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For courses of duration 6 75,000/months to 1 year
For courses of duration above 1,50,000/1 year
Banks may consider sanction of higher limits for courses of duration above one year. if required, for specific courses offered by reputed institutions having regard to the nature of such courses and employability (ability to repay out of job earnings). EXPENSES CONSIDERED FOR LOAN :
47
Tuition/course fee Examination/Library/Laboratory Fee Caution deposit Purchase of books Equipments and instruments
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)
MARGIN
Nil
PROCESSING CHARGES
Nil
RATE OF INTEREST:
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 I 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.
Note:
Servicing of interest during study period and the moratorium period till commencement of repayment is optional for students. 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.
SECURITY:
No collateral or third party guarantee will be taken. Parent will execute loan document along with the student borrower as joint borrower.
MORATORIUM PERIOD:
Upon completion of the course, repayment will start after a moratorium period as indicated below:
For courses of duration upto 1 year - 6 months from the completion of the course. For courses of duration above 1 year-12 months from the completion of the course. REPAYMENT:
Courses upto 1 year in 2 to 5 years PREPAYMENT:
The loan will be repaid after the moratorium period in Equated Monthly installments (EMIS) as follows:
Courses above 1 year in 3 to 7 years.
The borrower can repay the loan any time after commencement of repayment before having to pay any prepayment charges.
Minority B
