The quantum of finance under the scheme is capped at Rs 7.5 lacs for studies in India and Rs 15 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books, etc. The minimum amount of loan would be Rs 50,000.
- No margin for loans upto Rs 4 lacs.
- For loans above Rs 4 lacs,
5% margin for studies within India &
15% for higher studies overseas.
The following papers/documents should accompany the Application Form to be executed by both the students and the parents/guardians.
Documents Required from both the student / co-applicant.
- Identity Proof : Copy of Passport / Driving Licence / Voters Identity Card / Income Tax Pan Card.
- Residence Proof : Copy of Passport / Driving Licence / Voters Identity Card / Utility Bills
- Age Proof : Copy of Passport / Driving Licence / Income Tax Pan Card / Birth Certificate.
- Signature Verification.
- One Singed Photograph ( On the face).
Documents required from students for studies abroad
- Offer / Admission / Bonafide student letter from the university / college in India or Abroad.
- Cost of the Course ( including living).
- Copy of last examination passed result.
- Copy of Passport in case of study abroad.
Documents required from the co-applicant
- Income Proof : Form 16 or Income tax returns for the last two years.
- Collateral Security Papers ( if any).
- Any other document / information as needed by Bank, depending upon the case and purpose of loan.
Role of the Guardian:
The parent(s) or guardian of the student would be treated as a co-applicant of the loan. His or her role would be, necessarily, like the primary debtor.
Third party guarantee and/or collateral security may be asked for in appropriate cases.
Assignment of LIC policy in favour of the Bank for the sum assured being at least 100% of the loan amount. The policy is kept alive during the currency of the loan. To ensure this, the annual premium may be included in the computation of the loan requirement, along with the tuition fees and other recurring charges. Further, the future income of the student needs to be assigned in favour of the Bank for meeting the installment obligations.