent us some
suggestions for modifying the Model Scheme to make the bank scheme in line with
the Govt. plan for Skill Development.
IBA also interacted with some of the Skill Development Institutes in
Maharashtra for feedback and suggestions.
<o:p></o:p></div>
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The IBA Sub-Committee on Educational Loan
Scheme considered the suggestions and the revised Model Scheme was placed
before the IBA Managing Committee at its meeting held on 25<sup>th</sup> May,
2012. The Managing Committee after
discussions approved the changes in the Scheme including change in the title of
the Scheme. The Model Educational Loan Scheme for Vocational Courses will now
be called as <b>‘IBA Model Loan Scheme for
Vocational Education and Training’.<o:p></o:p></b></div>
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A copy of the revised Model Scheme is enclosed
for your perusal. Member Banks may like
to adopt and implement the Scheme with effect from 1<sup>st</sup> July, 2012,
after taking the approval of the Bank’s Board.<o:p></o:p></div>
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<br /></div>
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While on the subject, Member Banks may kindly
note that the Govt. is proposing to establish a Credit Guarantee Fund Trust to
administer and operate Credit Guarantee Fund for loans granted by banks for
Vocational Courses including Skill Development.
The details are being worked out.<o:p></o:p></div>
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<br /></div>
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Yours faithfully,<o:p></o:p></div>
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<br /></div>
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<br /></div>
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<b>(K
Ramakrishnan)</b><o:p></o:p></div>
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<b><u>Encl.
:</u></b>
Copy of revised Model Scheme.<o:p></o:p></div>
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<br /></div>
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<span style="font-size: 8.0pt; mso-ansi-language: EN-US;">sb/vocational courses/cir ces model loan sch for vocL
courses.</span><o:p></o:p></div>
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c.c. to : 1) All
SLBC Convenors<o:p></o:p></div>
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2) All Members of the IBA Sub-Committee on
Educational Loan Scheme<span style="font-size: 8.0pt; mso-ansi-language: EN-US;"><o:p></o:p></span></div>
Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com46tag:blogger.com,1999:blog-6302883023187629790.post-60958537647074298842012-11-04T16:56:00.000-08:002012-11-04T16:58:13.755-08:00IBA Model Loan Scheme For Vocational Education and Trainig<div align="right" class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 76.5pt; margin-right: 184.5pt; margin-top: 0in; tab-stops: 81.0pt 318.95pt; text-align: right;">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;"> </span><span lang="EN-IN" style="font-size: 11.0pt; mso-ansi-language: EN-IN; mso-bidi-font-size: 12.0pt; mso-fareast-language: EN-IN; mso-no-proof: yes;"><o:p></o:p></span></div>
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<span style="font-size: 12.0pt;">Indian Banks’ Association</span><span style="font-family: "Garamond","serif"; font-size: 12.0pt;"><o:p></o:p></span></h6>
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<span style="font-size: 12.0pt;"><a href="http://www.iba.org.in/educational_loan.asp">http://www.iba.org.in/educational_loan.asp</a></span></h6>
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IBA MODEL LOAN SCHEME FOR VOCATIONAL
<o:p></o:p></h2>
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EDUCATION AND TRAINING <o:p></o:p></h2>
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1.<span style="font-size: 7pt; font-weight: normal;"> </span><!--[endif]-->INTRODUCTION</h3>
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<o:p></o:p></h1>
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The IBA Model Educational Loan
Scheme for pursuing higher studies in India & Abroad was formulated
initially in the year 2001 and modified subsequently from time to time with the
objective of facilitating pursuit of higher studies by meritorious
students. The focus was mainly on
technical and professional courses in recognised Colleges and
Universities. The vocational courses
offered by ITIs, ITCs, Polytechnics and other technical institutions / bodies
were not covered in the Model Educational Loan Scheme (some banks do provide
loans for pursuing 3 year diploma courses offered by Polytechnic Institutes). However, in view of the initiatives being
taken by the Govt. of India in skill development in recent years, a need was
felt for providing institutional funding for the students undergoing
specialized skill development programs in recognized institutions. The Govt. has estimated that the country
would require 10 to 15 million skilled workers every year to support the
development process. The initiatives
being taken by the Govt. are for setting up
new training facilities, modernization of existing centres and intensive
faculty development. The “Model
Educational Loan Scheme for Vocational Courses” has been developed as an
extension of the existing Model Educational Loan Scheme for pursuing higher
education in India & Abroad, to support the national initiatives for skill
development. <o:p></o:p></div>
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<b>2.</b> <b>OBJECTIVE<o:p></o:p></b></div>
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The Model Educational Loan Scheme
for Vocational Courses aims at providing financial support from the banking
system to those who, have the minimum educational qualification, as required by
the institution / organization running the course eligible under the scheme .<o:p></o:p></div>
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<b>3. APPLICABILITY OF THE SCHEME<o:p></o:p></b></div>
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The
scheme could be adopted by all member banks of the Association or other banks
and financial institutions as may be advised by the RBI. The scheme provides broad guidelines to the
banks for operationalising the educational loan scheme and the implementing
bank will have the discretion to make changes as deemed fit.<o:p></o:p></div>
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<!--[if !supportLists]--><b>4.<span style="font-size: 7pt; font-weight: normal;"> </span></b><!--[endif]--><b>ELIGIBILITY
CRITERIA<o:p></o:p></b></div>
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<!--[if !supportLists]--><b>4.1<span style="font-size: 7pt; font-weight: normal;"> </span></b><!--[endif]--><b>Student
Eligibility<o:p></o:p></b></div>
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<!--[if !supportLists]-->-<span style="font-size: 7pt;">
</span><!--[endif]-->The student should be an Indian National<o:p></o:p></div>
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<!--[if !supportLists]-->-<span style="font-size: 7pt;">
</span><!--[endif]-->Have secured admission in a course run or supported by
a Ministry / Dept./ Organisation of the Govt. or a company / society /
organization supported by National Skill Development Corporation or State Skill
Missions / State Skill Corporations,
preferably leading to a certificate / diploma / degree, etc. issued by a Govt.
organization or an organization recognized / authorized by the Govt. to do so. <o:p></o:p></div>
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<!--[if !supportLists]--><b>4.2<span style="font-size: 7pt; font-weight: normal;"> </span></b><!--[endif]--><b>Courses
Eligible<o:p></o:p></b></div>
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Vocational / Skill development
courses of duration from 2 months to 3 years run or supported by a Ministry /
Dept. / Organisation of the Govt. or a company / society / organization
supported by National Skill Development Corporation or State Skill Missions /
State Skill Corporations, preferably leading to a certificate / diploma /
degree, etc. issued by a Govt. organization or an organization recognized /
authorized by the Govt. to do so. . State
Level Bankers Committee (SLBC) / State Level Coordination Committee (SLCC) may
add other skill development courses / programmes, having good employability. <o:p></o:p></div>
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<br /></div>
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<!--[if !supportLists]--><b>4.3<span style="font-size: 7pt; font-weight: normal;"> </span></b><!--[endif]--><b>Minimum
Age<o:p></o:p></b></div>
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There is no specific restriction
with regard to the age of the student to be eligible for education loan. However, if the student was a minor, while
the parent executes documents for the loan, the bank will obtain a letter of
ratification from him / her upon attaining majority.<o:p></o:p></div>
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<br /></div>
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<!--[if !supportLists]--><b>5.<span style="font-size: 7pt; font-weight: normal;"> </span></b><!--[endif]--><b>QUANTUM
OF FINANCE<o:p></o:p></b></div>
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Need based finance to meet
expenses as worked out under para 6 below will be considered subject to the
following ceilings :<o:p></o:p></div>
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<br /></div>
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<!--[if !supportLists]-->-<span style="font-size: 7pt;">
</span><!--[endif]-->For courses of duration upto 3 months ₹ 10,000/-<o:p></o:p></div>
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<!--[if !supportLists]-->-<span style="font-size: 7pt;">
</span><!--[endif]-->For courses of duration from 3 to 6 months ₹ 25,000/-<o:p></o:p></div>
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<b><u><o:p></o:p></u></b></div>
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- for
courses of duration upto 1 year - <span style="font-family: "Rupee Foradian","sans-serif";"> </span><span style="font-family: "Arial","sans-serif";">₹
</span>50,000/-<o:p></o:p></div>
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- for
courses of duration above 1 year - <span style="font-family: "Arial","sans-serif";">₹
</span>1,50,000/-<o:p></o:p></div>
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Banks may, at their discretion,
consider limits upto <span style="font-family: "Arial","sans-serif";">₹</span><span style="font-family: "Rupee Foradian","sans-serif";"> </span>75,000/- for courses
with duration upto 1 year and limits upto <span style="font-family: "Arial","sans-serif";">₹</span><span style="font-family: "Rupee Foradian","sans-serif";"> </span>2 lakhs courses with duration above one year for
specific courses offered by reputed institutions having regard to the nature of
such courses and employability (ability to repay out of job earnings).<o:p></o:p></div>
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<br /></div>
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<!--[if !supportLists]--><b>6.<span style="font-size: 7pt; font-weight: normal;"> </span></b><!--[endif]--><b>EXPENSES
CONSIDERED FOR LOAN<o:p></o:p></b></div>
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<!--[if !supportLists]-->1.<span style="font-size: 7pt;">
</span><!--[endif]-->Tuition / course fee .<o:p></o:p></div>
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<!--[if !supportLists]-->2.<span style="font-size: 7pt;">
</span><!--[endif]-->Examination / Library / Laboratory fee<o:p></o:p></div>
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<!--[if !supportLists]-->3.<span style="font-size: 7pt;">
</span><!--[endif]-->Caution deposit<o:p></o:p></div>
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<!--[if !supportLists]-->4.<span style="font-size: 7pt;">
</span><!--[endif]-->Purchase of books, equipments and instruments<o:p></o:p></div>
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<!--[if !supportLists]-->5.<span style="font-size: 7pt;">
</span><!--[endif]-->Any other reasonable expenditure found necessary for
completion of the course. (As such courses are localized boarding, lodging may
not be necessary. However, wherever it
has been found necessary, the same could be considered on merits)<o:p></o:p></div>
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<br /></div>
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<b>7.</b> <b>MARGIN<o:p></o:p></b></div>
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Nil<o:p></o:p></div>
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<b> 8.
RATE OF INTEREST<o:p></o:p></b></div>
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Interest rate to be charged
linked to the base rate of banks as decided by the individual banks or at
reduced rate, if an interest subsidy is provided by the Central / State Govt.
to all or a class of beneficiaries proposed to be targeted. Simple Interest
will be charged during the study period and upto commencement of repayment.<o:p></o:p></div>
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<br /></div>
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<br /></div>
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<b>Note :</b> <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]-->Servicing of interest during study period and
the moratorium period till commencement of repayment is optional for students.<o:p></o:p></div>
<div class="MsoBodyText" style="margin-left: .75in; mso-list: l5 level1 lfo7; tab-stops: list .75in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]-->1% interest concession may be provided by the
bank, if interest is serviced during the study period and subsequent moratorium
period prior to commencement of repayment.
<o:p></o:p></div>
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<br /></div>
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<br /></div>
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<!--[if !supportLists]--><b>9.<span style="font-size: 7pt; font-weight: normal;">
</span></b><!--[endif]--><b> PROCESSING CHARGES<o:p></o:p></b></div>
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Nil<o:p></o:p></div>
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<br /></div>
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<!--[if !supportLists]--><b>10.<span style="font-size: 7pt; font-weight: normal;"> </span></b><!--[endif]--><b> SECURITY<o:p></o:p></b></div>
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No collateral or third party
guarantee will be taken. However, the
parent will execute loan document alongwith the student borrower as joint
borrower.<o:p></o:p></div>
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<br /></div>
<div class="MsoBodyText" style="margin-left: 33.0pt; mso-list: l3 level1 lfo8; tab-stops: list 33.0pt; text-indent: -.25in;">
<!--[if !supportLists]--><b>11.<span style="font-size: 7pt; font-weight: normal;"> </span></b><!--[endif]--><b> MORATORIUM PERIOD<o:p></o:p></b></div>
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Upon completion of the course,
repayment will start after a moratorium period as indicated below :<o:p></o:p></div>
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- for courses
of duration upto 1 year - 6 months from the completion of the <o:p></o:p></div>
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course.<o:p></o:p></div>
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- for courses of duration above 1
year- 12 months from the
completion of<o:p></o:p></div>
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the course.<o:p></o:p></div>
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<br /></div>
<div class="MsoBodyText" style="margin-left: 33.0pt; mso-list: l3 level1 lfo8; tab-stops: list 33.0pt; text-indent: -.25in;">
<!--[if !supportLists]--><b>12.<span style="font-size: 7pt; font-weight: normal;"> </span></b><!--[endif]--><b> REPAYMENT<o:p></o:p></b></div>
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The loan will be repaid after the
moratorium period as indicated in para 11 in Equated Monthly Instalments (EMIs)
as follows :<o:p></o:p></div>
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Loans upto ₹ 50,000 - Upto 2 years<o:p></o:p></div>
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Loans between ₹ 50,000 to ₹ 1
lakh - 2 to 5 years<o:p></o:p></div>
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Loans above ₹ 1 lakh - 3 to 7 years<o:p></o:p></div>
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<br /></div>
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<!--[if !supportLists]--><b>13.<span style="font-size: 7pt; font-weight: normal;"> </span></b><!--[endif]--><b> INSURANCE<o:p></o:p></b></div>
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Optional at the requirement of
the borrower.<o:p></o:p></div>
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<br /></div>
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<b>14. PREPAYMENT<o:p></o:p></b></div>
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The borrower can repay the loan
any time after commencement of repayment without having to pay any prepayment charges.<o:p></o:p></div>
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<br /></div>
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<!--[if !supportLists]--><b>15.<span style="font-size: 7pt; font-weight: normal;"> </span></b><!--[endif]--><b>OTHER
TERMS & CONDITIONS<o:p></o:p></b></div>
<div class="MsoBodyText" style="margin-left: .5in;">
Other terms and conditions as
applicable to the “IBA Model Educational Loan Scheme for pursuing higher
education in India & Abroad” will be applicable to this scheme also.<o:p></o:p></div>
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<br /></div>
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<br /></div>
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<br /></div>
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******</div>
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<br /></div>
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<span style="font-size: 8.0pt; line-height: 150%; mso-bidi-font-size: 12.0pt;">l..vc.schemefor vocational coursesincudingskilldev.
Final020412<o:p></o:p></span></div>
Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com9tag:blogger.com,1999:blog-6302883023187629790.post-89045164120340851922012-11-04T16:48:00.001-08:002012-11-04T16:48:14.513-08:00Interest Subsidy Submission Cutoff Dates for BanksStudents who have taken EDUCATION LOAN from Indian Banks and are eligible for Central Scheme for Interest Subsidy need to apply for it well before deadlines set for banks to submit their claims from Central Government in the following IBA circular.<br />
<br />
<a href="http://www.iba.org.in/Documents/scan0039.pdf">http://www.iba.org.in/Documents/scan0039.pdf</a><br />
<br />Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com13tag:blogger.com,1999:blog-6302883023187629790.post-27592338418374941042012-11-04T16:01:00.003-08:002012-11-04T16:01:54.428-08:00September 2012 IBA Circular on Education Loan<br />
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<br /></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-ansi-language: EN-US;">Chief Executive<o:p></o:p></span></b></div>
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<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">No. CE/220</span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">27<sup>th</sup> September, 2012</span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">To:</span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">Chief Executives of all Member Banks:<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">Dear Sirs / Madam,<o:p></o:p></span></b></div>
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<br /></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">Educational Loan Scheme – Grievance prone areas discussed at the Review
meeting<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">with Chief Executives of Public Sector Banks taken by Hon’ble Finance
Minister on 18<sup>th</sup> August, 2012 at New Delhi<o:p></o:p></span></b></div>
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<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">At the above
meeting, Hon’ble Finance Minister brought out a number of areas in the
implementation of Educational Loan Scheme where the Govt. was constantly
receiving grievances / complaints from affected students / parents. We list below the major areas of grievance
pointed out by the Minister:</span></div>
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<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US;">Refusal to
finance outside the bank’s designated service area<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US;">Delay in
sanction of limits and repeated refusal of loan on flimsy grounds<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US;">Absence of a
proper grievance redressal mechanism in
banks<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US;">Need to consider
loans to meritorious students pursuing courses offered under management quota<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US;">Non-inclusion of
nursing course in the list of eligible courses by some banks<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">The position in
respect of the above issues were reviewed by IBA first, at the level of
Committee on Educational Loan Scheme and, thereafter, by the Managing Committee at its meeting held
on 21<sup>st</sup> September, 2012.
