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A STUDY OF EXPERIENCES OF
CUSTOMER FOR TAKING EDUCATIONALLOAN PRODUCT PROVIDE BY
DIFFERENT BANKS
SUBMITTED TO: Prof. JITENDRA SHARMA
Prof. DAISY KURIAN
SUBMITTED BY: NIDHI JAIN
DATE: 19 MAY, 2012
XCELLON INSTITUTE- SCHOOL OF BUSINESS
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Project Report on
A study of experience of Customer for taking
educational loan product provide by different banks
Submitted to: Prof. Jitendra Sharma
Prof. Daisy Kurien
Submitted By: Nidhi Jain
A report submitted
In a partial fulfilment for the award
Of the Post Graduate Programme in General Business
Management (201113)
Ahmedabad
19 May 2012
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ACKNLOWLEDGEMENT
It has been my proud privilege to work on the project of A STUDY OF EXPERIENCES OF
CUSTOMER FOR TAKING EDUCATIONAL LOAN PRODUCT PROVIEDE BY
DIFFERENT BANKS. I am highly thankful to Prof. Jitendra sharma, who constantly
supported me in my project in spite of their very busy schedule. I am very grateful to them
for their co-operation and guidance throughout the course of my project.
They have given me the opportunity to make a project which would be a real time
project. They have inspired me from time to time in pursuance of developing this
challenging project. Their timely advice and helping attitude has put me across all the
difficulties. They always gave me their valuable guidance and consent without which the
project could not have come in this volume. They owe to every success of this project and
pitfalls are mine.
I own my deepest gratitude and indebtedness to Mrs. Dasiy Kurin, (Faculty, Xcellon
Institute- School of Business). She has been a great source of inspiration to every respect. I
would like to thanks my allclassmates for their co-operation and guidance throughout my
project, I am very thankful to them for providing me all the relevant data that I need.
Nidhi Jain
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TABLE OF CONTENT
Title page...............................................................................................................................2Acknowledgment....................................................................................................................3
Executive summary...............................................................................................................5
1. Introduction.................................................................................................................6
1.1 About educational loan.........................................................................................6
1.2 Objective of the scheme.......................................................................................7
1.3 Application of the scheme.....................................................................................7
1.4 Eligibility criteria....................................................................................................7
1.5 Quantum of finance..............................................................................................8
1.6 Margin.................................................................................................................8
1.7 Security.................................................................................................................8
1.8 Rate of interest....................................................................................................8
1.9 Appraisal...............................................................................................................9
1.10 Repayment......................................................................................................9
1.11 Insurance........................................................................................................9
1.12 Follow up.......................................................................................................10
1.13 Processing charges........................................................................................10
1.14 Capability certificate............................................................................... ........10
1.15 Other condition..............................................................................................11
2 Detail.............................................................................................................................122.1 Education loan....................................................................................................12
2.2 Allabhad bank education loan.............................................................................15
2.3 HDFC Education Loan.........................................................................................18
2.4 Axis Bank Education Loan..................................................................................20
2.5 SBI Education Loan............................................................................................22
2.6 Bank of Baroda Education Loan..........................................................................23
2.7 UCO Bank Educational loan...............................................................................28
2.8 ICICI Education Loan..........................................................................................31
2.9 IDBI BANK Education loan..................................................................................33
2.10 Syndicate Bank Education loan......................................................................36
3 Research methodology............................................................................................ ......39
4 Analysis.......................................................................................................................42
5 Findings & interpretation................................................................................................48
6 Limitations of the study.................................................................................................88
7 Suggestion....................................................................................................................90
8 Conclusion....................................................................................................................93
9 Annexure.......................................................................................................................96
10 References...............................................................................................................
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EXECUTIVE SUMMARY
In the growing global competition, the productivity of any business concern depends upon
the behavioural aspect of consumers. This topic deals with the customers perceptiontowards Educational loan and their experiences.This project report contains 5 different chapters. The report begins with the introduction to
what is education loan according to Indian Banks Association.
The second chapter is the introduction to the Advance Product which gives a brief idearegarding different Education loan product provide by different banks. It also contains theobjectives and limitations of the project.
The third chapter, methodology adopted in preparing this report is mentioned. Covers thesample procedure, types of data used and the data collection method.
The fourth chapter comprehensive coverage of forecasting concepts and techniques whichshows the analysis of data through tabulation, computation and graphical representation ofdata collected from survey.
The fifth chapter deals with the findings, suggestion & conclusion part which is very muchimportant after analysis is made.
As we know that only analysis and conclusion is not the end of a research, so in the sixthchapter the recommendation part is covered which are made after a depth study of the
analysis part of thesis.
In each of the five chapters as described above, every chapter has been scheduled in amanner so as to enable the reader to appreciate the contents easily. The report issupported by figures and data wherever necessary with a view to assist the reader indeveloping a clear cut understanding of the topic.
I hope this report will be extremely useful for those it is meant. Constructive and healthysuggestions for improvements of the report will be great fully appreciated.
Nidhi Jain
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INTRODUCTION:
1. ABOUT EDUCATION LOAN:Education is central to the human resources development and empowerment in any
country. National and State level policies are framed to ensure that this basic need of the
population is met through appropriate public and private sector initiatives. While
government endeavour to provide primary education to all on a universal basis, public
funding of higher education is not considered feasible. Cost of education has been going up
in recent times and since the student has to bear most of the cost, there is a clear case for
institutional funding in this area. This model education loan scheme is an attempt to bring
out a viable and sustainable bank loan scheme to meet the aspirations of our society.
Knowledge and information would be the driving force for economic growth in the coming
years. The current rate of economic growth of the country demands technically andprofessionally trained man power in large numbers. In this backdrop, loans for education
are seen as investments for economic development and prosperity. The model Education
Loan Scheme was developed by the Indian Banks Association to help meritorious students
pursue higher education in technical and professional courses. As the focus is on
development of human capital, repayment of the loan is expected to come from future
earnings of the student after completion of education. Hence the assessment of the loan will
be based on employability and earning potential of the student upon completion of the
course and not the parental income/family wealth.
Based on recommendations made by a Study Group, IBA had prepared a Model
Educational Loan Scheme in the year 2001 which was advised to banks for implementation
by Reserve Bank of India videos circular No.RPCD.PLNFS.BC.NO.83/06.12.05/2000-01
dated April 28, 2001 along with certain modifications suggested by the Government of India.
In line with the announcement made by the Humble Finance Minister in his Budget Speech
for the year 2004-05, IBA had communicated certain changes in the security norms
applicable to education loans with limits above `.4 laths and up to `.7.5 laths. The scheme
was further modified in the year 2007-08 based on experience gained in the operation of
the scheme over the years.
With increased public awareness about the benefits of the education loan scheme, bank
branches are receiving more and more applications for loans every year. This has also
resulted in cases of customer grievances due to misinterpretation of the provisions of the
scheme. This review exercise has been taken up to make the scheme more transparent
and minimise scope for multiple interpretations leading to disputes.
2. OBJECTIVES OF THE SCHEME
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The Educational Loan Scheme outlined below aims at providing financial support from the
banking system to meritorious students for pursuing higher education in India and abroad.
The main emphasis is that a meritorious student, though poor, is provided with an
opportunity to pursue education with the financial support from the banking system with
affordable terms and conditions.
3. APPLICABILITY OF THE SCHEME:The scheme detailed below could be adopted by all member banks of the Association or
other banks and financial institutions as may be advised by the Reserve Bank of India. The
scheme provides broad guidelines to the banks for operational sing the educational loan
scheme and the implementing bank will have the discretion to make changes as deemed fit.
