IB Education Loan (IBA)

1.1  Admission

· Student should have secured admission to a higher education course in recognized/ accredited institutions in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC (10 plus 2 or equivalent).

· The identified beneficiaries of PM Cares for Children Scheme, developed by the Ministry of Women and Child Development.

· It would be in order to consider providing education loan to a deserving student for studies abroad on the basis of invite/ conditional offer letter.

For NRI, Persons of Indian Origin (PIO)/ Overseas Citizen of India (OCI), and students who were born abroad (having overseas citizenship by birth, when parents were on deputation with Foreign Government/ Government agencies or International/ Regional agencies etc., and now studying in India after repatriation of their Parents), loans can be considered for studies in India only. However, such facility will be subject to Regulation 7 (C) of Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000 [Notifications No. FEMA.4/2000-RB dated 03.05.2000 and further amended vide Notification No. FEMA.115/2004-RB dated 25.03.2004].

a)    If the admission to an eligible course is through a merit based selection process, he/ she could be considered as meritorious student.

b)    If the admission to professional and technical courses is through common entrance test, those who get admission though this process could be considered meritorious students.

· Courses as initiated under various Government subsidy schemes.

· Approved courses leading to graduate/ post graduate degree and P G Diplomas conducted by colleges/ universities recognized by UGC/ Government/ All India Council for Technical Education (AICTE)/ AIB Merchant Services (AIBMS)/ Indian Council of Medical Research (ICMR) etc.

· Courses like ICWA, CA, CFA etc.

· Courses conducted by Indian Institute of Management (IIMs), Indian Institute of Technology (IITs), Indian Institute of Science (IISC), Xavier School of Management (XLRI), National Institute of Technology (NITs), National Institute of Design (NIDs), National Institute of Fashion Technology (NIFTs) etc.

· Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping, etc., or any other discipline approved by Director General of Civil Aviation/ Shipping or any other regulatory body as the case may be.

· Approved courses offered in India by reputed foreign Universities.

Under Graduate courses offered by Institutes of Hotel Management established under the Umbrella of NCHMCT (National Council for Hotel Management and Catering Technology).

Executive Management Program/ Executive MBA

For doing Part-time/ Distance Education Mode to Working Professionals including our Bank’s Staff from Institutes under Premier Elite, Premier Special and Premier categories.

b) For studies Abroad

o  For any accredited/ recognized Courses.

o  Courses as defined under various Government Subsidy Schemes.

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

o  Post-Graduation: MCA, MBA, MS, etc.

o  Courses conducted by CIMA – London, CPA in USA etc.

o  Degree/diploma courses like aeronautical, pilot training, shipping etc., provided these are recognized by competent regulatory bodies in India/ abroad for the purpose of employment in India/ abroad.

Reference:

www.topuniversities.com

www.qs.com

www.webometrics.info

As such we have 4 category of institutions as below:

1.    Premier Elite (Institutes listed in Annexure –  A)

2.    Premier Special (Institutes listed in Annexure –  B)

3.    Premier (Institutes listed in Annexure – C)

4.   Others (Recognized courses of Colleges/ Universities/
Institutes not covered under the above three categories.)

For Studies Abroad (except institutions in Russia, Ukraine and China) Institutes have been categorized as under:

Premier Special:

Institutes ranked from 1 to 1000 colleges as per latest      Webometrics rankings

Other Category:

Institutions ranked above 1000 as per latest Webometrics may be treated in Others category.

pursue the course.

1. Tuition Fees*/ Hostel fee$ payable to college as per demand.

2. Examination/ Library / Laboratory fee as per demand.

3. Travel expenses/ passage money and living expenses for studies abroad only. (Living expenses is to be assessed by the sanctioning authority based on the average living expenses available for each country).

4. Insurance premium for student borrower, if requested for finance.

5. Caution deposit, building fund/ refundable deposit supported by Institution bills/ receipts**

6. Purchase of books/ equipment’s/ instruments/ uniforms***

7. Purchase of computer at reasonable cost, if required for completion of the course***

8. Any other expense required to complete the course – like academic &maintenance fee, study tours, project work, thesis etc.***

9. While computing loan required, scholarships, fee waiver etc., if any available to the student borrower while applying for the loan, may be taken into consideration.

10. If the scholarship component is included in the loan assessment, it may be ensured that the scholarship amount gets credited to the loan account when received from the Government.

*For courses under Management quota seats considered under the scheme, fees as approved by the State Government/ Government approved regulatory body will be sanctioned subject to viability of repayment.

** These expenses could be considered subject to the condition that the amount does not exceed 20% of the total tuition fees for the entire course.

*** Maximum expenses included under 6, 7 & 8 may be capped at 20% of the total tuition fees payable for completion of the course.

$ Reasonable lodging and boarding charges will be considered in case the student chooses/ is required to opt for outside accommodation.

In case of point 5,6,7,8 for Colleges falling under Premier Elite /Premier Special Category, need based limit may be considered subject to production of verifiable documentary evidence.

· Scholarship/ assistantship to be included in margin.

· Margin may also be allowed on a pro-rata basis, as and when disbursements are made.

For Executive MBA Program/ Executive MBA: Margin –  25 %

Need based finance to meet expenses as listed out under expenses to

pursue the course subject to minimum margin requirements.

