Objective of the Scheme

The Educational Loan Scheme outlined below aims at providing financial support to deserving/Meritorious students for pursuing higher education in India and abroad. The main emphasis is that every meritorious student, though poor, is provided with an opportunity to pursue education with the financial support with affordable terms and conditions.
 

The scheme aims at providing financial assistance on reasonable terms:

	To the poor and needy to undertake basic education.
	To the meritorious students to pursue higher/ professional/ Technical education.

A.	Courses Eligible
	a.	Studies in India
			School education including plus 2 stage.
			Graduation courses: BA, B.Com., B.Sc., etc.
			Post Graduation courses: Masters & Ph.D.
			Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, 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 like IIM, IIT, IISc, XLRI, NIFT, etc.
			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.
	b.	Studies 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.
B.	Student Eligibility
		Should be an Indian National
		Secured admission to professional/technical courses through Entrance Test / Selection process.
		Secured admission to foreign university/Institutions.
		No minimum qualifying marks be insisted upon.
Expenses considered for loan:
		Fee payable to college/ school/ hostel.
		Examination/ Library/ Laboratory fee.
		Purchase of books/ equipment’s/ instruments/ uniforms.
		Caution deposit/ building fund/ refundable deposit supported by Institution bills/ receipt.
		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.

Scholarship/assistantship to be included in margin.

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



Security

	Upto Rs.4.00 lacs	No security
	Above Rs.4.00 lacs	Collateral security equal to 100% of the loan amount

In case of loan upto 4 lacs, the documents should be executed by the student. No additional security may be insisted upon. However, in case of minor students, the documents are to be executed by the guardian on behalf of the minor and also on his own behalf. The Pronote and the money consideration receipt are to be signed by the guardian in two capacities i.e. (I) For self and (ii) On behalf of the minor. The following documents should be obtained from the minor students.

	Pronote
	Money Consideration
	Agreement of Term Loan
	Guarantee by the guardian
	Deed of ratification to be executed by a minor on attaining majority.
	Letter of waiving presentment of Pronote
	Acknowledgement of debt.

In case of loan above 4 lacs, the documents should be executed by the both the student and parent/guardian.

	The security can be in the form of land/ building/ Govt.  Securities/ Public Sector Bonds/ Units of UTI , NSC, KVP, LIC policy, gold shares/debentures , bank deposit in the name of student/ parent/ guardian or any other third party.
	In case the loan is given for purchase of computer the same to be hypothecated to the Bank.
	The assignment of future income of the student for payment of installments may also be obtained irrespective of loan amount.

Repayment

Repayment holiday/Moratorium :

Course period +1 year or 6 months after getting job, whichever is earlier.

The loan to be repaid within a maximum period of 7 years after commencement of repayment . If the student is not able to complete the course within the scheduled time extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course.

	Loan together with accrued interest charged during the repayment holiday period will be repaid in maximum 84 Equated Monthly Instalments (EMI).
	Concession of 1.5% of the loan amount may be provided to the loanees if the interest is serviced during the study period when repayment holiday is specified for interest/repayment under the scheme. Such concessions will be adjusted from the last instalment/s.

Processing Charges:

No processing/upfront charges may be collected on educational loans.

Important

Since the rules, regulations, eligibility conditions, repayments and interests rates etc. are revised by the banks from time to time in keeping pace with the changing capital market conditions, students and parents are advised to thoroughly check the terms and conditions of educational loan scheme on offer at the time of application.

Head Office
2, Netaji Subhas Road, Kolkata-700 001
Gen: 033-2203373/74/3777
Fax: 033-2488323/2204687
E-Mail: abgmcorp@cal2.vsnl.net.in
Website: www.allahabadbank.com