A. ELIGIBILITY CRITERIA (STUDENT):
I. Student Eligibility:
• The student should be a permanent resident of J&K State (within area of operation of the Bank)..
• Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test / Merit Based Selection process after completion of HSC ( 10 plus 2 or equivalent).
II. Courses Eligible:
a) Studies in India: (Indicative List):
1. Approved courses leading to graduate/post graduate degree and PG diplomas conducted by recognized colleges/universities recognized by UGC/Government/ AICTE/AIBMS/ICMR etc.
2. Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, management, Computer etc.
3. Courses like ICWA, CA, CFA etc.
4. Courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NID etc.
5. 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.
6. Approved courses offered in India by reputed foreign universities.
7. Courses offered by National Institutes and other reputed private institutions.
8. Courses, which are not covered under the criteria, mentioned above, Chairman is empowered to take a view from time to time and to approve other job oriented courses leading to technical/ professional degrees, Post graduate degrees/ diplomas offered by recognized institutions under this scheme taking into account the future prospects/ recognition by user institution.
9. Courses other than the above offered by reputed institutions may also be considered on the basis of employability.
(b) Studies Abroad:
1. Graduation: For job oriented professional/ technical Courses offered by reputed universities.
2. Post graduation: MCA, MBA, MS, etc.
3. Courses conducted by CIMA- London, CPA in USA etc.
4. Degree/diploma courses like aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/ abroad
III. Expenses considered for loan:
i. Fee payable to college ++/ school/ hostel.
ii. Examination/ Library/ Laboratory fee.
iii. Travel expenses/ passage money for studies abroad.
iv. Insurance premium for student borrower, if applicable.
v. 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.
vi. Purchase of books/ equipments/ instruments/ uniforms.
vii. Purchase of computer at reasonable cost, if required for completion of the course.
Any other expense required to complete the course - like study tours, project work, thesis, etc.
B. Quantum of finance:
Need based finance to meet the expenses as worked out above will be considered subject to repaying capacity of the parents/ students with margin and the following ceilings
1. Studies in India: Upto Rs.20.00 lacs.
2. Studies abroad: Upto Rs.25.00 lacs.
However, cases above Rs. 20.00 lakh for studies in India and above Rs. 25.00 lakh for studies abroad can only be considered after obtaining prior permission from HO.
C. SECURITY:
Up to Rs.4.00 lacs :
Parents to be joint borrower(s). No security.
Above Rs.4.00 lacs to Rs.7.50 lacs
Besides the parent(s) executing the documents as joint borrower (s), collateral security in the form of suitable third party guarantee will be taken. The bank may, at its discretion, in exceptional cases, waive off third party guarantee if satisfied with the net worth / means of parent/s who would be executing the document as joint borrower(s). Such powers shall lie with the General Managers and Chairman of the Bank. However, third party guarantee will be waived if the loan is eligible for Credit Guarantee Coverage.
Above Rs.7.50 lacs :
i. Parent(s) to be joint borrower(s)
ii. Assignment of future income of the student for payment of loan instalments.
iii. Third party guarantee of one person having sound financial net means good for the loan amount and known to the Bank.
iv. Tangible collateral security of suitable value acceptable to bank in the shape of Mortgage of immovable property OR Govt. securities, NSC, KVP, life policy (surrender value), Bank Deposit in the name of Student/ parent or any other third party or any other tangible security equivalent to 100% of the loan amount.
D. Processing Charges:
Up to Rs. 4.50 lacs : NIL
Above Rs.4.50 lacs (For studies in India) : 0.25% of the loan amount
Above Rs.4.50 lacs (For studies abroad) : 0.10% of the loan amount
E. Repayment Period:
Course Period + 1 year
The loan to be repaid within a period of 15 years
F. Margin:
i. Up to Rs.4.00 Lakh: Nil.
ii. Above Rs.4.00 Lac: Studies in India - 5%.
Study Abroad - 15%
Scholarship/ assistantship, to be included in margin.
Margin to be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis
*Conditions Apply