Based on the discussions / decisions taken by the Managing Committee, we
advise as under:</span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;"><br /></span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in; mso-list: l1 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US;">Refusal to finance outside the bank’s designated
service area:<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">The Model Educational Loan Scheme has not stipulated a service area
approach to finance under the scheme.
While proximity to the residence of parents was considered an advantage
in KYC compliance, the scheme allows the student to have a choice in deciding
on the bank from where to borrow. The
Committee, however, noted that SLBC in Kerala and some of the DLCCs in Tamil
Nadu had allocated villages / wards in urban centres to different banks for the purpose of entertaining
applications under Educational Loan Scheme.
This, we understand, was an attempt
to evenly distribute loan applications among participating banks. The Managing Committee felt that such
arrangements should not preclude a student from approaching any bank of his
choice for sanction of loan. The Member
Banks are therefore, requested to instruct their branches not to reject loan
applications merely for the reason that the particular area is allocated to
another bank by SLBC / DLCCs.<o:p></o:p></span></div>
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<br /></div>
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<!--[if !supportLists]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US;">Delay in sanction of limits and repeated refusal of
loan on flimsy ground:<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">The Model Educational Loan Scheme envisages that in the normal course,
an education loan should be sanctioned / rejected within a period of 15 days of
receipt of duly completed application with supporting documents. Rejection, if any, has to be with the
approval of controlling authority of the branch concerned and the reason for
rejecting should be communicated to the students in writing. The Managing
Committee decided to reiterate the position and appeal to the banks to ensure
that the branches follow the laid down norms in sanctioning / rejection of loan
applications.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;"> </span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in; mso-list: l1 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US;">Absence of a proper grievance redressal mechanism in
the bank</span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">The guidelines issued by Reserve Bank of India and Govt. of India
require banks to have robust grievance redressal mechanism within the
institution. The arrangements need to be
widely publicized with details of contact persons / escalation matrix etc. The Managing Committee decided to draw the
attention of banks to the need to have these facilities made available / known to students approaching the banks for sanction
of loan. The Committee also suggested
that the banks may provide a toll free line for receipt of complaints and the
number may be prominently displayed in the branch premises. It was also decided that banks should take
penal action against branch managers who
repeatedly refused / rejected applications for education loan. The controlling authorities should be advised
to counsel such officials
initially. Officers who do not show
improvements in this regard may be warned in writing and thereafter banks could
initiate such disciplinary measures
as deemed fit. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;"> </span><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;"> </span></b></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l1 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></span></b><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">Need to consider loans to meritorious students pursuing courses offered
under management quota:</span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">The Managing Committee considered the recommendations made by the IBA
Committee on Educational Loan Scheme and after detailed discussions decided to
incorporate a provision for financing meritorious students who pursue courses under
management quota seat in an institution for reasons of convenience (proximity)
or choice of course.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">We enclose a copy of the revised
Model Educational Loan Scheme. Your attention is drawn to changes made in
paragraph 4.1 and notes to paragraph 4.3 in this regard. The changes made are
indicated in bold italics. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;"> </span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in; mso-list: l1 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-ansi-language: EN-US;">Non-inclusion of nursing course in the list of
eligible courses by some banks:</span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">The Managing Committee observed that the Model Educational Loan Scheme
provided for financing students who pursue degree / diploma in nursing in
recognized institutions. Many of the
banks had also reported that they were sanctioning loans for pursuing nursing
courses. Managing Committee after
detailed discussions decided to include degree / diploma in nursing in the
indicative list of eligible courses and these are made in Para 4.2 (a).<o:p></o:p></span></div>
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<br /></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">We have
duly incorporated necessary changes in the existing scheme after approval by
the IBA Managing Committee. We enclose copy of Model Educational Loan Scheme for pursuing
higher education in India and Abroad (September, 2012) for Member Banks’
information and necessary action. </span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;"><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">Yours faithfully,<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">(K Ramakrishnan)<o:p></o:p></span></b></div>
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<u><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;">Encl:</span></u><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US;"> IBA Educational
Loan Scheme (September, 2012)<u><o:p></o:p></u></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 8.0pt; mso-ansi-language: EN-US;">l.eduscheme.cirmembers27912<o:p></o:p></span></div>
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Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com6tag:blogger.com,1999:blog-6302883023187629790.post-9567382179763962952012-11-04T15:57:00.000-08:002012-11-04T15:57:30.465-08:00September 2012 IBA Revised Model Education Loan Scheme<br />
<h2>
<b style="text-align: center;"><span style="font-size: x-large;"> Indian Banks’ Association</span></b></h2>
<h3>
<span style="font-size: large;">MODEL EDUCATIONAL LOAN SCHEME FOR PURSUING HIGHER EDUCATION IN INDIA AND
ABROAD</span></h3>
<h1>
<span style="font-size: large;"><o:p></o:p></span></h1>
<h1>
<span style="font-size: 8.0pt;">(September, 2012)<o:p></o:p></span></h1>
<div style="text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">1. <u>INTRODUCTION</u>:</span></b><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Education is central to the human resources
development and empowerment in any country. National and State level policies
are framed to ensure that this basic need of the population is met through
appropriate public and private sector initiatives. While government endeavour
to provide primary education to all on a universal basis, public funding of
higher education is not considered
feasible. Cost of education has been going up in recent times and since the
student has to bear most of the cost, there is a clear case for institutional
funding in this area. This model education loan scheme is an attempt to bring
out a viable and sustainable bank loan scheme to meet the aspirations of our
society.<o:p></o:p></span></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Knowledge and information would be the driving force
for economic growth in the coming years. The current rate of economic growth of
the country demands technically and professionally trained man power in large
numbers. In this backdrop, loans for education is seen as investments for
economic development and prosperity. The model Education Loan Scheme was
developed by the Indian Banks’ Association to help meritorious students pursue higher education in technical and
professional courses. As the focus is on development of human capital,
repayment of the loan is expected to come from future earnings of the student
after completion of education. Hence the assessment of the loan will be based
on employability and earning potential of
the student upon completion of the course and not the parental
income/family wealth. <o:p></o:p></span></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Based on recommendations made by a Study Group, IBA
had prepared a Model Educational Loan Scheme in the year 2001 which was advised
to banks for implementation by Reserve Bank of India vide circular
No.RPCD.PLNFS.BC.NO.83/06.12.05/2000-01 dated April 28, 2001 along with certain
modifications suggested by the Government of India. In line with the
announcement made by the Hon'ble Finance Minister in his Budget Speech for the
year 2004-05, IBA had communicated certain changes in the security norms
applicable to education loans with limits above ₹ 4 lakhs and up to ₹ 7.5
lakhs. The scheme was further modified in the year 2007-08 based on experience
gained in the operation of the scheme over the years.<o:p></o:p></span></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">With
increased public awareness about the benefits of the education loan scheme,
bank branches are receiving more and more applications for loans every year. This has also </span><span style="font-family: 'Times New Roman', serif;">resulted in cases of customer grievances due to
misinterpretation of the provisions of the scheme. This review exercise has
been taken up to make the scheme more transparent and minimize scope for
multiple interpretations leading to disputes.</span></div>
<div style="margin-left: .5in; mso-list: l10 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></span></b><!--[endif]--><b><u><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">OBJECTIVES OF THE SCHEME</span></u></b><b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;"> <o:p></o:p></span></b></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">The Educational Loan Scheme outlined below aims at
providing financial support from the banking system to meritorious students for
pursuing higher education in India and abroad. The main emphasis is that a
meritorious student, though poor, is provided with an opportunity to pursue
education with the financial support from the banking system with affordable
terms and conditions. <o:p></o:p></span></div>
<div style="margin-left: .5in; mso-list: l10 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></span></b><!--[endif]--><b><u><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">APPLICABILITY OF THE SCHEME</span></u></b><b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">:<o:p></o:p></span></b></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">The scheme detailed below could be adopted by all
member banks of the Association or other banks and financial institutions as
may be advised by the Reserve Bank of India. The scheme provides broad
guidelines to the banks for operationalising the educational loan scheme and
the implementing bank will have the discretion to make changes as deemed fit.</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">The scheme details are as under:</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">4. <u>ELIGIBILITY
CRITERIA</u>:</span></b><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="text-align: justify; text-indent: 15.2pt;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">4.1 <u>Student eligibility</u>:</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="margin-left: 1.25in; mso-list: l15 level1 lfo2; tab-stops: list 63.0pt 1.25in; text-align: justify; text-indent: -.75in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">The student should be an Indian National.<o:p></o:p></span></div>
<div style="margin-left: 63.8pt; mso-list: l15 level1 lfo2; tab-stops: 63.8pt; text-align: justify; text-indent: -28.35pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Should have secured admission to a
higher education course in recognized institutions in India or Abroad through Entrance Test/
Merit Based Selection process after completion of HSC(10 plus 2 or equivalent). However, entrance test or selection purely
based on marks obtained in qualifying examination may not be the criterion for
admission to some of the post graduate courses or research programmes. In such
cases, banks will have to adopt appropriate criteria based on employability and
reputation of the institution concerned</span><o:p></o:p></div>
<div style="margin-left: 35.45pt; tab-stops: 63.8pt; text-align: justify;">
<b><i><span style="color: #943634; font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Note: It would be in order for banks to consider a meritorious
student (who qualifies for a seat under merit quota) eligible for loan under
this scheme even if the student chooses to pursue a course under Management
Quota.</span><span style="color: #943634;"><o:p></o:p></span></i></b></div>
<div style="tab-stops: 63.8pt; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">
4.2 <u>Courses
eligible</u></span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="margin-left: .5in; text-align: justify;">
<u><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">a. Studies in India: (Indicative
list)</span></u><u><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></u></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.25in; margin-right: 0in; margin-top: 0in; mso-list: l7 level1 lfo3; tab-stops: list 1.25in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Approved courses leading to graduate/
post graduate degree and P G diplomas
conducted by recognized colleges/ universities recognized <o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;"> by UGC/ Govt./ AICTE/ AIBMS/ ICMR
etc.<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.25in; margin-right: 0in; margin-top: 0in; mso-list: l7 level1 lfo3; tab-stops: list 1.25in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Courses like ICWA, CA, CFA etc.<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.25in; margin-right: 0in; margin-top: 0in; mso-list: l7 level1 lfo3; tab-stops: list 1.25in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Courses conducted by IIMs, IITs, IISc,
XLRI. NIFT,NID etc.</span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.25in; margin-right: 0in; margin-top: 0in; mso-list: l7 level1 lfo3; tab-stops: list 1.25in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Regular Degree/Diploma courses like
Aeronautical, pilot training, shipping<b><i>, <span style="color: #943634;">degree/diploma
in nursing or any other discipline</span></i></b> approved by Director General
of Civil Aviation/Shipping/<b><i><span style="color: #943634;">Indian Nursing
Council or any other regulatory body as the case may be</span></i></b>, if the
course is pursued in India. <o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.25in; margin-right: 0in; margin-top: 0in; mso-list: l7 level1 lfo3; tab-stops: list 1.25in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Approved courses offered in India by
reputed foreign universities.<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Note:</span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";">1.<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif";">The above list is indicative in
nature. Banks may approve other job oriented<b><u> </u></b>courses leading to
technical/ professional degrees, post graduate degrees/diplomas offered by recognized institutions under this
scheme. <o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="margin-left: .5in; mso-list: l0 level1 lfo4; tab-stops: list .5in; text-indent: -.25in;">
<!--[if !supportLists]--><b>2.<span style="font-size: 7pt; font-weight: normal;">
</span></b><!--[endif]-->Courses other than the above offered by reputed
institutions may also be considered on the
basis of employability<b>.</b></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;">
<i><span style="font-family: "Times New Roman","serif";">Reference </span></i><i><span style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">: <a href="http://www.ugc.ac.in/">www.ugc.ac.in</a>, <u><a href="http://www.education.nic.in/">www.education.nic.in</a></u>,
<a href="http://www.aicte.org.in/">www.aicte.org.in</a></span></i><i><span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-bidi-font-size: 12.0pt;"> <o:p></o:p></span></i></div>
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">(b)<u>
Studies abroad</u><b> :-<o:p></o:p></b></span><br />
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 51.0pt; margin-right: 0in; margin-top: 0in; mso-list: l3 level1 lfo6; text-indent: -33.0pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Graduation : For job oriented professional/ technical </span><span style="font-family: 'Times New Roman', serif; text-indent: 0.5in;">courses offered by reputed universities.</span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l14 level1 lfo5; tab-stops: list .5in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Post graduation: MCA, MBA, MS, etc.</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l14 level1 lfo5; tab-stops: list .5in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Courses conducted by CIMA- London, CPA
in USA etc.</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l14 level1 lfo5; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Degree/diploma courses like
aeronautical, pilot training, shipping etc provided these are recognized by
competent regulatory bodies in India/abroad for the purpose of employment in
India/abroad.</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<i><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Reference: <a href="http://www.webometrics.info%20%28indicative/">www.webometrics.info </a></span></i><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;"> (indicative only)<o:p></o:p></span><br />
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">4.3
<u>Expenses considered for loan</u>
:</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span><br />
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo7; mso-text-indent-alt: -.25in; tab-stops: list .5in left 48.6pt; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span>i.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Fee payable to college<b><i>++</i></b>/
school/ hostel*<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo7; mso-text-indent-alt: -.25in; tab-stops: list .5in left 48.6pt; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span>ii.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Examination/ Library/ Laboratory fee<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo7; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span>iii.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Travel expenses/ passage money for
studies abroad</span><span style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-bidi-font-size: 7.5pt;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo7; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span>iv.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Insurance premium for student borrower,
if applicable<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo7; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span>v.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Caution deposit, Building
fund/refundable deposit supported by Institution bills/receipts. ** </span><span style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-bidi-font-size: 7.5pt;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo7; mso-text-indent-alt: -.25in; tab-stops: list .5in left .55in 84.6pt; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span>vi.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Purchase of books/ equipments/
instruments/ uniforms***</span><span style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-bidi-font-size: 7.5pt;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo7; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span>vii.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Purchase of computer at reasonable cost,
if required for completion of the course***</span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo7; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";">viii.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Any other expense required to complete
the course - like study tours, project work, thesis, etc.***</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo7; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span>ix.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">While computing loan required,
scholarships, fee waiver etc., if any available to the student borrower may be
taken into account.</span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="font-family: "Times New Roman","serif";">Notes: </span></div>
<div class="MsoNoSpacing" style="margin-left: 21.3pt; text-align: justify; text-indent: -21.3pt;">
<b><i><span style="color: #943634;">++ For
courses under Management quota seats considered under the scheme, fees as
approved by the State Government/Government approved regulatory body for
payment seats will be taken, subject to viability
of repayment</span>.<o:p></o:p></i></b></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 21.3pt; margin-right: 0in; margin-top: 0in;">
<br /></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 49.65pt; margin-right: 0in; margin-top: 0in; text-indent: -28.35pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-bidi-font-size: 7.5pt;">* </span><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Reasonable lodging and boarding charges will be
considered in case the student chooses / is required to opt for outside
accommodation. <o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.5in; margin-right: 0in; margin-top: 0in;">
<br /></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 49.65pt; margin-right: 0in; margin-top: 0in; tab-stops: 63.0pt; text-indent: -28.35pt;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">** These expenses could be considered subject
to the condition that the amount does not exceed 10% of the total tuition fees
for the entire course.<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; text-indent: -27.0pt;">
<br /></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 49.65pt; margin-right: 0in; margin-top: 0in; text-align: justify; text-indent: -28.35pt;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">*** It is likely that expenditure under Item Nos.
vi, vii & viii above may not be available in the schedule of fees and
charges prescribed by the college authorities.
Therefore, a realistic assessment may be made of the requirement under
these heads. However, the maximum
expenses included under vi, vii & viii may be capped at 20% of the total
tuition fees payable for completion of the course</span><span style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-bidi-font-size: 7.5pt;">.<o:p></o:p></span></div>
<b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">5.
