IBA Model Education Loan Scheme for Students

• Need-based finance
• Students may submit their loan applications either at the bank branches near the residence of parents or bank branches near the educational institution where they are studying.

• INLAND STUDIES : Graduation, post-graduation, including technical/professional courses from reputed colleges/universities approved by UGC/Government, AICTE/Department of Electronics/IMC, autonomous institutions like IIM, IIT, etc. Any courses leading to degree/diploma from reputed Institutes/Colleges/Universities for studies in India.
• ABROAD STUDIES: Course which lead to undergraduate, Post Graduation/PHD, Post Graduate Diploma etc are eligible.

Upto Rs.4.00 Lakhs - NIL

Above Rs.4.00 Lakhs
Studies in India - 5%
Studies abroad - 15%

• Assignment of future income of the student.
• Merit Quota :

• Loan amount: Upto Rs 7.50 Lakhs
• Security: No collateral Security, loan will be covered under Credit Guarantee Fund Scheme for Education loans(CGFSEL) scheme subject to the conditions.
• Loan is granted jointly with the parent/Guardians of the student.

• Loan amount: Above Rs 7.50 Lakhs
• Security: Tangible Collateral security to cover at least 100% of the loan amount.
• Loan is granted jointly with the parent/Guardians of the student.

• Management Quota :

• Loan amount: Upto Rs 4.00 Lakhs
• Security: Loan is granted jointly with the parent/Guardians of the student
• Tangible Collateral security to cover at least 50% of the loan amount

• Loan amount: Above Rs 4.00 Lakhs
• Security: Tangible Collateral security to cover at least 100% of the loan amount.
• Loan is granted jointly with the parent/Guardians of the student.

• Repayment of the loan will be in equated monthly Installments up to a maximum of 15 years excluding the moratorium period ( i.e., course period plus one year).
• No prepayment penalty will be levied for prepayment of loan at any time during the repayment period.

• Course Fee payable to college/school/hostel.
• Examination/Library/Laboratory fee.
• Travel expenses/passage money for studies abroad.
• Insurance premium for student borrower, if applicable.
• Caution deposit, building fund/refundable deposit supported by Institution bills/receipts.
• Purchase of books/equipments/instruments/uniforms.
• Purchase of computer at reasonable cost, if required for completion of the course.
• Any other expense required to complete the course subject to ceiling.