SBP GYAN JYOTI EDUCATION LOAN SCHEME

Purpose

To extend financial assistance to deserving/meritorious students for pursuing higher education in India and abroad. Student Eligibility: Should be an Indian National Secured admission to a higher education course in recognized institutions in India through Entrance Test/ Merit Based Selection process after completion of HSC (10 plus 2 or equivalent) Secured admission to foreign university/Institutions. In cases, where there is no Entrance Test/ Merit based selection procedure, securing admission to a higher education course in a recognized institute may be considered.

Eligibility Criteria

Courses Eligible

Studies in India: Graduation courses: B.A, B.Com., B.Sc., etc. Post Graduation courses: Masters Degree and Ph.D. Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental Management, Computer, etc. Computer Certificate courses of reputed institutes accredited to Department of Electronics or Institutes affiliated to a 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. 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 Institute should be recognized by the competent local aviation/shipping authority. Teacher Training Course/Nursing Course/B.Ed., will be eligible for education loan provided the training institutions are approved either by the Central Government or by State Government and such courses should lead to Degree or Diploma Course and not to Certification Course. The fees to be considered for the purpose should be the fees structure as approved by State Government or a Government approved Regulatory Body for merit seats in Government/Private Self Financing Colleges, Cooperative and Colleges run by Universities, as the case

may be. Vocational Training and skill development study courses will not be covered under the Model Education Loan Scheme, as the scheme is framed to provide bank loans for higher studies. Such courses/requests shall be considered under our SBP Education Loan for Vocational courses. Medical courses in countries of the erstwhile USSR, China, Nepal, and other countries not recognized by Medical Council of India will not be covered. b. Studies abroad : Graduation: For job oriented professional/ Technical courses offered by reputed universities. Post graduation: MCA, MBA, MS, etc. Courses conducted by CIMA (Chartered Institute of Management Accountants) London, CPA (Certified Public Accountant) in USA etc. In addition to these courses, job oriented professional / technical Post Graduate Diploma courses offered by reputed universities will also be covered under the scheme. Expenses Considered for Fees payable to college/school/hostel Examination/Library/Laboratory fees Purchase of Books/Equipment/Instruments/Uniforms, Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course) Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the entire course) Travel Expenses/Passage money for studies abroad Cost of a Two-wheeler upto Rs. 50,000/Any other expenses required to complete the course like study tours, project work etc. Quantum of Need based finance subject to repaying capacity of the parents/students Finance with margin and the following ceilings: Studies in India Maximum Rs. 10.00 lacs. Studies Abroad Maximum Rs. 20.00 lacs. Margin For loans up to Rs.4.0 lacs : No Margin For loans above Rs.4.0 lacs: Studies in India: 5% Studies Abroad: 15% Upto Rs. 4 lacs: No Security Above Rs. 4 lacs to Rs. 7.50 lacs: Collateral security in the form of suitable third party guarantee.

Security

Above Rs. 7.50 lacs: Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments. (All
loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law)

Rate Interest

of For interest rates please see interest rate table on this website For Interest Rates Interest Concession: 1% concession in rate of interest to be provided for full tenure of the loan if full interest is serviced during the moratorium period (including course duration).

Concession 0.50% in rate of interest for Girl Child For Kindly visit our web site under the link: Economically Weaker Subsidy Schemes > EWS Scheme Section Repayment Repayment to be made after completion of moratorium period i.e. Course period + 1 year, or 6 months after getting job, whichever is earlier. The loan to be repaid in 5-7 years, after commencement of repayment. Processing Charges (i) No processing/upfront charges are to be collected on educational loans. ii) For loans to students going abroad: a) All those students who approach us for an education loan of more than Rs.4.00 lacs for studies abroad, will be required to make a deposit of Rs.5000/- only. b) If the applicant avails the loan, the amount of Rs.5000/- will be adjusted against the contribution of margin money by him. If no margin is payable by him, the amount may be adjusted against the interest payable on the loan.