HDFC

We understand your world

EDUCATION LOAN

Summer project submitted

In

Partial Fulfilment of the Requirements for the Award ofPost Graduate Diploma in Management

(Recognized by AICTE, Ministry of HRD, Govt. of India)

SUBMITTED TO

INTEGRATED ACADEMY OF MANAGEMENT AND TECHNOLOGY

GHAZIABAD

SUBMITTED BY

Ankush Khandelwal

UNDER THE GUIDANCE OF

MR. AMIT KUMAR SINGH

MS. SHIKHY KHANNA

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Acknowledgement

This project report bears the imprint of those who had rendered their wholehearted support and encouragement without whose help this effort of mine would be in vain. I express my deep sense of gratitude and sincere thanks to my project guide Mr. Amit Kumar Singh and Ms.Shikhy Khanna for his directions, suggestion and information provided which were of utmost importance for the successful completion of the project. I am also thankful to Pro. Balraj Singh for his proper guidance.

At last, I also thank the employees of National HDFC Bank for assisting me in the timely completion of project.

Ankush Khandelwal

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CONTENT

S.No. Topic Page No.

1. Company Profile 4

2. Businesses 6

3. Balance Sheet 8

4. Profit and Loss Account 9

5. Cash Flow Statement 10

6. Board of Directors 11

7. Synopsis 12

8. Comparative Analysis of Education Loan Policies of Nationalized Banks in Delhi

13-25sss

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COMPANY PROFILE

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

Promoters

HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

Mission

HDFC Bank's mission is to be a World-Class Indian Bank.

Objective

The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite.

The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.

Capital Structure

The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and about 19.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign

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Institutional Investors (FIIs) and the bank has about 190,000 shareholders. The shares are listed on the “The Stock Exchange”, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB".

Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 761 branches spread over 327 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE have a strong and active member base.

The Bank also has a network of about over 1977-networked ATMs across these cities. Moreover, all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders can access HDFC BANK’s ATM network.

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BUSINESSES

HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments:

Wholesale Banking Services

The Bank's target market ranges from large, blue chip manufacturing companies in the Indian corporate to small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc.

The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank

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launched its credit card business in late 2001. By September 30, 2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading players in the "merchant acquiring" business with over 50,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments.

Treasury

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the financial markets in India, corporate need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

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BOARD OF DIRECTORS

Mr. Jagdish Capoor, ChairmanMr. Keki MistryMr. Vineet JainMrs. Renu KarnadMr. Arvind Pande

Mr. Ashim Samanta

Mr. C. M. Vasudev

Mr. Gautam Divan

Dr. Pandit Palande

Mr. Aditya Puri, Managing DirectorMr. Harish Engineer, Executive Director(w.e.f. 12.10.2007 subject to approval of RBI)Mr. Paresh Sukthankar, Executive Director(w.e.f. 12.10.2007 subject to approval of RBI)

Senior Management Team

Mr. A ParthasarthyMr. A. RajanMr. Abhay AimaMr. Bharat ShahMr. C. N. RamMr. G. SubramanianMr. Kaizad BharuchaMrs. Mandeep MaitraMr. Pralay MondalMr. Sudhir M. JoshiMr. Vinod YennemadiMr. Sashi Jagdishan

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SYNOPSIS

Title – Education Loan

Objective – To do the market analysis of comparative credit of Education Loan in Delhi.

Null Hypothesis (H0) – Education Loan policies of HDFC Bank is not better than other Nationalized Banks in Delhi.

Alternate Hypothesis (H1) - Education Loan policies of HDFC Bank is better than other Nationalized Banks in Delhi.

Data Collection

1- Questionnaire

2- Secondary sources – Published books, Internet

Research Design

Problem identification

Data collection related to Education Loan Policies in Nationalized Banks in Delhi.

Studying the Education Loan Policies of HDFC Bank.

Sampling Technique

Convenience sampling

It is purposive or non-probability sampling.

This sampling method involves deliberate or purposive selection of particular units of the universe for consulting a sample, which represents the universe and when elements are selected for inclusion in the sample based on the ease of access, it is called convenience sampling.

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Education Loan Schemes Of Various Nationalized Bank

Eligible Courses

All courses having employment prospects are eligible.

Graduation courses/ Post graduation courses/ Professional courses Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan

Fees payable to college/school/hostel Examination/Library/Laboratory fees

Purchase of Books/Equipment/Instruments/Uniforms

Caution Deposit/Building Fund/Refundable Deposit (maximum 10% Tution fees for the entire course)

Travel Expenses/Passage money for studies abroad

Purchase of computers considered necessary for completion of course

Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc.

Amount of Loan

For studies in India, maximum Rs. 10 lacs Studies abroad, maximum Rs. 20 lacs

Interest Rates

For loans up to Rs.4 lacs - 12.25% p.a. Floating

For loans above Rs.4 lacs - 13.25% p.a. Floating

Processing Fees

No processing fee/ upfront charges

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Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money

Repayment

Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.

Place of Study Loan AmountRepayment Period in Years

Studies in India Rs. 10.0 lacs 5-7

Studies Abroad Rs. 20.0 lacs 5-7

Security

AmountFor loans upto Rs. 10.00 lacs for Studies in India and upto Rs. 20.00 lacs for studies abroad

Upto Rs. 4 lacs

No Security

Above Rs. 4 lacs to Rs. 7.50 lacs

Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower".

Above Rs. 7.50 lacs.

Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments.

All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law

Margin

For loans up to Rs.4.0 lacs : No Margin For loans above Rs.4.0 lacs:

o Studies in India: 5%

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o Studies Abroad: 15%

Documentation Required

Completed Education Loan Application Form. Mark sheets of last qualifying examination

Proof of admission scholarship, studentship etc

Schedule of expenses for the specified course

2 passport size photographs

Borrower's Bank account statement for the last six months

Income tax assessment order, of last 2 years

Brief statement of assets and liabilities, of the Co-borrower

Proof of Income (i.e. Salary slips/ Form 16 etc)

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Baroda Gyan

A loan product specially designed for students pursuing Graduation, Post - Graduation, Professional & Other courses in India. Bank of Baroda extends a helping hand to energize your studies and promote education of the youth.

No processing charges.

No Margin on loans upto 4 lacs.

Free Debit Card.

Terms & Conditions

Courses Eligible:

All Graduation courses.

All Post Graduation courses & Doctorate courses.

Professional Courses viz. Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, Ayurved, Homeopathy, Physiotherapy, Hotel Management, Hospital Management, Interior Designing, Architecture, Event Management, Mass Communication, Fashion Technology, etc.

Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to Universities.

Courses like C.A, ICWA, CFA, CS, etc.

Courses offered in India by reputed foreign Universities.

Evening courses of institutes approved by State/Central/Govt./UGC/AICTE/AIBMS/ICMR/ICAR.

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Courses offered by National Institutes and other reputed private institutions. The College/Institute must have been approved by the State/Central Govt./UGC/AICTE,etc.

Student Eligibility :

Should be Resident Indian.

Secured admission to either of above courses

Coverage of expenses:

Fee payable to college / Institution / University.

Examination / Library / Laboratory Fee.

Fee and other charges payable to hostel.

Purchase of books / equipments / instruments.

Personal Computers / Laptops wherever required.

Caution deposit / building fund / refundable deposit supported by institution bills / receipts.

Any other expenses required to complete the course - like study tours, project works, thesis, etc.

Maximum Loan Amount: Rs.7.50 Lacs.

Margin:

Upto Rs. 4.00 lacs :- NIL

Above Rs. 4.00 lacs :- 5%

Margin is to be contributed on pro rata basis on year to year basis as and when disbursements are availed.

Repayment Holiday / Moratorium Period:

Course period + 1 year or 6 months after getting job, whichever is earlier.

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Repayment Period:

The loan is repayable in 5-7 years after the above period.

Security:

Upto Rs.4 lacs: No security

Above Rs. 4 lacs: Collateral in the form of a suitable third party guarantee alongwith assignment of future income.

Rate of Interest:

Simple interest to be charged at monthly rests during the repayment holiday / moratorium period.

1% interest concession is provided if interest debited during repayment holiday is serviced.

1% Concession in rate of interest to loans for girl student.

Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds Rs.4.00 lacs

Baroda Scholar

Bank of Baroda presents financial assistance to students going abroad for Professional / Technical studies. The loan offering is designed to empower you with the financial capability to realize your dreams... Achieve your goals... Reach out to the maximum limits...

Terms & Conditions

Eligibility of Courses:

Graduate/Post Graduate / Doctorate / Job Oriented Professional / Technical Courses offered by reputed Universities overseas.

Student Eligibility:

Should be an Indian National.

Secured admission to Professional/Technical Courses at foriegn Universities/Institutions.

Coverage of expenses (for overseas studies):

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Admission/Tuition fees to College/University.

Hostel/Mess charges.

Examination/Library/Laboratory fee.

Purchase of books/equipments/instruments.

Caution deposit/building fund/refundable deposit supported by institution bills/reciepts.

One way travel expenses/Passage money.

Purchase of computers if essential for completion of the course.

Any other expense required to complete the course e.g. study tour, project work, thesis etc.

Maximum amount of loan:

Graduation & Other Courses up to 3 years duration: Rs.10 Lacs

Post graduation and other advanced studies: Rs.15 Lacs

Margin: 15%

Repayment Period / Moratorium Period :

Course period + 1 year or 6 months after getting job, whichever is earlier.

The loan is repayable in 5-7 years after the above period.

Security:

Upto Rs.4.00/- lacs : No security

Above Rs. 4.00/- lacs upto Rs. 7.5 lacs : Collateral in the form of a suitable third party guarantee.

Above Rs. 7.5 lacs : Collateral security equal to 100% of loan amount.

Rate of Interest:

Simple interest during repayment holiday/moratorium period.

1% interest concession, if interest debited during the repayment holiday is serviced.

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1% Concession in rate of interest to loans for girl student.

Penal interest @ 2% p.a. on overdue amount if loan exceeds Rs.4/- lac

Oriental Bank of CommerceEligibility:Indian nationals not above 45 years of age those who secured admission in a recognized course of an approved university (AICTE approved institutions).

Amount of Loan:Education in India - Max. Rs.7.50 lacs.Education Abroad - Max. Rs.15.00 lacs.

Security:For Loans upto Rs.4.00 lac-No Collateral Security

Co-obligation of parents/guardian if student is minor.

For Loans above 4 lacs and upto Rs.7.50 lacs

No Collateral Security required,

Co-obligation of parents/guardian

One satisfactory third party guarantee

Above Rs.7.50 lacs

Co-obligation of parents/guardian is obligatory.

Mortgage of immovable property or any other tangible security like pledge of NSC/UTI/LIC (Surrender Value)/Bonds etc. having value at least equal to 100% of loan. Extension of charge on property already mortgaged subject to adequate residual value of security.

Co-obligations of parents is must for loans to students studying abroad irrespective of the amount of loan/age of the borrower.

Margin:Upto 4 lacs - NILAbove 4 lacs for education in India - 5%Education Abroad - 15%

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Rate of Interest:10% per annum

Concession on Rate of Interest :Simple Interest shall be charged during study/moratorium period. The concession of 1% in rate of interest to be allowed, if interest is serviced regularly during the study/moratorium period. S

Repayment:Within 84 EMIs commencing 12 months after course or 6 months after getting the job, whichever is earlier?

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PANJAB NATIONAL BANK

EDUCATION LOAN - "VIDYALAKSHYAPURTI"

The Scheme enables all type of needy students viz., students of +2 stage, Graduation courses – B.A., B.Com., B.Sc., etc., Post-Graduation courses, Masters in Ph.D; 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, C.A., CFA, etc., courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc., Evening Courses of reputed Institutes; Diploma/Degree courses conducted by Colleges/Universities approved by UGC/Govt./AICTE/AIBMS/ICMR, etc., Courses offered by National Institutes and other reputed Private Institutes.

Students should approach the branch nearest to the place of domicile.

Punjab National Bank is now offering concession in interest in education Loan Scheme. The concession in interest rates is available to new borrowers who will avail education loan from the bank w.e.f. 01.04.2007.

The bank has taken this step to make education loan scheme more customer friendly thus facilitating aspirant students to avail education loan on comfortable & affordable terms. .

Further, Interest is charged monthly on simple basis during the repayment holiday/moratorium period & concession of 1% in rate of interest is also allowed provided the same is serviced regularly during study period.

Punjab National Bank has tied up with Kotak Mahindra Insurance to provide life insurance cover for education loan borrowers.

The insurance would cover study period as well as repayment period, he said, adding in case of any mishap, the insurance company would take care of the loan repayment rather than the aggrieved parents.

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Eligibility

Student eligibility


Secured admission to Professional / Technical courses through Entrance Test / Selection process.

Secured admission to foreign University / Institutions.

