1

Eligibility

Ø  The student should be an Indian National with minimum work experience of 2 years in Government/ Corporate/Multinational concern.

Ø  The minimum age of the student should be 23 years.

Ø  Should have been issued NOC by the employer to pursue the MBA programme and avail loan from bank for that purpose. NOC not applicable if resigned from service.

Ø  The student should possess Income Tax PAN Number and self attested copy of the PAN card should be submitted to Bank.

Ø  Should have secured admission or intimation of final selection to Executive MBA programme of a reputed institution in India or abroad.

Ø  Students of the Institutes approved by Retail Banking Department, Central Office, are eligible for loan. List of institutes attached as Annexure I.

Ø  Staff of our Bank who fulfill the selection criteria of the institute subject to issue of NoC by HRD, C.O.

2

Co-borrower

Ø  The condition of co-borrower is compulsory.

Ø  The co-borrower / joint borrower should normally be parent(s)/guardian of the student borrower. In case of a married person, joint borrower can be spouse or the parent(s)/parents-in-law.

3

Eligible expenses

Ø  Fee payable to the institute/ hostel.

Ø  Examination/ Library/ Laboratory fee.

Ø  Purchase of books/ equipments/ instruments.

Ø  Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts

Ø  Travel expenses/ passage money for studies abroad.

Ø  Purchase of computer - essential for completion of the course.

Ø  Insurance premium for student borrower

Ø  Any other expense required to complete the course - like study tours, project work, thesis, etc. However, living expenses, personal/family maintenance expenses etc. will not be covered.

4

Quantum of finance

Ø  Maximum Rs.20.00 lakh.

5

Margin

      NIL

6

Security

Ø  No collateral security, except assignment of present as well as future income of the student.

Ø  Insurance Policy on the life of the student availing Educational Loan to the extent of at least loan amount for a minimum period of loan term (i.e., course period + moratorium period + repayment period) assigned in favour of the Bank.  Premium to be paid regularly by borrower.

7

Processing charges

Ø  NIL

8

Rate of interest

Ø  For students pursuing Exe.MBA in IIMs and 4 other reputed institutes: (Schedule A)

Male Students - Base Rate + 0.50%.

Female/SC/ST/Minority Community Students - Base Rate.

Interest to be compounded monthly.

No further concession in rate of interest for servicing of interest by the borrower during the study/moratorium period.

Ø  For students pursuing Exe.MBA in other institutes (Schedule B)

Base Rate + 1.25%

Female/SC/ST/Minority Community Students - Base Rate+1.25% (no concession)

Interest to be compounded monthly.

No concession in rate of interest for servicing of interest by the borrower during the study/moratorium period.

The revised rate of interest will be applicable to new accounts only.

9

Repayment

Ø  Repayment in EMIs to start 3 months after completion of course.

Ø  Loan is repayable in EMIs for a period upto 8 years in case the loan amount upto Rs.7.50 lakh and upto 12 years in case the loan amount is more than Rs.7.50 lakh.

10

Appraisal /Sanction/

Disbursement

Ø  The loan to be sanctioned as per delegation of powers and disbursed preferably by the Branch nearest to the place of employment / residence of the student.

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