Education Loan

Objective of the scheme: The scheme aims at providing financial support to deserving /meritorious students for pursuing higher education in India and abroad.

Eligibility criteria :

  • The applicant should be regular member or nominal member of bank.
  • Applicant/parents should have banking relation with our bank.
  • The student should be an Indian Resident.
  • The student should have secured admission to professional/technical course in India or abroad through entrance test /merit based selection process.
  • Courses through Educational Institutes / Organizations of repute & recognition will be eligible for loan limit.

Quantum of Finance : Amount of loan

  • Studies in India/ abroad Max. upto Rs. 1 Crore

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, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
  • Travel expenses (for abroad only) / 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.

Security: Co-obligation of parents together with tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments Security cover to the extent of 60 % to 70% is expected to be provided.

Period : 5-8 years

Rate of Interest :

  • Rate of interest is as per interest rate chart
  • Interest rates are subject to change from time to time.

Repayment holiday/ Moratorium period : Course period + 1 year or 6 months after getting job, whichever is earlier. Simple interest will be charged during the Repayment holiday/ Moratorium period The accrued interest during the repayment holiday period will be added to the principal and repayment in Equated MonthlyInstallments (EMI) fixed.

The option of payment of interest during moratorium is also available.


Processing Fee : Processing fee @ applicable from time to time .

Guarantors : Two acceptable guarantors other than parents to be taken.

Courses eligible :

a. Studies in India : (Indicative list):

  • Graduation courses : BA, B.Com., B.Sc., etc.
  • Post Graduation courses : Masters & Phd.
  • Professional courses : Engineering, Medical, Agriculture, Veterinary, Las, 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.
  • 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 Institute should be recognized 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 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.
  • Courses, which are not covered under the criteria mentioned above, individual banks may take a view to consider extending education loan under the scheme taking into account the future prospects/recognition by user institution.


    b.Studies in 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