Student should have secured pass marks in the qualifying Examination for admission to Graduation Courses.

Expenses considered for Loan

Fee payable to College / School / Hostel

Examination / Library / Laboratory fee.

Purchase of books / equipments / instruments / uniforms. Secured admission to foreign University / Institutions.

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.

Boarding and lodging expenses in recognised Boarding Houses / private accommodations

Any other expense required to complete the course - like study tours, project work, thesis etc.

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Quantum of Finance

Need based finance, subject to repaying capacity of the parents / students with margin and the following ceilings: -

For studies in India: Maximum Rs.7.50 lacs.

For studies abroad: Maximum Rs.15.00 lacs.

Margin

Upto Rs.4.00 lacs: Nil.

Above Rs.4.00 lacs: Studies in India 5%

Studies Abroad 15%

Security

Upto Rs.4.00 lacs: No Security.

Above Rs 4.00 lacs and Upto Rs 7.5 lacs:

3rd party guarantee acceptable to the Bank.

Above Rs 7.5 lacs: Collateral Security of Suitable value or suitable 3rd party guarantee.

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The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares / Debentures, Bank Deposit in the name of the student parent / guardian or any other third party with suitable Margin.

The document should be executed by both the student and the parent/guardian.

Rate of Interest

Upto Rs. 4 lacs BPLR+Term Premia minus 1.25

Above Rs.4 lacs BPLR + Term Premia

Term premia of 0.50% p.a. shall be added for repayment period of 3 years & above. The interest shall be debited monthly on simple basis during the Repayment holiday/

Moratorium period.

Penal Interest @ 2% be charged for above Rs.4.00 lacs for the overdue amount and overdue period.

1% Interest concession for servicing of interest during the study period regularly is allowed at the time of start of repayment period of loan.

Repayment

Repayment Holiday / Moratorium Course period + 1 year OR 6 months after getting job, whichever is earlier.

The Principal and interest is to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years.

Upfront Fee

Nil

Documentation Charges

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Upto Rs. 4 lacs Rs.270/- + Service Tax & Education Cess

Above Rs.4 lacs Rs.450/- + Service Tax & Education Cess

Additional Benefits provided to the students by PNB

Reimbursement of related expenses such as admission fee, monthly fee, Boarding and lodging expenses in recognized Boarding Houses etc. already incurred by way of loan taken from own sources (to meet the contingency) by the applicant, if claimed within 3 (three) months of such payment and before consideration of the loan by the Bank.

Second time Education Loan can be sanctioned to the same student borrower for completion of next higher course.

Check List

While applying for the loan, the borrower is required to furnish the following information/papers:

Loan application on Bank's format.

Passport size photograph

Proof of Address (Permanent) / ID Proof.

Proof of Age.

Proof of having secured pass marks in last qualifying examination.

Letter of admission in professional, technical or vocational courses.

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Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc. are mentioned.

Details of Assets & Liabilities of parents.

In case loan amount is above Rs.4.00 lacs:

Particulars of Guarantors and details of their Assets & Liabilities.

If immovable property offered as Collateral Security - copy of Title Deed, Valuation Certificate and Non-encumbrance Certificate from approved Lawyer of the Bank.

Photocopy of Passport & Visa, in case of study abroad.

Any other document/information, depending upon the case and purpose of the loan.

(The above CHECKLIST is only illustrative, not exhaustive. For details, please contact our nearest Branch Office).

EDUCATION LOAN SCHEME – ‘PNB SARVOTTAM SHIKSHA’

OBJECTIVE

The Scheme aims at providing financial assistance to deserving students who have secured admission for pursuing/are pursuing regular courses in the IDENTIFIED educational institutions.

Punjab National Bank is now offering concession in interest in education Loan Scheme. The concession in interest rates is available to new borrowers who will avail education loan from the bank w.e.f. 01.04.2007.

The bank has taken this step to make education loan scheme more customer friendly thus facilitating aspirant students to avail education loan on comfortable & affordable terms. Bank has reduced interest rates on education loan up toRs.4.00 lac under PNB Sarvottam Shiksha Scheme

Further, Interest is charged monthly on simple basis during the repayment holiday/moratorium period & concession of 1% in rate of interest is also allowed provided the same is serviced regularly during study period.

Punjab National Bank has tied up with Kotak Mahindra Insurance to provide life insurance cover for education loan borrowers

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The insurance would cover study period as well as repayment period, he said, adding in case of any mishap, the insurance company would take care of the loan repayment rather than the aggrieved parents.

Eligibility

a) All types of professional/technical courses conducted by identified institutions as per list annexed

b) A student is eligible for loan provided he/she is an Indian National

Secured admission to Professional / Technical courses of one of the identified educational institutions through Entrance Test / Selection process.

In case of education in the foreign University / Institution (for which HO approval is required for its coverage under the Scheme), the student should have got necessary Passport / VISA formalities completed.

c) Expenses considered for Loan

Fee payable to College / Institute / Hostel. Examination / Library / Laboratory fee.

Purchase of books / equipments / instruments.

Boarding & Lodging expenses in Boarding Houses subject to production of Bills verified by the student borrower.

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.

QUANTUM OF FINANCE

Need based finance, subject to repaying capacity of the parents / students, arranging margin and the following ceilings

Studies in India Maximum Rs. 7.50 lacs.

Studies abroad Maximum Rs.15.00 lacs.

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Margin

Upto Rs.4.00 lacs Nil

Above Rs.4.00 lacs Studies in India

5%

Studies Abroad 15%

Note: Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.

Security

Upto Rs. 4.00 lacs No security

Above Rs.4 lacs & upto Rs.7.50 lacs

A suitable 3rd party guarantee, which can be waived if parents of the student has sufficient means

Above Rs 7.5 lacsCollateral Security of Suitable value or suitable 3rd party guarantee.

NOTE:

The documents should be got executed by both the student and the parent / guardian.

The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares / Debentures, Bank Deposit in the name of the student parent / guardian or any other third party with suitable Margin.

Wherever the land / building is already mortgaged, the unencumbered portion can be taken as security on II charge basis provided it covers the required Loan amount.

In case the loan is given for purchase of Computer, the same to be Hypothecated to the Bank.

Rate of interest

Upto Rs.4.00 lacs BPLR –2.25%+0.50% term premia

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Above Rs.4.00 lacs & upto Rs.15 lacs BPLR + 0.5% term premia –0.75%

The interest to be debited monthly on simple basis during the Repayment holiday/ Moratorium period.

Penal interest @ 2% be charged for amounts above Rs.4 lacs for the overdue amount and overdue period.