Executive Management Program/ Executive MBA

Maximum Loan Amount: Rs. 25.00 Lacs.

·   Proof of identity and address as per KYC norms.

·   Proof of academic records.

·   Proof of admission offer letter or admission letter from the institution.

·    Statement of cost of study/ schedule of expenses.

·    Passport- size photographs.

·     Suitable documentary evidence to be obtained w.r.t. previous/ existing loans, if any.

·     Passport to be mandatorily submitted in case of Studies Abroad.

·     Aadhaar.

·     Permanent Account Number (PAN) is a mandatory document and to be submitted along-with application or before 1^st disbursement.

·    Any other document as specified from time to time.

·   E-mail address and details of social media like Twitter, Facebook, LinkedIn etc. (whichever available) for better future communication with the student/ Co- Applicant.

2. Co-applicant/ Guarantors

·   Proof of identity and address as per KYC norms.

·   Passport size Photographs.

·    Suitable documentary evidence to be obtained w.r.t. previous/ existing loans, if any.

·    Permanent Account Number (PAN) is a mandatory document and to be submitted along-with application or before 1^st disbursement.

·   Aadhaar.

·   Any other document as specified from time to time.

·         Assignment of the future income of student borrower. ^$$

·         Parent(s)/ guardian(s)/ spouse to be made joint/ co-borrowers as applicable.

In case of Assignment of future income, it is advised that:

§  Projected monthly income after completing the course shall be obtained from the applicant/s.

§  While appraising the proposal, projected monthly income submitted by the applicant should be verified from the placement record of the college/ university/ Educational Institution, Employability based on the course selected, and from other sources/ information available in public domain regarding expected annual package.

§  On verification, these details must mandatorily be captured in the appraisal note without any laxity.

B.   Loans covered under CGFSEL /Government Interest Subsidy: For loans with limit up to Rs.7.50 lakhs third-party guarantee/ collateral is waived.

C.   Collateral Security requirements for Loans not covered under CGFSEL:

1.    Premier Elite Category: No requirement of collateral security up to loan limit of Rs. 40 Lakhs. However, full collateral security covering entire loan limit is required in the form of SARFAESI Compliant Land (bounded and demarcated)/ Building/ Flat/ Govt. Securities/ PSU Bonds/ Gold Jewellery/ Bank Deposits/ NSCs and LIPs (Surrender Value), if Loan limit is beyond Rs. 40.00 lacs.

2.    Premier Special, Premier and Other Institutes (For studies in India and Abroad): Full collateral security covering entire loan limit in the form of SARFAESI compliant Land (bounded and demarcated)/ Building/ Flat/ Govt. Securities/ PSU Bonds/ Gold Jewellery/ Bank Deposits/ NSCs and LIPs (Surrender Value).

3.    For Executive Management Programme/ Executive MBA from Premier Elite only

§  No requirement of Collateral Security for Premier Elite Institutes.

§  For Premier Special and Premier Institutes Collateral security is required for full amount.

§  In case of our Staff borrowers, Guarantee of PF/ NPS nominee is to be obtained additionally.

§  For other borrowers, third party Guarantee to be obtained with sufficient Net Worth to cover the loan amount.

Wherever the land/ building is already mortgaged with us, the unencumbered portion can be taken as security on extension of charge basis provided it covers the required loan amount and accrued interest (if any).

• Educational loans sanctioned up to a limit of Rs.7.50 lakh under IBA Scheme are eligible under Credit Guarantee Fund Scheme for Educational Loans scheme (CGFSEL).
• Third party guarantee / Collateral is waived.
• Parents / spouse to be co-obligant / joint borrowers
• Both study in India and Abroad is eligible
• Annual Guarantee fee will be 0.50% p.a. of the outstanding loan amount which would be absorbed by the Bank.
• The guarantee cover would be available for 75% of the amount in default.

Executive Management Programme/Executive MBA: Upto 120 EMIs commencing from the next month after first disbursement and No Holiday Period

Moratorium period: Course period plus Holiday Period of one year (maximum), in all cases

• Simple interest is charged during the study period and moratorium period till commencement of repayment.
• Servicing of interest during study period and the moratorium period till commencement of repayment is optional for students. Accrued interest will be added to the principal amount borrowed, while fixing EMI for repayment of the loan.

It can be done under the group life insurance policy i.e., New IB Jeevan Vidya (offered by LIC)/ IB Vidyarthi Suraksha (offered by PNB Met Life) or under any other policy, as desired by the student borrowers The premium payable for the policy may be considered as an element, eligible for finance.

in India and Abroad

If a course is partly pursued in India and partly Abroad and if the foreign institution issues graduation certificate, the loan account is to be opened under Studies Abroad.

Education Loans

• Education Loans under Premier Elite and Premier Special category institutes may be done anytime during the currency of the loan (which includes Course period, Moratorium & repayment period) provided the guidelines for Sanctioning Education loan in this category of institutes are complied.
• Student should be Regular  in existing course/ studies. 
• All other terms & conditions including security norms and ROI will be applicable based on
  Category of Collage as defined in the Education Loan circular

Annexure – B (Premier Special Institutes) (for studies in Indian & abroad)

Annexure – C (Premier)