IBA Model (India & Abroad)

 Purpose

  • Loans for Indian nationals- meritorious students for pursuing higher education in India or abroad.

Eligible courses

 Education Loan is classified into three categories viz:

 

 a)   Loans to students admitted to “Top Rated Institutions” viz.:

IITs, IIMs, IISc  Bangalore, ISB Hyderabad, BITS, AIIMS, NITs, IIFT Delhi, IMI Delhi, ISM Dhanbad, IRM Anand, SIBM Pune, XLRI Jamshedpur.

b) Loans to students admitted to other domestic institutions

o    Approved courses leading to graduate/post graduate degree and PG Diploma conducted by recognized colleges/universities recognized by UGC/Government /AICTE/AIBMS/ICMR etc.

    • Courses like ICWA, CA, CFA etc.
    • Regular Degree/Diploma courses like Aeronautical, Pilot Training, Shipping Degree/Diploma in Nursing or any other discipline approved by Director General of Civil Aviation/Shipping/Indian Nursing Council or any other regulatory body as the case may be, if the course is pursued in India.
    • Approved courses offered in India by reputed foreign universities.

c) Loans to students seeking studies abroad

o    Graduation: For job oriented professional/technical courses offered by reputed universities.

o    Post-graduation: MCA, MBA, MS, etc.

o    Courses conducted by CIMA- London, CPA in USA etc.

o    Degree/diploma courses like Aeronautical, Pilot Training, Shipping etc. provided these are recognized by competent regulatory bodies in India or abroad for the purpose of employment in India/abroad.

Expenses considered for loan

 

o    Fees payable to college++/school/hostel*

o    Examination/Library/Laboratory fee

o    Travel expenses/passage money for studies abroad

o    Caution deposit, Building fund/refundable deposit supported by Institution    Bills /receipts**

o    Purchase of books/equipments/instruments/uniforms***

o    Purchase of computer at reasonable cost, if required for completion of the    course ***

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

o    Insurance premium for student borrower, if applicable

o    While computing loan required, scholarships, fee waiver etc., if any, available to the student borrower may be taken into account

o    If the scholarship component is included in the loan assessment, it may be    ensured that the scholarship amount gets credited to the loan account when    received from the Government.

·         Note:          

 

++ For courses under Management quota seats considered under the scheme, fees as approved by the State Government/Government approved regulatory body for payment seats will be taken, subject to viability of repayment.

* Reasonable lodging and boarding charges will be considered in case the student chooses/is required to opt for outside accommodation.

** These expenses could be considered subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.

***It is likely that expenditure like purchase of books/ equipments/ instruments/ uniforms/computers/ and other expenses like study tour, project work, thesis may not be available in the schedule of fees and charges prescribed by the college authorities. Therefore, a realistic assessment may be made of the requirement under these heads. However, the maximum expenses included under these heads may be capped at 20% of the total tuition fees payable for completion of the course.

 

Quantum of loan (maximum)

For
Amount
Studies in India
Rs. 10 lakhs
Studies Abroad
Rs. 20 lakhs

* Loan beyond the above mentioned amount may also be considered with certain conditions related to security etc acceptable to the Bank. For details contact nearest branch.
 
Repayment

o   Repayment Holiday / Moratorium period - Course period + 1 year.

o   Total repayment period – up to 15 years for all loans (after moratorium).

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

 Margin

 

 

Loan up to Rs 4.00 Lakh 

 

NIL

Above Rs 4.00 Lakh for studies in India

5%

For studies abroad

15%

 

 

 

 

 

o   Scholarship /assistanceship, if any, to be included in margin.

o   Margin may be brought in on year-to-year basis as and when the disbursements are made on pro-rata basis.

o   However, upto Rs.7.50 lakhs, margin will be ‘Nil’ if loan is eligible to be  covered under Credit Guarantee Scheme.

 

Rate of interest

a) For students admitted to ‘Top Rated Institutions’: Base Rate.

b) Students admitted to other domestic education institutions and for studies abroad:

 

Up to Rs 4.00 Lakh

Base Rate+1.50%

Above Rs 4.00 Lakh and up to Rs 7.50 Lakh

Base Rate+2.00%

Above Rs 7.50 Lakh

Base Rate+1.50%

 

 

       

 

 * 0.50% interest concession to girl students. However, ultimate rate of interest charged should not be less than Base Rate in any case.

  • Simple interest to be charged during the study period and up to the commencement of repayment.
  • 1% Interest concession will be provided till the commencement of repayment, if the interest is serviced regularly during the study period and the moratorium period.

 Security

   a) Security norms for students admitted to ‘Top Rated Institutions’ mentioned

Up to Rs 10.00 Lakh

No security. Parents to be Joint borrower(s).

Above Rs.10.00 Lakh

Parent(s) to be joint borrower(s). Tangible collateral security in the form of land and building, life policy, gold jewellery, bank deposit etc., along with the assignment of future income of the student for payment of instalments.

  b) Security norms for students admitted to domestic institutions and for studies abroad:

Up to Rs 4.00 Lakh

No security.  Parents to be Joint borrower (s).

Above Rs 4.00 Lakh and up to Rs 7.50 Lakh

Parent(s) as Joint borrower(s) and suitable third party guarantee shall be taken.

However, third party guarantee will be waived if the loan is eligible for Credit Guarantee coverage.

Above Rs 7.50 Lakh

Parent(s) to be joint borrower(s). Tangible collateral security in the form of Land/Building, Life Policy, Gold Jewellery, Bank Deposits, etc., of suitable value acceptable to bank, along with the assignment of future income of the student for payment of installments.

 
 
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