The purpose of the loan is to make available financial
assistance to the needy and deserving students of bright academic record so as to enable
them to continue higher studies in India or Abroad either in diploma/graduation or
post-graduation level in Arts, Science, Commerce, Management, Medicine and Engineering.
Under the scheme the loan can be sanctioned to a student of Indian nationality who
intends to join an approved course in an educational institution recognised by the
government, or a university in India or abroad.
- Courses approved
A - Category:- Academic courses such as Diploma, undergraduate/postgraduate
courses in Arts, Science and Commerce etc.
- B - Category:- Professional courses such as Diploma,
undergraduate/postgraduate courses in Engineering, Medicine, Dental Science, Agricultural
Science, Veterinary Science, Computer Science, Nursing, Pharmacy, Business administration,
Type of Loan
The loan account will be deemed a term loan. To facilitate flexibility in
operation, future debits on account of recurring expenses in each semester/year can be
made to this account.
The margin is NIL for courses in India. For foreign studies a minimum margin of 10%
- Upto and including Rs.2 lakhs PLR + IT
- Above Rs.2 lakhs and upto and including Rs.5 lakhs PLR + 1 +
- Above Rs.5 lakhs and upto and including Rs.10 lakhs PLR + 2
Period of loan
The repayment should begin within 12 months after the completion of the course, or
after the student gets a job, whichever is earlier.
- Maximum period for course completion: 6 years
- Maximum period for repayment after course completion: 5 Years
- Hence maximum period of the loan: 11 Years
- Minimum period: 3 Years