faq

Education Loan FAQs Q. Which banks are offering education loan to MR Students?

Most of the Nationalised Banks are offering education loans. However, we have representatives of following banks present at our campus who can help you with the sanction of the loan:a. b. c. d.

Punjab National Bank (PNB) Corporation Bank State Bank of India Vijaya Bank

Q . What are the eligibility criteria for Education Loan?

ELIGIBILITY a) Student should be an Indian National. b) Should have secured admission from Our university i.e. cleared all eligibility criteria Q . Would my entire fee be funded by the bank? o Upto Rs 4 lacs- Entire fee shall be funded by the bank o Above 4 lacs -5% margin shall be required to be brought in by the student/guardian Q I am staying in city other than Delhi/NCR(e.g Lucknow), will I be given loan from Faridabad.

You shall be provided loan from the branch in your city. Following persons from Banks may be contacted for guidance & help:(i) (ii) (iii) (iv)

Mr Ram Hansdah- Punjab National Bank- 9717375533Mr Surendra/ Mr Vinod- State Bank of India 9650895126/9871698461 Mr Mayank- Vijaya Bank-9654746040 Mr Mukesh Kumar- Corporation Bank- 9958471110

Q. What is the maximum amount I can avail?

For studies in India: Rs. 7.50 lacs If the amount exceeds Rs. 7.5 lacs, then following security shall be required Security Upto Rs.4.00 lacs: Parent(s)/guardian be made joint borrower (s). No Security Above Rs 4.00 lacs and Upto Besides the parent(s)/guardian executing the documents as Rs 7.5 lacs: joint borrower(s), collateral security in the form of suitable third party guarantee will be taken Above Rs 7.5 lacs: Parent(s)/guardian be joint borrower(s).Tangible collateral security of suitable value acceptable to bank alongwith the assignment of future income of the student for payment of installments *The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares/ Mutual Funds/ Debentures, Bank Deposit in the name of the student parent / guardian or any other third party or any other tangible security acceptable to the bank with suitable Margin.

NOTE : The document should be executed by the student and the parent / guardian.

Q. Whether Re-imbursement of fees is permitted in Education Loan scheme?

Yes, reimbursement of fees paid by the student/ guardian at the time of admission or subsequent stages is permissible within six months from the date of payment of fees on individual merits of the case.

Q. In whose name the loan would be granted Loan would be granted in Student’s name Q what is the rate of interest?

Interest cost varies from bank to bank depending upon the amount and repayment period. for further details on the Rate of interest respective bank’s representative may be contacted Q. What is the method of application of interest in the loan?

A. The interest shall be charged at simple rate from the date of disbursement till the commencement of repayment of loan. Thereafter, compound interest is charged on reducing balance Q. When does the repayment of loan commence?

A. Repayment will commence after Course period + 1 year OR 6 months after getting job, whichever is earlier.

Q. What is the repayment schedule?

A. Principal and interest is repayable in 60 to 84 monthly installments.

Q. Repayment holiday/Moratorium: Course period + 1 year or 6 months after getting job, whichever is earlier.

Q is there any penalty in case of prepayment of loan?

No prepayment penalty is levied for prepayment of loan.

Q. Which are the Expenses considered for Loan?

Institute’s Term Fee & Hostel Fee are covered Other Benefits • Interest charged on simple basis during the moratorium (PNB) * Concession of 1% ROI if interest serviced during moratorium period and thereafter installments are paid regularly. * Interest concession of 0.50% for women beneficiaries