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education loan for working professionals

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  • education loan for working professionals
  • Eligibility
    Purpose To provide finance for pursuing Part time professional courses to enhance their career prospects.
    Eligibility
    • Indian national
    • Up to 55 years of age
    • Passed at least graduation exam
    • Must be working in public/private/ defense enterprises etc.
    • Have secured admission in an approved institution on part-time basis.
  • Finance
    Component of finance
    • Fee payable to college/ school/ hostel (board & lodging). Reasonable Lodging & Boarding charges will be considered in case the student chooses/ is required to opt for outside accommodation.
    • Examination/ Library/ Laboratory fee.
    • Insurance premium for student borrower, if applicable.
    • Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
    • Travel expenses/ passage money for studies abroad.
    • Purchase of computers-essential for completion of the course*.
    • Purchase of books/ equipments/ instruments/ uniforms*.
    • Any other expenses required to complete the course-like study tours, project work, thesis, etc*.

    * A realistic assessment may be made for the requirement under these heads, however the maximum amount under these heads (6,7 & 8) be capped at 20% of the total tuition fee payable for completion of course.
    In case of fee sponsored / reimbursed to the student by any organization, the same may not be taken into cost component.
    Wherever fee/charges are revised upwardly the sanctioning authority is permitted to consider financing to the same on bonafide ground/ merits, within the initially agreed repayment period.
    Loan Amount As per fee structure of institution.
  • Security & Margin
    Margin 25%
    Security A) For category A & B institutions
    Institutions Loan Limit Collateral Security
    For Category A institutions No Upper Limit, as per the fee structure of the institution NIL
    For Category B institutions Upto ₹ 10.00 Lacs NIL
    Note :
    • In case higher loan limit is requested (apart from the above mentioned limit) for category A & B institutions, 100% tangible security with value equivalent to full loan amount is required.
    B) B) For Other Institutions
    • Loan upto ₹ 7.50 lacs: No collateral security but co-obligation of parents / guardian. In case of married person, co-obligator can be either spouse or the Parent(s) / Parent(s)-in-law. To be covered under Credit Guarantee Fund Scheme for Education Loans.
    • Loan above ₹ 7.50 lacs: Mortgage of immovable property or any tangible security having value equivalent to 100% of loan amount. Co-obligation of parents / guardian. In case of married person, co-obligator can be either spouse or the Parent(s) / Parent(s)-in-law.
    • Assignment of future income in all cases.
  • Rate of Interest and Repayment
    Rate of interest
    Institutions Rate of Interest
    For Category A Rate of Interest
    For Category B 1 YEAR MCLR +0.50%
    Others Institutions and working professionals Up to ₹ 4.00 Lacs 1 YEAR MCLR + 2.00%
    Above ₹ 4.00 Lacs & Upto ₹ 7.50 Lacs Credit Guarantee cover 1 YEAR MCLR + 2.00%
    Immovable Property or Tangible Assets 1 YEAR MCLR + 1.75%
    Above ₹ 7.50 Lacs 1 YEAR MCLR + 1.75%
    Special Rates:
    • Simple interest during moratorium period and thereafter the interest shall be compounded.
    • Concession of 1% in rate of interest is allowed for moratorium period (study + grace period), if the monthly interest is serviced regularly (monthly basis) during the moratorium period.
    • 0.50% concession on rate of interest will be applicable to women beneficiaries, SC/ST & disabled students. However, the 0.50% concession will be available for only one characteristic.
    Note: The rate of interest shall not fall below 1 year MCLR in any case.
    Moratorium period Upto study period only.
    Repayment Upto 15 years
    Subject to condition that last repayment date will be upto retirement date.
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