The scheme details are as under:
4. ELIGIBILITY CRITERIA:4.1 Student eligibility:
The student should be an Indian National
Should have secured admission to a higher education course in recognized
institutions in India or Abroad through Entrance Test/ Merit Based Selection process
after completion of HSC(10 plus 2 or equivalent). However, entrance test or selection
purely based on marks obtained in qualifying examination may not be the criterion for
admission to some of the post graduate courses or research programmes. In such
cases, banks will have to adopt appropriate criteria based on employability and
reputation of the institution concerned.
4.2 Courses eligible
a. Studies in India: (Indicative list)
Approved courses leading to graduate/ post graduate degree and P G diplomas
conducted by recognized colleges/ universities recognized by UGC/ Govt. / AICTE/
AIBMS/ ICMR etc.
Courses like ICWA, CA, CFA etc.
Courses conducted by IIMs, IITs, IISc, XLRI. NIFT, NID etc. Regular Degree/Diploma courses like Aeronautical, pilot training shipping etc.,
approved by Director General of Civil Aviation/Shipping, if the course is pursued in
India.
Approved courses offered in India by reputed foreign universities.
(b) Studies abroad:-
Graduation: For job oriented professional/ technical courses offered by reputed
universities.
Post graduation: MCA, MBA, MS, etc. Courses conducted by CIMA- London, CPA in USA etc.
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8. RATE OF INTEREST :Interest to be charged at rates linked to the Base rate as decided by individual
Banks
Simple interest to be charged during the study period and up to commencement of
repayment.
9. APPRAISAL / SANCTION/ DISBURSEMENT: Applications will be received either directly at bank branches or through on-line
mode. Upon receipt of application, standard acknowledgement giving a reference
number will be issued. The acknowledgement will contain contact details of the bank
official who, could be contacted in case of delay in disposal of application.
Normally, sanction/rejection will be communicated within 15 days of receipt duly
completed application with supporting documents.
In the normal course, while appraising the loan, the future income prospect of the
student only will be looked into.
Rejection of loan application, if any, shall be done with the concurrence of the
controlling authority of the branch concerned and conveyed to the student stating
reason for rejection.
Normally, loan application will be accepted by the branch nearest to the residence of
parents. However, the sanction of loan will be as per delegation of powers by the
bank.
The loan to be disbursed in stages as per the requirement/ demand directly to the
Institutions/ Vendors of equipments/ instruments to the extent possible.
10. REPAYMENT:
Repayment holiday/Moratorium : Course period + 1 year or 6 months after getting job,
whichever is earlier.
If the student is not able to complete the course within the scheduled time, extension of time
for completion of course may be permitted for a maximum period of 2 years. If the student is
not able to complete the course for reasons beyond his control, sanctioning authority may at
his discretion consider such extensions as may be deemed necessary to complete the
course. In case the student discontinues the course midway, appropriate repayment
schedule will be worked out by the bank in consultation with the student/parent.
The accrued interest during the repayment holiday period to be added to the
principal and repayment in Equated Monthly Instalments (EMI) fixed.
1% interest concession may be provided by the bank, if interest is serviced during
the study period and subsequent moratorium period prior to commencement of
repayment. Repayment of the loan will be in equated monthly instalments for periods
as under:
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For loans upto - 7.5 laths - upto 10 years
For loans above - 7.5 laths - upto 15 years
11. INSURANCEBanks may, with the consent of the student, arrange for life insurance policy on the students
availing Education Loan. Individual Banks may work out the modalities with insurance
companies.
12. FOLLOW UP/MONITORING:Banks to contact college/ university authorities to obtain progress report on the student at
regular intervals in respect of those who have availed loans. In case of studies abroad,
bank may obtain the SSN/Unique Identification Number (UIN)/Identity Card and note the
same in the banks records. The UID number issued by UIDIA may also be captured in
banks system as and when available.
13. PROCESSING CHARGES :No processing / upfront charges may be levied on loans sanctioned under the scheme.
14. CAPABILITY CERTIFICATE:Banks can also issue the capability certificate for students going abroad for higher studies.
For this purpose financial and other supporting documents may be obtained from applicant,if required.
15. OTHER CONDITIONS:
15.1 Sanction of loan to more than one child from the same family
Existence of an earlier education loan to the brother(s) and/or sister(s) will not affect
the eligibility of another meritorious student from the same family obtaining education
loan as per this scheme from the bank.
15.2 Minimum Age
There is no specific restriction with regard to the age of the student to be eligible for
education loan. However, if the student was a minor while the parent executed
documents for the loan, the bank will obtain a letter of ratification from him/her upon
attaining majority.
15.3 Top up loans
Banks may consider top up loans to students pursuing further studies within the
overall eligibility limit, if such further studies are commenced during the moratorium
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period of the first loan. The repayment of the loan will commence after the
completion of the second course and further moratorium period, as provided under
the scheme.
15.4 Joint BorrowerThe joint borrower should normally be parent(s)/guardian of the student borrower. In
case of a married person, joint borrower can be spouse or the parent(s)/parents-in-
law.
No Due Certificate
No due certificate will not be insisted upon as a pre-condition for considering education
loan. However, banks may obtain a declaration/ an affidavit confirming that no loans are
availed from other banks.
Disposal of loan application
Loan applications have to be disposed of in the normal course 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.
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DETAIL
Education Loan | Student Loan
Education Loan: Education loans/Student loans are easily available from many banks and
financial institution facilitating many students to pay for their higher education.
Special Education Grant
Special education generally refers to students who are differently-abled. However, it can
also refer to students who require special education needs in other ways. For example,
students with emotional difficulties that make it difficult to study may qualify for certain typesof special education grants and loans. Students who are not able to attend regular classes
for a specific reason may also qualify for special education loans and special consideration
when pursuing a college degree. If, for example, you are hospitalized, you may qualify for
special aid. Special education grants exist from a number of sources. These types of aid do
not have to be paid back but allow students to pay for their education.
Grants for special education should be sought out earnestly by those were qualified for
them. When it comes to grants, special-education students do qualify for both regular grants
and special education grants. Students will want to apply for both types of grants to ensure
that they get the funding they need.
Special Education Financial Aid options:
If you have a condition that prevents you from attending classes or taking part in degree
programs regularly for example, you are differently-abled or seriously ill and cannot leave
the hospital room then special grants and loans exist to help you pay for education.
Students with special needs often find that they require extra money for school. They may
require Braille translated textbooks, for example, or they may require special computer
equipment that allows them to study. Grants designed especially for special-education hopeto address these additional costs for students while at the same time encouraging students
with different abilities to apply for degree program.
Criteria for Special-Education Scholarship, Grant, or Loan:
If you have trouble with school because of the physical, emotional, or mental challenge,
then chances are pretty good that there are financial aid options available for you. Some
types of special-education scholarships or grants are designed for people with specific
types of challenges. Others are simply earmarked for anyone who faces special challenges
when pursuing an education.
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Depending on the grants or scholarships to apply for, you may find that you require
additional application materials. Often, you will need to provide a doctors note or some
other confirmation of your condition. Youll often also be asked to describe how your
condition affects your ability to function.
Types of Special-Education Financial Aid Options:
If you have special needs when it comes to education, there are many places that you can
turn to for financial aid:
The American Council on Educations HEATH Resource Centre Offers Financial
Aid and Advice and Resources for Students
Special Government Grants and Scholarships Exist for Students with Special
Needs
Private Scholarships Created Specifically for Students with Special EducationNeedsYour schools financial aid office will have a list of such private scholarship
and grant opportunities. Most schools have their own scholarships and grants
designed for differently-abled students. If your school has a special education office
or center, that center will be able to give you additional help and resources.
