South India Bank: Education Loans

Published On: 29 Jun 2012

 | Last Updated On: 29 Jun 2012

1. Name of the Scheme: VITJNAN PRADHAN SCHEME (VPS)

2. Target Group: Students desirous of pursuing professional courses in India and abroad.

3. Courses eligible & amount of loan: Various courses for details please contact the branch.

4. Purpose of finance

a) Fees

b) Caution deposits and refundable deposits

c) Cost of study books / equipments

d) Cost of uniform

e) Hostel Boarding and lodging

f) One time premium of life insurance policy of ICICI-Prudential without maturity return covering the entire period of loan with sum assured equal to the loan amount.

Borrower

Borrower shall be the student him/herself if he/she is major (completed 18 years). In the case of minor students, parents shall be the borrowers.

B. Minimum Margin

a) Up to Rs. 25,000 : NIL

b) Above Rs.25, 000: 15%

c) Overseas studies: 25%

C. Period of loan / Repayments

Repayment period will start from 1 year after qualifying exam or six months after obtaining employment, whichever is earlier. For overseas studies, the holiday is restricted to 6 months fixed after the qualifying examination.

Loan should be repaid in 60 equal monthly installments after the holiday/moratorium as above.

Rate of Interest: fixed at BPLR +TP –2.50%

*All loans are subject to the discretion of the bank and subject to such conditions as may be stipulated by the Bank. Interest rates are subject to change without notice

Name of the Scheme SIB ‘Excellence’

2. Objectives

 To attract talented youths pursuing professional studies in the top prestigious educational institutions in India to our bank. 

3. Nodal Branches

1.Ahmedabad

2.Bangalore-City

3.Lucknow

4.Indore

5.Kolkata-G .C Avenue

6.Kozhikode Main

7.Delhi-Con.Place

8.Mumbai-Powai

9.Chennai-T.Nagar / Nungambakkam

10.Hyderabad

Other branches can send recommendations to their nearest nodal Branch /R.O 

4. Target Group Students getting admission through general merit in premier educational institutions in the country 

 5.  List of eligible educational institutions

(1)All IIMs for 2 year PG/PGDM programme

(2) All IITs for 4 year UG /2 year PG programmes

(3)National Institute of Design (NID)-Ahmedabad for 4 years UG/2 years PG cours

(4) Indian School of Business (ISB), Hyderabad for 2 year PG programmes

(5)National Institute of Fashion Technology (NIFT) for 4 year UG/2 year PG course

(6) Indian Institute of Foreign Trade, Delhi & Kolkata for 2 year PG programmes

(7) Business schools ( other than those listed above ) appearing in the top 20 ranking of ‘NAAC’ ( National Assessment & Accreditation Council) / AIMA (All India Management Association) , the list of which will be circulated by Credit Department shortly.

6. Amount of loan Max.Rs.10.00 lakhs subject to actual requirement, whichever is lower.

7. Margin

Up to Rs. 4 .00 lakhs : NIL

Above Rs. 4.00 lacs : 5%

Scholarships /assistantship can be included in margin. Margin may be brought in on year-to-year basis as and when disbursements are made

8. Purpose of finance

a) Fees payable to College including examination /library /laboratory fees

b) Caution deposits and refundable deposits (not exceeding 10% of tuition fees for the entire course).

c) Cost of study books / equipments / computers

d) Cost of uniform

e) Hostel Boarding and lodging

f) One time premium of life insurance policy (without maturity return) covering the entire period of loan with sum assured equal to the loan amount

9. Mode of payment 

Payment, preferably through RTGS direct to the institution / supplier for college/hostel fees, books, uniform, computers etc as far as possible. RTGS charges may be waived. The paid bills / vouchers (not older than 3 months) may be reimbursed by credit to borrower’s account.

10. Borrower/ Guarantor 

In the case of (major) students – borrower to be the student him/herself along with at least one of his/ her parents as guarantor. Net worth of the guarantor/s should not be less than the loan amount.