<u>QUANTUM OF FINANCE</u>:</span></b><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span><br />
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Need
based finance to meet the expenses worked out as per para 4.3 above will be
considered taking in to account margins as per para 6 subject to the following
ceilings:</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span><br />
<div style="margin-left: .5in;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">- Studies in India - Maximum
upto ₹ 10 lakhs.<o:p></o:p></span></div>
<div style="margin-left: .5in;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">- Studies Abroad<b> - </b>Maximum
upto ₹ 20 lakhs.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b>Note</b>: <o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
The ceilings fixed for studies in
India and Abroad correspond to the limits fixed by the RBI for treatment as
priority sector lending. Banks may consider higher quantum of loan on
course to course basis (eg: courses in
IIMs, ISB etc). It may also be noted that even
loans in excess of ₹ 10
lakhs qualify for interest subsidy under Central Sector Interest Subsidy Scheme
for loans up to ₹ 10 lakhs<b>.<o:p></o:p></b></div>
<div style="margin-left: .5in; mso-list: l4 level1 lfo14; tab-stops: list .5in; text-indent: -.5in;">
<!--[if !supportLists]--><b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></span></b><!--[endif]--><b><u><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;"> MARGIN:<o:p></o:p></span></u></b></div>
<table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin-left: 36.4pt; mso-yfti-tbllook: 12;">
<tbody>
<tr style="height: 45.0pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0; mso-yfti-lastrow: yes;">
<td style="height: 45.0pt; padding: .75pt .75pt .75pt .75pt; width: 330.1pt;" width="440">
<div class="MsoNormal">
Upto ₹ 4 lakhs Nil<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Above ₹ 4 lakhs Studies in India 5%<o:p></o:p></div>
<div class="MsoNormal">
Studies Abroad 15%<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
</td>
</tr>
</tbody></table>
<div style="margin-bottom: .0001pt; margin: 0in; text-indent: .25in;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">- Scholarship/ assistantship to be included
in margin.<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l11 level1 lfo8; tab-stops: list .5in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Margin may be brought-in on year-to-year
basis as and when disbursements are made
on a pro-rata basis.</span></div>
<table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; border: none; margin-left: .4pt; mso-border-insideh: cell-none; mso-border-insidev: cell-none; mso-padding-alt: 3.0pt 3.0pt 3.0pt 3.0pt; mso-yfti-tbllook: 190; width: 503px;">
<tbody>
<tr style="height: 202.0pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0; mso-yfti-lastrow: yes;">
<td style="border: none; height: 202.0pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 377.45pt;" width="503">
<div class="MsoNormal" style="margin-left: .5in; mso-list: l4 level1 lfo14; tab-stops: list .5in; text-indent: -36.4pt;">
<!--[if !supportLists]--><b>7.<span style="font-size: 7pt; font-weight: normal;">
</span></b><!--[endif]--><b> <u>SECURITY</u> : <o:p></o:p></b></div>
<div class="MsoNormal" style="margin-left: .25in;">
<br /></div>
<div class="MsoNormal" style="text-indent: 8.6pt;">
Upto ₹ 4 lakhs
Parents to be joint borrower(s). <o:p></o:p></div>
<div class="MsoNormal">
No
security<o:p></o:p></div>
<div style="margin-bottom: .0001pt; margin: 0in; text-indent: 8.6pt;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Above</span> <span style="font-family: "Arial","sans-serif"; mso-bidi-font-size: 7.5pt;">₹ </span><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">4
lakhs<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 125.6pt; margin-right: 0in; margin-top: 0in; text-align: justify; text-indent: -117.0pt;">
<span style="font-family: "Times New Roman","serif";">and upto </span><span style="font-family: "Arial","sans-serif"; mso-bidi-font-size: 7.5pt;">₹ </span><span style="font-family: "Times New Roman","serif";">7.5 lakhs Besides the parent(s) executing the
documents as joint borrower(s)
, collateral security in the form of suitable third
party guarantee will be taken. The bank may, at its discretion, <u>in
exceptional cases</u>, waive third party guarantee if satisfied with the
net-worth / means of parent/s who would be executing the document as joint
borrower(s).<o:p></o:p></span></div>
<div style="margin-left: 125.6pt; tab-stops: 125.6pt; text-indent: -113.6pt;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Above</span> <span style="font-family: "Arial","sans-serif"; mso-bidi-font-size: 7.5pt;">₹ </span><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">7.5 lakhs Parent(s) to be joint borrower(s) </span><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"> Tangible
collateral security of suitable value acceptable to bank, along with the assignment of future income
of the student for payment of instalments. </span><o:p></o:p></div>
</td>
</tr>
</tbody></table>
<b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Note:-<o:p></o:p></span></b><br />
<div style="margin-left: .75in; mso-list: l8 level1 lfo9; tab-stops: list .75in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">The loan documents should be executed by
both the student and the parent/
guardian as joint-borrower.</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="margin-left: .75in; mso-list: l8 level1 lfo9; tab-stops: list .75in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">The security can be in the form of land/
building/ Govt. securities/ Public Sector Bonds/Units of UTI, NSC, KVP, life
policy, gold, shares/mutual fund<b> </b>units/debentures, bank deposit in the
name of student/ parent/ guardian / any other third party or any other tangible security acceptable to
the bank with suitable margin.</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="margin-left: .75in; mso-list: l8 level1 lfo9; tab-stops: list .75in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-size: 7.5pt; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Wherever the land/ building is already
mortgaged, the unencumbered portion can be
taken as security on second
charge basis provided it covers the required loan amount<b><o:p></o:p></b></span></div>
<b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">8. <u>RATE OF INTEREST</u> : </span></b><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span><br />
<div style="margin-left: .5in;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Interest to be charged at rates linked to the Base
rate as decided by individual banks <o:p></o:p></span></div>
<div style="margin-left: .75in; mso-list: l9 level1 lfo10; tab-stops: list .75in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Simple interest to be charged during the
study period and up to commencement of repayment.</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 10.0pt;">Note:
Servicing of interest during study period and the moratorium period till
commencement of repayment is optional for students. Accrued interest will be
added to the principal amount borrowed while fixing EMI for repayment.<o:p></o:p></span></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<br /></div>
<div style="margin-left: .5in; mso-list: l5 level1 lfo13; tab-stops: list .5in; text-indent: -.5in;">
<!--[if !supportLists]--><b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">9.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></span></b><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;"> <u>APPRAISAL
/ SANCTION/ DISBURSEMENT</u> : <o:p></o:p></span></b></div>
<div class="MsoNoSpacing" style="margin-left: 70.9pt; mso-list: l13 level1 lfo17; text-align: justify; text-indent: -28.35pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]-->Applications will be received either directly at
bank branches or through on-line mode. Upon receipt of application,
standard acknowledgement giving a
reference number will be issued. The acknowledgement will contain contact
details of the bank official who, could be contacted in case of delay in
disposal of application.<o:p></o:p></div>
<div class="MsoNoSpacing" style="margin-left: 70.9pt; mso-list: l9 level1 lfo10; text-align: justify; text-indent: -28.35pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]-->Normally, sanction/rejection will be
communicated within 15 days of receipt duly completed application with
supporting documents. <o:p></o:p></div>
<div class="MsoNoSpacing" style="margin-left: 70.9pt; mso-list: l9 level1 lfo10; text-align: justify; text-indent: -28.35pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]-->In the normal
course, while appraising the loan, the future income prospect of the student
only will be looked into. <o:p></o:p></div>
<div style="margin-left: 70.9pt; mso-list: l9 level1 lfo10; text-align: justify; text-indent: -28.35pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Rejection of loan application, if any,
shall be done with the concurrence of the controlling authority of the branch
concerned and conveyed to the student stating reason for rejection. </span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="margin-left: 70.9pt; mso-list: l9 level1 lfo10; text-align: justify; text-indent: -28.35pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-style: italic; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Students may submit their loan
applications either at the bank branches near to the residence of parents or to
the educational institution. However,
after the loan is sanctioned, the cases be transferred to the bank branch near
to the institution for follow up with student / institution. The KYC compliance for the purpose has to be
done by the branch nearest to the residence of
parents.</span><span style="font-family: "Times New Roman","serif"; mso-bidi-font-style: italic;"><o:p></o:p></span></div>
<div style="margin-left: 72.05pt; mso-list: l9 level1 lfo10; text-align: justify; text-indent: -29.5pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-style: italic; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">The loan to be disbursed in stages as
per the requirement/ demand directly to the Institutions/ Vendors of equipments/ instruments to the extent
possible.</span><span style="font-family: "Times New Roman","serif"; mso-bidi-font-style: italic;"><o:p></o:p></span></div>
<div style="margin-left: 45.0pt; text-indent: -45.0pt;">
<b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">10. REPAYMENT:</span></b><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<table border="0" cellpadding="0" cellspacing="1" class="MsoNormalTable" style="background: #9DEEE6; mso-cellspacing: .7pt; mso-padding-alt: 3.0pt 3.0pt 3.0pt 3.0pt;">
<tbody>
<tr>
<td style="background: white; padding: 3.0pt 3.0pt 3.0pt 3.0pt;">
<div class="MsoNormal" style="margin-left: .5in;">
Repayment holiday/Moratorium<o:p></o:p></div>
</td>
<td style="background: white; padding: 3.0pt 3.0pt 3.0pt 3.0pt;">
<div class="MsoNormal">
Course period + 1
year or 6 months after getting job, whichever is earlier.<o:p></o:p></div>
</td>
</tr>
</tbody></table>
<div style="margin-left: .5in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">If the student is not able to
complete the course within the scheduled time, extension of time for completion
of course may be permitted for a maximum period of 2 years. If the student is
not able to complete the course for reasons beyond his control, sanctioning
authority may at his discretion consider such extensions as may be deemed
necessary to complete the course. In case the student discontinues the course
midway, appropriate repayment schedule will be worked out by the bank in
consultation with the student/parent <o:p></o:p></span></div>
<div style="margin-left: 1.0in; mso-list: l12 level1 lfo15; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">The accrued interest during the repayment
holiday period to be added to the
principal and repayment in Equated Monthly Instalments (EMI) fixed.</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="margin-left: 1.0in; mso-list: l12 level1 lfo15; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">1% interest concession may be provided
by the bank, if interest is serviced during the
study period and
subsequent moratorium period
prior to commencement of
repayment. </span><span style="font-family: "Times New Roman","serif";">Repayment
of the loan will be in equated monthly instalments for periods as under:<o:p></o:p></span></div>
<div class="MsoNoSpacing" style="margin-left: 77.95pt;">
For loans upto ₹ 7.5 lakhs - upto 10 years <o:p></o:p></div>
<div class="MsoNoSpacing" style="margin-left: 77.95pt;">
For loans above ₹<span style="font-family: "Rupee Foradian","sans-serif";"> </span>7.5 lakhs -
upto
15 years</div>
<div style="margin-left: 70.9pt; mso-list: l16 level1 lfo16; text-align: justify; text-indent: -21.25pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif";">While
EMI based repayment is the generally accepted practice, many times the salary
levels at the start of the career may not facilitate comfortable payment of EMI
in certain cases (e.g. professionals like Doctors). Telescoping of repayment
with stepped up instalments with passage of time may be considered in such
cases.<o:p></o:p></span></div>
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 10.0pt;">Note:
No prepayment penalty will be levied for prepayment of loan any time during the</span><span style="font-family: "Times New Roman","serif"; font-size: 10.0pt;"> </span><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 10.0pt;">repayment
period</span><span style="font-family: "Times New Roman","serif"; font-size: 10.0pt;">.</span><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;"><o:p></o:p></span><br />
<div style="margin-left: .5in; mso-list: l1 level1 lfo11; text-indent: -.5in;">
<!--[if !supportLists]--><b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">11.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></span></b><!--[endif]--><b><u><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">INSURANCE<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify;">
Banks<b> </b>may, with the
consent of the student, arrange for life insurance policy on the students
availing Education Loan. Individual Banks may work out the modali<b>t</b>ies
with insurance companies. <o:p></o:p></div>
<b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">12.
<u>FOLLOW UP/MONITORING</u>:</span></b><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span><br />
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Banks to contact college / university authorities to
obtain progress report on the student at
regular intervals in respect of those who have availed loans. In case of
studies abroad, bank may obtain the SSN/Unique Identification Number (UIN)/Identity
Card and note the same in the bank’s records. The UID number issued by UIDIA
may also be captured in bank’s system as and when available. Banks to enter
into Memorandum of Understanding (MoU) with the educational institutions to
provide the educational loans to the students.
There should be an annual review of the asset quality of educational
loans between banks and educational institution.<b> <o:p></o:p></b></span></div>
<b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">13.
<u>PROCESSING CHARGES</u> :</span></b><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span><br />
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">No processing / upfront charges may be levied on
loans sanctioned under the scheme. (Banks may charge processing fee for considering
loans for studies abroad. The fee would however, be refunded upon the student
taking up the course)</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l6 level1 lfo12; text-indent: -.5in;">
<!--[if !supportLists]--><b>14.<span style="font-size: 7pt; font-weight: normal;">
</span></b><!--[endif]--><b><u>CAPABILITY
CERTIFICATE</u></b><b>: <o:p></o:p></b></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Banks can also issue the capability certificate for
students going abroad for higher studies. For this purpose financial and other
supporting documents may be obtained from applicant, if required.</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">(Some of the foreign universities require the
students to submit a certificate from their bankers about the sponsors'
solvency/ financial capability, with a view to ensure that the sponsors of the
students going abroad for higher studies are capable of meeting the expenses
till completion of studies.)</span></div>
<div style="margin-left: .75in; mso-list: l6 level1 lfo12; tab-stops: list .5in; text-indent: -.75in;">
<!--[if !supportLists]--><b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">15.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></span></b><!--[endif]--><b><u><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">OTHER CONDITIONS</span></u></b><b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">:<o:p></o:p></span></b></div>
<div style="text-indent: .5in;">
<b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">15.1 <u>Sanction of loan to more than
one child from the same family</u><o:p></o:p></span></b></div>
<div class="MsoBodyText" style="margin-left: .5in; text-align: justify;">
Existence of
an earlier education loan to the brother(s) and/or sister(s) will not affect
the eligibility of another meritorious student from the same family obtaining
education loan as per this scheme from the bank. <o:p></o:p></div>
<div style="text-align: justify; text-indent: .5in;">
<b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">15.2 <u>Minimum Age</u><o:p></o:p></span></b></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">There is no specific restriction with
regard to the age of the student to be eligible for education loan. However, if
the student was a minor while the parent executed <o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">documents for the loan, the bank will
obtain a letter of ratification from him/her upon attaining majority</span>.<o:p></o:p></div>
<div style="text-align: justify; text-indent: .5in;">
<b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">15.3 <u>Top up loans</u><o:p></o:p></span></b></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Banks may consider top up loans to
students pursuing further studies within the overall eligibility limit, if such
further studies are commenced during the moratorium period of the first
loan. The repayment of the loan will
commence after the completion of the second course and further moratorium
period, as provided under the scheme. <o:p></o:p></span></div>
<div style="text-align: justify; text-indent: .5in;">
<b><span style="font-family: "Times New Roman","serif";">15.4 <u>Joint Borrower</u></span></b><u><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;"><o:p></o:p></span></u></div>
<div class="MsoBodyText" style="margin-left: .5in; tab-stops: 4.75in; text-align: justify;">
The
joint borrower should normally be parent(s)/guardian of the student borrower.
