Higher Education Loan
Higher Education Loan
Policy for Granting Individual Higher Education Loan
Purpose: For higher education in India / Abroad
Eligibility:
- Applicant must be a resident of Valsad, Navsari or Dang district and must be an Indian citizen.
- Minimum 60% marks in graduation for postgraduate course.
- Minimum 60% marks in 12th standard for graduation course.
- In case of minor applicant, parent/legal guardian must be co-applicant.
- Co-applicant age should not exceed 70 years including loan period.
Loan Purpose: Admission must be confirmed in recognized institutions for Degree, Diploma, Postgraduate, PhD, or Professional Courses. Loan is also available for recognized foreign institutions.
Loan Terms & Conditions
- CIBIL Report: Loan eligibility based on CIBIL score. Charges Rs.100 + GST applicable.
- Title Clearance Report: For loans above Rs.7,50,000 with mortgage condition, title clearance certificate required.
- Valuation Report: For loans above Rs.7,50,000, valuation report required.
- Guarantor: Two guarantors with repayment capacity required. One must be parent.
- Margin: Up to 25% as per bank norms.
- Loan Period: Maximum 7 years including moratorium period.
- Interest Rate: As per bank norms. Interest during study calculated monthly and added later.
- Nominal Membership: Applicant and guarantor must become nominal members.
- Bank Account: Applicant must open account in the bank.
- Processing Fee: As per bank rules.
- Loan Disbursement: Includes admission fee, tuition fee, books, hostel, etc.
- Loan Recovery: Repayment starts after course + 6 months or job (whichever earlier). Maximum 84 months EMI.
- Loan Limit: 75% to 80% of total cost or Rs.20,00,000 whichever is lower.
- Other Conditions: Student must submit mark sheet every year.
Documents Required
- Loan Agreement
- Guarantor Deed
- Acceptance Letter
- Fee Receipt
- Expense Proof
- Property Documents (if applicable)
- Demand Promissory Note
- General Lien Letter
- Request Letter
- Instalment Letter
Security: For loans above Rs.7,50,000, property mortgage is required.