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You are here: Personal Banking > Loans > Student Loans For Indian Education > FAQs         

Educational Loans
Features & Benefits
Eligibility
Fees & Charges
FAQs
Subsequent Loan Disbursements
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Educational Loans

FAQs

Who is eligible for an Education Loan ?
Which courses can I take an Education Loan for ?
Which expenses does the loan cover ?
Is there a need of a co-applicant ?
Is there any Age criteria for taking an Education Loan ?
What is the quantum of the loan ?
Do I need to provide collateral for availing education loan ?
Would the loan be disbursed in favour of the Institute ?
Do I have to pay any margin money (Own-Funding)?
Is there moratorium/repayment holiday available ?
Is there any kind of repayment that has to be made in the moratorium period ?
What is the moratorium period ?
What would be the mode of repayment ?
What would be the tenure of the loan ?
Documentation




Who is eligible for an Education Loan ?
An Indian Citizen/Resident who has secured admission in any of the graduate/post-graduate courses offered by college/institute/university recognized by UGC/AICTE/AIBMS/ICMR.
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Which courses can I take an Education Loan for ?
You can take a student loan for Indian education on the following courses:
Management Courses ( Full-Time ) - Post Graduation
Engineering Courses ( Government + Private ) - Graduation
Medicine - Graduation + Post Graduation
Masters in Computer Application ( MCA/MCM) - Post Graduation
Architecture - Graduation
Hotel and Hospitality - Graduation + Post Graduation
Agriculture - Post Graduation
Pure Science - Graduation + Post Graduation
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Which expenses does the loan cover ?
Fee Payable to College/School/Hostel
Exam/Library/Lab fees
Caution deposit / Refundable deposit asked by the institution/Building fund - supported by Institution bills/receipts
Purchase of Books/equipments/instrument/uniforms
Travel expenses/passage money for studies abroad
Purchase of computers - essential for completion of the course
Insurance
Any other expense required to complete the course - like study tours, project work, thesis, etc.
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Is there a need of a co-applicant ?
Yes, a co-applicant is required for all Full-Time courses .
Primary Co-Applicants –Parents, Spouse, Siblings
Secondary Co-Applicants- Father-In Law, Mother-In-Law, Brother-In-Law,Paternal/Maternal Uncle/Aunt
Loan eligiblity would be calculated on the basis of the co-applicant's income.
Co-Applicant Not Required For Part-Time Courses.
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Is there any Age criteria for taking an Education Loan ?
Applicant (Student)- 16-35 Years. 2) Co-Applicant – Salaried- 21-60 Years ,Self-Employed -21-65 Years Self-Employed Professional- 25-65 Years *
* Age at the time of loan maturity.
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What is the quantum of the loan ?
Studying in India - Max Rs. 15 Lakhs

Studying abroad - Max Rs. 20 Lakhs
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Do I need to provide collateral for availing education loan ?
For Loans Upto INR 7.5 Lakhs – NO – Nil Collateral nor Third-Party Guarantee

For Loans Above INR 7.5 Lakhs- Yes, Any of the following wide range of collaterals

Acceptable Collaterals

Residential Property .
HDFC Bank Fixed Deposit
LIC/NSC/KVP
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Would the loan be disbursed in favour of the Institute ?
1)Yes. Tution & hostel fee will be disbursed directly to the educational Institute as per the schedule of fee given by the Institute/college ( semester - wise/yearly).

2) Upto 10% of the loan sanctioned amount will be disbursed for personal expenses.
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Do I have to pay any margin money (Own-Funding)?
Yes, loan applicant has to pay margin money ranging from 5-15 % of the total loan amount applied for courses in India & Abroad .
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Is there moratorium/repayment holiday available ?
Yes. A moratorium/repayment holiday is available for select courses for principal repayment only during the moratorium period.
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Is there any kind of repayment that has to be made in the moratorium period ?
Interest would have to be paid during the moratorium, the interest servicing would be of simple interest calculated on the loan amount disbursed payable monthly.
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What is the moratorium period ?
Repayment holiday/ moratorium would be for the course period + 1 year or 6 months after the student gets a job/start earning whichever is earlier.
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What would be the mode of repayment ?
Customer has the option of paying through Standing instructions/ ECS/Post dated cheques.
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What would be the tenure of the loan ?
Maximum tenure of the loan can be 7 years including moratarium period.
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Documentation
 
Category Applicant (Student)
Academic Institute Admission Letter with Fee break-up
  SSC,HSC,Graduation Marksheets
KYC(Know Your Customer) Age Proof
  Signature Proof
  Identity Proof
  Residence Proof
Income Documents Salaried
  Latest 2 Salary Slips carrying date of joining details
  Latest 6 Months Bank Statement of the Salary Account.
  Self Employed
  Last 2 Year ITR with Computation of Income
  Last 2 Years Audited Balance Sheet
  Last 6 Months Bank Statement
  Proof of Turnover (Latest Sales / Service Tax Return)
  Self Employed - Professional
  Last 2 Year ITR with Computation of Income
  Last 2 Years Audited Balance Sheet / P& L
  Last 6 Months Bank Statement
  Proof of Qualification
Others Completed Application Form
  Latest Photograph (Signed Across)
If appointment letter does not mention Joining Details, then applicant has to submit appointment letter of the current employer.
Proof of continuity from previous employer is required if co-applicant is in current job for less than 1 year at the time of loan application
Documentation ( Post Sanction )
Is there any documentation required post the sanction of the loan ?
Category Applicant ( Student )
Loan Agreement Completed Loan Agreement to be Signed by Applicant and Co-applicant *
Repayment Instructions
PDCs / ECS or SI Mandate
3 Security PDCs in case of ECS and SI mode of repayment
* Stamp duty to be paid by the customer as per the relevant state laws.
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