Category: Education Loans
Student Loans by Saraswat Bank
Purpose
Studies in India & Abroad
Maximum Loan Amount
- Studies in India- Max up to Rs. 10.00 lakhs
- Studies in Abroad- Max up to Rs 20.00 lakhs
Eligibility
a) 100% of cost of the fees and other expenses Or
b) 90% of market value of the property Or 75% of Accrued Value of NSC’s Or 70% of Valuation of Gold or 85% of outstanding balance, in case of cumulative deposits or 95% of outstanding balance in case of other deposits
c) 50 times of the net salary of parents Or 3 times of the net cash accruals in case of businessman.
A, b,c, whichever is lower.
Limit of Loan
- Studies in India- Max up to Rs. 10.00 lakhs
- Studies in Abroad- Max up to Rs 20.00 lakhs
Rate of Interest
- 11 % on Daily Reducing Balance
- Branch Managers are authorized to consider concession in processing fee and Rate of Interest ranging from 0.25% to 1% based on Credit Rating, banking relations, previous repayment record etc.
Equated Monthly Installments: ( For Rs 10 Thousands )
Repayment Period
Maximum 84 months OR Subject to age/residual service of the parent (considered as borrowers) whichever is earlier. 84 months includes a moratorium period-( Duration of the course plus an additional period of six months with a maximum ceiling of 3 years whichever is earlier.) In case of phased disbursement total repayment period of 7 years to be allowed for each component separately, inclusive of moratorium period subject to age/residual service of the parent (considered as borrowers) whichever is earlier.
§The borrower be allowed to bring in margin/own stake and security/collateral security from year to year in proportion of the loan to be disbursed.
Security
Collateral Cover: You shall offer 100% collateral cover.
Up to Rs.2.00 lakhs.
Hypothecation of household articles and two guarantors with nominal membership OR only two guarantors with 5% shareholding
Above Rs.2.00 lakhs and up to Rs.5.00 lakhs
Hypothecation of household articles and two guarantors.
Branches should not insist on security if the proposal is within the norms and the credit rating is above 65 marks.
Above Rs.5.00 lakhs and up to Rs.15.00 lakhs
Equitable mortgage or any other tangible security acceptable to the bank.
Minimum two guarantors of well placed means.
In case of loans above Rs. 5.00 lakhs,
Guarantors can be waived if credit rating of the borrower is above 65 marks.
The borrower are allowed to bring in the margin/own stake and security/collateral security from year to year in proportion of the loan disbursed
Processing Charges
1% of loan amount. (In case of credit rating of more than 65 marks, Branch Managers are authorized to waive processing fees from 0.25% to 1%)
Shareholding
- Up to Rs.2.00 lakhs: nominal membership OR 5% (refer to security clause)
- Above Rs.2.00 lakhs: 2.5% of the sanctioned loan amount.
Documents Required
a) Covering letter stating sources of owned funds.
b) Proof of confirmed admission & other related documents.
Fee receipts or proof of payments made.
c) Estimate of course fees & other expenses (traveling/lodging/boarding)
d) Fee receipts or proof of payments made.
e) Copy of Passport & Visa, if the student is going abroad for higher education and related documents.
f) Income proof of the applicant in the form of last 3 months salary slip/certificate or copy of the last three years IT returns filed with computation details of personal assets and liabilities.
g)Letter of comfort from the flying club and holding of passing certificate of student by the flying club.
h)Job assurance from Flying club
Two guarantors with their latest salary slip/certificate in case guarantor belongs to service class or latest income tax returns filed with the computation of income in case the guarantor is a businessman, professional or self-employed.
Processing Fees:
For studies in India – NIL
For studies abroad — 1% of the loan amount
In cases where students are recommended to us through tie-up arrangement, a processing fee of 1% to be charged.
Category: Education Loans
Axis Bank Education Loan Scheme
Axis Bank’s Study Power aims to provide financial support to deserving students for pursuing higher professional or technical education in India and abroad. The loan would be provided to students who have obtained admission to career-oriented courses eg, medicine, engineering, management etc., either at the graduate or post-graduate level.
Quantum of Loan
The quantum of finance under the scheme is capped at Rs 7.5 lacs for studies in India and Rs 15 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books, etc. The minimum amount of loan would be Rs 50,000.
Margin
No margin for loans upto Rs 4 lacs. For loans above Rs 4 lacs, 5% margin for studies within India and 15% for higher studies overseas.
Rate of interest
Interest rates linked to PLR.
Role of the Guardian
The parent(s) or guardian of the student would be treated as a co-applicant of the loan. His or her role would be, necessarily, like the primary debtor.
Security
Third party guarantee and/or collateral security may be asked for in appropriate cases.