1% Interest concession for servicing of interest during the study period regularly is allowed at the time of start of repayment period of loan.

Repayment

Repayment Holiday/ Moratorium

Course period + 6 months.

In case of medical students, course period will include internship and house job period, if any.

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

The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Instalments (EMI) be fixed.

1% interest concession may be provided by Incumbents to loanee for servicing of interest during study period regularly, when repayment holiday is specified for interest / repayment under the Scheme.

Interest concession to student borrowers for servicing of interest during study period regularly is to be allowed to borrowers at the time of start of repayment period of the loan and the rate of interest/EMI be fixed accordingly.

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To facilitate expeditious disposal of applications, a check-list regarding documents, security etc., alongwith application forms for Education Loans be provided to intending borrowers. An illustrative check-list is given below :

Loan application on Bank's format. Passport size photograph.

Proof of Address.

Proof of Age.

Proof of having secured pass marks in last qualifying examination.

Letter of admission in professional, technical or vocational courses.

Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc. are mentioned.

Details of Assets & Liabilities of parents.

In case loan amount is above Rs.4.00 lacs :· Particulars of Guarantors and details of their Assets & Liabilities, wherever applicable.· If immovable property offered as Collateral Security - copy of Title Deed, Valuation Certificate and Non-encumberance Certificate from approved Lawyer of the Bank.

Photocopy of Passport & Visa, in case of study abroad.

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UPFRONT & PROCESSING FEE:

Nil

DOCUMENTATION CHARGES

Rs.300/- for loan amount upto Rs.4.00 lacs

Rs.500 for loan amount over Rs.4.00 lac

Any other document/information, depending upon the case and purpose of the loan

Allahabad Bank Education Loan Scheme

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Eligibility Criteria :

(a) Student eligibility:

Student be an Indian National Secured admission to professional/ technical courses in India or Abroad through Entrance

Test / Merit based Selection process.

(b) Courses Eligible:

Studies in India

Graduation Courses- B.A, B.COM, B.Sc. etc. Post Graduation Courses: Masters Courses, Ph D, etc.

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.

Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation/ Shipping, if the course pursued abroad, the Institute should be recognised by the competent local aviation/ shipping authority.

Courses offered in India by reputed foreign universities.

Evening Courses of approved Institutes.

Other Courses leading to diploma/degree etc conducted by the Colleges/ Universities approved by UGC/Govt/AICTE/AIBMS/ICMR etc.

Studies Abroad:

Graduation: For Job oriented professional/technical courses offered by reputed

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Universities. Post Graduation: MCA, MBA, MS etc.

Courses conducted by CIMA London, CPA in USA etc.

Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., the Institute should be recognised by the competent local aviation/ shipping authority.

Quantum of Loan :

Need based finance subject to repaying capacity of the parents / students with following ceilings:Studies in India: Maximum Rs 10.00 lacsStudies abroad: Maximum Rs. 20.00 lacs.

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 Bills/Receipts of the Institution, subject to the conditions that 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.

Insurance premium for student borrower.

Any other expenses required to complete the course, such as- Study Tours, Project Work, and Thesis etc.

Margin :

For loan upto Rs 4.00 lacs: NIL For loan above Rs 4.00 lacs:

(i) Studies in India: 5%(ii) Studies abroad: 15%

Scholarship / Assistantship to be included in Margin.

Margin Money to be brought on year-to-year basis and disbursements are made on a pro-rata basis.

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Rate of Interest :

Loan Upto Rs. 4.00 lacs

For students of IIT / IIM/ ISB* PLR-1.75%

For Others PLR-0.75%

Loan above Rs. 4.00 lacs

For students of IIT / IIM/ ISB* PLR-1.75%

For Others PLR-1.00%

*ISB means Indian School of Business; HyderabadGirl students may be provided a special relief of 1.00% in all cases as above.

Application of Interest :

Simple interest during moratorium period. Service interest during moratorium period regularly and avail a special discount of 1.00% in interest rate.

Repayment :

Repayment Holiday / Moratorium is Course Period + 1 year or 6 months after getting job, whichever is earlier.

Loan to be repaid within a maximum period of 7 years after commencement of repayment.

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Security :

For IIT/IIM/ISB*

For loan upto Rs 10.00 lacs- No collateral security is required. Co-obligation* of parents/ guardian required

*ISB means Indian School Business, Hyderabad

For others

For loan upto Rs 4.00 lacs: No collateral security is required. co-obligation* required For loan above Rs 4.00 lacs and upto Rs 7.50 lacs: Satisfactory third party guarantee & Co-obligation* required.

For loan above Rs 7.50 lacs: (a) Co-obligation * of parents/ guardian together with tangible collateral security of suitable value covering full loan amount, alongwith the assignment of future income of the student for payment of installments.

*(The loan documents would be executed by both the student and the parent/ guardian as joint-borrower i.e. co-obligator. The co-obligation should be parent / guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law.)

Processing Fee :

Processing Fees/ Documentation Charge:

For studies in India- NilFor studies abroad -Rs.500/- upfront subject to the conditions that this amount would be adjusted against the loan amount once the loan is availed from us.

Mortgage Charges:

Actual expenses, if any, will be borne by the Student/Parent or Guardian.

Delivery Channel

From all of our branches (Presently more than 2150) spread throughout the country.On-line sanction for leading 250 institutions within 72 hours.

Value added Service

FREE Debit Card-For SB account holders in networked branches.

Insurance :

Group Life Insurance Cover -For entire loan liability in tie-up with LICI

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(One time upfront premium, can also be financed by adding into project cost.), Prospective borrowers, who are not covered under the group insurance scheme, will be allowed to take a single premium term insurance cover equal to the loan amount, individually on their own or premium being a component of project cost for financing.

Others

a. The parent / guardian would become co-borrower with the student and application for education loan will also be signed by the parent / guardian alongwith the student while availing loan under Educational Loan Scheme.

b. Education Loan would preferably be sanctioned through branches / RBBs nearest to the place of residence of parents.

c. Second time education loan is available for higher studies / escalation of cost.

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Andhra Bank

Eligibility:

Age: 12-30 years for studies in India

18 to 35 years for study in other countries

Quantum of Loan: Maximum Rs. 10.00 Lacs for studies in India

Rs. 20.00 Lacs for Studies Abroad

Purpose of Loan:

To meet cost of Tuition fee, Hostel fee, Examination fee, Books, Project work, Study tours, and Refundable deposits.

PLUS

AIR PASSAGE AND MAINTENANCE, FOR ABROAD STUDIES.