Special Education Loans
If you require additional money because of special needs, special-education borrowing can
help you make up the difference between your needs and your financial aid package.Federal student loan programs as well as private lenders will be able to lend you money
that you can use toward your schooling. Once you finish your schooling or no longer
enrolled, you will need to pay back your debt with interest.
Distance Education Loans
Distance education is more popular than ever today. It allows students to study remotely,
without having to attend classes at a university. This allows students from all walks of life to
pursue a college education without disrupting their family or work life. While there is no
doubt that distance education makes education more accessible to many, students often
find that they require distance education loans in order to pay for their remote education.
Distance learning education loans are more available than ever before. Students can now
turn to a number of sources in order to get the money they need to succeed in school.
Alternative Education Loans
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Alternative education loans are also known as private education loans. These loans are
simply amounts of money lent by private lenders. They may be offered by banks, private
companies, or other financial institutions or persons. The loans are attractive to distance
education students because they are so flexible. You do not need to be a full-time student,
in many cases, to qualify for some form of loan. You often do not need to be a UnitedStates citizen in order to apply for such loan. You can also apply this type of education loan
to any school you attend.
Financial Institution Loans Flexible Loans
You should consider private loans from financial institutions. Student loans from financial
institutions are very flexible, have competitive rates, and can be used for a wide variety of
school related expenses.
Bank Loans
If youre looking for online distance education loans, you may wish to seek out traditional
loans as well. Traditional lines of credit, credit cards, personal loans, and other types of
loans can provide a good alternative to distance education loans. These loans can help you
pay off your education, and do not require an extensive application process. As long as
your credit is decent, you can get approved with competitive interest rates. Of course, you
will need to start repaying your loan right away. However, since many people pursuing
distance education work full time as well, this is rarely a problem. An advantage of this type
of loan is that it does not leave the student with a large debt after graduation. Plus, sincemany people pursuing distance education do so one course at a time, it is possible to get
out one or two small loans in order to pay for education. In many cases, students find that
this is enough.
Employer Education Loans
Some employers offer their employees financial assistance in order to go to school. Often,
this is because extra education can make an employee more productive and more valuable
to the workplace. Some employers are willing to offer private loans, or offer loans based on
employers retirement contributions, in order to allow the employee to attend distance
education courses.
NOW we have all the options in front of you to make the educational journey backed by
proper financial assistance if you need any.
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Allahabad Bank Education Loan
Allahabad Bank Education Loans Schemes Compare Eligibility, Interest Rates, Offers,
EMI and Procedure of Education loan from Allahabad Education Loan.
Eligibility:
Indian National who has secured admission to professional/ technical courses in recognized
institutions in India or Abroad through Entrance Test/ Merit Based Selection Process after
completion of H.S.C. (10 plus 2 OR equivalent).
Courses Eligible:
Courses eligible for study in India:
Approved courses leading to Graduate/ Posy-Graduate degree and P.G. Diplomas
conducted by recognized Colleges/ Universities recognized by UGC/ Govt./ AICTE/ AIBMS/
ICMR etc.
Courses like ICWA, CA, CFA etc.
Courses conducted by IIMs, IITs/ IISc, XLRI, NIFT, NID etc.
Regular Degree/ Diploma Courses like Aeronautical, Pilot Training, Shipping etc. approved
by Director General of Civil Aviation/ Shipping, if the course is pursued in India.
Approved courses offered in India by reputed Foreign Universities.
Courses eligible for Study abroad:
Graduation: For Job oriented professional/technical courses offered by reputed
Universities.
Post Graduation: MCA, MBA, MS etc.
Courses conducted by CIMA London, CPA in USA etc.
Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., the Institute
duly recognized by the Competent University/ State Body/ Local Aviation/ Shipping
Authority.
Education Loan Interest Rates
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(i) For IIT/ IIM/ ISB (loan upto 10.00 Lacs) 10.75%+2.25% = 13.00%
(ii) For Others
(a) Loan upto 4.00 Lacs 10.75%+3.00% =13.75%
(b) Loan above Rs.4.00 Lacs 10.75%+3.00% =13.75%
@ For girl students, rebate @1% will be allowed under each slab.
Rebate of 1.00% on the interest charged in the moratorium period will be provided if the
interest is serviced during the study period when repayment holiday is specified for interest /
repayment under the scheme.
Quantum of Loan:
Need based finance subject to repaying capacity of the parents / students with following
ceilings:
Studies in India: Maximum Rs. 10.00 lac
Studies abroad: Maximum Rs. 20.00 lac.
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 Bills/Receipts of the
Institution, subject to the conditions that amount does not exceed 10% of the total tuition
fees for the entire course.
Travel Expenses/Passage Money for studies abroad.
Purchase of Computers essential for completion of the course at reasonable cost.
Insurance premium for student borrower.
Any other expenses required to complete the course, such as- Study Tours, Project Work,
and Thesis etc.
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Reimbursement of the fee paid at the time of counseling if applied within 60 days from the
date of such payment.
Repayment:
Repayment Holiday / Moratorium is Course Period + 1 year or 6 months after getting job,
whichever is earlier.
Loans up to Rs.7.50 Lac to be repaid within a maximum period of 10 years & those above
Rs.7.50 Lac within a maximum period of 15 years after commencement of repayment
period.
Available Products of Allahabad Bank :-
Allahabad Bank Home Loan
Allahabad Bank Personal Loan
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HDFC Education Loan
HDFC Education Loan: Compare and Choose Best Education Loans with lowest Current
Interest Rates, Documents, Eligibility and Apply Online. With HDFC bank student education
loans, pursue your dream higher studies without worrying for financial assistance. Weprovide student education loans for all Graduate, Post-Graduate, Engineering, Medical,
MBA , Vocational Courses (Multi-Media, ERP) offered by recognized institutions in India. No
more running from pillar to post for availing student loans! Our friendly sales managers will
guide you in every step to make your dreams into reality.
Features & Benefits
Student Loans Upto Rs. 15 Lakhs for education In India
Unsecured Lending Upto INR 7.5 Lakhs
No Collateral Or Third Party Guarantee**
Wider Range Of Collateral For Loans Above INR 7.5 Lakhs
Residential Property
HDFC Bank Fixed Deposit
LIC/NSC/KVP
Loan available upto tenure of 7 years including moratorium period
Repayment to start 1 year after course completion / 6 months after obtaining
employment (whichever is earlier)
Loans available for short duration/ job oriented courses also
Avail the tax rebate, offered under section 80-E of the Income Tax Act 1961* forthe entire interest amount paid towards your education loan.
Click here to view the income tax circular.
E-mail [email protected] to receive interest certificate for FY 09-10.
Loans available for other course related expenses also!
Special privileges Eligibility
Service At Your Door Step You need to be a Resident Indian
Loans disbursed directly to the educationalinstitution as Per the Fee Schdule. You should be aged between 16 35 yrs.
Insurance Protection from HDFC ERGO Collateral is required for all loans greater thanRs. 7.5 Lakhs.
Gateway To Other Banking Products AndServices.
All Loans require a co-applicant. For co-applicant eligibility
Savings Account For complete documentation
Click to Know Fees and Charges
Insurance Protection from HDFC ERGO General Insurance Company Ltd
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HDFC ERGO General Insurance Company Limited is a 74:26 joint venture between HDFC
Limited, Indias premier Housing Finance Institution & ERGO International AG, the primary
insurance entity of Munich Re Group.
HDFC ERGO focuses on providing the Right Insurance Solution for all. They offer
customers complete range of general insurance products ranging from Motor, Health,
Travel, Home and Personal Accident in the retail space and customized products like
Property, Marine and Liability Insurance in the corporate space.
The organization has been expanding its presence across the country and is today present
across 46 cities with 52 branch offices with an employee base of over 650 professionals.
