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State Bank of Patiala Education Loan- Student Loan in India

SBP Gyan Joyti – Education Loan Scheme

Eligibility Criteria

  • Student eligibility

  • Should be an Indian National

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

  • Secured admission to foreign university/Institution

Courses Eligible Studies in India (Indicative list)

  • Graduation courses: B.A., B.Com. B.Sc., etc.

  • Post Graduation courses: Masters & Phd.

  • Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, and Computer etc.

  • Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to a university.

  • Courses like ICWA, CA, CFA etc.

  • Courses conducted by 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.

Studies abroad:

  • Graduation: For job oriented professional/technical courses offered by reputed universities.

  • Post Graduation: MCA, MBA, MS etc.

  • Courses conducted by CIMA (Chartered Institute of Management Accountants)-London, CPA (Certified Public Accountant) in USA etc.

Studies abroad:

  • Graduation:For job oriented professional/technical courses offered by reputed universities
  • Post raduation:
  • MCA,MBA,MS etc.
  • Courses conducted by CIMA in London,CPA in USA etc.

Expenses considered for loan

  • Fee payable to college/school/hostel.
  • Examination/library/laboratory fee
  • Purchase of books/equipment/instruments/uniform
  • Caution deposit/building fund/refundable deposit supported by institution bills/receipts.
  • Travel expenses/passage money for studies abroad
  • Purchase of computers/two wheeler
  • Any other expenses required to complete the courses-like study tour, project work thesis etc.

Quantum of finance:
Need based finance subjected to repaying capacity of the parents/students with margin and the following ceilings

  • Studies in India-Max Rs 10 lacs
  • Studies in abroad-Max Rs 20 lacs 

Margin:


Up to Rs 4 lacs: Nil
Above Rs 4 Lacs: Studies in India

Studies abroad:15%

Securities:
 A. Studies in India:

  • Up to Rs 4 Lacs: No securities
  • Above Rs 4 Lacs & up to Rs 7. 5Lacs: Collateral in the form of asuitable third party guarantee.
  • Above Rs 7.5 Lacs and up to  Rs 10 Lacs: tangible collateral securities for full value of loan.

B. Studies abroad:

  • Studies in India-Max Rs 10 lacs
  • Above Rs 4 Lacs & up to Rs 7. 5Lacs: Collateral in the form of suitable third party guarantee.
  • Above Rs 7.5 Lacs and up to  Rs 10 Lacs: Tangible collateral securities for suitable value or suitable third party gurantee alog with the assignment of future income of the student for payment installments
  • Above Rs 15 Lacs and up to Rs 20 Lacs: Tangible security for full value of loan

Rate of interest:

  • Up to Rs 4 Lacs:0.75 % below BPLR
  • Above Rs 4 lacs: -1% above BPLR

Interest concession

1% concession in rate of interest be provided if full interest is paid during the moratorium period when any moratorium is specified

Repayment:

Repayment to be made after completion of moratorium pr\period i.e. course period+1 year or 6 month after getting job, whichever is earlier?

The loan to be repaid in a maximum of 5-10 years after commencement of Repayment

Processing charges:

Penal interest
No penal interest to be charged on educational loan up to Rs 4 Lacs.
Above Rs 4 Lacs penal interest @ 2 % over and above the applicable rate ,on the entire loan outstanding for the period of such default will be charged if the EMIs remain unpaid for a period of 30 days from the due date, for any reason, including the bounced cheque
Processing charges:
No processing charges/upfront fee will be charged on education loan.
For loan to students going abroad, Rs 5000/=upfront for loan above Rs 4 Lacs will be recovered and dealt as under

  • If the applicant avails the loan the amount of Rs 5000 will be adjusted against the contribution of margin money/the interest payable on th loan
  • If the applicant does not avail the loan within a period of 4 months of sanction of the loan, the amount will be appropriated and credited to commission A/c.

Documents required:

  • Completed application form
  • Mark sheet of last qualifying examination, proof of admission schedule of expenses and duration of courses.
  • Passport size photographs, passport/ID card/Voter card/PAN card etc of student /parent/guardian and guarantor
  • Details regarding the guarantor
  • Proof of income of the borrower/guarantor
  • Title deed of the property or other securities and other related papers etc.