1

Eligibility

• The private educational institutions incorporated as Society/Trust, should be in existence for minimum 5 years and at least 2 batches of students should have passed out from the institute affiliated to different Educational Boards/Universities recognized by Government / UGC/any Statutory Body like AICTE/IMC etc.
• Loan is allowed against mortgage of immovable property with Institute building located in Metro / Urban / Semi-urban centers.
• Institute should not be engaged in Real Estate/Speculative/Capital Market activity.
• The Educational Institution should open their operating a/cs, salary accounts of faculty/staff and to the extent possible students' accounts with our Branch.

2

Purpose

• To meet any sort of operational expenses, but not for any speculative purpose / Real Estate activity / Capital Market activity.

3

Nature of Facility

• Term Loan and Overdraft
• The Overdraft facility will be for one year and to be reviewed annually.

4

Loan Amount

• Amt of loan: Minimum Rs.1lakh., Maximum Rs. 500 lakh depending on average annual cash accrual (PAT+Depreciation), other liabilities, property value etc.

5

Security

• EM of non-encumbered Land with Building in the name and possession of the Institute, located in Metro/Urban/Semi-urban centres.
• The value of security should be minimum 200% of the loan amount.
• The property should not be meant for real estate activity.

6

Insurance

• The property will be insured against all appropriate hazards with bank's clause for full value of the property.

7

Guarantee

• Personal Guarantee of Trustees (Trust)/ Principal Society Members like Chairman, Secretary, Treasurer (Society) to be taken.

8

Interest Rate

• Base Rate +3.50 %
• In case of any default in payment of interest/EMI, Penal Interest to be charged @ 2 % over sanctioned interest rate for the overdue amount and overdue period.

9

Processing Fee

• Term Loan: 0.50 % of loan amount, maximum Rs.20,000/-
• Overdraft: 0.50 % of loan amount, maximum Rs.10,000/-, renewal charges to be levied @ 0.50%, maximum Rs.2000/- per renewal.

10

Prepayment Charges

• Nil, in case prepaid from borrower's own sources.
• If the loan a/c is taken over by other Bank/FI, prepayment charges to be levied @ 1% of loan outstanding as on the date of such take over.

11

Repayment

• Loan is to be repaid in Maximum 120 equated monthly installments (EMIs), commencing from next month of disbursement.
• Repayment of EMIs through ECS mandate/ Post dated cheques.

12

Take over

• Take over is allowed.
• On take over, the Institute should deal exclusively with our Bank and operating accounts of the Institute should be maintained with the Bank's Branch.