Study Material: .:: Lakshmi Vilas Bank Vidhya Lakshmi Loan ::.

Purpose:

To meet expenses connected with the pursuit of specific courses of study at recognized institutions, including professional/job-oriented courses, which offer reasonable opportunity for employment & loan repayment capacity on successful completion.

ELIGIBILITY

Student eligibility

Should be an Indian National.
Should have secured admission to professional/technical courses in India or abroad through entrance test/merit based selection process.

Courses Eligible

Studies in India

Graduation courses: BA, B.Com. B.Sc., etc.
Post Graduation courses: Masters & Ph.D.
Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc.
Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to university.
Courses like ICWA, CA, CFA, etc.
Courses conducted by IIM, IIT, IISC, XLRI, NIFT, etc.
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.
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/AIBM/ICMR, etc.
Courses offered by National Institutes and other reputed private institutions.
Teacher Training Course/Nursing Course/B. Ed., provided the training institutions concerned are approved either by the Central Govt. or by State Govt. 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 stipulated in Central/State Government Colleges.
In respect of courses which are not covered under the criteria mentioned above, Bank will take a view on the eligibility taking into account the future prospects/ recognition by user institutions.
Bank will also have the system of appraising other institutional courses depending on future prospects/recognition by user institutions.

Expenses eligible for finance

Fee payable to college/school/hostel.
Examination/library/laboratory fee.
Purchase of books/equipment/ instruments /uniforms.
Caution deposit/building fund/ refundable deposit supported by Institution’s bills/receipts, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
Travel expenses/passage money for studies abroad.
Purchase of computers essential for completion of the course.
Insurance premium for student borrower.
Any other expenses including hostel deposit/rent/monthly mess bills and other expenses required for completing the course such as study tours, project work, thesis, etc.

LOAN AMOUNT

Need based finance subject to repaying capacity of the parents/student with margin and the following ceilings:

For studies in India: Maximum up to Rs.10.00 lacs.
For studies abroad: Maximum up to Rs.20.00 lacs.

Within the above maximum levels, the loan amount is to be fixed taking into account the minimum stipulated margin, the expenses eligible for finance, actual requirement of the student, anticipated repayment capacity of the student on completion of the course, capacity of the parents, etc. In the normal course, while appraising the loan, the future income prospects of the student will be looked into. However, where required, the means of parent/ guardian could also be taken into account to evaluate repayment capability.

MARGIN

For loans up to Rs.4.00 lacs: Nil
For loans above Rs.4.00 lacs:
Studies in India: Minimum of 5%.

Scholarship/assistantship to be included in the margin.
Margin may be brought in on year-to-year basis as and when disbursements are made on pro-rata basis.
(In the case of highly meritorious/ deserving students, relaxation in the margin may be allowed up to the minimum level of 3% & 8% for studies in India & abroad respectively from the normal stipulation of 5% & 15% in cases of loans above Rs.4.00 lacs at the level of General Manager.)

INTEREST RATE

For Boy Students:
For loans up to Rs.4.00 lacs: Base Rate + 6.25% (PER: 15% p.a.)
For loans above Rs.4.00 lacs: Base Rate + 7.25% (PER: 16% p.a.)

For Girl Students:
For loans up to Rs.4.00 lacs: Base Rate + 5.75% (PER: 14.50% p.a.)
For loans above Rs.4.00 lacs: Base Rate + 6.75% (PER: 15.50% p.a.)
Interest will accrue on simple interest basis during the holiday period and such accrued interest of the holiday period will be added to the principal amount at the beginning of the repayment period for calculation of the repayment in EMIs.
The effective interest rate during the holiday period and the EMIs during the repayment period are subject to change depending on the PLR/Base Rate quoted by the Bank from time to time.
On overdue amounts, penal interest @ 2% p.a. will be charged additionally for the overdue period in respect of loans above Rs.2.00 lacs.

SECURITY

Up to Rs.4.00 lacs:
Co-obligation of parents/grandparents. No security.

Above Rs.4.00 lacs and up to Rs.7.50 lacs:
Co-obligation of parents/grandparents together with collateral security in the form of suitable third party guarantee.
The bank may, at its discretion, in exceptional cases, waive third party guarantee if satisfied with the net-worth/means of parent(s)/ grandparent(s) who would be executing the document as “joint borrower”.

|Above Rs.7.50 lacs:
Co-obligation of parents/grandparents together with tangible collateral security of suitable value, along with the assignment of future income of the student for payment of instalments.
In the case of married person, co-obligant can be the spouse or the parent(s)/parents-in-law.

DOCUMENTATION

Application form & appraisal form as prescribed in our circular instructions.
Certified copy of admission letter issued by the college/university/ institute.
Certified copies of relevant past academic records, including mark sheets, examination/degree/ diploma certificates, etc.
Copies of prospectus, syllabus and full details of course of study along with details of tuition fee & other fees payable.
Testimonials from two professors/ teachers of the college/school last studied.
Copy of IT/WT assessment orders of the parent/grandparent/ guardian, if an assessee. If the student himself is an assessee, then copies of the latest IT/WT assessment order pertaining to his income/wealth.
Form 111 of the parent/guardian / grandparent/student.
Legal opinion and valuation report on the property offered as collateral security.
In the case of students going abroad, besides the above, copies of the Passport, Visa, details of scholarships/assistance if any and the necessary evidence of admission to the institution abroad, etc. to be obtained and verified with the originals.
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