IBA MODEL EDUCATION LOAN SCHEME FOR PURSUING HIGHER STUDIES IN INDIA AND ABROAD :
|Purpose||Payment of Course fee, Hostel/Boarding/Examination/Library& Laboratory fee and for Purchase of books, equipments, instruments, uniforms, computers if it is essential for completion of the course, Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts. Travel expenses / passage money for studies abroad. Any other expenses required to complete the course subject to ceiling.|
|Eligible courses||INLAND STUDIES:
Graduation, post graduation, including technical/professional courses from reputed colleges/universities approved by UGC/Government, AICTE/Department of Electronics/IMC, autonomous institutions like IIM, IIT, etc. Any courses leading to degree/diploma from reputed Institutes/Colleges/Universities for studies in India.
ABROAD STUDIES: Course which lead to undergraduate, Post Graduation/PHD, Post Graduate Diploma etc are eligible.
|Quantum of finance||Need-based finance
Students may submit their loan applications either at the bank branches near to the residence of parents or bank branches near to the educational institution where they are studying.
|Rate of Interest||Up to 7.5 Lakh: ongoing One Year MCLR+2.00 %
Above 7.5 Lakh: ongoing One Year MCLR+1.50 %
(RoI is subject to change)
0.50% concession in ROI extended to girl students.
0.50 % concession for prompt repayment of interest during moratorium.
|Margin||Upto Rs.4.00 Lakhs - Nil
Above Rs.4.00 Lakhs -
Studies in India - 5%
Studies abroad - 15%
|Security||Assignment of future income of the student
Loan is granted jointly with the parent/Guardians of the student.
Loan amount up to Rs.7.50 Lakhs :
No collateral Security, loan will be covered under Credit Guarantee Fund Scheme for Education loans(CGFSEL) scheme subject to the conditions
Loan amount above Rs. 7.50 Lakhs:
Tangible Collateral security to cover at least 100% of the loan amount.
|Repayment||Repayment of the loan will be in equated monthly Installments up to a maximum of 15 years excluding the moratorium period ( i.e., course period plus one year).|
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