In case of a married person, joint borrower can be either spouse or the
parent(s)/parents-in-law<b>.</b></div>
<div class="MsoBodyText" style="tab-stops: 4.75in; text-align: justify;">
<b>No Due
Certificate<o:p></o:p></b></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">No due certificate will not be insisted upon as a
pre-condition for considering education loan. However, banks may obtain a
declaration/ an affidavit confirming that no loans are availed from other
banks.</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
<div style="text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Disposal of loan application<o:p></o:p></span></b></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">Loan applications have to be disposed of in the
normal course within a period of 15 days to 1 month, but not exceeding the time
norms stipulated for disposing of loan applications under priority sector
lending.<o:p></o:p></span></div>
<div align="center" style="text-align: center;">
<span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 7.5pt;">************<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<br /></div>
Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com16tag:blogger.com,1999:blog-6302883023187629790.post-42524602484311387942011-09-17T08:35:00.000-07:002011-09-17T08:35:26.497-07:00Guidance Notes on 2011 Revised IBA Model Edu Loan Scheme<div style="text-align: center;"><span style="font-size: large;">Indian Banks’ Association</span></div><span style="font-size: small;"><b>Guidance Notes on Model Educational Loan Scheme for pursuing Higher Education in India and Abroad</b></span><br />
<br />
<b>I. Introduction</b><br />
Educational Loan Scheme is a socially and economically relevant loan scheme from the Indian banking industry. Rightly, the RBI has included education loans as part of the priority sector lending of banks. It aims to provide need-based finance to meritorious student for taking up higher education. In any commercial lending decision, credit worthiness of the borrower and the viability of the scheme are important. The student borrower has no credit history and as such he is assumed to be creditworthy as this is a futuristic loan. However, it is likely that the joint borrower for the loan has a credit history and any adverse features could have a bearing on the assessment of credit risk. If the joint borrower has a loan account with the bank and the loan is treated as non-performing asset, the bank runs the risk of having to consider the student loan also as NPA ab-initio. To overcome this, the bank may, as a prudent measure insist on a joint borrower acceptable to the bank, in case of adverse credit history of the parent/guardian of the student.<br />
<br />
<b>II. Objectives of the scheme</b><br />
The educational loan scheme is meant to provide need-based assistance to meritorious students in pursuing higher education. Since the word “meritorious” is a relative term it would be necessary for banks to specify parameters for defining the term meritorious.<br />
The following approach is suggested:<br />
If the student has obtained admission to an eligible course through a merit based selection process, he/she could be considered a meritorious student. Generally, admission to professional and technical courses are through common entrance tests and those who get admission through this process could be considered meritorious. Where the admission is purely based on the marks scored in qualifying examinations, the bank may fix cut-off marks (percentage) for loan eligibility . Very often enquiries are made whether the model scheme covers students who are getting admission against management quota. Management seats or management quota refers to the seats in private education institutions for which the management has discretion to give admission on factors other than merit. Usually, out of permitted seats for the batch, a certain percentage is earmarked to be filled from State level merit list and the rest are allowed to be filled by the management at their discretion.<br />
Usually for the management seats the only requirement would be passing of the qualifying examination with certain minimum stipulated marks. It is logical to interpret that these seats do not qualify for being called “meritorious” Banks have reported certain cases where the employment potential would not justify the fee structure for management seats from the point of repayment of the loan being sought. Hence, any loan considered by banks for students getting admission under management quota would be outside the model scheme. Banks may fix appropriate terms and conditions for such loans.<br />
<br />
<b>III. Applicability of the Scheme</b><br />
The Model Scheme has been developed for the benefit of the member banks of the Association. However, other banks and financial institutions can also adopt the model without reference to the Association.<br />
<br />
<b>IV. Eligibility Criteria</b><br />
<b>IV.i. Student Eligibility</b><br />
For the purpose of this scheme higher education is defined as studies taken up after completion of higher secondary school i.e. Ten plus two stage. The need for bank loan scheme came for discussion in the country for meeting higher levels of fees charged by private managements for technical and professional courses consequent to ban on capitation fee. However, in the model scheme a generalized definition has been adopted for higher studies for wider coverage. It is expected that the banks will decide on the courses for which they will be giving student loans based on employability and consequent ability to repay the loan.<br />
References are often made about the eligibility of students pursuing employment oriented courses like teachers training courses and 3-year technical diploma courses in polytechnic institutions after completion of 10th standard. It is clarified that banks are free to include such employment-oriented courses as eligible course provided they are offered by approved/recognized colleges/institutions.<br />
It need to be noted that while the Central Sector Interest Subsidy Scheme of MoHRD is based on ‘IBA Model Educational Loan Scheme’, the subsidy is applicable only for loans given for Professional and Technical courses (after 12th standard) in India.<br />
<br />
<b>IV. ii. Courses eligible</b><br />
a. Studies in India<br />
The list of courses given in the model scheme is purely indicative in nature. The important thing is that the course is approved/recognized by the designated academic authority/regulatory body for the stream of study concerned. Links to the web sites of the University Grants Commission (UGC), All India Council for Technical Education (AICTE) and the Ministry of HRD (MoHRD) have been provided in the model scheme to serve as guidance on courses and approving authorities for various courses, which fall within the definition of higher studies.<br />
Banks may prepare and publish a list of eligible courses they would consider for sanctioning of student loans. Since employability of students on the completion of the course is an important consideration for loan approval, banks may consider introducing a system of assessing the employability of students through the campus placements system. Details such as percentage of final year students getting job offers through campus placement, average salary offers etc. may be collected in respect of colleges / institutions from which most loan applications were received in the past for evaluation of employability of students. This exercise should be done on an on going basis to reflect the current status.<br />
Note:<br />
While evaluating employability and repayment possibilities, banks should take into consideration, availability of interest subsidy under the MoHRD Central Sector Scheme introduced w.e.f. 1.4.2009. Under the scheme, the Central Govt. subsidises 100% of the loan’s interest during the study period and subsequent moratorium period before commencement of repayment. It is expected that the interest subsidy could bring the EMI for repayment by as much as 30 to 40%. The student hailing from economically weaker section family would benefit from this scheme<br />
b. Studies Abroad<br />
Diploma courses and certificate courses have not been included as eligible courses for the scheme. Post graduate studies leading to PG degrees and PG diplomas offered by reputed institutes/universities only will be covered by the scheme. Assessment of employment potential or future prospects is very important criterion considering the higher cost of studies involved. The web link given in the scheme is for guidance and there could be other links/sources giving such useful information.<br />
c. Expenses considered<br />
The Model scheme is aimed at meeting all genuine study expenses of a student required to complete the study undertaken. It needs to be noted that sometimes, the fee structure varies with type of college/institution within the same State for a given course. The fees charged by the government colleges/ institutes are generally the lowest, with higher fees permitted in aided private colleges/institutions; fee structure being highest in unaided private colleges/institutes. Sometimes the difference between the lowest and highest fee structure levied for the same course by different colleges/institutions is too high to give comfort to a banker in taking credit decision as employment prospects remain same. A practical approach would be to consider approved fee structure for merit quota seats in all colleges/institutions, provided banks are satisfied about repayment prospects on employment.<br />
<br />
V. Quantum of finance --<br />
VI. Margin --<br />
VII. Security --<br />
<b>VIII. Rate of interest</b><br />
In the past, interest rates were linked to the BPLR of banks. With effect from 1st July 2010, the banking system has switched over to base rate linked product pricing for loans and advances. The new system is more transparent and expected to result in better risk based pricing of loans in the country. Also, market competition is expected to bring down interest spreads. Hence it is proposed to leave the interest rates free for banks to decide at their end. However, it is proposed to retain 1% interest concession for servicing of interest during study/moratorium period. It is also expected that the banks will charge relatively lower rates for loans up to ` 4 lakhs and continue concessions hitherto being given to girl students.<br />
<br />
<b>IX. Appraisal/Sanction/Disbursement</b><br />
The model scheme does not look at the financial position of parents while evaluating loan to a meritorious student. Repayment possibilities have to be based on projected future earnings of the student on employment after education. To avoid subjectivity in assessment, it is suggested that the banks may fix from time to time earning potential for various courses, percentage of income to be considered for repayment etc. A well laid appraisal procedure will ensure that the decision to sanction an education loan is based on sound commercial logic, besides serving a noble social cause. The suggestion that bank branches nearest to the residence of parents to consider the loan application was given for better tracking of students during and after study period. Bnanks are, however, free to adopt different norms to suit their business plans.<br />
<br />
<b>X. Repayment</b><br />
Repayment period has been increased to give greater comfort to the student borrowers to repay the loan out of their future earnings. Prepayment options are also provided for persons who would like to clear the loan faster out of better than anticipated earnings. No prepayment charges are to be levied in such cases.<br />
<br />
<b>XI. Insurance</b><br />
Insurance policy should be obtained only with the prior consent of the student borrower. This is more so relevant in case of loans up to ` 4 lakhs where the bank loans are without any security. The clause regarding insurance has been included in the scheme to provide a life cover to the student.<br />
XII. Follow Up/Monitoring --<br />
XIII. Processing Charges --<br />
XIV. Capability Certificate --<br />
XV. Other Conditions --Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com10tag:blogger.com,1999:blog-6302883023187629790.post-70437605262725262822011-09-17T08:10:00.000-07:002011-09-17T08:13:39.091-07:00FAQs 2011 Revised IBA Model Edu Loan Scheme<div style="text-align: center;"><b>Model Educational Loan Scheme Indian Banks’ Association</b></div><br />
<div style="text-align: center;"><span style="font-size: large;"><b>Frequently Asked Questions</b></span></div>Q1.What criteria should be adopted to recognize courses like Nursing, Teacher Training B.Ed for the purpose of grant of education loan and the fees to be considered for such courses?<br />
A. Teacher Training/Nursing/B.Ed.courses will be eligible for education loan provided the training institutions are approved either by the Central Government or by State Government and such courses should lead to Degree or Diploma course and not to Certification course. The revised Model Educational Loan Scheme (2011) covers only merit channel seats for these courses. Banks have been considering study loans to students getting admissions to above mentioned courses under management quota as part of model education loan scheme in the past subject to the condition that the fee considered for assessment of loan was the fee stipulated by the regulatory authority concerned for merit seats in the respective colleges/institutions. The revised model scheme recognizes only merit based admissions. As such any loan to a student admitted under management quota will be outside the model scheme. Such loans will be governed by terms and conditions separately specified by banks including security/collaterals which the bank may stipulate.<br />
P.S: Operational guidelines contained in IBA Circular No.SB/Cir./10-21/3211datedMarch 31, 2010 will stand withdrawn in the light of revision of the scheme<br />
<br />
Q2.Can we consider request for education loan in respect of Nursing Colleges having provisional approval/recognition?<br />
A. The Indian Nursing Council gives permission to Nursing colleges to start new courses for a period of 1 year which is renewed on a yearly basis. The practice of renewing the permission is done on a year-to-year basis for both the existing nursing colleges as well as the new nursing colleges. Banks could consider applications from student borrowers seeking education loan for pursuing nursing courses in these institutions which are having provisional approval / recognition.<br />
<br />
Q3.How to deal with requests for sanction of collateral free loans to more than one student from the same family? Is the collateral free limit of ` 4.0 lakh for a student or for a family as whole for the purpose of the scheme.<br />
A. Repayment of the education loan is based on the future earning potential of the student. Going by the spirit of the scheme, limit of Rs 4.0 lakh collateral free loan is student specific and not family specific. There is no restriction on giving a second or third collateral free loan to other siblings when one of the siblings has already taken a collateral free loan.<br />
<br />
Q4. How to consider request from students who have to stay outside the college campus due to non availability of hostel accommodation?<br />
A. Banks could consider reasonable lodging and boarding expenses, for the purpose of fixing loan limit under the scheme, in case the student is not in a position to get allotment for hostel accommodation within the campus and is required to stay outside the campus in private accommodation.<br />
<br />
Q5. Whether the repayment period could be extended at the request of the borrower?<br />
A. Extension of moratorium period or repayment beyond the time specified at the sanction would amount to restructuring of the loan and will be governed by the RBI guidelines on restructuring of advances. However, in case the student takes up higher studies immediately upon completion of the course, the commencement of repayment would get shifted to 6 months from employment or one year from completion of the course whichever is earlier without treating the change as restructuring. This would be so irrespective of whether the student had taken fresh/top up loan for higher studies or not.<br />
<br />
Q6. Whether any incentive is available for girl students?<br />
A. Banks generally provide 0.5% or more concession in interest rate to girl students pursuing higher education in India and abroad.<br />
<br />
Q7. Whether request received for sanction of loan to meet partial cost of studying abroad can be considered?<br />
A. It is not uncommon for students to take up part-time jobs as permitted by the institutions where they are studying to part fund their education. So they will not be taking loan for meeting entire cost of studies(usually amount mentioned in I-20). Banks may sanction loan for meeting part cost as requested by students in such cases<br />
<br />
Q8. Can the bank consider request for loan received from NRIs?<br />
A. Requests received from NRIs can be considered if student is Indian passport holder and they meet other eligibility requirements. However, it would be necessary to accept as security any collateral which is enforceable in India.<br />
<br />
Q9. How the student will know whether the application for the loan has been considered or rejected by the bank?<br />
A. The bank should communicate to the student about the sanction of the loan in writing. Similarly, whenever loan applications of student borrowers are rejected, banks should invariably record the reasons for rejection by the bank.<br />
<br />
Q10. Whether the means of the joint borrower has any relation to the sanctioning of the loan to the student borrower?<br />
A. Education loan is not sanctioned based on the means of joint borrower who is usually a parent or guardian. For loans up to ` 4.00 lakhs, no collateral is taken. For loans above ` 4.0 lakhs and up to ` 7.5 lakhs, the means of the joint borrower will not be a factor if acceptable third party guarantee is offered. Also, security offered for loans above ` 7.5 lakhs need not necessarily be belonging to the joint borrower.<br />
<br />
Q11. How to consider license courses like Aircraft Maintenance Engineering/ Pre Sea training which are neither degree nor diploma, though such courses are approved by authorities like DGCA without affiliating to any university for award of degree?<br />
A. The Aircraft Maintenance Engineering/ Pre Sea training courses must be either a Degree Course recognized by a competent University or Diploma Course recognized by appropriate State Body to be eligible for loan. The employability of the students and employment potential of the courses selected has to be considered while appraising the loan application.<br />
<br />
Q12. Whether vocational / skill development study courses, off-campus courses and on-site/partnership programmes are eligible for education loan under the IBA Model Educational Loan Scheme?<br />
