.:: Punjab & Sind Bank Education Loan Schemes ::.

ELIGIBILITY CRITERIA:

Student Eligibility :

• Student should be an Indian National
• Secured admission to professional / technical courses in India or abroad through entrance Test / Merit Based Selection process.

Courses Eligible:

Studies in India : ( Indicative List)

• Graduation courses : B.A. B.Com, B.Sc., etc.
• Post Graduation courses : Masters & Phd.
• Professional Courses: Engg. , Medical, Agriculture , Veterinary, Law ,Dental, Management , Computer etc.
• Computer certificate courses of reputed institutes accredited to Deptt. of electronics or institutes affliated to 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.
• 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
• Nursing Course / Teacher Training Courses / B.Ed. will be eligible for education loan provided the training institutions are approved either by the Central Govt. or by State Govt. and such courses should lead to Degree or Diploma course and not to only certification course . The fees to be considered for the purpose should be the fees structure as stipulated in Central / State Govt. colleges .

Skill Development Study Courses : 

Education Loans can be allowed only by the sanctioning authorities / branches specially designated by the respective Zonal Office for the courses mentioned below :

• Regular Degree / Diploma courses of Aeronautical & Shipping of institutes recognized by the competent local aviation / shipping authority ( In India as well as abroad ) .
• Recognized courses for Commercial Pilots/Air Hostesses, however care should be taken that the course should be provided by the approved & Institute of repute. .
• Select Vocational training and Skill development study courses ( Full time as well as part time ) are eligible provided the courses are offered by recognized and well reputed institutions. .
• ZM to designate one or two suitable branches for these courses. .

Courses not covered: Correspondence courses are not eligible.

The new courses can be added in the scheme by Head Office depending upon the future prospects/ recognition by user institutions.

QUANTUM OF FINANCE :. Need based finance subject to repaying capacity of the parents /students subject to the following ceilings.

Studies in India - Maximum Rs.10 lacs

Expenses eligible for finance : Fees payable to college / School/ Hostel / purchase of books / equipment /uniforms/ / travel expenses / passage money for studies abroad/ any other expenses required to complete the course like study tours/ project work, thesis etc .

Expenses not eligible for finance : Caution Deposits / Building fund / refundable deposit

MARGIN

                Upto Rs. 4.00 lac.                  NIL
                Above Rs. 4.00 lac                  Studies in India 5%

Scholarship/assistantship to be included in margin.
Margin may be brought in on year to year basis as and when disbursements are made on a pro-rata basis.

SECURITY :

Study in                No Security(A)                  Third Party Guarantee And / Or Collateral (B)
India                     Upto Rs.4 lac               Above Rs.4 lac & Upto Rs.7.50 lac
Abroad                  Upto Rs.4 lac                     Above Rs.4 lac & Upto Rs.7.50 lac

Assignment of future income of the students for payment of instalments.
The loan documents should be executed by both the student and the parent/guardian as joint borrower.
The Collateral security can be in the form of land/building/Govt. securities/Public Sector bonds/Units of UTI,NSC,KVP,LIC Policy, gold, shares/debentures, bank deposit in the name of student/parent/guardian or any other third party with suitable margin.
Wherever the land/building is already mortgaged, the unencumbered portion can be taken as security on II charge basis provided it covers the required loan amount.
In case the loan is given for purchase of computer, Laptop, Medical or Engineering accessories etc., the same is to be hypothecated to the Bank.

INSURANCE: The Bank tied up with Bajaj Allianz Life Insurance Company Ltd. to provide more value added proposition and offer low cost life insurance cover to our education loan borrowers on voluntary basis, under the Group Insurance Scheme.

RATE OF INTEREST: The interest rates under the scheme are is as under-

Category                  Loans up to           Loans above 4.0 lacs               Loan above Rs.10.00
                                Rs.4.00 lacs            and upto 10.00 lacs                and upto Rs.20.00 lacs
General
Public                 BR+4.05                 BR+4.55                                    BR+5.30

Staff as
Co-borrower          BR+3.05                 BR+3.55                                    BR+4.30
(Applicable BR wef. 21.10.10 is 8.45 )

Additional concession @ 2% to all borrowers on account of service of interest during moratorium period . Simple interest to be charged during the Repayment holiday/moratorium period.
Additional concession of 0.50% in the aforesaid interest rate structure for girl students.
Minimum floor rate of 10.75% for girls and 11.25% for boys.

PROCESSING CHARGES: Borrower to deposit a sum of Rs.1,000/- ( for courses in India) For Processing fee , in Saving account ( to be kept under reserve . Withdrawl thereof may be allowed to the borrower only after full availment of the loan. Otherwise the same will be recovered as processing fee.

REPAYMENT SCHEDULE: 

Repayment holiday/Moratorium : 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. If the student is not able to complete the course within the scheduled time , extension of time for completion of course may be permitted for a maximum period of 2 years. In case the student is not able to complete the course for reasons beyond his control, sanctioning authority may at its discretion consider such extension as may be deemed necessary to complete the course. The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Instalments (EMI) fixed.

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