1.

Purpose of Loan

• "Cent Vidyarthi-Vocational Education and Training Scheme for Vocational Education and Training aims at providing financial support from the banking system to those who have the minimum educational qualification, as required by the institution / organization running the course eligible under the scheme.

2.

Eligibility

• The student should be an Indian National.

• Have secured admission in a course run or supported by a Ministry / Dept./ Organisation of the Govt. or a company / society / organization supported by National Skill Development Corporation or State Skill Missions / State Skill Corporations, preferably leading to a certificate / diploma / degree, etc. issued by a Govt. organization or an organization recognized / authorized by the Govt. to do so.

3.

Minimum Age

• There is no specific restriction with regard to the age of the student to be eligible for the loan. However, if the student was a minor, while the parent executes documents for the loan, the bank will obtain a letter of ratification from him / her upon attaining majority.

Quantum of Finance

• For courses of duration upto 3 months ? Rs. 20,000/-

• For courses of duration 3 to 6 months ? Rs. 50,000/

• For courses of duration 6 months to 1 year ? Rs. 75,000/-

• For courses of duration above 1 year ? Rs. 1,50,000/-

Margin

• NIL

4.

Expenses considered for loan

• Tuition / course fee .

• Examination / Library / Laboratory fee

• Caution deposit

• Purchase of books, equipments and instruments

• Any other reasonable expenditure found necessary for completion of the course. (As such courses are localized boarding, lodging may not be necessary. However, wherever it has been found necessary, the same could be considered on merits)

7.

Rate of Interest

Processing Charges

• NIL

8.

Incentive

1% interest concession may be provided by the bank during the moratorium period,  if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.

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

Moratorium Period

Upon completion of the course, repayment will start after a moratorium period as indicated below :

- For courses of duration upto 1 year

  6 months from the completion of the course.

- For courses of duration above 1 year-          

  12 months from the completion of the course.

10.

Repayment

The loan will be repaid after the moratorium period in Equated Monthly Instalments (EMIs) as follows :

Loans upto Rs.50,000/-                              -   Upto 2 years

Loans between Rs.50,000/- to Rs. 1 lakh    -   2 to 5 years

Loans above Rs. 1 lakh                              -  3 to 7 years.