Education Loan

Sr.

No.

Particulars

DNS Bank Education Loan

1

Category

Priority Sector Advance- Up to Rs.20.00 lakh

Non Priority Sector Advance – Above Rs.20.00 lakh

2

Maximum Amount

Rs.100 lakhs.

(90% of Total Educational Exp.)

3

Applicant/

Co-applicant

Student (above 18 years of age) + Parents/ Parents-in-law/ Spouse/ Guardians as co-applicant.

4

Margin on expenses

Up to Rs.4.00 lakh – Nil

Above Rs.4.00 lakh @ 10% of total educational expenses.

6

Moratorium Period

Duration of Course + 1 year OR 6 months after getting a job, which ever is earlier.

7

Rate of Interest

10.60% p.a. *

* Concession in ROI @ 0.50% for Girl Students.

      a. If Applicant/Co-applicant opt for “Option–II of Funding of Interest”, then 1% additional interest to be charged.

        b. If the University in which the admission taken is not a premier institute or its ranking is above 1000 Global Ranking, then 0.50% additional interest to be charged.

8

Courses and Universities to be considered for Education Loan

Studies in India includes – Diploma, Degree, Post-Graduation in any recognized field and Professional Courses viz, Courses for Teacher, Training Course/ Nursing Course, Engineering, Medical, Agricultural, Dental, Law, Management Courses, Pilot Training. Computer Courses, C.A./ ICWA/ CFA, Hospitality Management etc. from approved colleges/institutes affiliated to universities recognized by State Government/ AICTE/ ICFA/ IIM/ IIT/ UGC/ AIBMS/ ICMR etc.

Studies Abroad includes – Graduate, Post Graduate, Diploma, Professional Courses, Specialization Courses offered by first 1000 listed universities having assured employment prospects, skill up graduation courses having assured employment, Courses offered by Hospitality Management institutes, Civil Aviation, Pilot training courses, any other reputed courses having assured employment prospects. (Open to all countries except enemy countries, Politically unstable countries). (upto 1000 Global ranking)

9

Repayment Period

Maximum Repayment Period - 15 years including Moratorium period.

10

Guarantors

One Guarantor having good means i.e. Net worth at least equivalent to loan amount to be obtained.

11

Expenses to be considered for fixation of limit

      i. Tuition fees, Examination/ Library fee charged by institute.

   ii. Hostel Fees (Hostel of the Universities/ Institutes) to consider the financial assistance also private accommodation charges equivalent to the actual charges payable for the private accommodation or the hostel charges as per the universities/institutions wherein the applicant borrower will be undertaking his studies whichever is less. Hostel charges should be reasonable

      iii. Single Premium amount for the Life Policy of the Students.

      iv. Cost of books, equipment, instruments, uniforms.

      v. Personal computers/ laptop wherever required.

      vi. Any other expenses required to complete course such as study tours, project work, thesis etc.

    vii. Caution Deposit, Building Fund/ Refundable Deposit supported by Institution bill/ receipts. These expenses could be considered subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.

NOTE: Please note that expenditure under Item Nos. iv, v & vi above may not be available in the schedule of fees and charges prescribed by the college authorities. Therefore, a realistic assessment may be made of the requirement under iv, v & vi to be capped at 20% of the total tuition fees for the entire course.

12

Processing Charges

0.50% of loan amount + applicable taxes.

13

Pre-payment charges

No pre-payment charges

14

List of documents

       · Application Form duly filled in by Students, Co-applicants and Guarantors.

    · Covering letter mentioning details of Course, College, details of expenses to be incurred, amount applied for, own contribution – evidence/ proofs of own contribution, Security offered, moratorium & repayment period required.

     · Offer letter from University/ College/ Institute stating therein details of course fees, Hostel fees, and other expenditure.

       · Passport Copy in case of studies abroad, identity proof.

       · Latest Academic mark sheet/ certificate.

       · 3 Photographs.

       · PAN Card copies of applicant and co-applicants.

       · Address Proof of applicant, co-applicant and guarantors.

       · Income Proof:

      a) If Co-applicant & Guarantors are salaried persons- 3 months latest salary slips, Form No.16 and/or I.T. Return copies for last 3 years and Copies of Bank Statement for last 6 months where account is maintained.

    b) If Co-applicant & Guarantors are Businessmen/Professionals- Copies of IT return for last 3 years along with Computation of Income, Balance Sheet and Profit & Loss Account and Copies of Bank Statement for last 6 months where account is maintained.

      · All the original Title Deeds of Immovable Property to be offered as security along with required documents as required by Legal Dept. Valuation Report from our bank’s approved, empanelled valuer.

        · In case of other paper securities such as NSC/KVP/FDRs etc. Original Certificates.

        · In case of studies in abroad – Form I 20/admission letter.

15

Security

In Case of Option-I (i.e. borrower has agreed to serve interest during moratorium period) as stated above :

Tangible Security viz. Government Securities like NSC, KVP, Assignable Life Policy (surrender value), Gold, Bank Deposit etc. or Immovable Property having value equivalent of 115% of loan amount. In addition single Premium.

Insurance Policy on the life of student having sum assured not less than loan amount for all students whether going to abroad or not.

(The amount of single premium can be considered as part of cost of education).

In Case of Option II (i.e. borrower wants to avail moratorium for principal as well as interest ) as stated above :

Tangible Security viz. Government Securities like NSC, KVP, Assignable Life Policy (surrender value), Gold, Bank Deposit etc. or Immovable Property having value equivalent of 150% of loan amount. In addition single Premium.

Insurance Policy on the life of student having sum assured not less than loan amount for all students whether going to abroad or not.

(The amount of Single Premium can be considered as part of cost of education).