1.

Purpose of Loan

For pursuing higher studies, in India / Abroad by Dentist (IDA member), son/daughter of Dentist (IDA member).

2.

Eligibility

Ø      IDA member, Son/Daughter of IDA member.

Ø      Original of IDA membership certificate and photocopy to be submitted. Original will be returned after verification.

Ø      Student should be an Indian National having secured admission to eligible courses through entrance test / selection process. 

3.

Courses Eligibile

a. Studies in India: (Indicative list)

• School Education plus 2 stages

• Graduation courses : BA, B.Com., B.Sc., etc.

• Post Graduation courses : Masters & Phd.

• Professional courses : Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.

• Computer certificate courses of reputed institutes accredited by Dept. of Electronics or Institutesaffiliated to university.

• Courses like ICWA, CA, CFA, etc.

• Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.

• Courses offered in India by reputed foreign universities.

• Evening courses of approved institutes.

• Other courses leading to diploma/ degree etc. conducted by colleges/ universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc.

• Courses offered by National Institutes and other reputed private institutions.

• Vocational Training and skill development study courses are not included in the Model Scheme. However, such requests may be considered under normal credit lending programmes as personal loans.

• Regular Degree/Diploma courses like Aeronautical, pilot training, shipping, etc. approved by Director General of Civil Aviation/Shipping, if the course is pursued in India. In case the course is pursued abroad, the competent local aviation/shipping authority should recognize the Institute.

b. Studies abroad :-

• Graduation : For job oriented professional/ technical courses offered by reputed universities.

• Post graduation: MCA, MBA, MS, etc.

• Courses conducted by CIMA- London, CPA in USA etc.

4

Eligible Expenses

Expenses considered for loan :

• Fee payable to college/ school/ hostel.

• Examination/ Library/ Laboratory fee.

• Purchase of books/ equipments/ instruments/ uniforms.

• Caution deposit/building fund / refundable deposit supported by Institution bills/receipts, subject to the condition that the amount does not exceed10% of the total tuition fees for the entire course.

• Travel expenses/ passage money for studies abroad.

• Purchase of computers - essential for completion of the course.

• Life Insurance premium for student borrower

• Any other expense required to complete the course - like study tours, project work, thesis, etc.

Need based loan Upto Rs. 50,000/- can be considered on merit of each case subject to conditions like distance commuted by the student, submission of driving license.

Reimbursement of above expenses already incurred/loan taken from identified sources (to meet the contingencies) by the applicant on merits is allowed, subject to production of original receipts within three months of incurring such expenses if reasons for delayed submission of bills/receipts found genuine.

5.

Nature of Facility

Term Loan

6.

Maximum loan amount

Rs. 10 lacs for studies in India.

Rs. 20 lacs for studies Abroad.

7.

Margin

Upto Rs. 4 lacs: NIL,

Above Rs. 4 lacs:In India - 5% , Abroad - 15% 

• Scholarship/ assistantship to be included in margin.

• Margin may be brought in on pro rata, year-to-year basis at time of disbursement.

8.

Rate of Interest

Male Students

BR+1.75 %(floating)

Female, SC, ST students

BR+1.25%(floating)

• Simple interest will be charged during the Repayment holiday /Moratorium period.

• Penal interest will be charged, as applicable, over the sanctioned rate @ 2% for the overdue amount and overdue period.

9.

Incentive

1% interest concession, if interest is serviced during study period when repayment holiday is specified for interest repayment. It will be given at the end of Financial Year i.e. 31st March.

Interest is calculated at simple basis during Repayment Holiday / Moratorium Period. Interest will be compounded on monthly rests from due date of first instalment.

10

Disbursement

• The loan will be disbursed in stages as per the requirement/ demand directly to the Institutions/ Vendors of books/ equipments/ instruments to the extent possible.

• In appropriate cases disbursement will be made to borrowers subject to submission of satisfactory evidence. Original receipts to be submitted to Bank.

• Bank may consider top up loans/second loans to students pursuing further studies.

11

Repayment

Repayment holiday/Moratorium

Course period + 1 year or 6 months after getting job, whichever is earlier.

• The loan to be repaid in 5-7 years after moratorium. If the student is not able to complete the course within the scheduled time for any genuine reason, extension of time for completion of course can be permitted for a maximum period of two years.

• The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Instalments (EMI) will be fixed.

• 1% interest concession will be provided for loanees if the interest is serviced during the study period when repayment holiday is specified for interest/ repayment under the scheme.

12

Security

Quantum of loan

IDA member

Son/Daughter of IDA member

Upto Rs 4 lacs

No collateral.

Assignment of income of the IDA member for payment of installments.

Ø      Co-obligation of parent/s (IDA member).

Ø      Assignment of future income of the student for payment of installments.

>Rs.4 lakh and upto Rs7.5 lakh

Suitable third party guarantee acceptable to Bank, assignment of income of the IDA member for payment of installments.

Ø      Co-obligation of parent/s (IDA member).

Ø      Suitable third party guarantee acceptable to Bank.

Ø      Assignment of future income of the student for payment of installments.

Above Rs.7.5 lakh

Tangible collateral security of suitable value, along with the assignment of income of the IDA member for payment of installments.

Ø      Co-obligation of parent/s (IDA member).

Ø      Tangible collateral security with suitable value of not less than the loan amount.

Ø      Assignment of future income of the student for payment of installments.

12

Security

(contd.)

• Both the student and the parent (IDA member) should execute the loan documents.

• The security can be in the form of land/building/Govt. Securities/Public Sector Bonds/ Units of UTI, NSC, KVP, Life policy, gold, shares/mutual fund units/ debentures, bank deposit in the name of student/parent/guardian or any other third party with suitable margin.

• Wherever the land/building is already mortgaged with the Bank, the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount.

• In case the loan is given for purchase of computer, the computer has to be hypothecated to the Bank.

• In case of receipt of application for more than one loan for student borrower from a family, the 'family' as a unit has to be taken into account for considering the loan and security taken in relation to the total quantum of finance disbursed, subject to margin and repaying capacity of the parent/student.

13

Processing Fees

No Processing Fees

14

Insurance

The life of the student to be insured to the minimum extent of loan amount for a minimum period of 10 years, preferably through Bank's Corporate Agency.