If parents are not alive, close relative should be guarantor.

(Either one guarantor with net worth not less than the loan amount or more than one guarantor with total net worth not less than the loan amount).

In the case of minor students- one of the parents to be the borrower along with other parent/ close relative as guarantor.

Close relative for this purpose means related to the borrower as follows:- parents/ brother /sister /sister’s husband / paternal or maternal uncle / father’s sister/mother’s sister .

11. Security

Guarantee by one of the parents/close relative .

Life Insurance policy (Single Premium) for equal amount of loan and tenure to be got assigned in bank’s name .

12. Period of loan / Repayment

 Repayment will start from 1 year after qualifying exam or six months after obtaining employment, whichever is earlier. Loan should be repaid in 60 equal monthly instalments after the holiday/ moratorium as above. No prepayment penalty. Interest during holiday period may be funded /remitted as per option given by the borrower at the time of availment of loan.

13. Rate of Interest Fixed Rate @ 9 % without reset clause

14. Sector; Priority Sector (Sector code – 2508)

 15. Some of the other terms

  • Only Indian Nationals (including NRIs) are eligible
  • Loan should not be granted for the payment of capitation fee / donation
  • Copy of the mark sheet / progress report of the student /borrower – semester wise will have to be produced to the bank . In case the student fails in any annual / semester examinations during the course of his/her study, continuance of the loan should be reviewed by the sanctioning authority.
  • The borrower should submit application with identity proof including passport details, if available. Individual worth statements of all the signatories and relevant record/proof for financial requirements for the entire course, including admission ticket, if any to be obtained.
  • Tariff of fees, refundable deposits, hostel fees, details of eligible stipend etc. should be certified by the educational institution.
  • Books/ instruments to be purchased should be certified by the programme coordinator .
  • The borrower to open SB account with the nearest / loan emanating branch of our bank.
  • Penal interest as per rules.
  • No Upfront fee

For Meritorious Students

 The scheme is to provide financial assistance on reasonable terms to:

i) the poor and needy to undertake basic education.

ii) the meritorious students to pursue higher/ professional/technical education.

Eligible Courses:

Various courses for studies in India and abroad. Eligibility Criteria:

i) Student should be an Indian National

AND

ii)Secured admission to professional/ technical courses through Entrance Test / Selection process

OR

iii)Secured admission to foreign University/ Institutions.

4. 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.

Travel-expenses/ passage money for studies abroad.

Purchase of computers – essential for completion of the course.

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

Quantum of finance:

Need based finance subject to repaying capacity of the parents/ students with margin and the following ceilings.

Studies in India – Maximum Rs.7.50 lacs.

Studies abroad – Maximum Rs.15 lacs.

5. Margin

Upto Rs.4 lacs – NIL

Above Rs.4 lacs : Studies in India : 15%

Above Rs.4 lacs : Studies Abroad : 25%

Scholarship/ assistantship to be included in the margin.

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

6. Rate of Interest & other charges:

Rate of Interest: as applicable for Vitjnan Pradhan Scheme( ie. fixed at BPLR+TP-2.50% ( floor 12.00%)

Penal interest @2% to be charged for loans above Rs.2 lacs for the overdue amount and overdue period.

Processing/ upfront charges need not be collected. 1% interest concession if the interest is serviced during the study period.

7. Security: Please contact the nearby branch

8. Repayment:

Repayment holiday/ Moratorium shall be Course period + 1 year (which may be extended up to 2 years in case student is not able to complete the course within the scheduled time) OR 6 months after getting job, whichever is earlier.

The loan to be repaid in 60 months after the holiday as above.

The accrued interest during the holiday period is to be added to the principal and repayment as EMI.

The scheme details are furnished in brief only. For more details please contact any of the branches.

*All loans are subject to the discretion of the bank and subject to such conditions as may be stipulated by the Bank. Interest rates are subject to change without notice

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