• Should be an Indian Citizen (including Non-Resident Indian-NRIs)
• Should have secured admission to a Regular Education Course in Recognized Institutions in India or Abroad after completion of HSC (10 plus 2 or equivalent).
• Extending an education loan should be based on appropriate criteria of future prospects, employability and reputation/ recognition by Educational Institution concerned.
• Branches to consider a 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.
• Loan shall be granted to multiple siblings of a family. Presence of earlier educational loan to any of the sibling of the family shall not affect the eligibility of another sibling.

• The maximum door to door tenor of the Education Loan shall not exceed 15 years (including course period, Moratorium Period and Repayment Period) with the exception of cases which require extended moratorium

• IN INDIA (Indicative list only)
  1. Approved regular courses leading to Graduate/ Post graduate degree and PG diplomas conducted by Recognized Colleges/ Universities recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR etc.
  2. Professional Courses in Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.
  3. Courses like ICWA, CA, CFA etc.
  4. Courses conducted by IIM, IIT, IISc, XLRI. NIFT, NID etc.
  5. Regular Degree/Diploma courses like Aeronautical, pilot training, shipping, degree/diploma in nursing or any other discipline approved by Director General of Civil Aviation/Shipping/Indian Nursing Council or any other regulatory body as the case may be, if the course is pursued in India.
  6. Approved courses offered in India by reputed Foreign Universities.
  7. Courses offered by National Institutes and other reputed private institutions.
  8. Courses as initiated under various Govt. Subsidy Schemes
  
  
• ABROAD (Indicative list only)
  1. Graduation: For job oriented professional/ technical courses offered by reputed Universities.
  2. Post-Graduation: MCA, MBA, MS, etc.
  3. Courses conducted by C IMA- London, CPA in USA etc.
  4. 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.
  5. Courses as defined under various Govt. Subsidy Schemes
  
  Note: oriented courses leading to Technical/ Professional Degrees, Post Graduate Degrees/Diplomas offered by Recognized Institutions under this scheme. by reputed Institutions may also be considered on the basis of future prospects, employability and reputation / recognition by Educational Institution. -time courses, research work and job oriented specialized programs could be considered based on merit and placement records at Bank’s discretion. mentioned above, Zonal Offices shall take a view for extension of education loan under the scheme taking into account the future prospects, employability and reputation / recognition by Educational Institution. In such cases, sanctioning powers shall lie with Zonal Head. Offices can refer to:
   http://mhrd.gov.in/technical-education-1
   http://mhrd.gov.in/institutions-national-importance
   http://mhrd.gov.in/index.php/en/2-uncategorised/32-accreditation-status
   www.nbaind.org/accreditationprogram/aAccreditedProgram
   www.ugc.ac.in
   www.education.nic.in
   www.aicte.org.in
  o For ascertaining the eligibility of courses abroad, operative levels can refer to:
   www.webometrics.
   www.topuniversities.com
   www.qs.com
  
  Note: Such websites are, however, indicative only.
  

Need based finance taking into account expenses worked out as per specifications mentioned above and after considering the margins specified, subject to repayment capacity and following ceilings:

Studies in India

IIMs/IITs – Maximum Rs. 30.00 lakhs

Other Institutions: Rs 20.00 Lakhs

Studies Abroad – Maximum Rs.40.00 lakhs

Note:
 Operative levels may consider higher quantum of loan on course to course basis (e.g. courses in IIMs, ISB etc.) taking into account the future prospects, employability and reputation/ recognition of Educational Institution.
 Sanctioning powers for loan amount beyond above ceilings and up to maximum quantum of Rs.100.00 lakhs shall lie with committees headed by Zonal Heads. Such loans should be secured by Collateral Security having value not less than 100% of the Loan amount.
 Sanctioning Powers for loan amount beyond Rs.100.00 lakhs shall lie with committee headed by Divisional Head.

Quantum of Finance	Margin
Upto 4.00 Lacs	Studies in India	Studies Abroad
Above 4.00 lakhs	NIL	NIL
Above 4.00 lakhs	5%	15%

a. Fee payable to college/ school/ hostel (Reasonable lodging and Boarding  charges  shall  be  considered  if  the  student  chooses/  is required to opt for  outside accommodation subject to a ceiling of
20% of tuition fee).
b. Examination/ Library/ Laboratory Fee.
c. Travel expenses/ passage money for studies abroad. d. Insurance premium for student borrower.
e. Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts.
f. Purchase of books/ equipment’s/ instruments/ uniforms.
g.  Purchase  of  computers  at  reasonable  cost,  if  required  for completion of the course.
h. Any other expense required to complete the course - like Academic & Maintenance fees, study tours, project work, thesis, exchange programme etc.

Notes:

* It is likely that all these expenditures 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
these heads may be capped at 40% of the total tuition fees payable for completion of the course.
* 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
* Fees mentioned from serial No “c” to “h” shall be restricted to a maximum of 20% of tuition fee for entire course.
* While computing loan required, scholarships, fee waiver etc., if any available to the student borrower may be taken into account.
* If the scholarship component is included in the loan assessment, it may be ensured that the scholarship amount gets credited to the loan account when received from the Government.