Additional Security
Assignment of LIC policy in favour of the Bank for the sum assured being at least 100% of the loan amount. The policy is kept alive during the currency of the loan. To ensure this, the annual premium may be included in the computation of the loan requirement, along with the tuition fees and other recurring charges. Further, the future income of the student needs to be assigned in favour of the Bank for meeting the installment obligations.
Disbursement
The loan will be disbursed in full or in suitable installments taking into account the requirement of funds and/or fee schedule as assessed by the Bank directly to the educational institution or vendor of books or equipment or instruments.
Penalty for early closure
Nil.
Salient features
i) Applications for Loan
In the loan application form, the Bank shall provide comprehensive information including information about fees and charges if any payable for processing and amount of such fees refundable in case of non acceptance of application, prepayment options and other matter which affects the interest of the borrowers, of all categories of loans, irrespective of the amount of loan sought by them.
ii) Processing
1. The Bank shall provide acknowledgement for receipt of all loan applications indicating the time frame within which the application will be disposed of.
2. The Bank shall verify the loan application and if additional details / documents are required, these will be sought from the applicant.
3. For all categories of loans and irrespective of any threshold limits, the Bank will be expected to process the application without delay. In case the application is turned down, the Bank will convey in writing to the applicant the reasons for rejection within one month.
iii) Loan Appraisal and Terms and Conditions
1. The sanctioning authority will be expected to ensure proper assessment of the credit application as per the extant instructions and credit policy of the bank. The availability of adequate margin and security will not be a substitute for due diligence on the creditworthiness of the customer.
2. All the terms and conditions and other caveats will be duly communicated by an authorized official of the Bank to the customer in writing.
3. The acceptance of the customer will be obtained on the sanction letter with the customer’s signature under the caption “I/WE ACCEPT ALL THE TERMS AND CONDITIONS WHICH HAVE BEEN READ AND UNDERSTOOD BY ME/US”.
4. A copy of the loan agreement along with all the enclosures quoted in the loan agreement will be furnished to the customer at the time of issue of the sanction letter.
5. The sanction letter / loan agreement will clearly state that the credit facilities will be extended solely at the discretion of the Bank and that drawings under the following circumstances will be solely at the discretion of the Bank.
1. Drawings beyond the drawing power / sanctioned limits.
2. Honoring of cheques issued for the purpose other than specifically stipulated in the sanction.
3. Drawings in an account once it is classified as NPA.
4. No drawings will be allowed in case of non-compliance of the terms and conditions by the borrower.
5. Meeting further requirements of the borrower on account of growth in business will be subject to proper review of the credit limits.
iv) Disbursement of loans including changes in terms & conditions
1. The disbursement will be done immediately on compliance of all the terms and conditions of the sanction by the borrower and the branches need not refer to the sanctioning authority for disbursement.
2. Any changes in the terms and conditions of the sanction such as interest and charges will be notified to the borrower before effecting the changes.
3. Any changes in interest rate and charges will be effected only prospectively after giving due notice to the borrower.
v) Post disbursement supervision
1. The post disbursement supervision, such as submission of periodical reports and periodic inspection, will be stipulated at the time of issue of the sanction letter. The sanction letter would also mention whether the Bank or the borrower will bear the cost of inspection.
2. The Bank will issue notices to the borrowers in advance in case the Bank decides to recall the advance / accelerate the payment / accelerate the performance under the loan agreement. Or seek additional securities.
3. The Bank shall release all securities on receiving payment of loan. However, the Bank may decide to exercise the right to set off any legitimate right or lien for any other claim against borrower. In case the Bank decides to retain the security, the borrower will be notified about the remaining claims and the documents under which the Bank is entitled to retain the security till the relevant claim is paid / settled.
vi) Others
1. The Bank will not interference in the affairs of the borrowers except where provided for in the terms and conditions of the loan sanction documents, such as periodic inspection, scrutiny of books of accounts, verification of stocks and book debts, and scrutiny of QIS statements.
2. In case any information not disclosed earlier by the borrower has come to the notice of the Bank, the Bank will have the right to elicit the necessary information from the borrower and initiate action to protect its interest.
3. While, the Bank may participate in credit-linked schemes framed for weaker sections of the society, the Bank shall not discriminate on grounds of sex, caste and religion in the matter of lending.
4. In the matter of recovery of loans, the Bank shall not resort to undue harassment such as persistently bothering the borrowers at odd hours and use of muscle power.
5. In the case of receipt of request for transfer of borrowal account, either from the borrower or from other banks / FIs which propose to take over the loan, the Banks’ consent or objection, if any, shall be conveyed within 21 days from the date of receipt of request.
vii) Grievance Redressal
Though the sanction of the loans will be at the sole discretion of the Bank, borrowers will have an opportunity to appeal against the decision of the Bank’s functionaries. Any such grievance received from the borrower will be heard and disposed of by the next higher authority. For this purpose the following review structure is available to the borrower.
