Karnataka Bank Education Loan- Student Loan in India
Karnataka Bank Education Loan
KBL VIDYA NIDHI
(Education Loan Scheme)
Who is eligible?
Any student, representing himself / herself if major, or a minor student represented by parent or guardian, of Indian nationality, who has secured admission to a professional / technical / other course, in India or abroad.
What are the courses eligible for finance?
Studies in India:
Graduate Courses - B.A., B.Sc., B.Com., B.C.A., B.B.M., Diploma in Engineering, Post Graduate Courses - Masters and Ph.D; Professional Courses - Engineering, Medical, Agriculture, Nursing, Veterinary, Law, Dental, Management, Computer, Pharmacy, Physiotherapy, Hotel Management, ICWA, CA, CFA; Courses conducted by IIM, IIT, XLRI, NIFT; Courses offered in India by reputed foreign universities; Evening Courses of approved Institutes; Other Courses leading to Diploma / Degree conducted by Colleges / Universities approved by UGC / GOVT. / AICTE / AIBMS / ICMR; Courses offered by National Institutes and other reputed private Institutions.
Graduation - Only for job oriented professional / technical courses offered by the reputed Universities; Post Graduation - MCA, MBA, MS; Courses conducted by CIMA-London, CPA in USA etc.
What is the amount of loan available?
For studies in India - a maximum of Rs.10 lakh
For studies abroad - a maximum of Rs.20 lakh
What kind of expenses does the loan cover?
Tuition Fees, Hostel Fees and Boarding and Lodging Fees if resident outside Hostel; Examination / Laboratory and Library Fees; Purchase of Books / Study material / Equipment and Uniforms; Caution Deposit / Building Fund / Refundable Deposits (supported by Receipts issued by the Institution); Travel expenses / passage money for study abroad; Purchase of Computer if certified as essential for completion of course; other expenses like Project Work, Study Tour and Thesis, which are necessary for completion of course.
What is the amount of margin money required?
Loan upto Rs.4 lakh: No margin required.
Loan above Rs.4 lakh: 5% for studies in India and 15% for studies abroad. Scholarship / apprenticeship may be reckoned as part of margin. Margin may be brought in on year-to-year basis as and when disbursements are made, on a pro-rata basis.
Up to Rs.4 lakh: No security
Above Rs.4 lakh and upto Rs.7.50 lakh: Collateral in the form of a suitable third party guarantee.
Above Rs.7.50 lakh: Collateral security of suitable value or suitable third party guarantee along with the assignment of future income of the student for payment of instalments.
The loan documents should be executed by both student and the parent / guardian as joint-borrowers.
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 with suitable margin.
Wherever the land / building is already mortgaged, the unencumbered portion can be taken as security on II charge basis provided it covers the required loan amount.
In case the loan is given for purchase of computer the same has to be hypothecated to the Bank.
What is the period for repayment of the loan?
The loan shall be repaid in 5 to 7 years after commencement of repayment. If the student secures employment during the holiday period, the repayment schedule should be advanced to commence immediately.
The completion of the course includes internship or apprenticeship if compulsory for award of Degree. If the student does not complete the course within the scheduled period, a maximum period of 2 years is permitted for completion. If the student is unable to complete the course for reasons beyond his control then extension may be granted if deemed necessary to complete the course.
The accrued interest during the repayment holiday will be added to the principal and repayment in equated monthly installments (EMI) shall be fixed.
Rate of interest:
General Up to Rs. 4 lakh
Base Rate Spread Lending Rate
Normal 10.75 3.50 14.25
Meritorious 10.75 3.00 13.75
Girl Student 10.75 3.00 13.75
Girl Meritorious 10.75 2.50 13.25