A. Vocational / skill development study courses, off-campus courses and onsite/ partnership programmes are not eligible for loan under the IBA scheme.<br />
<br />
Q13. What are the eligibility requirements in respect of Diploma / PG Diploma course for financing under studies abroad ?<br />
A. Only degree / post graduation diploma courses pursued abroad are eligible for sanction of loan under the IBA scheme.<br />
<br />
Q14. How to deal with cases where the joint borrower becomes defaulter after sanction of education loan?<br />
A. The student loan will not be affected by any change in asset classification of any separate bank borrowing of the joint borrower.Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com4tag:blogger.com,1999:blog-6302883023187629790.post-12159035495134600512011-09-17T07:14:00.000-07:002011-09-17T07:58:46.698-07:002011 Revised IBA Model Edu Loan Scheme<div style="text-align: center;"><span style="font-size: x-large;"><b>Indian Banks’ Association</b></span></div><span style="font-size: small;"><b>MODEL EDUCATIONAL LOAN SCHEME FOR PURSUING HIGER EDUCATION IN INDIA AND ABROAD</b></span><br />
<br />
<b>1. INTRODUCTION:</b><br />
Education is central to the human resources development and empowerment in any country. National and State level policies are framed to ensure that this basic need of the population is met through appropriate public and private sector initiatives. While government endeavour to provide primary education to all on a universal basis, public funding of higher education is not considered feasible. Cost of education has been going up in recent times and since the student has to bear most of the cost, there is a clear case for institutional funding in this area. This model education loan scheme is an attempt to bring out a viable and sustainable bank loan scheme to meet the aspirations of our society.<br />
Knowledge and information would be the driving force for economic growth in the coming years. The current rate of economic growth of the country demands technically and professionally trained man power in large numbers. In this backdrop, loans for education is seen as investments for economic development and prosperity. The model Education Loan Scheme was developed by the Indian Banks’ Association to help meritorious students pursue higher education in technical and professional courses. As the focus is on development of human capital, repayment of the loan is expected to come from future earnings of the student after completion of education. Hence the assessment of the loan will be based on employability and earning potential of the student upon completion of the course and not the parental income/family wealth.<br />
Based on recommendations made by a Study Group, IBA had prepared a Model Educational Loan Scheme in the year 2001 which was advised to banks for implementation by Reserve Bank of India vide circular No.RPCD.PLNFS.BC.NO.83/06.12.05/2000-01 dated April 28, 2001 along with certain modifications suggested by the Government of India. In line with the announcement made by the Hon'ble Finance Minister in his Budget Speech for the year 2004-05, IBA had communicated certain changes in the security norms applicable to education loans with limits above `.4 lakhs and up to `.7.5 lakhs. The scheme was further modified in the year 2007-08 based on experience gained in the operation of the scheme over the years.<br />
With increased public awareness about the benefits of the education loan scheme, bank branches are receiving more and more applications for loans every year. This has also resulted in cases of customer grievances due to misinterpretation of the provisions of the scheme. This review exercise has been taken up to make the scheme more transparent and minimise scope for multiple interpretations leading to disputes.<br />
<b>2. OBJECTIVES OF THE SCHEME</b><br />
The Educational Loan Scheme outlined below aims at providing financial support from the banking system to meritorious students for pursuing higher education in India and abroad. The main emphasis is that a meritorious student, though poor, is provided with an opportunity to pursue education with the financial support from the banking system with affordable terms and conditions.<br />
<b>3. APPLICABILITY OF THE SCHEME:</b><br />
The scheme detailed below could be adopted by all member banks of the Association or other banks and financial institutions as may be advised by the Reserve Bank of India. The scheme provides broad guidelines to the banks for operationalising the educational loan scheme and the implementing bank will have the discretion to make changes as deemed fit.<br />
The scheme details are as under:<br />
<b>4. ELIGIBILITY CRITERIA:</b><br />
<b>4.1 Student eligibility:</b><br />
· The student should be an Indian National<br />
· Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or equivalent). However, entrance test or selection purely based on marks obtained in qualifying examination may not be the criterion for admission to some of the post graduate courses or research programmes. In such cases, banks will have to adopt appropriate criteria based on employability and reputation of the institution concerned.<br />
<b>4.2 Courses eligible</b><br />
<b>a. Studies in India: (Indicative list)</b><br />
· Approved courses leading to graduate/ post graduate degree and P G diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc.<br />
· Courses like ICWA, CA, CFA etc.<br />
· Courses conducted by IIMs, IITs, IISc, XLRI. NIFT,NID etc.<br />
· Regular Degree/Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation/Shipping, if the course is pursued in India.<br />
· Approved courses offered in India by reputed foreign universities.<br />
<b>Note</b>:<br />
1. The above list is indicative in nature. Banks may approve other job oriented courses leading to technical/ professional degrees, post graduate degrees/diplomas offered by recognized institutions under this scheme.<br />
2. Considering demand for pursuing nursing courses, banks are free to consider loans for students getting admission through management quota also. However, the fee reimbursement is restricted to fee structure as approved by the State government or regulatory body. Banks may ensure that the student has financial resources to meet the funding gap.<br />
Reference : www.ugc.ac.in, www.education.nic.in, www.aicte.org.in<br />
<b>(b) Studies abroad :-</b><br />
· Graduation : For job oriented professional/ technical courses offered by reputed universities.<br />
· Post graduation: MCA, MBA, MS, etc.<br />
· Courses conducted by CIMA- London, CPA in USA etc.<br />
· Degree/diploma courses like aeronautical, pilot training, shipping etc provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.<br />
Reference: www.webometrics.info (indicative only)<br />
<b>4.3 Expenses considered for loan :</b><br />
i. Fee payable to college/ school/ hostel*<br />
ii. Examination/ Library/ Laboratory fee<br />
iii. Travel expenses/ passage money for studies abroad<br />
iv. Insurance premium for student borrower, if applicable<br />
v. Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts. **<br />
vi. Purchase of books/ equipments/ instruments/ uniforms***<br />
vii. Purchase of computer at reasonable cost, if required for completion of the course***<br />
viii. Any other expense required to complete the course - like study tours, project work, thesis, etc***<br />
<b>Notes</b>:<br />
* Reasonable lodging and boarding charges will be considered in case the student chooses / is required to opt for outside accommodation.<br />
** These expenses could be considered subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.<br />
*** It is likely that expenditure under Item Nos. vi, vii & viii above may not be available in the schedule of fees and charges prescribed by the college authorities. Therefore, a realistic assessment may be made of the requirement under these heads. However, the maximum expenses included under vi, vii & viii may be capped at 20% of the total tuition fees payable for completion of the course.<br />
<b>5. QUANTUM OF FINANCE:</b><br />
Need based finance to meet the expenses worked out as per para 4.3 above will be considered taking in to account margins as per para 6 subject to the following ceilings:<br />
- Studies in India - Maximum upto `.10 lakhs.<br />
- Studies Abroad - Maximum upto `.20 lakhs.<br />
<b>Note:</b><br />
The ceilings fixed for studies in India and Abroad correspond to the limits fixed by the RBI for treatment as priority sector lending. It would, however, be open to banks to consider higher quantum of loan on course to course basis (eg: courses in IIMs, ISB etc). It may also be noted that even loans in excess of `.10 lakhs qualify for interest subsidy under Central Sector Interest Subsidy Scheme for loans up to ` 10 lakhs.<br />
<b>6. MARGIN:</b><br />
<b>Upto `.4 lacs</b> Nil<br />
<b>Above `. 4 lacs </b>Studies in India 5% Studies Abroad 15%<br />
- Scholarship/ assistantship to be included in margin.<br />
- Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.<br />
<b>7. SECURITY :</b><br />
<b>Upto `. 4 lakhs</b><br />
Parents to be joint borrower(s). No security<br />
<b>Above `.4 lakhs and upto `.7.5 lakhs </b><br />
Besides the parent(s) executing the documents as joint borrower(s) , collateral security in the form of suitable third party guarantee will be taken. The bank may, at its discretion, in exceptional cases, waive third party guarantee if satisfied with the net-worth / means of parent/s who would be executing the document as joint borrower(s).<br />
<b>Above `.7.5 lakhs </b><br />
Parent(s) to be joint borrower(s) Tangible collateral security of suitable value acceptable to bank, along with the assignment of future income of the student for payment of instalments.<br />
<b>Note</b>:-<br />
· The loan documents should be executed by both the student and the parent/ guardian as joint-borrower.<br />
· The security can be in the form of land/ building/ Govt. securities/ Public Sector Bonds/Units of UTI, NSC, KVP, life policy, gold, shares/mutual fund units/debentures, bank deposit in the name of student/ parent/ guardian / any other third party or any other tangible security acceptable to the bank with suitable margin.<br />
· Wherever the land/ building is already mortgaged, the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount<br />
<b>8. RATE OF INTEREST :</b><br />
Interest to be charged at rates linked to the Base rate as decided by individual banks<br />
· Simple interest to be charged during the study period and up to commencement of repayment.<br />
Note: Servicing of interest during study period and the moratorium period till commencement of repayment is optional for students. Accrued interest will be added to the principal amount borrowed while fixing EMI for repayment.<br />
<b>9. APPRAISAL / SANCTION/ DISBURSEMENT :</b><br />
· Applications will be received either directly at bank branches or through on-line mode. Upon receipt of application, standard acknowledgement giving a reference number will be issued. The acknowledgement will contain contact details of the bank official who, could be contacted in case of delay in disposal of application.<br />
· Normally, sanction/rejection will be communicated within 15 days of receipt duly completed application with supporting documents.<br />
· In the normal course, while appraising the loan, the future income prospect of the student only will be looked into.<br />
· Rejection of loan application, if any, shall be done with the concurrence of the controlling authority of the branch concerned and conveyed to the student stating reason for rejection.<br />
· Normally, loan application will be accepted by the branch nearest to the residence of parents. However, the sanction of loan will be as per delegation of powers by the bank.<br />
· The loan to be disbursed in stages as per the requirement/ demand directly to the Institutions/ Vendors of equipments/ instruments to the extent possible.<br />
<b>10. REPAYMENT:</b><br />
<b>Repayment holiday/Moratorium</b><br />
Course period + 1 year or 6 months after getting job, whichever is earlier. If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course. In case the student discontinues the course midway, appropriate repayment schedule will be worked out by the bank in consultation with the student/parent<br />
· The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Instalments (EMI) fixed.<br />
· 1% interest concession may be provided by the bank, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment. Repayment of the loan will be in equated monthly instalments for periods as under:<br />
For loans upto ` 7.5 lakhs - upto 10 years<br />
For loans above ` 7.5 lakhs - upto 15 years<br />
Note: No prepayment penalty will be levied for prepayment of loan any time during the repayment period.<br />
<b>11. INSURANCE</b><br />
Banks may, with the consent of the student, arrange for life insurance policy on the students availing Education Loan. Individual Banks may work out the modalities with insurance companies.<br />
<b>12. FOLLOW UP/MONITORING:</b><br />
Banks to contact college/ university authorities to obtain progress report on the student at regular intervals in respect of those who have availed loans. In case of studies abroad, bank may obtain the SSN/Unique Identification Number (UIN)/Identity Card and note the same in the bank’s records. The UID number issued by UIDIA may also be captured in bank’s system as and when available.<br />
<b>13. PROCESSING CHARGES :</b><br />
No processing / upfront charges may be levied on loans sanctioned under the scheme. (Banks may charge processing fee for considering loans for studies abroad. The fee would however, be refunded upon the student taking up the course)<br />
<b>14. CAPABILITY CERTIFICATE:</b><br />
Banks can also issue the capability certificate for students going abroad for higher studies. For this purpose financial and other supporting documents may be obtained from applicant, if required. (Some of the foreign universities require the students to submit a certificate from their bankers about the sponsors' solvency/ financial capability, with a view to ensure that the sponsors of the students going abroad for higher studies are capable of meeting the expenses till completion of studies.)<br />
<b>15. OTHER CONDITIONS:</b><br />
<b>15.1 Sanction of loan to more than one child from the same family</b><br />
Existence of an earlier education loan to the brother(s) and/or sister(s) will not affect the eligibility of another meritorious student from the same family obtaining education loan as per this scheme from the bank.<br />
<b>15.2 Minimum Age</b><br />
There is no specific restriction with regard to the age of the student to be eligible for education loan. However, if the student was a minor while the parent executed documents for the loan, the bank will obtain a letter of ratification from him/her upon attaining majority.<br />
<b>15.3 Top up loans</b><br />
Banks may consider top up loans to students pursuing further studies within the overall eligibility limit, if such further studies are commenced during the moratorium period of the first loan. The repayment of the loan will commence after the completion of the second course and further moratorium period, as provided under the scheme.<br />
<b>15.4 Joint Borrower</b><br />
The joint borrower should normally be parent(s)/guardian of the student borrower. In case of a married person, joint borrower can be either spouse or the parent(s)/parents-in-law.<br />
<b>No Due Certificate</b><br />
No due certificate will not be insisted upon as a pre-condition for considering education loan. However, banks may obtain a declaration/ an affidavit confirming that no loans are availed from other banks.<br />
<b>Disposal of loan application</b><br />
Loan applications have to be disposed of in the normal course within a period of 15 days to 1 month, but not exceeding the time norms stipulated for disposing of loan applications under priority sector lending.Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com3tag:blogger.com,1999:blog-6302883023187629790.post-47921903734531564252011-09-17T07:09:00.000-07:002011-09-17T07:09:14.604-07:00Agri Land OK for Education Loan Collateral Security
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Today's Paper » NATIONAL » KARNATAKA
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Published: September 10, 2011 00:00 IST | Updated: September
10, 2011 04:02 IST
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Education loan scheme to benefit farmers'
children</h1>
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<img align="BOTTOM" alt="Launch: Chairman of Karnataka Vikas Grameena Bank C. Sambasiva Reddy releasing booklets on the new education loan scheme for farmers at the Krishi Mela in Dharwad on Friday" border="0" height="188" name="graphics2" src="http://www.thehindu.com/multimedia/dynamic/00777/09bgHBGSPHI-W177_G0_777978e.jpg" width="318" />
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Launch: Chairman of Karnataka Vikas Grameena Bank C. Sambasiva
Reddy releasing booklets on the new education loan scheme for
farmers at the Krishi Mela in Dharwad on Friday
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Karnataka Vikas Grameena (KVG) Bank has launched a new
education loan scheme, designed exclusively for the children of
farmers.<br />
Chairman of KVG Bank C. Sambasiva Reddy launched the unique
scheme aimed at helping farmers during the inauguration of the
bank's stall at the four-day Krishi Mela being organised by the
University of Agricultural Sciences (UAS), Dharwad.<br />
Mr. Reddy said that under the new scheme, farmers would be
able to mortgage their agricultural lands for getting education
loans for their wards.<br />
“Usually while applying for the education loans above Rs.
7.5 lakh, collateral securities such as NSC/KVP have to be
provided or house/residential plots (non-agricultural land)
should be mortgaged. Till recently, mortgaging of agricultural
lands for education loans was not allowed,” he said.<br />
Mr. Reddy said that the State Government had now enacted an
amendment and given a green signal to accept agricultural land as
collateral security for education loans.<br />
“KVG Bank has designed a new education loan scheme, which
suits the children of farmers who aspire to go for higher
studies. The bank also issued directions to all its branches to
encourage meritorious children of farmers,” he said.<br />
Elaborating on the bank's initiative to reach more villages,
Mr. Reddy said the bank's unique campaign, ‘Reaching towards
farmers', was getting a good response. So far, the bank had
covered more than 7,000 fresh farmers through the campaign, he
said.<br />
He said the bank's stall at the Krishi Mela aimed at
sensitising farmers on various schemes. “Last year, over 3 lakh
people visited the bank's stall and this year we expect more.
