Purpose of Loan For pursuing higher studies, in India & Abroad
Eligibility Student should be an Indian National having secured admission to Professional / Technical courses through entrance test / selection process. Age: 16-35 years. The Mother / Guardian shall be the Principal Borrower and Major Student shall be the Co-borrower.
Nature of Facility Term Loan
Calculation of Eligible Loan Amount For payment of Tuition fees, Hostel fees, caution deposit, refundable deposit, admission, examination, library, laboratory, cost of books, equipments, uniforms, computer, if necessary.
One-way air passage in case of studies abroad.
Reimbursement of admission fees, cost of books, airfare etc., if already incurred, within 2 month for studies in India and 3 months for abroad.
Maximum loan amount Rs.10 Lac for studies in India.
Rs.20 Lac for studies Abroad.
Margin Loan Amount up to Rs. 2 Lac: NIL
Loan amount above Rs.2 Lac - In India 5%
Abroad 15%
(Scholarship may be included in margin.)
Rate of Interest
(Irrespective of Amount of Loan and Place of study i.e. India or Abroad)
Normal Student IIT/ IIM/ PMT Students
Female 11% 10.5%


  • Interest shall have to be serviced during the study period when Repayment Holiday is specified.
  • Interest shall be calculated at simple basis during Repayment Holiday / Moratorium Period.
  • Interest will be compounded on monthly rests from the due date of first instalment.
Disbursement Payment directly to college / hostel / mess / airlines etc. In appropriate cases disbursement to be made to borrowers subject to satisfactory evidence. Original receipts to be submitted.
Repayment Repayment to commence 12 months after completion of course / studies or 6 months after securing job, whichever is earlier. Maximum period of repayment of loan shall be 5 to 6 years. Repayment on EMI basis.
  1. Collateral security of suitable value to the satisfaction of the Bank
  2. Third party Guarantee to the satisfaction of the Bank
  3. Co-obligation of parents/ guardians
  4. Assignment of future income of the student for payment of instalments
Important Note There should be LIC Policy of Loan amount in the name of the student in all loan accounts.