Margin:

Upto Rs.4.00 Lacs Exempted

Above Rs.4.00 Lacs 5% In India 15% for Abroad Studies.

Security:

Upto Rs.4.00 Lacs guarantee of parent

Rs.4.00 to 7.50 lacs - guarantee of the parent

Above Rs.7.50 Lacs--Collateral Security of suitable value & guarantee of the parent

Interest:

Upto Rs.4.00 Lacs--(BMPLR -1.25) - Presently 11.75%

Above Rs.4.00 lacs--(BMPLR + 0.50) presently 13.50%

(BMPLR at present: 13.00%) 39

Concession of 0.50% for women for sanctions after 01.07.2005

DIFFERENT RATES OF INTEREST - DIFFERENT INSTITUTES

Wherever Andhra Bank has entered into MOU with

---- IIRM, BITS, Pilani; BITS, Goa; IPE; Goa Institute of Management

Rate of Interest is 9 % fixed.

----ISB - Rate of Interest (BMPLR -3.50) is 9.50 % floating

----GMRIT; SVUCCMIS, Tirupathi; IIIT, Hyderabad; CIHL (ZIC

Center, Gurukulam) Hyderabad; Balaji Society, Pune ; ICFAI Business

School -Rate of Interest is (BMPLR-2.00) 11.00 % Floating

NO PROCESSING CHARGES; NO PREPAYMENT CHARGES APPLICABLE

INTEREST WILL BE CHARGED ON SIMPLE BASIS DURING STUDY /HOLIDAY PERIOD ONLY.

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Syndicate Bank’s involvement in education dates back to the decades prior to the Nationalization of Banks. The Bank was also the first to set up a string of Rural Training Institutes aimed at empowering the young India in rural areas through entrepreneurial education and training.

Continuing this commitment to education, the Bank has introduced a comprehensive Education Loan Scheme-SyndVidya, which is more student responsive and parent friendly. The Scheme covers the entire spectrum of educational needs from the school education to super specialty courses including overseas courses. The scheme makes available need based finance to cover expenses related to education such as fees payable to College, Hostel, Examination, Library, Laboratory fees, caution deposit/building fund/refundable deposit upto 10% of tuition fee, Cost of Books, Equipments, Travel expenses for studies abroad etc. Only capitation fees, donation or external coaching fee are not covered. The loan scheme carries liberal limits of Rs.10.00 lac for courses within the country and Rs.20.00 lac for overseas courses. The scheme which is attractively priced at the Bank's prime lending rate and other details are furnished below :

Eligibility Criteria

Any student who is a major representing himself or a minor student represented by parent or guardian of Indian nationality.

Must have secured admission on the basis of merit to professional/ technical/other courses through entrance test/selection process. Deviation/relaxation is also permitted under special circumstances.

Must have secured admission to Foreign universities/Institution (for studies abroad).

Courses Eligible

a) Studies in India.

Graduation: B.A., B.Com, B.Sc., etc.

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Post graduation: Masters & Phd.

Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental Management, and Computer etc. In respect of Management studies, apart from University affiliation, All India Council for Technical Education should also approve course. For Computer education, the recognised training Institute should have accreditation of DOE, Govt of India to conduct the course under Department of Electronics Accreditation of Computer Course (DOEACC) Scheme.

Computer certificate courses of reputed institutes accredited to Department of Electronics or Institutes affiliated to Universities.

Courses like ICWA, CA, CFA etc.

Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.

Courses offered in India by reputed foreign universities.

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 acceptable to the Bank.

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.

Other Foreign Diploma courses are not eligible.

Student Eligibility


Secured admission on the basis of merit to professional/technical courses through Entrance Test/Selection process. Deviations/relaxations are also permitted under special circumstances.

Secured admission to foreign university / institutions.

The student who is a major representing himself or a minor student represented by parent or guardian.

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Quantum of Loan

Need based finance to meet expenses such as fee payable to college / school / hostel, examination fee, cost of books, travel / passage fare for studies abroad etc.

Capitation fee / donation / external coaching fee are not eligible for finance.

Maximum of Rs.10.00 lac for studies in India and Rs.20 lac for studies abroad.

Margin

For loans upto Rs.4 lac - No Margin required.

For loans above Rs.4 lac - 5% for study in India and 15% for study abroad.

Security

For loans upto Rs.4.00 lac - NIL.

For loans above Rs.4.00 lac and upto Rs.7.50 lac - Collateral in the form of satisfactory third party guarantee acceptable to the Bank.

For loans above Rs.7.50 lac - Collateral security with 25% margin covering the loan amount and assignment of future income of the student for payment of loan installments.

NOTE: In all the above cases, the parent / guardian shall join the transaction as co-borrower

Interest

(PLR presently 13.00%)

For loans upto Rs.7.50 lacs - PLR minus 1.00%

For loans above Rs.7.50 lacs - PLR minus 1.50%

No processing charges/service charges are levied for educational loans

Repayment

In 5 to 7 years commencing one year after completion of the course or 6 months after securing the job whichever is earlier.

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1.OBJECTIVE & PURPOSE:

The Star Educational Loan Scheme 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.

2. ELIGIBILITY CRITERIA:

a) 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.

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.

44

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: 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. 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.


* As per brochure/ demand letter from the institution.

4. QUANTUM OF FINANCE :

45

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 : NilAbove 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 securityAbove 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 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*:

Upto Rs.7.50 lacs - 1.75% below BPLR, Min. 11.00% p.a. Above Rs.7.50 lacs - 0.75% below BPLR, Min. 12.00% 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 of 0.50%p.a. for woman beneficiaries

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

46

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:

Processing/upfront charges For Studies in India- NIL.

For Studies Abroad – Rs.1000 for issuance of sanction letter for

obtention of VISA.

Amount refundable on availing loan.

Document /Stamp Charges At Actuals

Change of Institution Studies in India – Rs.250/-

Studies Abroad- Rs.500/-

Agreement(copy to borrower) Xerox charges

Loan upto Rs.2 lacs- Rs. 25/-*

Loan over Rs.2 lacs- Rs.100/-*

Plus copying charge of Rs.1 per page

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Indian Bank provides convenient educational loans for meritorious/deserving students to acquire knowledge and skill in the field of their interest. By playing beacon, new-generation's quest for success is ably supported, paving way for Generation Banking.

Eligibility

The applicant should be an Indian National. He / She should have secured admission to professional / technical courses in India or

abroad through Entrance Test / Merit based selection process.

