State Bank of Patiala
State Bank of Patiala’s Educational Loan
Objective of the Scheme:
The loan will be sanctioned for extending financial assistance to deserving / meritorious students for pursuing higher education in India and abroad.
Eligibility of the Student:
- Should be an Indian National
- Secured admission to Professional / Technical courses through Entrance Test / Selection process.
- Secured admission to foreign university / Institutions.
- No minimum qualifying marks stipulated in the last qualifying examination.
Studies in India :
- Graduation, Post-graduation including regular technical and professional Degree / Diploma courses conducted by colleges / universities approved by UGC / AICTE / IMC / Govt. etc
- Regular Degree / Diploma Courses conducted by autonomous institutions like IIT, IIM etc
- Teacher training / Nursing courses lead to Degree or Diploma course and not to certification course approved by Central government or the State Government.
- Regular Degree / Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation / Shipping
- Vocational Training and skill development study courses will be covered separately under IBA Model Loan Scheme for Vocational Education and Training of our Bank.
Studies over a Wide Area :
Graduation / Post-graduation for job oriented professional / technical courses offered by reputed universities
Job oriented professional / technical Post Graduate Diploma courses offered by reputed universities
Liability of Finance :
Expenses allotted for the Loan :
- Fee payable to college / school / hostel: Where the student will be making his own boarding and lodging arrangements, the sanctioning authority is authorized to fund boarding and lodging expenses on the basis of estimate submitted by the student / parent, provided such expenses are not more than those charged by the educational institution for boarders.
- Examination / Library / Laboratory fee.
- Purchase of books / equipments / instruments / uniforms / computer - essential for completion of the course and any other expense required to complete the course like study tours, project work, thesis, etc., the amount considered for loan should not exceed 20% of the tuition fees for the entire course.
- Caution deposit / building fund / refundable deposit supported by Institution bills / receipts, the amount considered for loan should not exceed 10% of the tuition fees for the entire course.
- Travel expenses / passage money for studies abroad.
- Cost of a two-wheeler Upto Rs. 50,000 can be included in the expenses considered eligible for finance where the loan amount is secured by a suitable third party guarantee and /or tangible collateral security. Two-wheeler can be necessary in some cases where hostel and college are far apart.
- Premium of the insurance policy covering the life of the borrower for loan.
Quantum of Finance :
Studies in India - Maximum Rs. 10.00 lacs
Studies Abroad - Maximum Rs. 20.00 lacs
- Upto Rs.4 lacs: Nil
- Above Rs.4 lacs: Studies in India: 5 %
- Studies Abroad: 15 %
Course period + 1 year, or 6 months after getting job, whichever is earlier.
Processing Fee / Mortgage Charges : NIL
Rate of Interest :
- 0.50% concession in interest rate for girl students availing Education Loans with effect from 10th April, 2009.
- 1% concession in rate of interest to be provided for full tenure of the loan if full interest is serviced during the moratorium period ( including course duration ). The interest should be serviced promptly soon after application but not later than the following month to avail the concession.
Repayment Period of the Loan :
The loan is to be repaid in 5-7 years, after commencement of repayment.
- If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, the sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course.
- The accrued interest during the moratorium period/repayment holiday period to be added to the principal and repayment to be fixed in Equated Monthly Installments ( EMI ).
For more Details, Kindly refer the following link :
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