Course period + 1 Year
Repayment shall start after Moratorium period.

 Notes:

• Servicing of interest during study period and the moratorium period  till  commencement  of  repayment  is  optional  for
  students.
•  In case interest is not serviced during the moratorium period, the accrued interest will be added to the principal amount while fixing EMI for repayment.
• Simple interest to be charged during the study period and up to commencement of repayment.
  

Prepayment shall be allowed without any prepayment penalty.

For Studies in India – Nil

For studies Abroad  -
   Upto Rs.7.50 lakhs – Nil
   Above Rs.7.50 lakhs – Processing fee (upfront) @ 1% of the loan amount sanctioned with a maximum of Rs.5, 000 will be charged for considering loans for studies abroad. The processing fee including GST should be kept in Sundry Account of the Branch Office. The fee would be booked as income only if a sanctioned education loan for studies abroad is not availed by the student. The fee would, however, be refunded upon the student taking up the course (loan is disbursed) or if the loan is not sanctioned by the bank.

• Loans upto Rs.7.50 lakhs*
• No Security
• Parent(s)/ guardian(s) to be joint borrower(s)

*Note: Education loans with quantum upto 7.50 lacs shall be covered by way of credit guarantee under Credit Guarantee Fund Scheme for Education Loan (CGFSEL

Guarantee Fee for obtaining cover under CGFSEL to be borne by the Bank.
Note: No collateral security/ third-party guarantee to be obtained in case of loans that are eligible for CSIS/ Credit Guarantee coverage. As per the CSIS scheme revised guidelines (effective from 01 .04.2022)'No collateral security or third- party guarantee is to be obtained for Education Loan sanctioned upto Rs. 7.50 lakh and the loanee bank is to ensure that this part of the loan is covered for credit guarantee under Credit Guarantee Fund Scheme for Education Loan (CGFSEL)

• Loans above Rs. 7.50 lakhs and upto Rs 10.00 Lakhs (Upto Rs 25.00 Lakhs for studies in IITs/IIMs:

Third party guarantee of 02 individuals of sound means to withstand the liability.

Loans above Rs. 10.00  lakhs ( above 25.00 Lakhs for studies in IITs/IIMs):

Collateral Security: Tangible collateral security having fair market value of not less than 100% of sanctioned limit and interest payable (capitalized) during moratorium, along with the assignment of future income of the student for payment of installments.

.

Ministry of Human Resources Development, Govt of India has floated Central Sector Interest Subsidy Scheme on Education loans for students belonging to EWS category. As per this scheme full interest subsidy during the moratorium period on education loans is extended by Govt The main terms and conditions of this scheme, as updated from time to time are enumerated below:
i)   W.e.f 01.04.2022, subsidy available for loan quantum of Rs
10.00 lacs. However, to be eligible for interest subsidy, loans with quantum upto Rs 7.50 lacs must be extended without any collateral/ TPG.
ii)  Annual parental income of the beneficiary should be less than or equal to Rs
4.50 Lacs (EWS).
iii) The  income  certificate  obtained  shall  be  certified  by  Sub  divisional Magistrate (SDM) but not below the rank of Tehsildar (Where SDM does not exist) which should be properly put on record by the Branch.
iv)  The subsidy shall be claimed only for the course period & moratorium if any.
No subsidy beyond expiry of the moratorium shall be claimed.
v)   Subsidy is admissible only once, i.e either for undergraduate course or post graduate course or integrated course.
vi)  Agreement on non-judicial stamp paper duly notarized by the notary public
& jointly signed by the borrower/co-borrower & the authorized signatory of the bank shall have been executed & placed on record by the concerned Branch.
vii) The subsidy is available for a maximum loan amount of Rs. 10 Lacs. In case
of loans above 10 lacs, the subsidy claim shall be restricted to the interest charged on loan amount up to Rs. 10 Lacs only, if otherwise eligible.
viii)Only students studying within India are eligible for subsidy under this scheme
(CSIS).
ix)  The Aadhaar number of the student has been made mandatory for the subsidy claim. No claim shall be accepted without Aadhaar number of the borrower.

To ensure that the benefits of this scheme are passed on to all the eligible students, the operative levels shall ensure that they:
i)     Brief students about the availability and eligibility criteria for subsidy under CSIS at the time of processing the loan application for sanction.
ii)    Send a proper intimation letter immediately after sanctioning the loan to borrower/Co-Borrower, through registered letter/email about submission of income certificate/other related documents for lodgment of subsidy claims, maximum within 45 days from loan sanction date, with the clause that if not submitted, non-lodgment of subsidy claims shall be at the risk and responsibility of the loanees and not the bank.
iii)  Maintain  proper  record  of  communication  regarding  submission  of documents in Case File to avoid any customer complaints.