Age of the Student - 15 to 30 Years (For Studies in India)

Age of the Student - 18 to 35 Years (For Studies in Abroad)

Purpose

To meet the cost of education covering fee payable to college / school / hostel, exam fees, purchase of books / equipment’s, travel expenses / passage money for studies abroad, purchase of computers essential for completion of the course etc.

Caution Deposit, Building fund/ refundable deposit supported by institution bills/receipts, subject to a maximum of 10% of total tuition fees for the entire course.

Insurance premium for student borrower.

48

Studies in India

1. Diploma/Graduation/Post-graduation courses in various disciplines. 2. Computer certificate courses of reputed institutes accredited to The Department of

Electronics.

Studies Abroad

1. Job-oriented professional/technical courses offered by reputed universities. 2. MCA, MBA, MS etc.

3. Courses conducted by CIMA – London, CPA in USA etc.

Course of Study

Maximum Permissible Amount of Loan

Place of availment

For Studies in India - Rs.10.00* lakhs

For Studies Abroad - Rs.20.00* lakhs* Higher quantum of loan also can be considered in deserving and meritorious cases.

The loan can be availed from the branch nearest to the place of domicile.

Margin Rate of Interest

Upto Rs.4.00 lacs - NIL

Above Rs.4.00 lakhsFor Studies in India - 5% For Studies Abroad - 15%

Upto Rs.4.00 lacs -12.50 % p.a. at present

Above Rs.4.00 lakhs -13.00 % p.a. at present

Floating Rate linked with Benchmark Prime Lending Rate (BPLR) of the Bank and liable to undergo changes whenever there is a change in BPLR.

Holiday Period & Repayment Insurance

The course period PLUS 1 year or 6 months after getting a job, whichever is earlier.

Life Insurance cover available to the student borrowers under 'IB Jeevan Vidya' Insurance

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Repayable in 5– 7 years. Scheme.

Securities

Documents should be executed both by the student and parent / guardian as joint borrower.

1. Upto Rs. 4 lacs - No security

2. Above Rs. 4 lacs & Upto Rs.7.50 lacs - Collateral in the form of satisfactory third party guarantee

3. Above Rs.7.50 lacs - Co-obligation of parents / guardians together with tangible collateral security of suitable value along with assignment of future income of the student for payment of installments.

* In case of receipt of application for more than one loan from students from a family, the 'family' as a unit will be taken into account for considering the loan and security will be taken in relation to the total quantum of finance disbursed, subject to margin and repaying capacity of the parent/student.

50

Eligibility

You should be an Indian National

You should have secured admission to professional/technical courses in India or abroad through

entrance test/merit based selection process

Courses

Graduation/Post graduation/Diploma/Computer education in any recognised State/Central Government/University. Professional courses including Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA, etc., courses conducted by IIM, IISC, XLRI, NIFT etc. Courses offered in India by reputed foreign universities/Evening courses of approved institutes. Regular degree/Diploma courses like Aeronautical, Pilot training, shipping etc approved by Director General of Civil Aviation/shipping if the course is pursued in India. In case the course is pursued abroad the competent local aviation/shipping authority should recognize the institute.Amountmaximum of Rs. 10.00 lakh for studying in India and Rs. 20.00 lakh for studying abroad.Interest Rate

Present Interest rate linked to BPLR is as follows:

- Up to Rs. 4.00 lakh - 12%

- Above Rs. 4.00 lakh 13.25%. Margin money

For loans upto Rs. 4.00 lakh Nil

For loans above Rs. 4.00 lakhStudies within India 5%

For studies abroad 15%

Security

For loans upto Rs. 4.00 lakh Co obligation of parents. No security

For loans above Rs. 4.00 lakh and up to Rs.7.50 lakhCo obligation of parents together with collateral security in the form of

51

suitable third party guarantee

For loans above Rs.7.50 lakh Coobligation of parents together with tangible collateral security. Collateral security in the form of NSC/KVIP, LIC Policy, Gold, Shares/Debentures or immovable properties Bank Deposits in the name of student/Parent/Guardian or any other third party with suitable margin. Wherever the land/building is already mortgaged the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount. In case the loan is given for the purchase of computer, the computer has to be hypothecated to the bank.

Is there a Holiday period for my loan ?

Yes, there is. You can pay back your loan 6 - 12 months after you complete the course.

How do I repay my loan ?

You can repay the loan in equal monthly Instalments for a maximum period of 5 - 7 years excluding holiday period.

Whether I have to pay Interest every month during my study period?

It is left to the option of the student either to service the interest during the study period or pay it along with the principal over a period of 5 - 7 years to commence from 12th month after completion of the study.

In case I opt to service the interest, am I eligible for any concession?

Yes. For prompt servicing of interest for all months during the study period when repayment holiday is specified for interest/repayment under the scheme, an interest rebate of 1.0% is allowed. The interest rebate thus calculated will be credited back to loan account at the time of commencement of repayment of the principal sum.

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Courses offered

An installment based loan for all courses mentioned below:

Studies in India:

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 Dept. 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

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. Banks may have the system of appraising other institution courses depending on future prospects/ recognition by user institutions.

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

Loan amount

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Studies in India - Maximum Rs.10 lacs Studies abroad - Maximum Rs.20 lacs

Expanses covered under 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


Repayment terms

The repayment of loan to begin after the course period + 1 year or 6 months after getting a job, whichever is earlier. The loan to be repaid within 5-7 years (maximum tenor 84 months) after commencement of repayment.

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OBJECTIVE & PURPOSEThe scheme aims at providing financial assistance on reasonable terms:

To the poor and needy students that they may undertake basic education

To meritorious students that they may pursue higher or professional or technical education

ELIGIBILITY

The student applying for UNION EDUCATION Loan ought to:

Be an Indian National

Has secured admission to professional or technical courses through an appropriate Entrance Test or selection process

Has secured admission to a foreign University

Has passed an appropriate qualifying examination

Studies in India

School education up to +2

Graduation/Post-Graduation

Professional course

Management course

Special Education Loan Scheme for Students pursuing courses from approved institutions like IITs/IIMs/ /NIT XLRI/BITS/VIT/IISc/S.P. Jain Institute Of Management/Symbiosis Institute Of

55

Management and T.S. Chanakya, Navi Mumbai- Nautical Science and MERI, Calcutta, Marine Engineering, MERI, Mumbai, Maritime Science.

