EDUCATION LOANS:
The Bank is providing financial assistance to the Rural and Urban meritorious students to pursue their education. The scheme is intended to rural farmer’s children and for urban cases will be taken up selectively.
Courses identified for Finance:
Education loan shall be sanctioned for professional courses viz., B.Tech/M.Tech/M.S/MBBS/MD/MBA/MCA/BDS/MDS/B.Phms/M.Phms/ BPT/Polytechnic of recognized institutions by the Govt. of India/University Grants Commission and foreign universities in abroad only. Other courses will be considered case by case.
Academic Eligibility Criteria:
Student should have secured a minimum of 60% marks in the SSC, Intermediate and Graduation or equivalent courses of any State Board or UGC recognized Institutions in India. The student should be passed with single attempt.
Loan components: The loan component comprises Tuition fee, Cost of books, Hostel fee, Project work, Purchase of Laptop subject to maximum of `.15.00 lakh.
Loan Disbursement:
The fee shall be paid directly to the Institution on producing the demand letter from the education institution concerned for first academic year and subsequent years also.
The student should secure a minimum of 60% marks or equivalent grade in the first year for release of fee for the second and subsequent years. The loan component shall be released after submitting/receipt of the memorandum of marks sheet issued by the concerned institution or University.
Rate of Interest:
14% p.a. compound rate of interest will be charged on the loan amount availed. The interest chargeable on yearly rests. 2% penal interest will be charged in case of default. The rate of interest is subject to change from time to time.
Period of repayment:
Loan amount (Principle +Interest) shall be recovered in (60) monthly equated installments from the one year after completion of course or join in employment whichever is earlier.
During Education period the parent should remit interest on the loan amount yearly.
Security:
His/Her Parent should provide 100% value of agriculture landed property/Urban property/duly discharged Insurance policies and Deposit certificates issued by the financing Bank. The immovable property of the blood relatives, close friends voluntarily offered as security can be accepted.
In case of insufficient security of immovable property, the parent can provide One surety of State/Central Govt. employees whose basic pay is not less than `.15,000/- per month. The security of immovable property should not be less than 70%.
The property offered as security should be mortgaged (simple) in favor of the financing Bank at the borrowers cost.
Assessment of the value of the property:
Value of the property shall be average of the following (3) for sanction of the loan.
- The values have to be taken from the Sub-Registrar of Assurances
- Local market value certified by the concerned Tahsildar subject to maximum of 250% of “a” above.
- Local market value certified by the Field Inspection Officer of the financing bank subject to maximum of 250% of “a” above
- The value shall be average of “a, b and c” above
Coverage of Insurance:-
The Student shall be covered by the Insurance policy to the sum equal to loan amount. The term of the insurance policy should not be less than the loan repayment period. The policy should be assigned in the name of bank.
Documents to be submitted by the applicant for sanction of loan:-
- Latest Ration Card/Electricity Bill/Telephone Bill of the Parent and sureties for proof of address
- Driving License/ PAN Card/Voter ID card of the Parent and sureties.
- The applicant should open SB/Current account with the bank.
- Application form provided by Bank. Four passport size color photographs of the student and one family photo (student and parents and sureties).
- Attested Xerox copies of the academic certificates/ viz., Memorandum of marks of SSC/Xth, Intermediate/XII, TC and other bonafide certificates.
- Quotation/Estimation of the fee structure/Schedule of expenses of the proposed course issued by the concerned Institute/University.
- Xerox copy of the passport and Visa of the applicant in case of overseas studies.
- Copies of foreign exchange permit (if applicable).
- Proof of study admission card/Letter issued by the Institute/University.
- Bank account statement for the last Six months.
- “No Due Certificate” from service area Bank.
- “B class/Nominal Membership” registration card issued by the bank for the Applicant (Father/Mother/Guardian) and Co-applicant i.e., student.
- Title Deed book, Pass Book, Registered Documents, 15 years old pahani of the Immovable property including current year pahani issued by the Concerned Tahsildar and Encumbrance certificate for the last 15 years issued by the concerned Sub-Registrar of assurances.
- Xerox copy of salary slip and statement of income of parent (last three income tax assessment).
- Salary certificates of the sureties i.e., State/Central Govt. employee, address proof, ID Card and Undertaking from the pay disbursing authority and last three income tax assessments.
