Vidya Lakshmi Portal

• Loan for School Education (Target Group: Parents of Students pursuing school education from Nursery to Class XII.)
• No processing charges
• No documentation charges
• No margin

• Should be an Indian national residing in India.
• Student should have secured admission to a recognized school / Highschool / Jr. College (including CBSE / ICSE / State Board) for any of the following courses
• Stage I : Nursery to V th STD.
• Stage II : VI th to VIII STD.
• Stage III : IX th to XII th STD.
• Evening courses of institutes approved by State /Central Govt.
• Loan to be granted in the name of father/mother of the student

Rate of Interest:

• BRLLR + strategic premium + 2.85%
• 0.50% concession in rate of interest to loans for female students.
• Interest to be serviced as and when applied during moratorium period.
• Penal interest @ 2% on overdue amount if the loan amount exceeds Rs. 2 lakhs.

Service Charges (Excluding GST) w.e.f. 20/06/2019:

Study in India- Nil

Study abroad - 1.00% of loan amount (maximum Rs. 10,000) to be recovered upfront which will be refundable on availment (first disbursement) of the loan.

Education loan for students of premier institutions (studies in India): Nil

Education loan for vocational education and training: Nil

Career Development - 0.50%

Notes:

• A non-refundable lump sum amount Rs. 8,500 per property (towards advocate and valuer charges) to be taken upfront in case of all education loan accounts, wherever property is mortgaged.
• No mortgage creation charges for all types of education loans.

• KYC of applicant and co-applicants
• Academic Records
• Proof of admission
• Entrance Exam Result(if applicable)
• Statement of cost of study/ Schedule of expenses
• Income Proof for Salaried Co-applicant/ Guarantor (if applicable)
• Bank account statement for last 6 months etc
• Property Documents (if applicable)

Target group

Parents of students pursuing school education from nursery to class XII.

Quantum of finance

Maximum Rs. 4 lakhs

Need based finance subject to repayment capacity of parents.

Margin

Nil

Coverage of expenses for

• Fee payable to college / school.
• Examination / library / laboratory fee.
• Fee and other charges payable to hostel.
• Purchase of books / equipments / instruments / uniforms.
• Personal Computers / Laptops wherever required.
• Caution deposit / building fund / refundable deposit supported by instituion bills / receipts.
• Cost of external coaching/tuition is not to be considered

Repayment Period

• Loan for each yearly sub limit is repayable in 12 equal monthly instalments. First instalment to be due 12 months after first disbursement of each year's loan component.
• Interest to be serviced as and when applied during the moratorium period.

Repayment Capacity

Total deductions from the income including the proposed instalment and interest should not exceed 60% of total income. The income of spouse, wherever spouse is working also to be considered. Suitable proof of income is to be obtained.

Unified Processing charges:

Nil

Security

• No security.
• In case the loan is given for purchase of computer the same is to be hypothecated to the bank.

Disbursement

Directly to School / Institution / hostel -- term wise / year wise.

Directly to book seller / shop for purchase of books, instruments, equipments.

Next year disbursement to be made only after student has passed the current year annual examination & progress report / marksheet to that effect is produced by parents.

Financing Branch

Branch in the vicinity of the Institute

Or

Branch which is in close proximity to the permanent residence of parent/at the place of posting/service of the parent branch.

Other Terms

A stamped declaration / an affidavit confirming that no Educational loan is availed from other banks / institutions for the child for whom loan is sanctioned by us and shall not avail educational loan from any other bank without obtaining NOC from our bank during the pendency of our educational loan, be obtained No dues certificate need not be insisted upon.