The company has a right balance of distribution channel comprising of Dealerships,
Brokers, Retail and Corporate Agents, Banc assurance and Direct Sales Team.
HDFC Education Loan Fees and Charges: Compare Fees and Charges of HDFCEducation loan online and Apply Online HDFC Education Loan.
Description of Charges Education Loan
Loan Processing Charges Upto a maximum 2% of the loan amount
Prepayment (upto 6 months of repayment ) No pre-payment permitted
Pre-payment charges (after 6 months ofrepayment)
Upto 4% of the Principal Outstanding
No Due Certificate / No Objection Certificate(NOC)
Nil
Solvency Certificate Not applicable
Charges for late payment of EMI @ 24 % p.a. on amount outstanding fromdate of default
Credit assessment charges Not applicable
Non standard repayment charges Not applicable
Cheque swapping charges Upto Rs. 500/- per event
Loan Re-Booking / Re-SchedulementCharges
Upto Rs. 1000/-
Bounce Cheque Charges Upto Rs. 450/- per Bouncing
Legal / incidental charges At actual
Stamp Duty & other statutory charges As per applicable laws of the state
For studies in India, maximum Rs. 10 laces
Studies abroad, maximum Rs. 20 laces
http://www.deal4loans.com/loans/education-loan/education-loan-student-loan/http://www.deal4loans.com/loans/education-loan/education-loan-student-loan/ -
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Axis Bank Education Loan
Axis Bank Education Loan Axis Banks Study Power aims to provide financialsupport to deserving students for pursuing higher professional or technical education in
India and abroad. The loan would be provided to students who have obtained admission to
career-oriented courses e.g., medicine, engineering, management etc., either at the
graduate or post-graduate level. Apply online for Education Loan
Axis Bank Offers Loan upto Rs.10 laces for studies in India and Loan upto Rs. 20
lacs for studies abroad.
Rates of
Interest
Loan
Processin
g Charges
Prepaymen
t Charges
No Due
Certificat
e
Solvency
Certificat
e
Charges
for Late
Paymentof EMI
Charges
for
changing from
fixed to
floating
rates of
interest
Charges
for
changing from
floating
to fixed
rates of
interest
13.75%
15.75%
*Repayable in
maximum 7
years from the
commencement of instalment.
Nil Nil NA NA Rs 500 +
taxes per
cheque
bounce
and a
penalinterest
@24% perannum i.e.
@ 2% per
month on
the
overdue
instalment/
s
NA NA
Quantum of Loan:
The quantum of finance under the scheme is capped at Rs 10.00 lacs for studies in India and Rs20.00 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books,
etc. The minimum amount of loan would be Rs 50,000.
Margin:
No margin for loans upto Rs 4 lacs. For loans above Rs 4 lacs, 5% margin for studies within India
and 15% for higher studies overseas.
Role of the Guardian:
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The parent(s) or guardian of the student would be treated as a co-applicant of the loan. His or her
role would be, necessarily, like the primary debtor.
Security:
Third party guarantee and/or collateral security may be asked for in appropriate cases.
Additional Security:
Assignment of LIC policy in favour of the Bank for the sum assured being at least 100% of the loan
amount. The policy is kept alive during the currency of the loan. To ensure this, the annual premium
may be included in the computation of the loan requirement, along with the tuition fees and other
recurring charges. Further, the future income of the student needs to be assigned in favour of the
Bank for meeting the instalment obligations.
Disbursement:
The loan will be disbursed in full or in suitable instalments taking into account the requirement of
funds and/or fee schedule as assessed by the Bank directly to the educational institution or vendor
of books or equipment or instruments.
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SBI Education Loan
Loan Amount Rate of Interest
Loans upto Rs. 4.00 Lacs 11.25% p.a.Loans above Rs. 4.00 Lacs and upto Rs. 7.50 Lacs 12.75% p.a.
Loans above Rs. 7.50 Lacs 11.75% p.a.
An Interest Rate concession of 0.50% to Girl Student availing Student Loans
Documents required for SBI Education Loan
Completed Education Loan Application Form.
Mark sheets of last qualifying examination
Proof of admission scholarship, studentship etc
Schedule of expenses for the specified course
2 passport size photographs
Borrowers Bank account statement for the last six months
Income tax assessment order, of last 2 years
Brief statement of assets and liabilities, of the Co-borrower
Proof of Income (i.e. Salary slips/ Form 16 etc)
Repayment Tenure
Repayment will commence one year after completion of course or 6 months after securing a job,whichever is earlier.
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BANK OF BARODA Education Loan
Baroda Education Loan
Education is the most important investment one makes in life. Higher studies and
specialization in certain fields call for additional financial support from time to time.
Whether you are planning school education (nursery to standard XII) of your child, pursuing
a graduate or post-graduate degree, the Bank of Baroda Education Loans, can help finance
your ambitions and goals.
Following are the loan options available:
Bank of Baroda presents a one of its kind finance option for parents of students pursuing
school education. These loans are available for studies from Nursery to Senior Secondary
School.
No processing & documentation charges.
No Margin.
No security required.
Eligibility :
Should be an Indian national residing in India.
Student should have secured admission to a recognized school / High school / Jr.
College (including CBSE / ICSE / State Board) for any of the following courses
1. Stage I : Nursery to Vth STD.
2. Stage II : VI th to VIII STD.
3. Stage III : IX th to XII th STD.
Coverage of expenses for :
Fee payable to college / school.
Examination / Library / Laboratory Fee.
Fee and other charges payable to hostel.
Purchase of books / equipments / instruments / uniforms.
Personal Computers / Laptops wherever required.
Caution deposit / building fund / refundable deposit supported by institution bills /
receipts
Maximum Loan Amount: Rs.4.00 Lacs
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Repayment Period :
Loan for each yearly sub limit is repayable in 12 equal monthly instalments. First
instalment to be due 12 months after first disbursement of each year's loan
component.
The parents must be residing in the place for a minimum period of -3- years, except in the
case of transferable job.
Security :
In case the loan is given for purchase of computer the same is to be hypothecated to
the bank.
Rate of Interest :
1% concession in rate of interest to loans for girl students.
Interest to be serviced as and when applied during moratorium period.
Penal Interest @ 2% on overdue amount if the loan amount exceeds Rs. 2/- lacks
Baroda Gyan
A loan product specially designed for students pursuing Graduation, Post - Graduation,
Professional & Other courses in India. Bank of Baroda extends a helping hand to energizeyour studies and promote education of the youth.
No processing charges.
No Margin on loans upto 4 lacs.
Free Debit Card.
Courses Eligible :
All Graduation courses.
All Post Graduation courses & Doctorate courses.
Professional Courses viz. Engineering, Medical, Agriculture, Veterinary, Law,
Dental, Management, Computer, Ayurved, Homeopathy, Physiotherapy, Hotel
Management, Hospital Management, Interior Designing, Architecture, Event
Management, Mass Communication, Fashion Technology, etc.
Computer certificate courses of reputed institutes accredited to Dept. of
Electronics or institutes affiliated to Universities.
Courses like C.A, ICWA, CFA, CS, etc.
Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.
Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc.,approved by Director General of Civil Aviation/shipping.
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Other courses leading to diploma / degree etc. conducted by colleges/universities
approved by UGC/Govt./ AICTE/ AIBMS/ ICMR etc.
Courses offered in India by reputed foreign Universities.
Evening courses of institutes approved by
State/Central/Govt./UGC/AICTE/AIBMS/ICMR/ICAR. Courses offered by National Institutes and other reputed private institutions. The
College/Institute must have been approved by the State/Central
Govt./UGC/AICTE,etc.
Student Eligibility:
Should be Resident Indian.
Secured admission to either of above courses
Coverage of Expenses:
Fee payable to college / Institution / University.
Examination / Library / Laboratory Fee.
