But are study loans really simple?

Gone are the days when one had to run from pillar to post to borrow money to study abroad. Those who could get it, had to repay it through their nose. Foreign scholarships were the only hope that one had to pray for. Those who got it were lucky. Those who couldn't were damned.

The times are changing, and changing fast. A number of nationalised banks have come up with study loan schemes. Besides some private trusts and endowments are running study loan scheme, the terms and conditions of which vary from organisation to organisation.
We give here a variety of options and the aspirants can their choice.

Centvidyarthi Finance for Education (www.centralbank.com)

Eligibility

• Students who have secured admission to any of the general/ professional courses including computer and job oriented courses recognised by the Government/Universities, are eligible for education loan to study in India or abroad.
• This scheme does not cover correspondence courses.
• The student should be between 16 and 28 years. However, the age is relaxable for SC/ST students by two years.
• The student should have a good and consistent academic record in previous examinations. In the case of SC/ST, a second class would be sufficient

The scheme covers studies in India and studies abroad.

Studies in India
Those pursuing undergraduate/postgraduate studies, management courses in recognised universities/reputed institutions and other professional courses including computer courses and other job-oriented courses recognised by the Government/Universities are eligible.

Studies Abroad
Students taking postgraduate courses in Science, Technology, Medicine, Engineering Architecture and full-time Management Course in M.B.A. and M.M.S. at recognised universities abroad, including law and accountancy are eligible. The course should lead to a Masters Degree or a postgraduate diploma.

Loan amount:

• Upto Rs. 3 lakhs for higher studies in India, for the entire duration of the study.
• Upto Rs. 5.00 lakhs for higher studies abroad.

The financial assistance will cover admission and tuition fees, books and stationery, equipment/ instruments, examination fees, hostel/mess charges and travel expenses in case of overseas courses.

Margin:

• Upto Rs. 1.00 lakhs - 15%.
• Upto Rs. 5.00 lakhs - 25%.
• In case of SC/ST this margin can be relaxed on loans upto Rs. 50,000.

Rate of interest:

• Upto Rs. 25,000 - 12.50%.
• Between Rs. 25,000 and Rs. 2.00 lakhs - 14.00%.
• Above Rs. 2.00 lakhs @ PLR (those whose family income does not exceed Rs. 12,000 p.a. and fall under the DRI scheme, the interest rate is 4.00%.)
• 1% rebate is granted in the rate of interest for regular repayment of interest and installment and payment of insurance premiums.

Federal Bank Scheme (www.federal-bank.com)

The purpose of the loan is to make available financial assistance to the needy and deserving students of bright academic record so as to enable them to continue higher studies in India or Abroad either in diploma/graduation or post-graduation level in Arts, Science, Commerce, Management, Medicine and Engineering.

Eligibility
Under the scheme the loan can be sanctioned to a student of Indian nationality who intends to join an approved course in an educational institution recognised by the government, or a university in India or abroad.

• Courses approved
  A - Category:- Academic courses such as Diploma, undergraduate/postgraduate courses in Arts, Science and Commerce etc.
• B - Category:- Professional courses such as Diploma, undergraduate/postgraduate courses in Engineering, Medicine, Dental Science, Agricultural Science, Veterinary Science, Computer Science, Nursing, Pharmacy, Business administration, Law etc.,

Type of Loan
The loan account will be deemed a term loan. To facilitate flexibility in operation, future debits on account of recurring expenses in each semester/year can be made to this account.

Margin
The margin is NIL for courses in India. For foreign studies a minimum margin of 10% is necessary.

Loan amount

Interest

• Upto and including Rs.2 lakhs PLR + IT 
• Above Rs.2 lakhs and upto and including Rs.5 lakhs PLR + 1 + IT
• Above Rs.5 lakhs and upto and including Rs.10 lakhs PLR + 2 +IT

Period of loan
The repayment should begin within 12 months after the completion of the course, or after the student gets a job, whichever is earlier.

• Maximum period for course completion: 6 years
• Maximum period for repayment after course completion: 5 Years
• Hence maximum period of the loan: 11 Years
• Minimum period: 3 Years

For details e-mail at hoffice@federal-bank.com OR any of the branches having e-mail.

State Bank of  Mysore scheme : Gnanamitra - Education Loan Scheme

The scheme, for academically brilliant students, entails tuition and other fees / maintenance costs / books and equipment and travel cost for studies abroad.

Eligibility

• Technical/Professional higher studies in India/Abroad
• 60% of marks (First Class)

Courses Eligible  - Higher studies
Diploma/ Undergraduate/ Postgraduate courses in Engineering, Technology, Architecture, Medicine, Dental Science, Agricultural Science, Veterinary Science and Computer courses accredited by DOEAC.

Limit

Margin
10% of the loan demanded.

Interest

INTEREST RATES: SCHEMES  AND  INTEREST RATES  ARE SUBJECT  TO  CHANGES  FROM  TIME  TO  TIME

Repayment

Technical / Professional Higher studies in India / Abroad
Repayment of loan to commence immediately after disbursal, by the parent / guardian, out of his / her income. Installments may be nominal (to cover interest portion, atleast) during the period the student is undertaking the studies. The installments will be stepped up one year after the completion of the course or after the student gets a job, whichever is earlier, so that the loan gets repaid together with interest within a period of 48 months thereafter.

