Corp Vidya - Loan to pursue Education

1. Eligibility of the Student

• Student should be an Indian national.
• Should have completed previous qualifying examination.
• Should have secured at least 60% marks [ 55% for student belonging to SC/ST category ] in the previous qualifying examination.
• * Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance test / Merit based selection process/through Management quota after completion of HSC [10+2 or equivalent]
• Person already in gainful employment not eligible for loan under the scheme except for pursuing evening course covered under the scheme of approved Institute.
• If a gainfully employed person wants to pursue full time education either on study leave or by resigning from present employment, such proposals may be considered provided the applicant submits the proof in this regard to the sanctioning authority before disbursement of loan.

2. Eligible Courses
For Studies in India:

• Approved courses leading to Graduate/Post Graduate Degree, Diploma and PG Diplomas conducted by recognized Colleges/Universities recognized by UGC/Govt/AICTE/AIBMS/ICMR etc..
• Courses like ICWA, CA/integrated CA -on virtual /video mode , CFA,etc..
• Courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NID 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 of the Aircraft Maintenance Engineering /Pre Sea training courses must be either a Degree course recognized by a competent University or Diploma course recognized by appropriate State Body to be eligible for loan.
• Research course/Ph.D courses for study in India are not eligible for loan under the scheme.
• Approved Courses offered in India by reputed Foreign Universities.
• Teachers training /Nursing/B.Ed courses provided the training institutions are approved either by Central Govt or by State Govt and such courses should lead to Degree or Diploma course and not to Certificate course.
• Correspondence Vocational / skill?courses/Part time /Certificate/Short duration / development study courses , off-campus courses and On-site/Partnership programme are not eligible for loan under the scheme.

For Studies abroad:

• Graduation: For job oriented Professional/Technical courses offered by reputed Universities .
• Post Graduation: MCA, MBA, MS etc.
• Course conducted by CIMA- London, CPA in USA etc.
• 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.
• Diploma courses for study abroad is not permitted. However, PG diploma courses for study abroad is permitted.
• Research course/Ph.D courses for study abroad are not eligible for loan under the scheme.

3. Eligible Expenses

• Fee payable to College./School/Hostel /Examination/ Library/ Laboratory fee.
• Travel expenses/Passage money for studies abroad.
• Caution Deposit, Building Fund/Refundable deposit, though supported by Institution bills/receipts, are not eligible.
• Purchase of books/equipments/instruments/uniforms[Refer –Note]
• Purchase of computer at reasonable cost, if required for completion of the course[Refer –Note] .
• Any other expenses required to complete the course like study tours, project work, thesis etc.[Refer-note]

Note: It is likely that expenditure under the above item may not be available in the schedule of fees and charges prescribed by the college. Therefore, a realistic assessment may be made of the requirement under these heads. However, the maximum expenses may be restricted to 20% of the total tuition fees payable for completion of the course.

• Hostel fees/expenses may be considered as an eligible item for finance under the Scheme. Payment of hostel fees should be made directly to the hostel authorities.
• Reasonable lodging and boarding charges will be considered in case the student chooses/is required to opt for outside/private/paying guest accommodation.
• In such cases, payment towards accommodation and food may be made directly to the student.
• Insurance premium for life of student borrower.

4. Quantum of Loan
Studies in India Maximum upto Rs. 10 lakh
Studies Abroad Maximum upto Rs. 20 lakh

5. Margin

Upto Rs. 4 lakh	Nil
Above Rs. 4 lakh	Studies in India 5% Studies abroad 15%

Margin may be brought–in on year-to-year basis as and when disbursement are made on a pro-rate basis.

6.Security

• Up to Rs. 4.00 Lakh : Co-obligation of Parent/s, Grand Parent/s ( if parents are deceased). No other security.
• Above Rs. 4.00 Lakh & up to Rs. 7.50 Lakh : Co obligation of Parent/s Grand Parent/s (if parents are deceased) together with collateral in the form of suitable third party guarantee.
• Above Rs. 7.50 Lakh : Co-obligation of Parents/Grand Parents ( if Parents are deceased) together with tangible collateral security along with the assignment of future income of the student for payment of instalments. The loan to be fully secured after maintaining prescribed margin on respective securities.
• In case of married person, co obligant can be either spouse, or the parents or parents -in-law.

6.1 Security- Margin
Margin for various type of securities is as under:

Immovable property	35%
Govt Securities ( face value of NSC/KVP etc..)	25%
LIC Policy ( Surrender Value)	10%
Deposits ( Balance outstanding)	10%

7. Rate of interest

• Simple interest will be charged during repayment holiday period.
• Note: 1% interest concession is available during repayment holiday period if the interest is serviced as and when debited, but not later than 30 days of debit. In the event of intermittent default, concession will be extended for the period of regular interest servicing.
• Concession in rate of interest at 25 bps below the applicable card rate is extended to SC/ST/ Women beneficiaries for fresh loans sanctioned/ disbursed on or after 15.08.2008.
• Concession in rate of interest at 50 bps (inclusive of 25 bps available for SC/ST/Women) below the applicable card rate for girl students for new loans sanctioned/ disbursed w.e.f. 04.03.2009.

Concession in rate of interest at 50 bps below the applicable card rate is extended to physically challenged students to pursue studies in India and Abroad. This concession is applicable for all fresh loans sanctioned/initially disbursed on or after 20.09.2010.

The aggregate concession that may be extended are as below :

SC/ST Category	Maximum Interest Concession Permitted
Men	0.25%
Physically challenged Men	0.75%
Women	0.50%
Physically challenged Women	1.00%

Other Than SC/ST Category

Men	NIL
Physically challenged Men	0.50%
Women	0.50%
Physically challenged Women	1.00%

8. Processing Charges

• No Processing Charges for studies in India
• Rs. 2000/- only for studies abroad to be refunded once the loan is availed

Note : The charges are exclusive of applicable service tax

9. Prepayment Charges NIL

10. Repayment

• For loans upto Rs.7.5 lakhs : 10 years - Fixed
• For loans above Rs.7.5 lakhs : 15 years -Fixed
• [fixing repayment tenor lower than prescribed above is not permitted]
• Since prepayment penalty is not applicable under the scheme, borrower may prepay the loan at any time during the currency of the loan.
• The loan has to be repaid within a period of 10 /15 years after completion of initial repayment holiday.
• Repayment holiday is the course period + 1 year OR 6 months after getting the job whichever is earlier.

11. Other Guidelines

• Loan should be availed preferably from the Bank/ Branch situated near to the place of domicile of the parents.
• Take over of loan from other banks is strictly not permitted.
• Second loan may be considered for higher study in India or Abroad. In such case repayment period/holiday period of the existing loan may be extended.
• Reimbursement of fees only for the first year of the course is permitted only for Studies in India.
• Student may be covered under Bank's Corp Suraksha Insurance scheme, at his/her option.
• The loan to be disbursed in stages as per the requirement/demand directly to the Institutions/Vendors of equipments/instruments to the extent possible.

Disclaimer:
     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.