Fee and other charges payable to hostel.
Purchase of books / equipments / instruments.
Personal Computers / Laptops wherever required.
Caution deposit / building fund / refundable deposit supported by institution bills /
receipts.
Any other expenses required to complete the course - like study tours, projectworks, thesis, etc.
Maximum Loan Amount : Rs.10.00 Lacs.
Margin :
Upto Rs. 4.00 lacs :- NIL
Above Rs. 4.00 lacs :- 5%
Margin is to be contributed on pro rata basis on year to year basis as and when
disbursements are availed.
Repayment Holiday / Moratorium Period :
Course period + 1 year or 6 months after getting job, whichever is earlier.
Repayment Period :
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The loan is repayable in 5-7 years after the above period.
Security :
Upto Rs.4 lacs : No security
Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable
third party guarantee alogn with assignment of future income.
Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan
amount along with assignment of future income
Rate of Interest :
Simple interest to be charged at monthly rests during the repayment holiday /
moratorium period.
1% interest concession is provided if interest debited during repayment holiday is
serviced.
1% Concession in rate of interest to loans for girl student.
Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds
Rs.4.00 lacs.
For loans above 4 lacs, interest rate will be 2 % above base rate for ISB,
Hyderabad Students which is 2 % less than that for students of other institutes
Baroda Scholar
Bank of Baroda presents financial assistance to students going abroad for Professional /
Technical studies. The loan offering is designed to empower you with the financial capability
to realise your dreams... Achieve your goals... Reach out to the maximum limits...
Eligibility of Courses :
Graduate/Post Graduate / Doctorate / Job Oriented Professional / Technical Courses
offered by reputed Universities overseas.
Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc. The Institute
should be recognized by the competent local aviation / shipping authority and Director
General of Civil Aviation/shipping in India.
Student Eligibility :
Should be an Indian National.
Secured admission to Professional/Technical Courses at foreign
Universities/Institutions.
Coverage of expenses (for overseas studies) :
Admission/Tuition fees to College/University.
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Hostel/Mess charges.
Examination/Library/Laboratory fee.
Purchase of books/equipments/instruments.
Caution deposit/building fund/refundable deposit supported by institution
bills/receipts. One way travel expenses/Passage money.
Purchase of computers if essential for completion of the course.
Any other expense required to complete the course e.g. study tour, project work,
thesis etc.
Maximum amount of loan:Rs. 20.00 Lacs.
Margin:15%
Repayment Period :
Repayment Holiday/Moratorium Period :
Course period + 1 year or 6 months after getting job, whichever is earlier.
The loan is repayable in 5-7 years after the above period.
Security:
Upto Rs.4.00/- lacs : No security Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable
third
party guarantee alogn with assignment of future income.
Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan
amount along with assignment of future income
Rate of Interest:
Simple interest during repayment holiday/moratorium period.
1% interest concession, if interest debited during the repayment holiday is
serviced.
1% Concession in rate of interest to loans for girl student.
Penal interest @ 2% p.a. on overdue amount if loan exceeds Rs.4/- lacs.
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UCO Bank Education Loan,
UCO Bank Provides Education Loan, for eligible Indian students studies in India and
Abroad. UCO Bank Education Loan Interest rates vary depends on the total Loan
sanctioned and type of Course. UCO Bank Provides Education loan of 4 laths to 10 laths for
Indian Education courses of Graduation and Post graduations. For Abroad studies the loan
will be up to 20 laths. You can have the complete details on UCO Bank Education loan,
Interest rates, Documents required while submitting the application form, Schemes,
courses, re-payment and eligibility for UCO Bank Education loan for student to study in
India & abroad
UCO Bank Education loan interest rates, terms and conditions
UCO Bank Education loan starts form 4 laths and the max loan scheme is 10 laths for
Education in India. And up to 20 laths for study abroad. Students, who want to take loan
amount of 4 laths , no need to give any security. UCO Bank Education loan re-payment
period is 5-7 years.
For more than 4 laths and up to 7.5 laths of Education loan, student have to give third party
guarantee to re payment of Education loan along with parents(Third party) Salary
documents, Bank balance sheet and other Property proofs.
For more than 7.5 laths and up to 10 laths, UCO Bank executives will check all necessarydocuments, according to UCO Bank Education loan terms and conditions to provide loan as
per parents future Income and type of course selected by student.
Up to 20 laths education loan(only for foreign studies), students have to submit all
documents with proof of admission in college, according to UCO Bank terms and conditions
UCO Bank Education loan Interest Rate:
For 4 laths of UCO Bank loan, students have to pay 13.75% per year and the amount of
above 4 laths and below 7.5 laths need to pay 14.50% of interest. Candidates, who got
more than 7.5 laths and up to 20 laths, have to pay interest rate of 14.50% per year. You
can have the below chart to get conclusion on UCO Bank Education loan Interest rate.
4 Lakhs- 13.75% p.a
4 laths to 7.5 laths- 14.50% p.a
Above 7.5 lakh 14.50% p.a
UCO Bank Education Loan courses:
1. Regular Professional and Technical Education courses of Graduation and Post-graduation studies, which are approved by AICTE/UGC/Government of India.
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2. Aeronautical, Shipping degree and Diploma courses
3. Teacher Training and Nursing Courses, approved by state government or central govt of
India.
4. Job oriented professional courses for abroad studies
4. Degree/Intermediate courses
UCO Bank Education Loan covers:
UCO Bank Education Loan in India and foreign includes College fee, exam fee, building fee
and other fees like library/lab etc. With this Education loan you can purchase any 2-
wheeler. You can have the complete expenses and how this Education loan helps you to
study in India and abroad
Examination fee
Tuition Fee
2-Wheeler/travel expenses
Laboratory/Library fees
Books and other Equipment charges
Purchase Computer/Laptop
Insurance
Hostel Fee etc
Documents required while applying for UCO Bank Education loan tostudy in India and abroad:
Students have to submit the following documents to get UCO Bank Education loan.
Candidates have to fill the UCO Bank Education loan application form and must include
relevant necessary documents of latest last 2 months salary slip of parent and income tax
assessment sheet. Student have to attach one set of Education qualification certificates of
his/her last studies like 10th class and Intermediate etc. you can have the complete details
on UCO Bank Education loan documents need to submit to approve/get loan.
Income Proof-Any either salary slip/other
Residency proof
Education Certificates of SSC, Intermediate and other necessary, if required.
Income tax assessment of last 2 years
Last 6 months of Bank account balance sheet
Latest 2 passport Photo graphs
Admissions proof in college
Passport/Visa
Repayment:
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1. After 1 year completion of course or After 6 months of getting job, whichever is happen
earlier?
2. Loan re Payment period is commencement of 5-7 years
to Get more details on UCO Bank Education Loan
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ICICI Education Loan
The Educational Loan Scheme aims at providing financial support to deserving/ meritorious
students for pursuing higher education in India and abroad.
Eligible Student :
Should be an Indian National
Secured admission to professional/ technical courses in India or Abroad through
Entrance Test / Merit Based Selection process.
Courses Eligible :
Studies in India
Graduation courses, Post Graduation courses, Professional courses, Computer
certificate courses, Courses like ICWA, CA etc, Courses conducted by IIM, IIT 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 etc., Courses offered by National
Institutes and other reputed private institutions, Teacher Training Course/Nursing
Course/B.Ed approved either by the Central Government or by State Government
and such courses should lead to Degree or Diploma Course
Studies abroad
Graduation : For job oriented professional/ technical courses offered by reputed
universities, Post graduation: MCA, MBA, MS, etc., Courses conducted by CIMA-
London, CPA in USA etc.
