Education Loans
PNB Bank
Studies abroad
- Graduation: For job oriented professional/technical courses offered by reputed universities.
- Post graduation: MCA, MBA, MS, etc.
- Courses conducted by CIMA- London, CPA in USA etc.
- 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.
*Diploma Course and certificate courses shall not be covered under the eligible courses for study abroad except as mentioned above.
Eligibility:
Student eligibility:
- Should be an Indian National.
- 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). OR Where the admission is purely based on marks scored in qualifying examinations, there is a cut off percentage of marks of 50% for SC/ST and 60% for General category.
Expenses considered for Loan
- Fee payable to College / School / Hostel
- Examination / Library / Laboratory fee.
- Purchase of books / equipments / instruments / uniforms.
- Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts,
- Travel Expenses / Passage money for studies abroad.
- Purchase of computers at reasonable cost, if required for completion of the course.
- Insurance premium for student borrower, if applicable
- Any other expense required to complete the course - like study tours, project work, thesis etc.
Quantum of Finance
Need based finance, subject to employability and earning potential of the student with prescribed margin as per the following ceilings:-
- For studies in India: Maximum Rs.10.00 lacs.
- For studies abroad: Maximum Rs.20.00 lacs.
Margin
- Upto Rs.4.00 lacs-Nil
- Above Rs.4.00 lacs-Studies in India 5%
Studies Abroad 15%
Security
- Upto Rs.4.00 lacs-Parent(s)/guardian be made joint borrower (s). No Security
- Above Rs 4.00 lacs and Upto Rs 7.5 lacs: Besides the parent(s)/guardian executing the documents as joint borrower(s), collateral security in the form of suitable third party guarantee will be taken
- Above Rs 7.5 lacs: Parent(s)/guardian are 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 installments
- The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares/ Mutual Funds/ Debentures, Bank Deposit in the name of the student parent / guardian or any other third party or any other tangible security acceptable to the bank with suitable Margin.
Repayment
Repayment of loan will be in equated monthly installments (EMIs) for period as under:
- For loans upto Rs.7.50 lac- upto 10 years
- For loans above Rs.7.50 lac- upto 15 years
Repayment holiday/Moratorium:
Course period + 1 year or 6 months after getting job, whichever is earlier.
Note: No prepayment penalty is levied for prepayment of loan.
Sanctioning Authority may consider telescoping of the repayment with stepped up installment with passage of time over the repayment period in cases where salary levels at the start of the career do not facilitate comfortable payment of EMI (e.g. professionals like Doctors).
Upfront Fee
- For Study in India - Nil
- For Study abroad - 1% with a minimum of Rs. 10,000/-(refundable on availment of the loan amount)
Documentation Charges
- Upto Rs. 4 lacs Rs.270/- + Service Tax & Education Cess
- Above Rs.4 lacs Rs.450/- + Service Tax & Education Cess
- Additional Benefits provided to the students by PNB
- Simple interest is charged during the Study period + Moratorium period.
- A rebate of 0.50% in rate of interest permitted to women beneficiaries for loans up to Rs. 10 lac for studies in India and Rs 20 lac for studies abroad for existing as well as new girl student borrowers’ wef. 08.03.2009.
- 1% interest concession may be provided for loanees if the interest is serviced during the study period/moratorium period and regular repayment of monthly installments during repayment period.
- The loan is disbursed in stages as per the requirement/ demand directly to the Institutions/ Vendors of equipments/ instruments to the extent possible.
- Second time Education Loan can be sanctioned to the same student borrower for completion of next higher course.
- Full interest subsidy is provided during the moratorium period to students, who have taken education loan and belong to Economically Weaker Section (EWS), with an annual gross parental family income upper limit of Rs.4.50 lakh per year from all sources.
Eligibility
- Should be an Indian National
- Should have secured admission to professional/technical courses in India or abroad
Purpose
Loan is made available for Graduation/Post graduation/Diploma/Computer education in any recognized State/Central Government/University, professional courses including Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA, etc., courses conducted by IIM, IISC, XLRI, NIFT etc, courses offered in India by reputed foreign universities/Evening courses of approved institutes, 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. In case the course is pursued abroad, the institute should be recognized by the competent local aviation/ shipping authority. For studies abroad, loans will be made available only for Graduation and Post Graduation Courses offered by Reputed Universities and not for diplomas.
