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Educational loan

The Educational Loan Scheme outlined below aims at providing financial support from the bank to deserving/ meritorious students for pursuing higher education in India and abroad. The main emphasis is that every meritorious student is provided with an opportunity to pursue education with the financial support on affordable terms and conditions. No deserving student is denied an opportunity to pursue higher education for want of financial support.

STAR EDUCATIONAL LOANS -

1. ELIGIBILITY CRITERIA:

a) Studies in India (Indicative list):

• Graduation courses : BA, B.Com., B.Sc., etc.
• Post Graduation courses : Masters & Phd.
• Professional courses : Engineering, Medical, Agriculture,Veterinary, Law, Dental, Management, Computer, etc
• Computer certificate courses of reputed institutes accredited to Department of Electronics or institutes affiliated to university.
• Courses like ICWA, CA, CFA, etc.
• Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc.
• Courses offered in India by reputed foreign universities with prior approval of Head Office.
• Evening courses of approved institutes.
• Other courses leading to diploma/degree, etc. conducted by colleges/universities approved by UGC/Govt./AICTE/AIBMS/ ICMR, etc.
• Courses offered by National Institutes and other reputed private institutions with prior approval of Head Office.

b) 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.

2. 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.

3. 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 - essential for completion of the course.
• Any other expense required to complete the course - like study tours, project work, thesis, etc.

4. QUANTUM OF FINANCE :

Needbased 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.

5. MARGIN :

Upto Rs.4 lakh : Nil
Above Rs.4 lakh - Studies in India : 5%
Studies Abroad : 15%

6. 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 : Collateral security of suitable value or at the discretion of the Bank suitable third party guarantee alongwith the assignment of future income of the student for payment of instalments.

7. RATE OF INTEREST:

• Upto Rs.15 lakh: @0.75% below BPLR,presently applicable Rate 12.50% p.a.
• Simple interest during the repayment holiday/moratorium period.
• Penal interest @2% for loans above Rs.4 lakh for the overdue amount and overdue period.
• Int. Concession for woman beneficiaries : Upto Rs.50,000/- - 0.50% and above Rs.50,000/- - 1.00%
• 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)

8. REPAYMENT:

Repayment holiday/Moratorium : Course period + 1 year or 6 months after getting job, whichever is earlier.

• The loan is to be repaid in 5-7 years after commencement of repayment.

9. PROCESSING CHARGES:

No processing/upfront charges.

Documents charges at actual.

For further information, you may contact nearest branch of the Bank. Loan at the sole discretion of Bank of India.