Arrangements have been made to provide all the information to
farmers at the stall itself,” he said.<br />
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Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com24tag:blogger.com,1999:blog-6302883023187629790.post-52121817841506377202011-06-12T04:46:00.000-07:002011-08-10T15:02:48.649-07:00How to Apply for and Get an Education Loan<div style="text-align: justify;"><span style="font-weight: bold;"></span></div><div style="margin-bottom: 0in; text-align: left;"><span style="background: none repeat scroll 0% 0% transparent;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;">The public sector banks in India have a very good education loan scheme in place for students pursuing higher education in general and professional courses in particular. The loan is interest free for students (family annual income less than Rs 4.5 lakhs) in professional courses during college years and 1 year or 6 months after graduation. The rules and requirements are published on most if not all bank websites. Online registration facility and application form download are also available on the websites. Students, by understanding the rules and starting the online registration process, can get loans in a timely manner with recourse to head office loan cell when difficulties arise. They get to know necessary documents and may collect them prior to the first visit to the local bank branch nearest to their domicile. The branch managers will have to spend less time on each application and they will be also aware that the student knows the rules and requirements. Following step by step guide will help students to access this information and exercise their rights to get the loan.</span></span></span> </div><div style="margin-bottom: 0in; text-align: left;"><br />
</div><div style="text-align: left;"></div><div style="text-align: left;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><u><b><span style="background: none repeat scroll 0% 0% transparent;">Before CET Counseling</span></b></u></span></span></div><div style="text-align: left;"></div><ol style="text-align: left;"><li><div style="line-height: 150%; margin-bottom: 0in;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;">Make a list of Public Sector Banks nearest to your family home and rank them starting with the nearest. It is also important to select bank that services your domicile.</span></span></span></div></li>
<li><div style="line-height: 150%; margin-bottom: 0in;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;">Go onto their Education Loan web page on the internet and print information about the bank’s education loan scheme, study it and understand the eligibility requirements, eligible expenses and conditions for various levels of loan amount. Check whether the bank has online application facility. List the phone numbers and names of the bank manager and the assistant division manager.</span></span></span></div></li>
<li><div style="line-height: 150%; margin-bottom: 0in;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;">Decide on amount of loan you need to complete your education. For example, for 4 years of engineering, with or without hostel, Rs. 4 lakhs or less is currently sufficient for most of the colleges in Karnataka. Understand the bank conditions for the loan amount you need. Conditions to look for are collateral security, third party guarantee, margin, interest rates and repayment period.</span></span></span></div></li>
<li><div style="line-height: 150%; margin-bottom: 0in;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;">Download the loan application form, print it and make list of documents needed to be attached to the application form.</span></span></span></div></li>
<li><div style="line-height: 150%; margin-bottom: 0in;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;">Collect as many needed documents as and when possible</span></span></span></div></li>
</ol><div style="text-align: left;"></div><div style="text-align: left;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><u><b><span style="background: none repeat scroll 0% 0% transparent;">At CET Counseling</span></b></u></span></span></div><div style="text-align: left;"></div><ol start="6" style="text-align: left;"><li><div style="line-height: 150%; margin-bottom: 0in;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;">Talk to the bank loan kiosks at the CET counseling center and ask for education loan. Choose the bank nearest to your home if present at the center; otherwise go to the next one on your list prepared in step 1. Some banks will even give you a DD required for the payment of the fees at the counseling. Ask for loan amount you decided in step 3 or Rs 4 lakhs for engineering or more for medical or other courses. Get a letter from the bank officer at the counseling center that typically says that the loan is approved in principle.</span></span></span></div></li>
</ol><div style="text-align: left;"></div><div style="line-height: 150%; margin-bottom: 0in; text-align: left;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><u><b><span style="background: none repeat scroll 0% 0% transparent;">After Final Selection of the College You Will Attend or After Admission</span></b></u></span></span></div><div style="text-align: left;"></div><ol start="7"><li style="text-align: left;"><div style="line-height: 150%; margin-bottom: 0in;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;">Apply online on the bank website, if this facility is available. Make sure you print out the confirmation information after you complete the form. You will receive an email with the in principle approval in a short time, typically 7-10 days; you may get a phone call from some banks, ask and note down the name, phone number, and branch of the person and confirm the branch you need to go to apply for the loan in person.</span></span></span></div></li>
<li style="text-align: left;"><div style="line-height: 150%; margin-bottom: 0in;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;">Get a letter of expenses and admission from the principal of the college you going to attend. Collect all the documents that are required with the education loan application from the list you made in step 4.</span></span></span></div></li>
<li style="text-align: left;"><div style="line-height: 150%; margin-bottom: 0in;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;">Fill up the application form you printed in step 4.</span></span></span></div></li>
<li style="text-align: left;"><div style="line-height: 150%; margin-bottom: 0in;"><span style="background: none repeat scroll 0% 0% transparent;"> <span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;">Submit the application and the required documents to the bank nearest to you. </span></span><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><b>Get a written receipt of the application submission with a date stamp. </b></span></span><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><i>Getting the receipt is the most important part of the application process. Once you have a written</i></span></span><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"> receipt</span></span><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><i>, the bank loan officer is required to follow a well defined and time limited procedure and approve or disapprove the loan. If the bank officer does not cooperate, do not get discouraged. Politely and firmly insist on getting the receipt. Visit the bank multiple times if necessary.</i></span></span></span></div></li>
<li style="text-align: left;"><div style="line-height: 150%; margin-bottom: 0in;"><span style="background: none repeat scroll 0% 0% transparent;"> <span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;">The bank officer may ask you to provide a third party guarantor or collateral security even if requested loan amount is less than Rs. 4 lakhs. Show the manager the printout from the bank website and politely tell him that neither is required if the requested loan is less than Rs 4 lakhs. Make sure that the bank officer knows the fact that you are only asking them to follow their own bank’s rules. </span></span></span> </div></li>
<li style="text-align: left;"><div style="line-height: 150%; margin-bottom: 0in;"><span style="background: none repeat scroll 0% 0% transparent;"> <span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;">If the bank is still not cooperating, call or email the head office contact you received when you completed online registration/application Seek out help of a prominent person in your community who may be able to help you with the bank manager. </span></span></span> </div></li>
<li style="text-align: left;"><div style="line-height: 150%; margin-bottom: 0in;"><span style="background: none repeat scroll 0% 0% transparent;"> <span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;">If that is not possible, talk to the assistant division manager of the bank and explain your situation and request him to help you with processing of the loan application.</span></span></span></div></li>
<li style="text-align: left;"><div style="line-height: 150%; margin-bottom: 0in;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;">For more information please refer also to: </span></span></span><span style="color: navy;"><span lang="zxx"><u><a class="western" href="http://appamadiwale.blogspot.com/"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;"></span></span></span></a></u></span></span><span style="color: black;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;"></span></span></span></span><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;"></span></span></span><span style="color: navy;"><span lang="zxx"><u><a class="western" href="http://action2020eltf.blogspot.com/"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;">http://action2020eltf.blogspot.com/</span></span></span></a></u></span></span><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"><span style="background: none repeat scroll 0% 0% transparent;"></span></span></span></div></li>
<li style="text-align: left;"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;">If you are still having difficulties, email at </span></span><span style="color: navy;"><span lang="zxx"><u><a class="western" href="mailto:appam@yahoo.com"><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;">appam@yahoo.com</span></span></a></u></span></span><span style="font-family: Calibri,sans-serif;"><span style="font-size: 85%;"> with your phone number and I will help you.</span></span></li>
</ol>Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com0tag:blogger.com,1999:blog-6302883023187629790.post-35334389643093058512011-01-28T16:06:00.000-08:002011-01-28T18:28:59.265-08:00Education Loan Task Force (ELTF)Another blog you can visit to get information about EDUCATION LOAN SCHEME<br /><br /><div style="text-align: center;"> <a href="http://action2020eltf.blogspot.com/">http://action2020eltf.blogspot.com/</a></div><br /><div style="text-align: justify;"><span style="font-size:small;">Education Loan Task Force (ELTF) is part of Action 2020 team of India Vision online group. ELTF was formed to guide highly deserving, poor students to avail the bank loans for higher education. Whenever Banks harass genuine deserving students, without following the RBI rules, ELTF will take up with higher authorities for solution. However ELTF will not undertake to get any loans from Banks. This is a voluntary group of youngsters to create awareness about the education loans in India.</span><br /><span style="font-size:small;">contact email id <a href="mailto:action2020eltf@gmail.com">action2020eltf@gmail.com</a></span><br /></div>Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com1tag:blogger.com,1999:blog-6302883023187629790.post-37375566597125365002011-01-28T15:52:00.000-08:002011-01-28T15:54:28.966-08:00Education loan: bank flayed for demanding guaranteeTHE HINDU<br />Online edition of India's National Newspaper<br />Sunday, Jan 09, 2011<br /><br />Education loan: bank flayed for demanding guarantee<br />Mohamed Imranullah S.<br /><div style="text-align: justify;">MADURAI: The Central Information Commission (CIC) presided over by Information Commissioner Satyananda Mishra in New Delhi has criticised the Indian Bank for demanding securities and guarantee to provide education loan of Rs.4 lakh to a Chennai student who is right now undergoing a Master's programme costing Rs.22.87 lakh at the University of Texas in the United States.<br />Passing orders in a second appeal filed and argued by S. Dorairaj, the Madurai based 79-year-old uncle of the student, under the Right to Information Act, 2005 the CIC said: “What this case brings out is that the authorities in the bank have failed to show adequate sensitivity in sanctioning educational loan to a student such as Pratap Ramanathan.<br />“Contrary to the public pronouncements of the Central Government that the procedure for availing educational loan has been simplified and that students can access such loans without having to furnish securities etcetera, Pratap Ramanathan was asked to furnish both securities and guarantee for the loan and was compelled in the process to seek a reduced loan (from Rs.7 lakh to Rs. 4 lakh) for which also he was asked to furnish securities and guarantee.<br />“It does not look that the bank took any remedial action at any stage even though the loan applicant and his uncle had been seeking several information from the bank ever since. This also needs to be looked into by some appropriate authority in the bank so that such a situation does not recur.<br />“We direct the CPIO (Central Public Information Officer) to forward a copy of this order to the CMD (Chairman and Managing Director) of the bank for taking appropriate action on our directions. A compliance report must be sent to the CIC within two months from receiving this order.”<br />Discrepancies<br />The CIC also found that there were several discrepancies in the information provided by the public information officer as well as the appellate authority (Executive Director) of the bank in response to the applications filed by the student as well as his uncle under the RTI Act. “We verified some of the replies given by the CPIO at different times in response to the RTI requests made by the appellants and found that, indeed, the information provided by the CPIO had variations from time to time. This only shows that the CPIO concerned was not very careful in dealing with the request,” the CIC's order read.<br />Directing the CPIO to furnish all relevant records to Mr. Dorairaj within 15 days, the CIC went on to state: “This brings us to the question of some of the CPIOs providing incorrect information in their response to RTI requests on the subject in the past. During the hearing, we had specifically pointed out these discrepancies, as brought out by the appellants, to the respondents.<br />“They could not provide any satisfactory explanation since they did not have the relevant records with them at the time. This matter needs to be investigated in order to find out if the CPIO(s) concerned had provided the incorrect information knowingly.<br />Therefore, in exercise of the powers vested in the CIC in Section 20 (2) of the RTI Act, we direct the competent authority in the bank to enquire into this matter and to fix responsibility for the incorrect information sent to the appellant and to initiate appropriate disciplinary action if the lapse on the part of the CPIO(s) is found to be deliberate and wilful.”</div>Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com1tag:blogger.com,1999:blog-6302883023187629790.post-75333329024161899402010-07-13T12:36:00.000-07:002010-07-13T12:59:02.136-07:00Typical Education Loan Schemes from Indian Banks<span style="font-weight: bold;">On-line application and registration is available on most of the bank web sites</span>
<br />
<br />Stae Bank of India...
<br />http://www.statebankofindia.com/user.htm
<br />Corporation Bank:
<br />http://www.corpbank.com/asp/0100text.asp?presentID=110&headID=19
<br />Canara Bank:
<br />http://www.canarabank.com/English/Scripts/CanEduLoan.aspx
<br />Syndicate Bank:
<br />http://syndicatebank.in/scripts/SyndVidya.aspx
<br />Union Bank:
<br /> http://www.unionbankofindia.co.in/ln_Union_Education.aspx
<br />
<br /><span style="font-weight: bold;">see previous posting about Interest Subsidy during first 4-5 years of professional education</span>(engineering, medicine etc.)
<br />
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mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </style> <![endif]--><!--[if gte mso 9]><xml> <o:shapedefaults ext="edit" spidmax="1029"> </xml><![endif]--><!--[if gte mso 9]><xml> <o:shapelayout ext="edit"> <o:idmap ext="edit" data="1"> </o:shapelayout></xml><![endif]--> <p class="MsoNormal">From: Stae Bank of India Website... http://www.statebankofindia.com/user.htm</p><p class="MsoNormal"><span style="font-weight: bold;">EDUCATION LOAN</span><o:p></o:p></p> <p><span style=";font-family:Verdana;font-size:10pt;color:black;" >A term loan granted to Indian Nationals for pursuing higher education in <u1:place st="on"><u1:country-region st="on"><u4:country-region st="on"><u5:country-region st="on"><u7:place st="on"><u4:place st="on"><st1:country-region st="on"><st1:place st="on"><st1:place st="on"><st1:country-region st="on">India</st1:country-region></st1:place></st1:place></st1:country-region></u4:place></u7:place> or abroad where admission has been secured.
<br /></u5:country-region></u4:country-region></u1:country-region></u1:place></span>
<br /><a name="EligibleCOURCES"><b><span style=";font-family:Verdana;font-size:10pt;color:black;" >Eligible Courses</span></b></a><b><span style=";font-family:Verdana;font-size:10pt;color:black;" >
<br />
<br /></span></b><span style=";font-family:Verdana;font-size:10pt;color:black;" >All courses having employment prospects are eligible.</span><o:p></o:p></p> <u4:p></u4:p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Graduation courses/ Post graduation courses/ Professional courses </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Other courses approved by UGC/Government/AICTE etc. </span><o:p></o:p></li></ul> <u4:p></u4:p> <p><a href="http://www.sbi.co.in/user.htm?action=viewsection&lang=0&id=0,1,20,118"></a><!--[if gte vml 1]><v:shapetype id="_x0000_t75" coordsize="21600,21600" spt="75" preferrelative="t" path="m@4@5l@4@11@9@11@9@5xe" filled="f" stroked="f"> <v:stroke joinstyle="miter"> <v:formulas> <v:f eqn="if lineDrawn pixelLineWidth 0"> <v:f eqn="sum @0 1 0"> <v:f eqn="sum 0 0 @1"> <v:f eqn="prod @2 1 2"> <v:f eqn="prod @3 21600 pixelWidth"> <v:f eqn="prod @3 21600 pixelHeight"> <v:f eqn="sum @0 0 1"> <v:f eqn="prod @6 1 2"> <v:f eqn="prod @7 21600 pixelWidth"> <v:f eqn="sum @8 21600 0"> <v:f eqn="prod @7 21600 pixelHeight"> <v:f eqn="sum @10 21600 0"> </v:formulas> <v:path extrusionok="f" gradientshapeok="t" connecttype="rect"> <o:lock ext="edit" aspectratio="t"> </v:shapetype><v:shape id="_x0000_s1026" type="#_x0000_t75" alt="" href="http://www.sbi.co.in/user.htm?action=viewsection&lang=0&id=0,1,20,118" style="'position:absolute;margin-left:-32.5pt;margin-top:0;width:7.5pt;" allowoverlap="f" button="t"> <w:wrap type="square"> </v:shape><![endif]--><!--[if !vml]--><a href="http://www.sbi.co.in/user.htm?action=viewsection&lang=0&id=0,1,20,118"><img src="file:///C:/WINDOWS/TEMP/msohtml1/03/clip_image001.gif" shapes="_x0000_s1026" align="right" border="0" height="10" width="10" /></a><!--[endif]--><span style=""><a href="http://www.sbi.co.in/user.htm?action=viewsection&lang=0&id=0,1,20,118"></a></span>E<strong><span style=";font-family:Verdana;font-size:10pt;color:black;" >xpenses considered for loan</span></strong><o:p></o:p></p> <u4:p></u4:p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Fees payable to college/school/hostel </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Examination/Library/Laboratory fees </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Purchase of Books/Equipment/Instruments/Uniforms </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course) <u4:p></u4:p></span><o:p></o:p></li><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Travel Expenses/Passage money for studies abroad </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Purchase of computers considered necessary for completion of course </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Cost of a Two-wheeler upto Rs. 50,000/- </span><o:p></o:p></li></ul> <u4:p></u4:p> <p style="margin-bottom: 12pt;"><span style=";font-family:Verdana;font-size:10pt;color:black;" >Any other expenses required to complete the course like study tours, project work etc.