ICICI Bank
Eligible Student:
- Should be an Indian National.
- Secured admission to professional/ technical courses in India or Abroad through Entrance Test / Merit Based Selection process after completion of HSC(10 plus 2 or equivalent).
Courses Eligible:
Studies abroad
Graduation: For job oriented professional/ technical courses offered by reputed universities Post graduation: MCA, MBA, MS, etc Courses conducted by CIMA- London, CPA in USA etc. 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.
Expenses considered for loan:
- Fee payable to college/ school/ hostel.
- Examination/ Library/ Laboratory fee.
- Travel expenses/ passage money for studies abroad.
- Insurance premium for student borrower, if applicable.
- Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts.
- Purchase of books/ equipments/ instruments/ uniforms.
- Purchase of computers - essential for completion of the course.
- Any other expense required to complete the course - like study tours, project work, thesis, etc.
Quantum of finance:
- Need based finance subject to repaying capacity of the parents/ students with margin and the following ceilings.
- Studies in India - Maximum Rs.10.00 lacs.
- Studies abroad - Maximum Rs.20.00 lacs.
Margin
- Upto Rs 4 lacs: Nil.
- Above Rs 4 lacs : Studies in India 5% Studies Abroad 15%
Security:
- Loans Upto Rs 4 lacs - Co obligation of parents.
- Further wherever parents are not there banks could consider grandparent as co obligator to the loans taking into account their net worth.
- Above Rs 4 lacs and Upto Rs. 7.5 lacs.
- Co obligation of parents along with Collateral in the form of a suitable third party guarantee for 100% of the loan amount to be taken.
- For cases above Rs 7.5 lacs.
- Co obligation of parents along with Collateral security of 100% value of loan.
- Assignment of future income of the student for payment of the loan installments for all loans.
- The co-obligator should be parent(s)/guardian of the student borrower. In case of married person, co-obligator can be spouse or the parent(s)/parents-in-law.
Rate of Interest
- Interest will be Base rate plus applicable margin as decided by bank.
- At least 0.50% concession in interest rates on Education Loans to girl students for pursuing higher education in India and abroad penal interest @2%.
Repayment / Holiday:
- The repayment holiday shall be a year more than the period of the course or 6 months after the borrower gets a job, whichever is earlier.
- The loan shall be repaid in 5 - 7 years after commencement of repayment
- Prepayment permitted without any charges.
HDFC Bank
Focus on pursuing the course of your choice and securing a great education. Leave the hassles of documentation and finances of your Education Loan for Foreign education to us. Here are a few features of the loan:
Amount limits: Get Education loans Upto Rs. 20 lakh and unsecured lending Upto Rs. 7.5 lakh. No collateral will be required for loans Upto Rs. 7.5 lakh.
Wider collateral options: We will require a collateral security if you are looking for a loan for your foreign education for more than Rs. 7.5 lakh. But don't be worried because you can choose from a wide range of options for your collateral security like Residential Property, HDFC Bank Fixed Deposit, LIC, NSC or KVP.
Loan Tenure: The maximum repayment tenure is Upto 15 years post moratorium period.
Tax Rebate: Did you know that you are eligible for a tax rebate for the interest you pay on an education loan under Section 80-E of the Income Tax Act 1961*? See the Income Tax Circular for more details here. Send a mail to loan support [at] hdfc bank [dot] com to receive interest certificate for the last financial year.
If this wasn't enough for you, check out some more special privileges that you will get as a HDFC customer for a Education Loan For Foreign Education:
We will provide services at your doorstep.
Loans will be directly disbursed to the educational institution as per the fee structure.
Apart from all these benefits, you will also become eligible for some of our great exclusive offers on other Banking Products and Services like a NRE Savings account, Special rates on Telegraphic Transfers and Demand Drafts, Student Travel Card and more.
Thinking about insurance? Put your worries to rest because you can now choose to go for Insurance Protection from HDFC ERGO General Insurance Company Ltd. With focus laid on providing the 'Right Insurance Solution' for everyone, you will find an option that suits you.
Axis Bank
The quantum of finance under the scheme is capped at Rs 10.00 lacs for studies in India and Rs 20.00 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books, etc. The minimum amount of education loan would be Rs 50,000.