Expenses considered for loan :
Fee payable to college/ school/ hostel
Hostel expenses (Wherever students have to stay outside the campus or avail
private accommodation banks may consider reasonable lodging & boarding
expenses)
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.
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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.10.00 lacs Studies abroad - Maximum Rs.20.00 lacs
Margin :
Upto Rs 4 lacs : Nil
Above Rs 4 lacs : Studies in India 5% Studies Abroad 15%
Security :
Loans Upto Rs 4 lacs - Co obligation of parents.
Further wherever parents are not there banks could consider grandparent as co
obligator to the loans taking into account their net worth
Above Rs 4 lacs and upto Rs. 7.5 lacs
Co obligation of parents along with Collateral in the form of a suitable third party
guarantee for 100% of the loan amount to be taken
For cases above Rs 7.5 lacs
Co obligation of parents along with Collateral security of 100% value of loan
Assignment of future income of the student for payment of the loan instalments for all loans
The co-obligator should be parent(s)/guardian of the student borrower. In case of married
person, co-obligator can be either spouse or the parent(s)/parents-in-law
Rate of Interest :
I Base + Applicable Margin
At least 0.50% concession in interest rates on Education Loans to girl students for
pursuing higher education in India and abroad
Penal interest @2%
Repayment / Holiday :
The repayment holiday shall be a year more than the period of the course or 6
months after the borrower gets a job, whichever is earlier.
The loan shall be repaid in 5 - 7 years after commencement of repayment
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CENTRAL BANK OF INDIA Education Loan
Objective
The scheme aims at providing financial assistance on reasonable terms :
To the poor and needy to undertake basic education.
To the student/employed persons to pursue higher education
Eligibility
Studies in India :
School education including plus 2 stages.
Graduation courses - B.A., B.Com., B.Sc. etc
Post Graduation courses - Masters & Ph.D.
Professional courses - Engineering, Medical, Agriculture, Veterinary, Law,
Dental, Management, Computer etc.
Computer Certificate course of reputed institutions accredited to
Department of Electronics or Institutions affiliated 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 institutions.
Other courses leading to Diploma/Degree etc. conducted by Colleges/Universities
approved by UGC/Govt./AICTE/ICMR etc.
Courses offered by National Institutes and other reputed private institutions. Any other
institution courses depending on future prospects/recognition by user institutions deemed
proper by the Bank.
Studies Abroad:
Graduation: For job oriented professional/technical courses offered by reputed
Universities.
Post Graduation: MCA, MBA, MS. etc.
Courses conducted by Chartered Institute of Management Accountants (CIMA) -
London, Chartered Public Accountant (CPA) - USA etc.
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Students Eligibility
Should be an Indian National.
Student should be in the age group of 16 to 40 yrs
Secured admission to Professional/Technical courses through Entrance
Test/Selection Process.
Secured admission to Foreign University/Institutions.
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.
Travel expenses/passage money for studies abroad. Purchase of computers - essential for completion of the course.
Any other expenses required to complete the course - like study tours, project
work thesis etc.
To meet insurance premium for the policy on the life of the student.
Reimbursement of these expenses already incurred/loan taken from identified sources (to
meet the contingencies) by the applicant on merits is allowed, subject to production of
original receipts within one month if applicant has secured admission in India and within six
weeks if the applicant is going abroad.
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
Margin
Up to Rs. 4 lacs - No margin
Above Rs. 4 Lakhs In India 5%
Abroad 15%
* Scholarship assistance 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.
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Security
Up to Rs.4 Lakhs: No security .Only to take co-obligation of either or both
parents/guardian
Above Rs.4 Lakhs and upto Rs 7.50 Lakhs: Collateral in the form ofsatisfacfactory third party guarantee
Above Rs.7.50 Lakhs: Collateral security of suitable value or co-obligation of
parents/ guardians/ third party along with the assignment of future income of
the student for payment of instalments
Interest Rates
As per new rates. For more details visit bank site
Concessions
1% interest concession, if the interest is serviced during study period.
The interest is charged quarterly/monthly on a simple interest basis during
Repayment /Moratorium period.
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IDBI BANK Education loan
Education loans from IDBI Bank aim at providing financial support to deserving / meritoriousstudents for pursuing higher education in India and abroad. With an array of courses to
choose from and easy repayment options, IDBI Bank makes sure you get completefinancial backing.
Courses offered
An instalment based loan for all courses mentioned below:
a.Studies in India:
Graduation courses: BA, B.Com., B.Sc., etc Post Graduation courses: Masters & PhD Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental,
Management, Computer etc Computer certificate courses of reputed institutes accredited to Dept. of Electronics
or institutes affiliated 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. Banksmay have the system of appraising other institution courses depending on futureprospects/ recognition by user institutions.
b.Studies abroad:
Graduation: For job oriented professional / technical courses offered by reputeduniversities. Post graduation: MCA, MBA, MS, etc. Courses conducted by CIMA-London, CPA in USA etc.
c.Special Courses
Regular Degree/Diploma courses like Aeronautical, pilot training, shipping etc.,approved by Director General of Civil Aviation/Shipping. In case the course ispursued abroad, the competent local aviation/shipping authority should recognize theInstitute.
Loan AmountMaximum loan amount:
Study in India- 10 laths Study Abroad - 20 laths
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Loan Margin:
Upto 4 lac - Nil Above 4 lac - - studies in India - 5% of the total course expenditure - studies
abroad - 15% of the total course expenditure
Expenses Covered under 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 completion of the course Any other expense required to complete the course - like study tours, project work,
thesis, etc. Insurance premium for student borrower
Repayment terms
The repayment of loan to begin after the course period + 1 year or 6 months after gettinga job, whichever is earlier. The loan to be repaid within 5-7 years (maximum tenor 84months) after commencement of repayment.
Rate of Interest
Loan amount Rate of Interest (RoI)
Up to 4 laths 13.25%p.a.(Linked to BR)
Above 4 laths and up to 7.5 laths 13.50%p.a.(Linked to BR)
Above 7.5 laths up to 20 laths 13.00%p.a.(Linked to BR)
Base Rate(BR) = 10.75% (w.e.f. August 01,2011) Base rate subject to change
Simple interest to be charged during repayment holiday and moratorium Accrued interest
during the repayment holiday period should be added to the EMIs.
Where the borrower has not opted for the repayment holiday or is willing to service theinterest during the repayment holiday (for principal) the interest rate should be 1% lowerthan the applicable rate.
50 basis points reduction for girl applicants 50 basis points reduction for physically challenged applicants (subject to submission
of certificate from a medical practitioner) 25 basis points for students of SC/ST/Minority community
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Collateral Security
Up to 4 lacs No security
Above 4 lacs and up to 7.5 lacs Collateral in the form of a third party guarantee
Above 7.5 lacs Collateral security in the form of Land/ building,(The minimum value shall be 1.33 times theamount of loan sought).Govt. securities/ Public Sector Bonds/ Units of
UTI, NSC, KVP, LIC policy, gold, shares/debentures, bank deposit in the name ofparent/ guardian or in the name of the co-applicant (The minimum value shall be 1.1times of the amount of loan sought).
Wherever the land/ building is already mortgaged, the unencumbered portion can be takenas security on IInd charge basis provided it covers the required loan amount. In case theloan is given for purchase of a computer the same to be hypothecated to the Bank.
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Syndicate Bank Education Loan
SyndVidya
A Syndicate Bank's Education Loan Scheme
Syndicate Bank's involvement in education dates back to the decades prior to theNationalisation of Banks. The Bank was also the first to set up a string of Rural TrainingInstitutes aimed at empowering the young India in rural areas through entrepreneurialeducation and training.