<br />
<br /><strong><span style="font-family:Verdana;">Amount of Loan </span></strong></span><o:p></o:p></p> <u4:p></u4:p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style=""><span style=";font-family:Verdana;font-size:10pt;color:black;" >For studies in <u1:country-region st="on"><u1:place st="on"><st1:country-region st="on"><st1:place st="on"><st1:country-region st="on"><st1:place st="on">India</st1:place></st1:country-region></st1:place></st1:country-region></u1:place></u1:country-region>, maximum Rs. 10 lacs </span><u4:p></u4:p><o:p></o:p></li><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Studies abroad, maximum Rs. 20 lacs</span><o:p></o:p></li></ul> <u4:p></u4:p> <p class="MsoNormal"><strong><span style=";font-family:Verdana;font-size:10pt;color:black;" > </span></strong><o:p></o:p></p> <p class="MsoNormal"><strong><span style=";font-family:Verdana;font-size:10pt;color:black;" >Interest</span></strong><span style=";font-family:Verdana;font-size:10pt;color:black;" > <strong><span style="font-family:Verdana;">Rates </span></strong></span><o:p></o:p></p> <u4:p></u4:p> <p class="MsoNormal" style="text-align: center;" align="center"><b><span style=";font-family:Verdana;font-size:10pt;color:blue;" >w.e.f. 29.06.2009 (SBAR 11.75%)<u4:p></u4:p></span></b><o:p></o:p></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;color:black;" ><u4:p> </u4:p></span><o:p></o:p></p> <p class="MsoNormal"><b><span style=";font-family:Verdana;font-size:10pt;color:blue;" >SBI Student Loan Scheme<u4:p></u4:p></span></b><o:p></o:p></p> <table class="MsoNormalTable" style="border: 1pt solid windowtext; background: rgb(236, 233, 255) none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;" border="1" cellpadding="0" cellspacing="0"> <tbody><tr style=""> <td style="border: 1pt solid windowtext; padding: 3pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;" valign="top"> <p class="MsoNormal"><b><span style=";font-family:Verdana;font-size:10pt;" >Loan Amount<u4:p></u4:p></span></b><o:p></o:p></p> </td> <td style="border: 1pt solid windowtext; padding: 3pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;" valign="top"> <p class="MsoNormal"><b><span style=";font-family:Verdana;font-size:10pt;" >Rate of Interest<u4:p></u4:p></span></b><o:p></o:p></p> </td> </tr> <tr style=""> <td style="border: 1pt solid windowtext; padding: 3pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;" valign="top"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >Loans upto Rs. 4.00 Lacs<u4:p></u4:p></span><o:p></o:p></p> </td> <td style="border: 1pt solid windowtext; padding: 3pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;" valign="top"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >0.50% below SBAR i.e. 11.25% p.a. <u4:p></u4:p></span><o:p></o:p></p> </td> </tr> <tr style=""> <td style="border: 1pt solid windowtext; padding: 3pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;" valign="top"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >Loans above Rs. 4.00 Lacs and <u4:p></u4:p></span><o:p></o:p></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >upto Rs. 7.50 Lacs<u4:p></u4:p></span><o:p></o:p></p> </td> <td style="border: 1pt solid windowtext; padding: 3pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >1.00% above SBAR i.e. 12.75% p.a.<u4:p></u4:p></span><o:p></o:p></p> </td> </tr> <tr style=""> <td style="border: 1pt solid windowtext; padding: 3pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;" valign="top"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >Loans above Rs. 7.50 Lacs<u4:p></u4:p></span><o:p></o:p></p> </td> <td style="border: 1pt solid windowtext; padding: 3pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >At SBAR i.e. 11.75% p.a.<u4:p></u4:p></span><o:p></o:p></p> </td> </tr> </tbody></table> <p class="MsoNormal"><span style="color:black;"><u4:p> </u4:p></span><o:p></o:p></p> <p class="MsoNormal">An Interest Rate concession of 0.50% to Girl Student availing Student Loans<o:p></o:p></p> <u4:p></u4:p> <p><strong><span style=";font-family:Verdana;font-size:10pt;color:black;" >Processing Fees</span></strong><o:p></o:p></p> <u4:p></u4:p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >No processing fee/ upfront charges </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money</span><o:p></o:p></li></ul> <u4:p></u4:p> <p class="MsoNormal"><strong><span style=";font-family:Verdana;font-size:10pt;color:black;" >Repayment Tenure</span></strong><span style="color:black;"><u4:p></u4:p><o:p></o:p></span></p> <p><span style=";font-family:Verdana;font-size:10pt;color:black;" >Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier. </span><o:p></o:p></p> <u4:p></u4:p> <table class="MsoNormalTable" style="border: 1pt outset white; background: rgb(231, 236, 250) none repeat scroll 0% 0%; width: 309pt; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;" border="1" cellpadding="0" cellspacing="0" width="412"> <tbody><tr style=""> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><b><span style=";font-family:Verdana;font-size:10pt;" >Place of Study</span></b><u4:p></u4:p><o:p></o:p></p> </td> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><b><span style=";font-family:Verdana;font-size:10pt;" >Loan Amount</span></b><u4:p></u4:p><o:p></o:p></p> </td> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><b><span style=";font-family:Verdana;font-size:10pt;" >Repayment Period
<br />in Years</span></b><u4:p></u4:p><o:p></o:p></p> </td> </tr> <tr style=""> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >Studies in <u1:country-region st="on"><u1:place st="on"><st1:country-region st="on"><st1:place st="on"><st1:country-region st="on"><st1:place st="on">India</st1:place></st1:country-region></st1:place></st1:country-region></u1:place></u1:country-region></span><u4:p></u4:p><o:p></o:p></p> </td> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >Rs. 10.0 lacs</span><u4:p></u4:p><o:p></o:p></p> </td> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >5-7 </span><u4:p></u4:p><o:p></o:p></p> </td> </tr> <tr style=""> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >Studies Abroad</span><u4:p></u4:p><o:p></o:p></p> </td> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >Rs. 20.0 lacs</span><u4:p></u4:p><o:p></o:p></p> </td> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >5-7 </span><u4:p></u4:p><o:p></o:p></p> </td> </tr> </tbody></table> <p style="margin-bottom: 12pt;"><a href="http://www.sbi.co.in/user.htm?action=viewsection&lang=0&id=0,1,20,118"><u4:p></u4:p></a><!--[if gte vml 1]><v:shape id="_x0000_s1027" type="#_x0000_t75" alt="" href="http://www.sbi.co.in/user.htm?action=viewsection&lang=0&id=0,1,20,118" style="'position:absolute;margin-left:-32.5pt;margin-top:0;width:7.5pt;" allowoverlap="f" button="t"> <w:wrap type="square"> </v:shape><![endif]--><!--[if !vml]--><a href="http://www.sbi.co.in/user.htm?action=viewsection&lang=0&id=0,1,20,118"><img src="file:///C:/WINDOWS/TEMP/msohtml1/03/clip_image001.gif" shapes="_x0000_s1027" align="right" border="0" height="10" width="10" /></a><!--[endif]--><span style=""><a href="http://www.sbi.co.in/user.htm?action=viewsection&lang=0&id=0,1,20,118"></a><a href="http://www.sbi.co.in/user.htm?action=viewsection&lang=0&id=0,1,20,118"></a></span><!--[if gte vml 1]><v:shape id="_x0000_s1028" type="#_x0000_t75" alt="" href="http://www.sbi.co.in/user.htm?action=viewsection&lang=0&id=0,1,20,118" style="'position:absolute;margin-left:-32.5pt;margin-top:0;width:7.5pt;" allowoverlap="f" button="t"> <w:wrap type="square"> </v:shape><![endif]--><!--[if !vml]--><a href="http://www.sbi.co.in/user.htm?action=viewsection&lang=0&id=0,1,20,118"><img src="file:///C:/WINDOWS/TEMP/msohtml1/03/clip_image001.gif" shapes="_x0000_s1028" align="right" border="0" height="10" width="10" /></a><!--[endif]--><span style=""><a href="http://www.sbi.co.in/user.htm?action=viewsection&lang=0&id=0,1,20,118"></a></span><strong><span style=";font-family:Verdana;font-size:10pt;color:black;" >Security</span></strong><o:p></o:p></p> <u4:p></u4:p> <table class="MsoNormalTable" style="border: 1pt outset white; background: rgb(231, 236, 250) none repeat scroll 0% 0%; width: 310.5pt; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;" border="1" cellpadding="0" cellspacing="0" width="414"> <tbody><tr style=""> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><b><span style=";font-family:Verdana;font-size:10pt;" >Amount</span></b><u4:p></u4:p><o:p></o:p></p> </td> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><b><span style=";font-family:Verdana;font-size:10pt;" >For loans upto Rs. 10.00 lacs for Studies in <u1:country-region st="on"><u1:place st="on"><st1:country-region st="on"><st1:place st="on"><st1:country-region st="on"><st1:place st="on">India</st1:place></st1:country-region></st1:place></st1:country-region></u1:place></u1:country-region> and upto Rs. 20.00 lacs for studies abroad</span></b><u4:p></u4:p><o:p></o:p></p> </td> </tr> <tr style=""> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >Upto Rs. 4 lacs</span><u4:p></u4:p><o:p></o:p></p> </td> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >No Security</span><u4:p></u4:p><o:p></o:p></p> </td> </tr> <tr style=""> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >Above Rs. 4 lacs to Rs. 7.50 lacs</span><u4:p></u4:p><o:p></o:p></p> </td> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:10pt;" >Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower".</span><u4:p></u4:p><o:p></o:p></p> </td> </tr> <tr style=""> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p><span style=";font-family:Verdana;font-size:10pt;" >Above Rs. 7.50 lacs.</span><u4:p></u4:p><o:p></o:p></p> </td> <td style="border: 1pt inset white; padding: 0in 0in 0in 3.75pt; background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;"> <p><span style=";font-family:Verdana;font-size:10pt;" >Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments.</span><u4:p></u4:p><o:p></o:p></p> </td> </tr> </tbody></table> <p class="MsoNormal"><strong><span style=";font-family:Verdana;font-size:10pt;color:black;" >All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law</span></strong><o:p></o:p></p> <u4:p></u4:p> <p class="MsoNormal"><span style="color:black;"><u4:p> </u4:p></span></p> <p class="MsoNormal"><strong><span style=";font-family:Verdana;font-size:10pt;color:black;" >Margin</span></strong><span style=";font-family:Verdana;font-size:10pt;color:black;" > </span><o:p></o:p></p> <u4:p></u4:p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >For loans up to Rs.4.0 lacs : No Margin </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >For loans above Rs.4.0 lacs: </span><o:p></o:p></li><u4:p></u4:p><ul style="margin-top: 0in;" type="circle"><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Studies in <u1:country-region st="on"><u1:place st="on"><st1:country-region st="on"><st1:place st="on"><st1:country-region st="on"><st1:place st="on">India</st1:place></st1:country-region></st1:place></st1:country-region></u1:place></u1:country-region>: 5% </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Studies Abroad: 15%</span><o:p></o:p></li></ul></ul> <u4:p></u4:p> <p><span style="color:black;"><u4:p></u4:p></span><strong><span style=";font-family:Verdana;font-size:10pt;color:black;" >Documentation Required</span></strong><o:p></o:p></p> <u4:p></u4:p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Completed Education Loan Application Form. </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Mark sheets of last qualifying examination </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Proof of admission scholarship, studentship etc </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Schedule of expenses for the specified course </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >2 passport size photographs </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Borrower's Bank account statement for the last six months </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Income tax assessment order, of last 2 years </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Brief statement of assets and liabilities, of the Co-borrower </span><o:p></o:p></li><u4:p></u4:p><li class="MsoNormal" style="color:black;"><span style=";font-family:Verdana;font-size:10pt;" >Proof of Income (i.e. Salary slips/ Form 16 etc) </span><o:p></o:p></li></ul> <p class="MsoNormal"><o:p> </o:p></p>
<br />Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com1tag:blogger.com,1999:blog-6302883023187629790.post-2895224211789958922010-07-09T12:37:00.000-07:002010-07-09T12:54:25.613-07:00Interest Subsidy for Education Loans in India<span>From: http://www.education.nic.in/uhe/IntSubsidyonELS.pdf</span><span style="font-weight: bold;"><br /><br /></span><div style="text-align: center;"><span style="font-weight: bold;">Government of India</span><br /><span style="font-weight: bold;">Ministry of Human Resource Development</span><br /><span style="font-weight: bold;">Department of Higher Education</span><br /></div><br /><div style="text-align: center;">Central Scheme to provide <span style="font-weight: bold; font-style: italic;">Interest Subsidy for the period of moratorium on Educational Loans </span>taken by students from economically weaker sections from scheduled banks under the Educational Loan Scheme of the Indian Banks’ Association to pursue technical/professional education studies in India.<br /></div><br /><div style="text-align: justify;"><div style="text-align: left;"><div style="text-align: justify;">One of the major concerns of the Government is to ensure that nobody is denied professional education because he or she is poor. The Indian Banks’ Association (IBA) had formulated a comprehensive model educational loan scheme for adoption by all Banks, aimed at providing financial support from the banking system to deserving/meritorious students for pursuing higher education in India and abroad. Government of India has now approved a Scheme to provide full interest subsidy during the period of moratorium on loans taken by students belonging to economically weaker sections from scheduled banks under the Educational Loan Scheme of the Indian Banks’ Association, for pursuing any of the approved courses of studies in technical and professional streams, from recognized institutions in India.<br /></div><br /></div>2. The broad parameters of the Scheme are :-<br /><br /><div style="text-align: justify;"> (i) The Scheme would be only applicable for studies in technical and professional courses in India. The interest subsidy shall be linked with the existing Educational Loan Scheme of IBA and restricted to students enrolled in recognized professional courses (after Class XII) in India in Educational Institutions established by Acts of Parliament, other Institutions recognized by the concerned Statutory Bodies, Indian Institutes of Management (IIMs) and other institutions set up by the Central Government.<br /><br /></div> (ii) Under the Scheme, interest payable by the student availing of the Educational Loan Scheme of the Indian Banks’ Association for professional courses for the period of moratorium (i.e., course period, plus one year or six months after getting job, whichever is earlier) as prescribed under the Educational Loan Scheme of the Indian Banks’ Association, shall be borne by the Government. After the period of moratorium is over, the interest on the outstanding loan amount shall be paid by the student, in accordance with the provisions of the existing Educational Loan Scheme and as may be amended from time to time.<br /><br />* (iii) The benefits under the Scheme would be applicable to those students belonging to economically weaker sections, with an annual parental income upper limit of Rs. 4.5 lakh per year.<br /><br /> (iv) The interest subsidy under the Scheme shall be available to the eligible students only once, either for the first undergraduate degree course or the post graduate degrees/diplomas. Interest subsidy shall, however, be admissible for combined undergraduate and post graduate courses.<br /><br /> (v) Interest subsidy under this scheme shall not be available for those students who either discontinue the course midstream, or for those who are expelled from the Institutions on disciplinary or academic grounds. However, the interest subsidy will be available for the actual period of study, only if the discontinuation was due to medical grounds for which necessary documentation to the satisfaction of the Head of educational institution will have to be given.<br /><br /> (vi) There would be a tag/marker on the degree of the student indicating his repayment liabilities.<br /><br /> (vii) The National Minorities Development & Finance Corporation (NMDFC) has an Educational Loan Scheme for individual beneficiaries, which is implemented through State Channelizing Agencies (SCAs). The National Safai Karamcharis Finance and Development Corporation under the Ministry of Social Justice and Empowerment also provides educational loan to the students of the target group for higher education. Interest on Educational Loan provided under these two schemes, if the loans are for pursuing professional courses after XII class, shall also be subsidized for the period of moratorium as per the terms and conditions of this Scheme.<br /><br /> (viii) The Scheme shall be implemented through Canara Bank, which is the nodal bank for the Ministry of Human Resource Development. Modalities for implementation and monitoring mechanism shall be finalized in consultation with the Canara Bank.<br /><br /> (ix) The Scheme shall be applicable from the academic year 2009-10.<br /><br /> (x) A list of professional courses for which the scheme shall be applicable, shall be brought out, in consultation with the concerned Ministries/Departments and the Indian Banks’ Association, and publicised from time to time.<br /><br />** (xi) A monitoring mechanism shall be evolved to monitor the benefits accruing to different categories of loanees, such as, the Scheduled Castes, Scheduled Tribes, Minorities, Disabled etc.<br /><br />* Income proof shall be required from the students from such public authorities as are authorised by the State Governments for certification of income status for various purposes, including Central and State Sector Schemes.<br /><br />** For better statistical reference and collation of data, information pertaining to beneficiaries shall be maintained in respect of the categories to which they belong, namely, Scheduled Castes, Scheduled Tribes, Minorities, Other Backward Classes, and Others; alongwith sub-classification in terms of gender, differently-abled/ persons with disabilities as well as the disciplines/programmes of study, year of enrolment and programmes as also the specialisation of study, institutions, locations, State-wise and Bank-wise.</div>Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com6tag:blogger.com,1999:blog-6302883023187629790.post-60122733579431703432010-06-09T10:24:00.000-07:002010-06-09T10:31:35.154-07:00Belated application, no ground to deny education loan: Madras High CourtDate:29/05/2010 URL: http://www.thehindu.com/2010/05/29/stories/2010052950980600.htm Back<br /><br />Tamil Nadu - Madurai<br /><br />Belated application, no ground to deny education loan: HC<br /><br />Mohamed Imranullah S.<br /><br />Banks bound to examine plea for grant of educational loans<br /><br />MADURAI: Nationalised banks cannot deny educational loan to a student on the ground that the loan application had been made belatedly after the commencement of the academic year, the Madras High Court Bench here has ruled.<br /><br />Allowing a writ petition filed by an engineering student from Kanyakumari district, Justice T.S. Sivagnanam said that banks were bound to examine the plea for grant of educational loans bearing in mind the laudable object of the Model Educational Loan Scheme framed by the Union Government.<br /><br />The petitioner, S. Sugitha, said that she completed her Plus Two in March 2009 and secured admission in a private engineering college through counselling conducted by Anna University. However, her father, a farm labourer, could not afford the course fee of Rs.3,10,400 for the four-year course. She decided to avail herself of an education loan from the State Bank of Tranvancore, Peyode branch in Kanyakumari district, and obtained an application form after great difficulty.