EXPENSES CONSIDERED FOR LOAN


1. Fee payable to college/ school/ hostel*

2. Examination/ Library/ Laboratory fee

3. Travel expenses/ passage money for studies abroad

4. Insurance premium for student borrower, if applicable

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

6. Purchase of books/ equipments/ 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 study tours, project work, thesis, etc.***

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

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

** 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.

*** It is likely that expenditure under Item Nos. 6, 7 & 8 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 these heads. However, the maximum expenses included under 6, 7 & 8 may be capped at 20% of the total tuition fees payable for completion of the course.

QUANTUM OF FINANCE


  • Keep the proof of payment of fees and the receipt carefully
  • Studies Abroad - Maximum upto Rs.20 lakhs
  • Note: The ceilings fixed for studies in India and abroad correspond to the limits fixed by the RBI for treatment as priority sector lending. Banks may consider higher quantum of loan on course to course basis (eg: courses in IIMs, ISB etc). It may also be noted that even loans in excess of Rs.10 lakhs qualify for interest subsidy under Central Sector Interest Subsidy Scheme for loans up to Rs.10 lakhs.

    Margin


  • Upto Rs.4 lakhs - Nil
  • Above Rs.4 lakhs Studies in India - 5%
  • Above Rs.4 lakhs Studiesabroad - 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.