Security

• 1) The loan will be granted in the joint names of students and parent/guardian (in  case of minors, the parent/guardian will execute the documents on behalf of the minor and also in his capacity as co-borrower).
• 2) Guarantee of suitable third party if deemed necessary and where sufficient collateral security is not available
• 3)  Insurance : An insurance policy will be taken on the life on the student borrower for an amount equivalent to the loan amount and the policy should be convertible whole-life one for 25 / 30 years, convertible after 5 years into one with endowment benefits. The Bank will pay the insurance premia on the policy by debiting it from the loan account. On liquidation of the loan, the policy will be reassigned and delivered to the borrower.
• 4) Collateral security equal to the amount of loan in the form of Government Securities / NSCs / Units of UTI and  / or immovable property.

Repayment 

Amount (Rs.)	Rate of Interest (wef 08/05/1999)	Monthly Interest (Rs) (Int. Portion Only )	Equated Monthly Installments
3.00 lakhs	15%	3750.00	8310/- (48 months)
2.00 lakhs	13%	2166.66	5360/- (48 months)
1.00 lakh	13%	1083.33	2233/- (48 months)

INTEREST RATES: SCHEMES  AND  INTEREST RATES  ARE  SUBJECT TO  CHANGES  FROM  TIME  TO  TIME
Contact your nearest Branch of State Bank of Mysore
Email: sbmcsd@vsnl.com

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State Bank of India  : Gyan Jyoti Scheme

The bank offers financial assistance to the needy and deserving students opting for

• School/ College education in India
• Higher, technical / professional, studies like medical MBA courses etc. in India/abroad.

Coverage

• To meet tuition fee and other fees.
• Maintenance Cost/books and equipment etc.

Eligibility

• (a) School/College
• (i) Minimum Second Division (Pass marks for SC/ST).
• (ii) Parents/guardians having independent source of income. Self-employed/ professionals and those engaged in agriculture and allied activities are eligible. Income should be sufficient enough to bear interest & installment besides normal subsistence and family requirements.
• (b) Technical/professional/higher studies in India or abroad.
• (i) Minimum First division (Second Division for SC/ST). OR

Passing the entrance test for the technical/professional course and securing an admission for the course.

• (ii) Parents/guardian having independent regular source of income, including self-employed/ professionals and those engaged in agriculture and allied activities with sufficient income.

Type of loan - Term Loan

Amount of Loan
(a) School/College Education in India

Upto 6 times the net (take home) monthly salary of parent/guardian/student. Minimum amount of loan is Rs.4000 and maximum amount Rs.1 Lakh.

(b) Technical/Professional higher studies in India or abroad

90% cost of the study, subject to maximum of Rs.8 lakhs.

Borrower
Student and parent/guardian, jointly. Employed students can also get loan.

Margin - 10%
Interest (w. e. f. 1.3.99)

• (i) Upto Rs.25,000 - 12. 21%
• (ii) Above Rs.25,000 upto Rs.2 lakhs - 12. 21%
• (iii) Above Rs. 2 Lacs - 14. 28%

Repayment

• (a) For School/College Education in India : within 36 months, commencing immediately after disbursal by the parent/guardian out of their income.
• (b) For Technical/Professional higher studies in India and abroad : The loan will be repaid in a maximum period of 60 months after completion of course or securing a job, whichever is earlier. A moratorium period for one year may also be given, if considered necessary.

Security

• (i) Collateral security from the borower /guarantors good for the amount involved.
• (ii) Pledge/mortgage of immovable property.
• (iii) Wherever tie-up arrangement is established an irrevocable letter of authority from the employee concerned and a letter of undertaking from their employers are to be obtained.

Formalities

• (i) Application from (Student and parent/guardian).
• (ii) Proposal by the Branch.
• (iii) Term Loan agreement (student and parent/guardian).
• (iv) Guarantee Agreement.
• (v) Pledge of security/Equitable mortgage of immovable property, where applicable.
• (vi) Deed of Ratification to be executed by minors on attaining majority (where applicable).

Authorised Branches
All branches having Personal Banking Division and those serving universities/colleges etc.

Children/wards of Banks Staff

Same terms and conditions as prescribed for public will be applicable. Lien against P.F. balance of staff member may be treated as collateral security.

STATE BANK OF INDIA , D&PB SECTION, ZONAL OFFICE, LUCKNOW.

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• Dena Vidya Laxmi Education Loan Scheme

Dena Bank provides convenient loans under this scheme for higher studies in India and abroad. Loans are available for undergradute/postgraduate studies/Management courses in recognised universities and technical courses of ITI Polytechnics, Computer Courses etc.

The loan is available for Indian nationals between 15 and 25 years having sound academic career, upto 75% of the total requirements covering course fees, cost of books, Instruments, Equipment, Hostel accommodation, Passage (one way) for higher studies abroad etc.

The maximum amount of loan is Rs.3.50 lakhs

The loan is repayable within 3 to 5 years in respect of higher studies in India and within 7 years in respect of higher studies abroad from the date of completion of studies. The repayment commences after 12 months from the date of completion of studies (including training period, if any) or 1 month after getting employment whichever is earlier.

Presently there is no ceiling on annual income of parent or guardian.

Loans offered by Trusts & Endowments