<br /><br />No response<br /><br />Even after that, the bank did not sanction the loan and a representation made to the Collector also did not evoke any response.<br /><br />On the other hand, counsel for the bank contended that the loan application was filed in December 2009 and hence it would be considered from the second year of the course onwards, subject to the condition that the applicant should score good marks in the forthcoming examinations.<br /><br />Disagreeing with the condition imposed by the bank, Mr. Justice Sivagnanam said that the High Court had held, as early as in 2007, that poor academic record of a student could not be cited as a reason for refusing to grant education loan because it would amount to underestimating the ability of the candidate.<br /><br />The judge also pointed out that the Model Educational Loan Scheme stated that development of human capital was a national priority and loans for education should be seen as an investment for economic development and prosperity.<br /><br />© Copyright 2000 - 2009 The HinduDr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com0tag:blogger.com,1999:blog-6302883023187629790.post-55405568239159932812010-05-20T09:54:00.000-07:002010-05-20T10:04:21.911-07:00Education Loans set to Become More Attractive<h1 class="post-title">Education loans set to become more attractive! </h1> <p class="singlemeta"> May 10th, 2010 (Copy From http://www.bankbazaar.com/guide/education-loans-set-to-become-more-attractive/18487/ )<br /></p> <div class="story-content"> <p><!-- --></p> <p align="JUSTIFY"><span style="color: rgb(136, 136, 136);">Typically interest rate on the education loan starts accumulating as soon as the course is over. Since interest during the moratorium period will be paid by the government, EMI for the borrower is set to fall. This will reduce pressure on his/her cash flows.</span></p> <p align="JUSTIFY"><span style="color: rgb(136, 136, 136);">This is a proposal which has been submitted to the Planning Commission and has been discussed with them too. The Planning Commission is currently looking into the proposal of setting up a National Education Finance Corporation (NEFC) to refinance banks. Based on the feedback received, the ministry will prepare a formal note which will be submitted to the Cabinet for approval.</span></p> <p align="JUSTIFY"><span id="more-18487"></span>The Ministry of Human resource development (HRD) headed by Mr. Kapil Sibal, has drafted a proposal on educational loans, which entails changes that will increase the accessibility of these loans- the objective being an equitable distribution.</p> <p align="JUSTIFY">The proposed changes include:</p> <ul><li> <p align="JUSTIFY"><strong>Reduction in the rate of interest</strong>: The Ministry is planning to subsidize the interest rates on educational loans and intends to bring in down to as low as 4%. For the same, the Ministry is working on a refinance scheme. This would involve, setting up of a Special Purpose Vehicle (SPV) to refinance banks for giving educational loans at a rate of interest below the PLR. National Education Finance Corporate (NEFC) will have to be set up to refinance the banks.</p> </li></ul> <p align="JUSTIFY"><span style="text-decoration: underline;"><strong>Impact</strong></span>: Banks have been witnessing defaults and non-payments on educational loans. This may change. Banks are set benefit on two counts- defaults should reduce because of low rate of interest charged to the borrower and even in case of defaults; banks will be able to cut their losses by virtue of subsidy provided by the government.</p> <p align="JUSTIFY"> </p><ul><li> <p align="JUSTIFY"><strong>Set criteria for charging interest rates: </strong>It is intended that the rate of interest charged will be based on parent’s income.</p> </li></ul> <ul><li> <p align="JUSTIFY">Parents with income less than Rs 4.5 lakhs p.a. will be charged 4%</p> </li><li> <p align="JUSTIFY">Parents with income more than Rs 4.5 lakhs p.a. and requiring a loan of less than Rs 12 lakhs will get it at 7%</p> </li><li> <p align="JUSTIFY">For loan amounts above Rs 12 lakhs, interest will be charged at 9%</p> </li></ul> <p align="JUSTIFY"><span style="text-decoration: underline;"><strong>Impact:</strong></span><strong> </strong>The highest rate of interest to be charged under the proposed structure i.e. 9% is lower than the lowest rate currently charged by banks, which is in the range of 10%-12% in most instances. This will certainly prove to be beneficial to students across the board.</p> <ul><li> <p align="JUSTIFY"><strong>Repayment period:</strong> The ministry intends to increase the loan repayment period to 6-12 years from the current 5-7 years.</p> </li></ul> <p align="JUSTIFY"><span style="text-decoration: underline;"><strong>Impact:</strong></span> This will reduce the pressure on the borrower by giving him/her greater amount of time for re-payment.</p> <ul><li> <p align="JUSTIFY"><strong>No interest during moratorium period:</strong> The interest cost for the moratorium period will be paid by the government - So if the loan is for a period of 7 years, the interest for the first two years (study period) and one year moratorium (holiday period to find a job) will be paid by the government and for the balance 5 years, interest and principal will be paid by the borrower.</p> </li></ul> <p align="JUSTIFY"><span style="text-decoration: underline;"><strong>Impact:</strong></span> Typically interest rate on the education loan starts accumulating as soon as the course is over. Since interest during the moratorium period will be paid by the government, EMI for the borrower is set to fall. This will reduce pressure on his/her cash flows.</p> <p align="JUSTIFY">This is a proposal which has been submitted to the Planning Commission and has been discussed with them too. The Planning Commission is currently looking into the proposal of setting up a National Education Finance Corporation (NEFC) to refinance banks. Based on the feedback received, the ministry will prepare a formal note which will be submitted to the Cabinet for approval.</p> <p align="JUSTIFY">If this proposal is approved by the Cabinet, educational loans will certainly be accessible to more number of students. ‘Financial issues’ will hopefully not deprive a student from pursuing higher education.</p> </div>Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com1tag:blogger.com,1999:blog-6302883023187629790.post-15803567439866581152010-05-20T08:38:00.000-07:002010-05-20T08:45:50.935-07:00Loan Guarantee Authority for Education Loans<table width="100%"><tbody><tr></tr><tr><td width="5%"><br /></td><td width="90%"><img src="http://www.hinduonnet.com/icons/hindu_w150.gif" /><br /><br /><b>Date:10/05/2010</b> <b>URL: http://www.thehindu.com/2010/05/10/stories/2010051060631100.htm</b> <hr /> <a href="javascript:history.go(-1)"></a><!-- story begins --> <!-- Template TOP 2 Ends --> <p> </p><p><br /><br /><span class="storyhead" style=";font-size:130%;color:blue;" ><b> ‘Set up loan guarantee authority for education loans' </b></span> </p> Aarti Dhar <center> <span style=""> </span><br /> <img src="http://www.thehindu.com/2010/05/10/images/2010051060631101.jpg" align="center" border="1" height="350" width="296" /><br /><b> Montek Singh Ahluwalia </b> </center> <p>NEW DELHI: The Planning Commission has suggested that the Human Resource Development Ministry examine the option of setting up a loan guarantee authority as a separate division within the purview of the proposed National Education Finance Corporation (NEFC).</p> <p>The proposed NEFC aims at refinancing student education loans and institutional loans at concessional rates with longer repayment, which will help expansion and new investments in the higher education sector, particularly universities.</p> <p>While putting the NEFC on a “fast track”, Planning Commission Deputy Chairman Montek Singh Ahluwalia reportedly told the Ministry to also look into the possibility of creating an authority that would stand guarantee for education loans to students or institutions who borrow money for investment in the higher education sector, instead of only refinancing.</p> <p>Mr. Ahluwalia is said to have suggested to the Ministry that both the options of refinancing and standing guarantee could be brought under the purview of the NEFC. The proposed NEFC would have two divisions, one as a loan guarantee authority and the other to deal with infrastructure loans.</p> <p>To be entrusted with the task of managing the corpus fund for educational institutions, the NEFC would refinance the institutional loans available to colleges, institutions in higher educations for capacity expansion and new investment, and universities for expansion at the prime lending rate (PLR) of banks.</p> <p>It will also provide concessional funding for philanthropic institutions at below-PLR rates. The repayment period will be 15-20 years, with a five year moratorium on principal repayment.</p> <p>If the NEFC stands as a guarantor, it will have to pay only for defaulters, who would be few. The Ministry, open to the new suggestion, is working out mechanisms to cut down on defaulters before approving the loans.</p> <p>The refinancing of loans for investment is also expected to curb capitation fees, since, at present, investment for infrastructure has to be borrowed at commercial rates where the interest is high and the repayment period short. To avoid this, institutions often borrow money from the market, and in order to repay it quickly, charge capitation fees from students. Once the loan is repaid, the capitation fee turns into profit. With the availability of soft loans, this is expected to come to an end.</p> <p>The NEFC will refinance to the bank at a lower rate the sanctioned loan that it releases to the student or an institution. The bank makes its margin from the difference in interest rates, while the NEFC will use the educational cess released by the government, which is free of cost and also borrows from the market, so that the average cost of funds advanced as loans is lower than the rate at which it lends to banks. This differential rate will be the NEFC's margin or profit.</p> <web> </web> <i> </i> <!-- Bottom Template Starts --> <p> © Copyright 2000 - 2009 The Hindu</p></td></tr></tbody></table>Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com0tag:blogger.com,1999:blog-6302883023187629790.post-78908804994442175602010-05-14T15:18:00.000-07:002010-05-14T15:19:00.982-07:00Poor Students may get Education Loan at 4 %<table valign="top" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="PageTitle">'Poor' students may get education loan at 4 per cent</td></tr> <tr><td>New Delhi, May 14 (PTI):</td></tr> <!-- <tr> <td colspan="2" class="overviewfont">Friday, May 14, 2010</td> </tr> --> <!-- ~~|ByLine|ArticleContentFont|height="5px"|byline|520|10| ~~--> <tr><td colspan="2" class="SummaryStyle"> <br /> <i>Government is planning to provide education loans at four per cent interest rate to help students from weaker sections of society to pursue higher studies.</i> </td> </tr> <tr height="1"><td><br /></td></tr> <tr><td colspan="2" class="overviewfont"> Discussions are on between the HRD Ministry and the Planning Commission on this innovative concept, which is seen as a significant initiative of the UPA government.<br />"It (education loan at four per cent proposal) is at a preliminary stage. We have discussed this idea with the Planning Commission and it is supportive," HRD Minister Kapil Sibal told PTI.<br /><br />This loan will be provided by banks while a proposed funding corporation for higher education will re-finance the banks to help them compensate the loss. The mandate and functioning of the proposed National Higher Education Finance Corporation (NHEFC) are now being worked out.<br /><br />"I hope it will be crystallised soon," Sibal said.<br />The detailed modalities are being worked out for the scheme, including the weaker section criteria.<br /><br />The scheme will have another component of providing loans to students at the rate of seven per cent, subject to a ceiling. There will be a cap on loan amount in this category. There may another provision of extending loans at nine per cent without a cap on the amount.<br /><br />According to sources, the NHEFC, which will also provide low-interest loans to higher educational institutions for capacity building through commercial banks.<br /><br />The HRD Ministry has already prepared a concept note on creation of NHEFC. As per the HRD Ministry's plan, the proposed NHEFC will be an institutional mechanism to address the investment needs in higher education sector.<br /><br />The proposed corporation will nurture philanthropic tradition in education by providing loans at concessional rates on interest to such agencies for establishment of higher and vocational institutions in educationally backward areas.<br /><br />It will be a NABARD like institution in higher education and will raise debt by issue or sale of bonds for augmenting resource from the market and will finance creation of universities.<br /><br />The proposed scheme will be in addition to the existing interest subsidy on educational loan scheme. Under the existing scheme, students, whose family income is less than Rs 4.5 lakh per annum, are able to get loans at a concessional rate. Normally the education loan is about one per cent less than the Prime Lending Rate (PLR) of the banks.<br />The PLR of the national banks is around 11-12 per cent on loans.</td></tr></tbody></table>Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com0tag:blogger.com,1999:blog-6302883023187629790.post-84531026932678293332010-05-14T13:19:00.000-07:002010-05-14T13:25:11.923-07:00Education Loan InformationAcouple of good sources of information about Education Loan Schemes in India are available at<br /><br /> http://action2020eltf.blogspot.com/<br /><br /> http://www.apnaloan.com/education-loan-india/<br /><br />Check out these sites.Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com0tag:blogger.com,1999:blog-6302883023187629790.post-34026184506835818622010-05-10T18:09:00.000-07:002010-05-10T19:30:02.970-07:00How to Apply for Education Loan and Get it!<meta equiv="CONTENT-TYPE" content="text/html; charset=utf-8"><title></title><meta name="GENERATOR" content="OpenOffice.org 3.2 (Win32)"><style type="text/css"> <!-- @page { margin: 0.79in } P { margin-bottom: 0.08in } A:link { color: #0000ff } --> </style> <p style="margin-bottom: 0in;">The public sector banks in India have a very good education loan scheme for students pursuing higher education in general and professional courses in particular. The banks have published on their websites the rules and requirements for these loans and also provide facilities to apply on-line and also to download the application form. However many students do not take advantage of this on-line facility and directly approach the bank managers without accessing and/or understanding this online information. Many times the bank managers flatly deny the loan request or impose extra requirements than necessary. Following step by step guide will help students to access this information and exercise their right to get the loan.<br /></p> <ul><li><font size="2"><u><b>Before CET Counseling</b></u></font></li></ul> <ol><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2">Make a list of Public Sector Banks nearest to your family home and rank them starting with the nearest. </font> </p> </li><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2">Go onto their Education Loan webpage on the internet and print information about the bank’s education loan scheme, study it and understand the eligibility requirements, eligible expenses and conditions for various levels of loan amount. Check whether the bank has online application facility. List the phone numbers and names of the bank manager and the assistant division manager.</font></p> </li><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2">Decide on amount of loan you need to complete your education. For example, for 4 years of engineering, with or without hostel, Rs. 4 lakhs or less is currently sufficient for most of the colleges in Karnataka. Understand the bank conditions for the loan amount you need. Conditions to look for are collateral security, third party guarantee, margin, interest rates and repayment period.</font></p> </li><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2">Download the loan application form, print it and make list of documents needed to be attached to the application form.</font></p> </li><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2">Collect as many needed documents as and when possible</font></p> </li></ol><ul><li><font size="2"><u><b>At CET Counseling</b></u></font></li></ul> <ol start="6"><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2">Talk to the bank loan kiosks at the CET counseling center and ask for education loan. Choose the bank nearest to your home if present at the center; otherwise go to the next one on your list prepared in step 1. Some banks will even give you a DD required for the payment of the fees at the counseling. Ask for loan amount you decided in step 3 or Rs 4 lakhs for engineering or more for medical or other courses. Get a letter from the bank officer at the counseling center that typically says that the loan is approved in principle.</font></p></li></ol><ul><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2"><u><b>After Final Selection of the College You Will Attend or After Admission</b></u></font></p></li></ul> <ol start="7"><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2">Apply online on the banks website, if this facility is available. You will receive an email with the in principle approval in a short time, typically 7-10 days.</font></p> </li><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2">Get a letter of expenses and admission from the principal of the college you going to attend. Collect all the documents that are required with the education loan application from the list you made in step 4.</font></p> </li><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2">Fill up the application form you printed in step 4.</font></p> </li><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2">Submit the application and the required documents to the bank nearest to you. </font><font size="2"><b>Get a written receipt of the application submitted with the date of submission stamped. </b></font><font size="2"><i>Getting the receipt is the most important part of the application process. Once you have a written</i></font><font size="2"> receipt</font><font size="2"><i>, the bank loan officer is required to follow a well defined and time limited procedure and approve or disapprove the loan. If the bank officer does not cooperate, do not get discouraged. Politely and firmly insist on getting the receipt. Visit the bank multiple times if necessary.</i></font></p> </li><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2">The bank officer may ask you to provide a third party guarantor or collateral security even if requested loan amount is less than Rs. 4 lakhs. Show the manager the printout from the bank website and politely tell him that neither is required if the requested loan is less than Rs 4 lakhs. Make sure that the bank officer knows the fact that you are only asking them to follow their own bank’s rules.</font></p> </li><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"> <font size="2">If the bank is still not cooperating, seek out help of a prominent person in your community who may be able to help you with the bank manager. </font> </p> </li><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2">If that is not possible, talk to the assistant division manager of the bank and explain your situation and request him to help you with processing of the loan application.</font></p> </li><li><p style="margin-bottom: 0in; line-height: 150%;" align="JUSTIFY"><font size="2">If you are still having difficulties, email me at appam@yahoo.com with your phone number and I will help you.</font></p></li></ol>Dr. Appasaheb Madiwalehttp://www.blogger.com/profile/00116666885769461011noreply@blogger.com0