BANK OF INDIA – EDUCATIONAL LOAN SCHEME 2012

• 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.

b) ELIGIBLE COURSE:          (i) 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, NID and other Institutes set up by Central/State Govt.
• 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.
• Courses offered in India by reputed foreign universities with prior approval of Head Office.

Note :  1. Professional courses not approved by AICTE and conducted by Institutes not recognised by State Universities is outside the purview of the eligibility under the scheme.
           2.  Special scheme for students admitted to IITs, at concessional rate of interest.          

(ii) 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.

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.
• 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.
4. 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.

5. 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.

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 : Co-obligation of Parents together with tangible Collateral security of suitable value alongwith the assignment of future income of the student for payment of installments.
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.

7. RATE OF INTEREST*: (w.e.f. 28.07.2011) (Floating)

• Upto Rs.7.50 lacs €“ 3% above Base Rate, presently 13.75% p.a.
• Above Rs.7.50 lacs  €“ 2.50% above Base Rate,presently 13.25% p.a.

1. Int. Concession of 0.50%p.a. for woman beneficiaries for limits upto Rs.50,000/- and 1% for limits over Rs.50,000/-
2. For Professional courses (like Engg./Medical/ Management, etc.) int. concession :  0.50%

• 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.

No processing charges.

One time charges for any deviations from the scheme norms including approval of courses outside the scheme –

Upto Rs.4.00 lacs – Rs. 500/-
Over Rs.4.00 lacsupto Rs.7.50 lacs – Rs.1000/-
Over Rs.7.50 lacsupto Rs.20.00 lacs – Rs.2000/-

In respect of loans availed by borrowers from rural areas from the Rural Branches €“ Charges Nil

8. INSURANCE  : All the student borrowers are offered a specially designed Term Insurance cover and the premium can be included as an item of finance.

9. 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.

10. BANK CHARGES:

One time charges for any deviations from the scheme norms including approval of courses outside the scheme €“
Upto Rs.4.00 lacs – Rs.500/-
Above Rs.4.00 lacs to Rs.7.50 lacs – Rs.1,000/-
Over Rs. 7.50 lacsupto Rs.20.00 lacs €“ Rs.2,000/-

In respect of loans availed by borrowers from rural areas from the Rural Branches €“ Charges NIL. 

11. OTHER CONDITIONS :

i) Loan to be disbursed in stages as per requirement / demand, directly to the Institution/ Vendors of books/equipments/instruments to the extent possible;
ii) Student to produce mark list of previous term/semester before availing next installment ;
iii) Student / Parent to provide latest mailing address, in case of any change ;
iv) Student /Parent to inform Branch immediately on change of course /completion of studies/termination of studies/ any refund of fees by college /institution /successful placement /obtention of job/change of job etc.,

On Line facility available for submission of application, tracking of application status and resume completion of incomplete application .