Continuing this commitment to education, the Bank has introduced a comprehensiveEducation Loan Scheme-SyndVidya, which is more student responsive and parent friendly.The Scheme covers the entire spectrum of educational needs from the school education to
super speciality courses including overseas courses. The scheme makes available needbased finance to cover expenses related to education such as fees payable to College,Hostel, Examination, Library, Laboratory fees, caution deposit/building fund/refundabledeposit upto 10% of tuition fee, Cost of Books, Equipments, Travel expenses for studiesabroad etc. Only capitation fees, donation or external coaching fee are not covered. Theloan scheme carries liberal limits of Rs.10.00 lac for courses within the country andRs.20.00 lac for overseas courses. The scheme which is attractively priced at the Bank'sprime lending rate and other details are furnished below :
Eligibility Criteria
Any student who is a major representing himself or a minor student representedby parent or guardian of Indian nationality.
Must have secured admission on the basis of merit to professional/technical/other courses through entrance test/selection process.Deviation/relaxation is also permitted under special circumstances.
Must have secured admission to Foreign universities/Institution (for studiesabroad).
a) Studies in India.
Graduation: B.A., B.Com, B.Sc., etc.
Post graduation: Masters & PhD.
Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, DentalManagement, Computer etc. In respect of Management studies, apart fromUniversity affiliation, course should also be approved by All India Council forTechnical Education. For Computer education, the recognised training Instituteshould have accreditation of DOE, Govt of India to conduct the course underDepartment of Electronics Accreditation of Computer Course (DOEACC)Scheme.
Computer certificate courses of reputed institutes accredited to Department of
Electronics or Institutes affiliated to Universities.
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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
acceptable to the Bank.
b) Studies abroad.
Graduation: For job oriented professional/technical courses offered by reputeduniversities.
Post Graduation: MCA, MBA, MS. Etc.
Courses conducted by CIMA-London, CPA in USA etc.
Other Foreign Diploma courses are not eligible.
Student Eligibility
Should be an Indian National.
Secured admission on the basis of merit to professional/technical coursesthrough Entrance Test/Selection process. Deviations/relaxations are alsopermitted under special circumstances.
Secured admission to foreign university / institutions.
The student who is a major representing himself or a minor student representedby parent or guardian.
Quantum of Loan
Need based finance to meet expenses such as fee payable to college / school /hostel, examination fee, cost of books, travel / passage fare for studies abroadetc.
Capitation fee / donation / external coaching fee are not eligible for finance.
Maximum of Rs.10.00 lac for studies in India and Rs.20 lac for studies abroad.
Margin
For loans upto Rs.4 lac - No Margin required.
For loans above Rs.4 lac - 5% for study in India and 15% for study abroad.
Security
For loans upto Rs.4.00 lac - NIL.
For loans above Rs.4.00 lac and upto Rs.7.50 lac - Collateral in the form of
satisfactory third party guarantee acceptable to the Bank.
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For loans above Rs.7.50 lac - Collateral security with 25% margin covering theloan amount and assignment of future income of the student for payment of loaninstalments.
Interest (PLR presently 13.25%)
For loans upto Rs.4.00 laths - PLR minus 1.50%
For loans above Rs.4.00 laths - PLR minus 1.00%
Girl students and students belonging to SC/ST category are eligible forconcession of 0.50% on the above rates.
Girl students under SC/ST category are eligible for a further concession of 0.25%on the above rates.(Total concession of 0.75%)
Simple interest to be charged during the Repayment holiday/Moratorium period.
Penal interest to be charged as applicable
No processing charges/service charges are levied for educational loans
Repayment
In 5 to 7 years commencing one year after completion of the course or 6 monthsafter securing the job whichever is earlier.
Capability Certificate
Capability certificate for students going abroad for higher studies are also issuedon production of financial and other supporting documents.
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RESEARCH METHODHOLOGY
Research methodology is a methodology for collecting all sorts of information & datapertaining to the subject in question. The objective is to examine all the issues involved &conduct situational analysis. The methodology includes the overall research design,sampling procedure & fieldwork done & finally the analysis procedure. The methodologyused in the study consistent of sample survey using both primary & secondary data. Theprimary data has been collected with the help of questionnaire as well as personalobservation book, magazine; journals have been referred for secondary data. Thequestionnaire has been drafted & presented by the researcher himself.
Steps in Research methodology:
Step 1: Objective of study of Education loanThe first step in this study is the defining the objective of the study and according to thatdevelops the further plan.
Step 2: Developing plan for gathering informationThis stage calls for developing the most efficient plan for gathering the need information.Decide the methods of data collection and the data sources, sampling method and contactmethod. Decide the primary and secouces for collecting the data.
Step 3: collect the information
this is the most important step in the study. This is up to the individuals ability to gather theinformation from the selected samples.
Step 4 : analyze the information
Step 5: Present the findings
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Defining the problem
&
Research objective
Develop research plan
Collect the information
Analaysis of the
information
Present the findings
Make the decision
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Research Design
MANAGEMENT QUESTION: For what course the student taking education loan.
How much amount they generally like to take.
From which bank they generally like to take loan.
The customer are satisfied with services provided & disbursement
What are the criteria, a customer consider while taking education loan.
RESEARCH OBJECTIVE:
1. To identify the factor and its importance in education loan customer prospect.
2. To understand customer preference to selecting bank for education.
3. To understand satisfaction and dissatisfaction level of customer who is already taken
to education loan.
4. To understand general practices to taking education loan and process followed.
Type of Research Design
Descriptive Study:
Descriptive research is also called Statistical Research. The main goal of this type ofresearch is to describe the data and characteristics about what is being studied. The idea
behind this type of research is to study frequencies, averages, and other statistical
calculations. Although this research is highly accurate, it does not gather the causes behind
a situation. Descriptive research is mainly done when a researcher wants to gain a better
understanding of a topic for example, a frozen ready meals company learns that there is a
growing demand for fresh ready meals but doesnt know much about the area of fresh food
and so has to carry out research in order to gain a better understanding. It is quantitative
and uses surveys and panels and also the use of probability sampling.
Descriptive research is the exploration of the existing certain phenomena. The details of the
facts wont be known. The existing phenomenas facts are not known to the persons.
Sample size: 100
95% confidence level
8% confidence interval
Collage going population of Ahemdabad= 5 lac.
Method of sampling:
Convenience sampling
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Contact method Personal interval with the help of questioner
Data collection time 2 May,2012 to 4 May,2012
Data analysis method :-
Simple graph and tables
ANOVA, Chi-Square Average
Correlation, rogation
Research Instrument
Questionnaire
Software used
Excel & Sample size calculator
Sampling Design
The sampling design adopted was convenience and quota of non probabilistic in which we
got filled questionnaire from 56 respondents 50 were from State Bank of Indias customer
and the rest 6 from the customers of other banks. So my sample size would be 56. Eligible
respondents will be adults over the age of 18. The quota that we had taken was on the
basis of the Net Monthly Income of the household and the Amount Sanctioned for the Loan
dividing it equally on both the range.
Questionnaire Formulation
The scaling technique used in the questionnaire was the Non-Comparative Scaling
technique. Under Itemized Rating we used the Likert Scale where weasked the questions
for which the respondents would had to answer on the scale of 1to 5, 1 being strongly
disagree and 5 being strongly agree, and also for the satisfaction level of the customers 1
being totally dissatisfied and 5 being totallysatisfied.
Data Collection
For the complete survey respondents were chosen in such a way that the responses can be
analyzed on each other. I chose respondents mainly from State Bank of India keeping in
mind about the Quota of the Net Monthly Income of the house hold and the Loan amount to
be sanctioned. I conducted a personal interview for the customers who visited the bank and
the maximum number of my responses was taken on an interview over telephone. For the
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responses of the other banks customer I visited other banks and interviewed through
laddering questions about not being a customer of the State Bank of India.
