EDUCATION LOAN SCHEMES IN PUNJAB & SIND BANK INDIA

1. Objective of the scheme: The educational loan scheme outlined below aims at providing financial support from the banking system to deserving and / meritorious students for persuing higher education in India and abroad. The main emphasis is that every meritorious student though poor is provided with an opportunity to persue education with the financial support from the banking system with affordable terms and conditions. No deserving student is denied an opportunity to persue higher education for want of financial support.

2. Applicability of the Scheme: The scheme detailed below could be adopted by all commercial Banks. The scheme provides broad guidelines to the banks for operationalising the educational loan scheme and the implementing bank will have the discretion to make changes suiting to the conveninence of the students / to make it more customer friendly.

3. Eligibility Criteria :

3.1 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.

3.2 Courses Eligible:

(a) 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.

Courses offered by National Institutes and other reputed private institutions. Banks may have the system of appraising other institution courses depending on the future prospects/recognition by user institutions.

(b) Studies Abroad :

Graduation For job oriented professional/technical courses offered by reputed universities.

Post Graduation MCA,MBA,MS etc.

Courses conducted CIMA-Londin, CPA in USA etc.

3.3 Expenses considered for Loan

Fee payable to College/School/hostel.

Examination/library/laboratory fee.

Purchase of books/equipments/instruments/uniforms.

Caution deposit/building fund/refundable deposit supported by institution bills/receipts.

Travel expenses/passage money for studies abroad.

Purchase of computers-essential for the completion of the course.

Any other expense required to complete the course- like study tours, project work, Thesis etc.

4. Quantum of Finance.

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

Studies in India - Maximum Rs. 7.50 lacs

Studies abroad - Maximum Rs. 15.00 lacs.

5. MARGIN

Upto Rs. 4.00 lac : NIL

Above Rs. 4.00 lac : Studies in India : 5%

Studies Abroad : 15%

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.

6. OTHER CONDITIONS :

No due certificate need not be insisted upon as a pre-condition for considering educational loan. However, banks may obtain a declaration/an affidavit confirming that no loans are availed from other banks.

Loan applications have to be disposed of within a period of 15 days to 1 month, but not exceeding the time norms stipulated for disposing of loan applications under priority sector lending.

In order to bring flexibility in terms like eligibility, margin, security norms, banks may consider relaxation in the norms on a case to case basis delegating the powers to a fairly higher level authority.