Studies Abroad :

Graduation: For job-oriented professional or technical courses offered by reputed universities

Post-Graduation: MCA, MBA, MS and such other courses

Courses conducted by CIMA, London, CPA, USA., and such other institution

PURPOSE

To the poor and needy students to undertake basic education

To meritorious students to pursue higher or professional or technical education

CONDITIONS

The Parent/Guardian of the student who is availing loan from our bank shall be made co-obligator/joint borrower irrespective of the age of such students.

The Loan Accounts of students applying through college/institutions will be sanctioned/disbursed at the branch nearest to permanent residence/place of domicile of the borrower student.

Loan will be disbursed directly to the college/institute.

Student to produce mark list of previous term/semester before availing next installment.

Student /Parent to provide latest mailing address before availing next installment.

In case of parents with transferable job, new address to be provided before availing installments.

QUANTUM OF LOAN

56

Need-based finance subject to repayment capacity of the parent or student with margin and upto the following ceilings

For studies in India - Up to Rs. 10 lacs

57

For studies abroad - Up to Rs. 20 lacs

MARGIN

No margin for loans up to Rs. 4.00 lacs . However, for loan of higher amounts, the margin requirement is 5% for inland studies and 15% for studies abroad.

Scholarship/assistance to be included in margin.

Margin maybe brought in on pro-rata basis as and when disbursement is made.

REPAYMENTRepayment holiday or Moratorium on loan: Course period + 1 year OR 6 months after job placement, whichever is earlier.

Starting from this point, the loan is to be repaid in 5-7 years after completion of course period/moratorium.

RATE OF INTEREST(w.e.f 21/02/2008)For Male Student :

Up to Rs. 4.00 lakhs : BPLR - 1% i.e. 11.75% (Fixed)

Above Rs. 4.00 lakhs upto Rs.7.50 lakhs : BPLR - 0.25% i.e. 12.50% (Fixed)

Above Rs. 7.50 lakhs : BPLR - 0.75% i.e 12.00% (Fixed)

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COMPARATIVE ANALYSIS OF EDUCATION LOAN POLICIES OF NATIONALIZED BANKS

NAME

Maximum. Loan amount and Rate of Interest

Moratorium period

Margin money

Branches in New Delhi

Credit Policy U.S.P.

S.B.I.

Education in India - Max. Rs.10.00 lacs.

Education Abroad - Max. Rs.20.00 lacs.

Interest rate

Up to Rs 4 lacs- 12.25% P.A.floating,

Above Rs. 4 lacs-13.25%p.a. floating

Moratorium Period :-Course Period + 1 year or 6 months after getting job, whichever is earlier.

Repayment:-Loan to be repaid within a maximum period of 5-7 years after commencement of repayment.

For loans upto Rs.

4.00lacs:-Nil

For loans above Rs. 4.00 lacs:-

Studies within India 5% For studies abroad 15%

Total branches-189

Upto Rs. 4 lacs - No Security

Above Rs. 4 lacs to Rs. 7.50 lacs-- Third Party Guarantee

Above Rs. 7.50 lacs to Rs. 10 lacs (India)/ Rs. 15 lacs (Abroad) -- Tangible Collateral security for full value of loan

Rs 15 lacs to Rs. 20 lacs for Abroad-- Tangible Collateral security for full value of loan

B.O.B.

BARODA GYAN:

Education in India - Max. Rs.7.5 lacs Education Abroad - Max. Rs.20.00 lacs. Rate of Interest- Upto Rs.4.00 lacs: 11.50%. Above Rs.4.00 lacs:-13.50%.



Upto Rs. 4.00lacs

:-Nil

Above Rs. 4.00

lacs:- Studies within

India 5% For studies abroad 15%

Total branshes-18

Upto Rs.4 lacs : No security Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable thirdparty guarantee alognwith assignment of future income. Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loanamount along with assignment of future income

FREE DABIT

CARD, 1% interest concession is provided if interest debited during repayment holiday is

serviced 1%Concession in rate of interest to loans for girl student.

OB. Education in Moratorium Upto Rs. Tota For loan upto rs.4 lacs- 1% interest

59

C. India - Max. Rs.10lacs.

Education Abroad - Max. Rs.20lacs.

Rate of Interest: For Loan upto Rs. 4.00 Lacs: 11.25 % p.a. Loan above Rs. 4.00 Lacs: 12.00 % p.a.

Period :-Course Period + 1 year or 6 months after getting job, whichever is earlier.


4.00lacs:-Nil Above Rs. 4.00 lacs:- Studies within India 5% For studies abroad 15%

l branches-96

No Collateral Security

Above Rs. 4 lacs-7.50 lacs-one satisfactory third party guarantee

Above Rs.7.50- Co-obligation of parents/guardian is obligatory.

concession is provided if interest debited during repayment holiday is serviced 0.50% concession to women beneficiaries, SC/STs and disabled students.

P.N.B.

Education in India - Max. Rs.10lacs.

Education Abroad - Max. Rs.20lacs.

Moratorium Period :-Course Period + 1 year or 6 months after getting job, whichever is earlier. Repayment:-Loan to be repaid within a maximum period of 5-7 years after commencement of repayment.

Upto Rs. 4.00lacs:-Nil Above Rs. 4.00 lacs:- Studies within India 5% For studies abroad 15%

For loan upto rs.4 lacs- No Collateral Security

Above Rs. 4 lacs-7.50 lacs-one satisfactory third party guarantee

Above Rs.7.50- Co-obligation of parents/guardian is obligatory.

Second time Education Loan can be sanctioned to the same student borrower for completion of next higher course.

I.O.B.

Education in India - Max. Rs.10lacs.

Education Abroad - Max. Rs.20lacs. Rate of Interest:- Up to Rs. 4.00 lakh - 12% Above Rs. 4.00

lakh 13.25%.


Repayment: Loan to be repaid within a maximum period of 5-7 years after commencement of repayment.:-


TOTAL BRANCHES-60

Upto Rs.4 lacs:- No security

Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable third party guarantee alognwith assignment of future income

Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loanamount along with assignment of future income

An interest rebate of 0.5% is allowed. If you pay Interest every quarter during study period?

IDB Studies in Moratorium Upto Rs. Tota Upto Rs.4 lacs:- No

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I India:- Maximum Rs.10 lacs Studies abroad: Maximum Rs.20 lacs

Period :-Course Period + 1 year or 6 months after getting job, whichever is earlier.