Margin
No margin for education loans Upto Rs 4 lacs. For loans above Rs 4 lacs, 5% margin for studies within India and 15% for higher studies overseas.
IDBI Bank
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As per RBI mandate, Savings Bank interest will be calculated on the daily balances maintained in your account, at a rate of interest as specified by RBI from time to time (existing rate is 4.00% p.a.). |
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Fixed Deposits Interest Rate |
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The Bank pays interest on deposits as per various deposit schemes. Interest Rates are revised from time to time and made known to public. Revised interest rates are applicable only to the renewals and fresh deposits while existing deposit continue to get interest at the contracted rate. |
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Interest Rate on Term Deposits (w.e.f. January 01, 2014 ) |
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Resident Term Deposit / NRO for deposit upto less than Rs. 1 Crore # |
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Senior Citizen Interest Rates** for deposit Upto less than Rs. 1 Crore# |
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# Deposits of Rs 1 Crore and above are treated as Bulk deposit w.e.f April 01, 2013 as per the revised definition advised by RBI. |
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Floating Rate Term Deposit |
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Suvidha Tax Saving Fixed Deposits (5 YEARS) |
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Recurring Deposits **** (w.e.f. May 13, 2013) |
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**** No interest shall be paid if Recurring Deposit (RD) is discontinued before three months. If RD is discontinued before one year but kept for at least 3 months with the Bank then Interest rate applicable for Savings Bank shall be paid. In case of premature closure of Recurring Deposit by Sr. Citizen, the additional 50bps applicable to Sr. Citizen shall be made available provided the RD has been with the bank for complete 12 months from the date of the 1st installment. |
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Interest payable on Premature Withdrawal of Term Deposits |
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RATES FOR BULK DEPOSITS ( Rs. 1 cr. and Above ** ) (w.e.f. January 25, 2014) |
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Mibor Linked Deposit (Effective from February 3, 2012) |
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Please contact our nearest branch for rate of interest and terms. |
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Retail Loans (w.e.f. July 16, 2013) |
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Vidya Jyothi
- Should be an Indian National
- Should have secured admission to professional/technical courses in India or abroad
Quantum of loan
Maximum of Rs. 30.00 lakhs for studying in India and Rs. 40.00 lakhs for studying abroad.
Rate of Interest
Please click Retail credit interest rates
Interest to be debited monthly on simple basis during the repayment holiday/moratorium period.
Margin
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Margin |
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For loans Upto Rs. 4.00 lakhs |
Nil |
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For loans above Rs. 4.00 lakhs |
Studies within India 5% |
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For studies abroad 15% |
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Scholarship/assistantship to be included in margin.
Security
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Security |
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For loans upto Rs. 4.00 lakh |
Co obligation of parents . No security |
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For loans above Rs. 4.00 lakh and up to Rs.7.50 lakh |
Co obligation of parents together with collateral security in the form of suitable third party guarantee. |
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For loans above Rs.7.50 lakh |
Co obligation of parents together with tangible collateral security .Collateral security in the form of NSC /KVP/ LIC Policy/ Gold/ Shares/Debentures or immovable properties Bank Deposits in the name of student/Parent/Guardian or any other third party with suitable margin. 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. In case the loan is given for the purchase of computer , the computer has to be hypothecated to the bank.. |
Holiday period
6 months after getting the job or 12 months after completion of the course whichever is earlier.
Repayment
Repay the loan in equal monthly installments for a maximum period of 5 - 7 years excluding holiday period.
Interest servicing
It is left to the option of the student either to service the interest during the study period or pay it along with the principal over a period of 5 - 7 years to commence from 12th month after completion of the study.
Interest servicing - concession
For prompt servicing of interest for all months during the study period when repayment holiday is specified for interest / repayment under the scheme, an interest rebate @1.00 % is allowed. Interest concession at 0.50% on all Education Loans to Girl Students for pursuing education in India and Abroad is allowed. The interest rebate thus calculated will be credited back to loan account at the time of commencement of repayment of the principal sum.
Bank of India
ELIGIBILITY CRITERIA:
STUDENT'S ELIGIBILITY:
- Should be an Indian National;
- Secured admission to professional/technical courses in India or Abroad through Entrance Test/Merit based selection process.
