INSTITUTE OF MANAGMENT STUDIES, DAVV, INDORE

FINANCE AND ADMINISTRATION – SEMESTER IV

CREDIT MANAGEMENT AND RETAIL BANKING
EDUCATION LOAN SCHEME

ELIGIBILITY
 The student should:
(i) be an Indian National
(ii) have secured admission to professional/technical courses in India
or abroad, through entrance/ Selection process after completing
10+2 or equivalent.

Expenses Eligible:
(i) College/School/Hostel/Library/Examination/Laboratory Fees
(ii) Purchase of: - Books/ Equipments/ Instruments/ Uniforms/
Computers
(iii) Building fund/caution deposit/refundable deposits supported by
Institution bills / receipts.

Courses Eligible:
 In India :-
- Graduation Courses: B.A., B.Com., B.Sc. etc.
- P.G. Courses Masters & PhD.
- Professional Courses - Engineering, Medical, Agriculture, Veterinary, Law, Dental,
Management, Computer etc.
- Computer Certificate Courses of reputed institutes
- IIM, IIT, XLRI, NIFT etc.
 Abroad: -
- Graduation: - For Job oriented professional/ technical courses offered by reputed
universities.
- Post Graduation: - MCA, MBA, MS etc
.
LOAN AMOUNT : (
 Need based subject to repaying capacity of the parents/ students with margin
and the following ceilings.
- Studied in India- Maximum Rs. 10/- lacs
- Studies abroad- Maximum Rs. 20/- lacs

Banker to take a view as regards reputation /standing of the course and institution in
respect of which Education Loan could be provided, with a view to ascertaining the
employment prospects of the course and applicant's future income.

DISBURSEMENT :
 In stages, directly to the Institution/Vendors of books/ equipments/instruments to
the extent possible.

MARGIN :
 Upto Rs. 4 lac : NIL
 Above Rs. 4 lac : 5% (in India)
15% (abroad)

INTEREST
 RBI has allowed banks to decide interest rate. Banks are thus free to charge
interest rate normally on floating rate, linked to their Base rate/ MCLR. Simple
interest to be charged during study period and moratorium period. 1%
concession may be provided if interest serviced during study and moratorium
period.

1
REPAYMENT
 By EMIs. Moratorium Up to 12 months after completion of the Course/ or after
Getting a job (whichever is earlier)
 Loan to be repaid in a maximum period of 5-7 years (max 15 years) after
commencement of repayment. If student is unable to complete course in time
extension up to maximum 2 years can be considered.

TYPE OF LOAN Term Loan

SECURITY
Upto Rs. 4 lac : NIL

Above Rs. 4 lac. & : (i) Collateral in the form of suitable 3rd Party
Up to Rs. 7.50 lacs guarantee equal to 100% of loan amount

Above Rs. 7.50 lacs : (ii) Tangible Collateral security for full value.

 For All Loans in India or abroad :

- The documents should be executed by the student and the parents/
guardian as joint- borrower. If the student is a minor, the documents
will be signed by the guardian/ parents acting 'for self' as well as 'for
and on behalf of the minor,

FOLLOW-UP
 To remain in contact with College/University authorities for progress report of
loanee students at regular intervals.

INSURANCE
 Obtention of a life insurance policy on the life of the student for an amount
equivalent to the loan is Mandatory.

Prepared by :
Arvind Paranjape, M.Sc., CAIIB
paranjape.arvind@yahoo.com
9425067026