4.00lacs:-Nil Above Rs. 4.00 lacs:- Studies within India 5% For studies abroad

15%

l branches-23

security

Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable third party guarantee alognwith assignment of future income


Canara bank

Studies in India:- Maximum Rs.10 lacs Studies abroad: Maximum Rs.20 lacs Rate of Interest:-Upto Rs.4 lacs--12.50% Above Rs.4 lacs upto Rs. 7.50 lacs-13.50% Above Rs. 7.50 lacs upto Rs15 lacs-11.25% Above Rs.15.00 lacs upto Rs.20.00:-lacs10.75%,




Branches-89

Upto Rs.4 lacs : No security

Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable thirdparty guarantee alognwith assignment of future income. Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loanamount along with assignment of future income

Special benefit for those student who satisfying DRI norms(DRI: annual income less than Rs 7200 p.a)—4%Interest rate.

U.B.I. Studies in

India:- Max. Rs.10 lacs Studies in abroad:Max.Rs.20 lacs Rate of interest: Up to Rs.4lacs:-11.75% Above Rs.4.lacs-Rs.7.5 lacs:-12% AboveRs.7.5

Moratorium Period: -Course Period + 1 year or 6 months after getting job, whichever is earlier. Repayment:-Loan to be repaid within a maximum period of 5-7 years after commencement of

Upto Rs.

4lacs : Nil Above Rs. 4 lacs:

Studies within India 5% For studies abroad 15%

Total bran

ches-15

Up to Rs. 7.50 lacs: -NO collateral security is needed for loans up to However, for loans above this amount, collateral security of suitable value, along with co-obligation of parents/guardian/third party, accompanied by an assignment of future income of the student for payment of installments is required.

.50% concession for female student in all cases

61

lacs:-11.50% repayment. Syndicate bank

Studies in India: - Maximum Rs.10 lacs

Studies abroad:- Maximum Rs.20 lacs

Rate of Interest:-

For loans upto Rs.7.50lacs: - 10.00 %.

For loans above Rs.7.50lacs: - 9.50 %.

Moratorium Period: -Course Period + 1 year or 6 months after getting job, whichever is earlier.


Upto Rs. 4.00lacs:-Nil Above Rs. 4.00 lacs:-

Studies within India 5% For studies abroad

15%

Total branches-136

Loans upto Rs.4 lac - NIL.

Loans above Rs.4 lac and

upto Rs.7.50 lac -

Collateral in the form of

satisfactory third party

guarantee acceptable to the

Bank.

Loans above Rs.7.50 lac -

Collateral security equal to

100% of the loan amount

with suitable margin and a

third party guarantee

acceptable to the Bank

Indian Bank

For Studies in India:- Rs.10.00* lacs

For Studies Abroad:- Rs.20.00* lacs

Rate of Interest:- Upto Rs.4.00 lacs:-12.50 % p.a. Above Rs.4.00 lacs -13.00 % p.a.

Moratorium Period :- Course Period + 1 year or 6 months after getting job, whichever is earlier.

Repayment:-

Loan to be repaid within a maximum period of 5-7 years after commencement of repayment.

Upto Rs. 4.00lacs:- Nil

Above Rs. 4.00 lacs:- Studies within India 5% For studies abroad 15%

Total branches-41

Upto Rs. 4 lacs - No security

Above Rs. 4 lacs & Upto Rs.7.50 lacs - Collateral in the form of satisfactory third party guarantee

3. Above Rs.7.50 lacs - Co-obligation of parents / guardians together with tangible collateral security of suitable value along with assignment of future income of the student for payment of installments.

62

Allahabad bank

Studies in India:

Maximum Rs 10.00 lacs

Studies abroad: Maximum Rs. 20.00 lacs

Rate of Interest:-

Loan Upto Rs. 4.00 lacs For students of IIT / IIM/ ISB:-11.25% For Others:-12.25%

Loan above Rs. 4.00 lacs-For students of IIT / IIM/ ISB:-11.25% For Others:- 12%

Moratorium Period :-

Course Period + 1 year or 6 months after getting job, whichever is earlier.




Total branches-60

For IIT/IIM/ISB* For loan upto Rs 10.00 lacs- No collateral security For Loan above Rs. 10.00 lacs -Co-obligation of parents/ guardian together with tangible collateral security of suitable value covering full loan amount, alongwith the assignment of future income of the student for payment of installments. For others:- For loan upto Rs 4.00 lacs: No collateral security is required.

For loan above Rs 4.00 lacs and upto Rs 7.50 lacs: Satisfactory third party guarantee & Co-obligation* required.

For loan above Rs 7.50 lacs:-Co-obligation of parents/ guardian together with tangible collateral security of suitable value covering full loan amount, alongwith the assignment of future income of the student for payment of installments.

Girl students may be provided a special relief of 1.00% in all cases of Rate of interest

Service interest during moratorium period regularly and avail a special discount of 1.00% in interest rate.

FREE Debit Card

63

Bank of India


Rate of Interest:- Upto Rs.7.50 lacs:-11.00% p.a.

Above Rs.7.50 lacs: -12.00% p.a.

Moratorium Period: -Course Period + 1 year or 6 months after getting job, whichever is earlier.

Repayment:-Loan to be repaid within a maximum period of 5-7 years after commencement of repayment



Total branches-57

Upto Rs. 4 lakh : No securityAbove 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 alognwith the assignment of future income of the student for payment of installments

Interest Concession of 0.50%p.a. for woman beneficiaries 1% int. concession if interest is serviced during moratorium period,

Andhra bank


Rate of Interest: -Upto Rs.4.00 Lacs- 11.75% Above Rs.4.00 lacs:- 13.50%,

Moratorium Period: -Course Period + 1 year or 6 months after getting job, whichever is earlier. Repayment:-Loan to be repaid within a maximum period of 5-7 years after commencement of repayment

Upto Rs.

4.00lacs:- Nil Above Rs. 4.00 lacs:-

Studies within India 5% For studies abroad

15%

Total branches-26

Upto Rs.4 lacs: No security Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable third party guarantee alognwith assignment of future income.


Concession of 0.50% for women

HDFC BANK

Studies in India - Maximum Rs.10lacs Studies abroad Maximum Rs.20.00 lacs. Rate of Interest

13%+1%processing charge in

Moratorium Period: -Course Period + 1 year or 6 months after getting job, whichever is earlier. Repayment:-Loan to be repaid within a maximum period of 5-7 years after commencement

Upto Rs.

4lacs:Nil Above Rs. 4.00 lacs:- Studies within India 5% For studies abroad 15%

Total branches-77

Up to Rs7.5 lacs-No Collateral required

Above Rs. 7.5 Lacs-Collateral of full value required

64

Foreign cases of repayment

65

HDFC

Documents

Transcript of HDFC