- Good academic career.
- The student should not have outstanding education loan from any other Institution.
- Father/Mother should be co-borrower.
- Branch nearest to the permanent residence of student will consider the loan.
Studies abroad:
Graduation: For job oriented professional/technical courses offered by reputed universities.
Post-Graduation: MCA, MBA, MS, etc.
Courses conducted by CIMA - London, CPA in USA, etc.
EXPENSES CONSIDERED FOR LOAN:
- Fee payable to college/school/hostel*
- Examination/Library/Laboratory fee.
- Purchase of books/equipment’s/instruments/uniforms.
- Caution deposit/building fund/refundable deposit supported by Institution bills/receipts.
- Travel expenses/passage money for studies abroad.
- Purchase of computers - essential for completion of the course.
- Insurance cover for the student.
Any other expense required to complete the course - like study tours, project work, thesis, etc.
* As per brochure/ demand letter from the institution.
QUANTUM OF FINANCE:
Need based finance subject to repaying capacity of the parents/students with margin and the following ceilings:
- Studies in India - Maximum Rs.10.00 lakh
- Studies abroad - Maximum Rs.20.00 lakh.
MARGIN:
- Upto Rs.4 lakh: Nil
- Above Rs.4 lakh - Studies in India: 5%
Studies Abroad: 15%· Scholarship could be included in margin.· Margin to be brought in on year to year basis as and when disbursements are made.
SECURITY :
Upto Rs. 4 lakh:No security
Above Rs.4 lakh &upto Rs.7.5 lakh :Collateral security in the form of a suitable third party guarantee.
Above Rs.7.5 lakh : Co-obligation of Parents together with tangible Collateral security of suitable value along with the assignment of future income of the student for payment of instalments.
Note : The security can be in the form of land/building/Govt. Securities/Public Sector Bonds/NSC/KVP/LIP/ Banks Term Deposit etc., in the name of Student/Parent/Guardian/Guarantor with suitable margin.
RATE OF INTEREST*: (Floating, p.a. at monthly rests)
- Upto Rs.7.50 lacs – 3% above Base Rate, (presently 13.25 %)
- Above Rs.7.50 lacs – 2.50% above Base Rate, (presently 12.75 %)
Int. Concession of 0.50%p.a. for woman beneficiaries for limits up to Rs.50,000/- and 1% for limits over Rs.50,000/-
For Professional courses (like Engg./Medical/ Management, etc.) int. concession : 0.50% (Maximum under a) and b), above is 1%).
1% int. concession if interest is serviced during moratorium period, where repayment holiday is specified for interest/repayment under the scheme (concession available for moratorium period only).
Simple interest during the repayment holiday/moratorium period. Penal interest @2% for loans above Rs.4 lakh for the overdue amount and overdue period.
INSURANCE:
All the student borrowers are offered a specially designed OPTIONAL Term Insurance covers and the premium can be included as an item of finance.
REPAYMENT:
Repayment holiday/Moratorium: Course period + 1 year or 6 months after getting job, whichever is earlier.
After commencement of repayment:
- Loan amount up to Rs.7.50 lacs: 10 years.
- Loan amount over Rs.7.50 lacs: 15 years.
BANK CHARGES:
Processing/upfront charges- No processing Charges.
In respect of loans for foreign study letter of sanction may be issued for obtaining VISA, upon recovery of processing charges of Rs. 1000/- However this can be refunded if the actual loan is availed.
One time charges for any deviations from the scheme norms including approval of courses outside the scheme:
- Up to Rs. 4 lacs, Rs. 500/-
- Over Rs. 4 lacs up to Rs 7.50 lacs- Rs. 1,500/-
- Over Rs. 7.50 lacs up to Rs 20.00 lacs-Rs. 3,000/-
- Change of Institution Studies in India – Rs.250/-
- Studies Abroad- Rs.500/-
One time charges for any deviations from the scheme norms including approval of courses outside the scheme applicable @ Rs.500 for loan up to Rs. 4 lacs, Rs.1000 for loan up to Rs.7.50 Lacs and Rs.2000 for Loan over Rs.7.50 Lacs. In respect of loans availed by borrowers from rural areas from the Rural Branches – Charges NIL.