Source of data collection
a. Primary dataPrimary data is a data, which is gather by the researcher himself. This data can be collected
through experiment or through survey. The various method of primary data collection is,
1. Observation Method
2. Interview method
3. Questionnaire method
The method adopted in this study is:
Personal interview through structured questionnaire of existing customers who already
taken a loan from different banks etc, Sample of questionnaire is attached as an annexure
b. Secondary data.
Secondary data refers to the data which have already been collected and analyzed by
someone else usually published data are available in form of,
1. Various publication of central, state and local government.
2. Book magazine and newspapers.
3. Accounting records, sales force reports etc.4. Website of banks.
The method adopted in this study is:
Collecting data from website of various banks, articles given in various sites etc. This
mentioned in the references of the project
Diagrammatic Approach
Data analysis involved converting a serious of recorded observation into descriptionstatement. The analysis will be showed with the help of tables.
Sampling plan
This plan calls for the main three decision for selecting the sample of bank from whole
population of bank in the city.
1. Sample Units
Here I define the target population that will be sampled that is people who taken the
educational loan. Total number of banks working in India are approximately 50.
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2. Sample size
Large sample gives more reliable results than small samples. I have taken 20% of
population of study i.e. 10 units banks are undertaken for study.
3. Data collection procedure
Here, i took all the information needed for the study, by means of personal visits to
banks and by interview. This is the most versatile method. The interviewer can ask more
number of question; can record additional about the respondents.
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Analysis
As per questionnaire and market surveys I have find out different responses from differentpeople. According to their responses I analyze the findings and draw certain remarks.
Gender
male 71
female 29
Total 100
It has been observed that approximately 71% of correspondent respondent are male who
take the education loan and 29 % of female are taken education loan for their completing
their studies.
male
female
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Age
Below 15 0
15 to 20 18
20 to 25 74
25 above 8
Total 100
From the above collected data, it is clear that 74% of the customer for education loan arefall in the age of20- 25. So the Target market for Educational loan provider institute are
Youth.
Below 15
15 to 20
20 to 25
25 above
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Education
HSE 6
UG 22
PG 72Total 100
It is clear that the youth which falling in age group of 20-25, are take loan for their higher
studies, and complete their post gradation. So the institute and bank which provide the
educational loan can tie-up with those educational institute who provide P.G. cources like
M.B.A, M.C.A, M.E, B.E & study abroad.
Education
HSE
UG
PG
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Professional
student 69
Non- Student 31
Total 100
Sample population who willing to take education loan are include 69% of student and 31%are completed the studies but not yet return the loan amount to the bank.
Professional
student
Non- Student
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Name
Axis 12
SBI 31
BOB 10BOI 8
ICICI 5
IDBI 3
HDFC 2
PNB 5
CBI 17
OTHER 7
Total 100
From this survey it is come to know that SBI is most trusted bank and majority of person
have their bank account in SBI Bank. After that CBI, Axis, BOB have established the trust in
their customers mind.
Name
Axis
SBI
BOB
BOI
ICICI
IDBI
HDFC
PNB
CBI
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1. Have you taken a loan for financing your education?
YES 100
NO 0
Total 100
In my sample size all 100% the respondent are taken the education loan.
0
20
40
60
80
100
120
YES NO
Question 1
Series1
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2. What is the amount have you taken in Education loan?
Above 1 lack 1-3 lack 3-5 lack 5-8 lack Above 8 lackAbove 1 lac 6
1-3 Lac 33
3-5 Lac 42
5-8 Lac 10
Above 8 Lac 9
Total 100
Generally people take loan of upto 5 lac. For their education. There are some people who
take loan of more than 5 lac. But in some special condition of styling abroad or for long
duration cources.
0
5
10
15
20
25
30
35
40
45
Above 1 lac 1-3 Lac 3-5 Lac 5-8 Lac Above 8 Lac
Question 2
Series1
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3. For which course have you taken this education loan for?
Other (please mention) _____________________________________
AS 8
B.E 11LLB 2
MBBS 36
MBA 3
MCA 2
ME 1
Msc. 3
PGPGBM 31
OTHERS 3
Total 100
36 respondent take education loan for completing their MBBS and 31 respondent out of 100is taken loan for completing their PGPGBM.
0
5
10
15
20
25
30
35
40
AS
B.E
LLB
MBBS
MBA
MCA
ME
Msc.
PGPGBM
OTHERS
Question 3
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4. From which bank have you taken this loan?
Please mention__________________________________________
Axis 11
SBI 27
BOB 6
BOI 5
ICICI 4
IDBI 2
HDFC 2
PNB 5
CBI 26
OTHER 12Total 100
According to my sample size 27 of prefer SBI for loan product, but 26 people prefer CBI, Axisbank is prefer by 11 respondent, HDFC or OTHER Bank for loan because they are working withthat bank & it is easier for them to get loan from their bank & it easier for them to pay theinterest because it is less as compare to other bank because they are the employee of thatbank.
0
5
10
15
20
25
30
Axis
SBI
BOB
BOI
ICICI
IDBI
HDFC
PNB
CBI
OTHER
Question 4
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5. Why you have selected this particular bank?
1=Highly Agree 2=Agree 3=Indifferent 4= Disagree 5=Highly Disagree
1 2 3 4 5
A).No Security required
B).Low Rate of InterestC).Brand name
D).Loan repayment option
E).Less formalities in Documentation
F).Transparent transaction
G).Institute recommendation
H).Behaviour & Method of Treatment by BankStaff
I).Bank Infrastructure & Branches in Hometown
Other _______________________________ (Please Specify)
Descriptive Statistic
A) B) C) D) E) F) G) H) I)
Mean 2.07 2.15 2 2.01 2.19 2.21 2.35 2.19 2.23StandardError 0.11742 0.0998 0.094280 0.09155 0.10317 0.1007 0.11315048 0.11073218 0.09832
Median 2 2 2 2 2 2 2 2 2
Mode 1 2 1 2 2 2 2 2 2StandardDeviation 1.17426 0.998736 0.94280 0.91557 1.0317 1.00799 1.13150476 1.10732182 0.98324SampleVariance 1.37888 0.99747 0.888889 0.83828 1.0645 1.01606 1.28030303 1.22616162 0.9667
Sum 207 215 200 201 219 221 235 219 223
Largest(1) 5 5 4 4 5 5 5 5 5
Smallest(1) 1 1 1 1 1 1 1 1 1Confidence
Level(95.0%) 0.23299 0.198170 0.187073 0.18167 0.20472 0.20000 0.22451509 0.21971667 0.19509
Option A:
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Most of the respondent are agree to given criteria of selecting the bank. They have 2.07 %
agreement on it . varience in their view is very less about 1.37888 at 95% confidence level.
Option B:
Most of the respondent are agree to given criteria of selecting the bank. They have 2.15 %
agreement on it . varience in their view is very less about 0.99747at 95% confidence level.
Option C:
Most of the respondent are agree to given criteria of selecting the bank. They have 2 %
agreement on it . varience in their view is very less about 0.888889 at 95% confidencelevel.
Option D:
Most of the respondent are agree to given criteria of selecting the bank. They have 2.01 %
agreement on it . varience in their view is very less about 0.83828 at 95% confidence level.
Option E:
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Most of the respondent are agree to given criteria of selecting the bank. They have 2.19 %
agreement on it . varience in their view is very less about 1.0645 at 95% confidence level.
Option F:
Most of the respondent are agree to given criteria of selecting the bank. They have 2.35 %
agreement on it . varience in their view is very less about 1.01606 at 95% confidence level.
Option G:
Most of the respondent are agree to given criteria of selecting the bank. They have 2.19 %
agreement on it . varience in their view is very less about 1.28030303 at 9