Education Loan Scheme

ORIENTAL EDUCATION LOAN SCHEME 31.03.
2015
1. BACKGROUND__________________________________________________________
On the instructions of IBA, Master Circular on Education Loan Scheme was communicated
vide Circular no. HO: Retail:31:2012-13:580 dated: 08.11.2012. The undernoted Circulars
have been issued on the subject scheme.
S. No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Title
Master Circular: Oriental Education Loan
Scheme
Education Loan- Approval of M/s. Jain
International Trade Organization (JITO)
Education Loan Customized Scheme for
NIIT Imperia
Education Loan- Asset Classification of
Restructured Education Loan Accounts
Recovery of Education Loan-Adopting
Reprehensible Practices
Education Loan- Irregularities in Issuing
Financial Capacity Certificate for Submission
to Foreign Universities
Education Loan- Revised Indian Medical
Council (Amendment) Second Ordinance 2013
Education Loan Tie up with NIIT Limited
Education Loan- Reversal of Interest in the
case of Delinquent Education Loans
Oriental
Education
Loan
SchemeModification in Terms w.e.f. 27.08.2014
Education Loan - Introduction of Interest
Switchover Option
Education Loan- Order Passed by Debts
Recovery Tribunal
Modification In Retail Credit Schemes
Modification In Retail Credit Schemesinspection charges
Oriental
Education
Loan
SchemeModification in Terms
Education Loan- Issuance of In-Principle
Sanction Letter
Circular No. and Date

HO:Retail:31:2012-13:580 dt: 08.11.2012
HO:Retail:24:2012-13:494 dt: 05.10.2012
HO:Retail:37:2012-13:679 dt: 29.12.2012
HO:Retail:20:2013-14:568 dt: 13.09.2013
HO:Retail:32:2013-14:841 dt: 14.12.2013
HO:Retail:36:2013-14:908 dt: 06.01.2014
HO:Retail:42:2013-14:1035 dt: 07.02.2014

HO:Retail:46:2013-14:1169 dt: 24.03.2014
HO:Retail:47:2013-14:1182 dt: 28.03.2014
HO:Retail:20:2014-15:426 dt: 27.08.2014
HO:Retail:19:2014-15:442 dt: 29.08.2014
HO:Retail:35:2014-15:650 dt: 10.11.2014
HO:Retail:39:2014-15:764 dt: 19.12.2014
HO:Retail:47:2014-15:979 dt: 17.03.2015
HO:Retail:49:2014-15:981 dt: 17.03.2015
HO:Retail:50:2014-15:985 dt: 20.03.2015
Circulars related to customized schemes:

S. No. Title
Customized Scheme For Students of IIMs,
1
IITs, XLRIs & ISB
2 Customized Scheme for Students of ISBs
Customized Scheme for Students of IIMs,
3
IITs & XLRIs (Change in Margin)
Education Loan- Credit Rating Requirement
4
a) Customized scheme for students of IIMs,
Education Loan scheme

HO:Retail:02:2012-13:32 dt: 13.04.2012
HO:Retail:43:2012-13:802 dt: 22.02.2013
HO:Retail:08:2013-14:160 dt: 13.06.2013
HO:Retail:09:2013-14:181 dt: 20.06.2013
1|Page
5
6
7
8
9
IITs & XLRIs

b) Customized scheme for students of ISBs
Customized Education Loan Scheme for the
Students of IIMs, IITs & XLRIs Inclusion of
New IITs & IIMs
Students of ISBs- Change in Margin
Students of MDI, Gurgaon & IMT, Ghaziabad
Students of Institute of Management
Technology (IMT)
Discontinuation of customized schemes for
premier institutions viz- IITs, IIMs, XLRI, ISB,
IMT and MDI, Gurgaon
HO:Retail:03:2014-15:19 dt: 08.04.2014
HO:Retail:04:2014-15:16 dt: 08.04.2014

HO:Retail:05:2014-15:17 dt: 08.04.2014
HO:Retail:12:2014-15:158 dt: 04.06.2014
HO:Retail:49:2014-15:981 dt: 17.03.2015
Circulars related to Vocational Education & Training Scheme

S. No.
1
2
3
4
Title
Oriental Education Loan Scheme for
Vocational courses
Oriental Education Loan Scheme For
Vocational Education & Training
Modification in Oriental Education Loan
Scheme for Vocational Education & Training
Oriental Education Loan Scheme for
Vocational Education & Training Courses
(VEC) - Exclusion from Service Tax
Education Loan- Qualifying Institutions for
Providing Skill Development Vocational
Courses

HO:Retail:01:2012-13:31 dt: 11.04.2012
HO:Retail:13:2012-13:319 dt: 08.08.2012
HO:Retail:18:2012-13:349 dt: 24.08.2012
HO:Retail:25:2012-13:520 dt: 26.10.2012
HO:Retail:41:2013-14:1034 dt: 07.02.2014
___________________________________________________________________________
2. CONSOLIDATION OF SCHEME ______________________________________________
To obviate frequent references, the instructions advised through aforesaid Circulars
containing guidelines on Oriental Education Loan Scheme have been consolidated. The
scheme will supersede all the previous circulars. The following schemes are annexed to the
circular.
INDEX:
A) IBA MODEL SCHEME FOR STUDY IN INDIA & ABROAD
B) SALIENT FEATURES OF CATEGORY A & B INSTITUTIONS
C) EDUCATION LOAN SCHEME FOR WORKING PROFESSIONALS FOR PART TIME
COURSES
D) EDUCATION LOAN SCHEME FOR NIIT IMPERIA
E) ORIENTAL EDUCATION LOAN SCHEME FOR VOCATIONAL EDUCATION &
TRAINING
__________________________________________________________________________
2|Page
EDUCATION LOAN SCHEME

A) IBA MODEL SCHEME FOR STUDY IN INDIA & ABROAD
S.No. PARTICULARS TERMS
1.
Nomenclature The scheme be known as Oriental Education Loan Scheme.
2.
Purpose
The scheme aims at providing financial support to meritorious
students for pursuing higher studies in India & abroad with
affordable terms & conditions.
3.
Eligibility for
Student, who is
Loan
1. An Indian national.
2. Meritorious student and
Secured admission to higher education course in any institution
recognized by a statutory body in India or abroad through
entrance test/ merit based selection process after completion of
HSC (10+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.
Note:
a) Employability Aspect: Assessment of future employment
potential / remuneration prospect is very important criterion for
considering the cost of studies involved.
b) Assessment of loan will be based on employability and
earning potential of the student upon completion of the course
ensuring that the student shall be capable of repaying the loan
availed/future installment. The reputation of the institution shall
also be taken into consideration.
c) A meritorious student who qualifies for a seat under merit
quota is even eligible for loan under management quota seat
if the student chooses to pursue the course for reasons of
convenience (proximity) or choice of courses.
Financing more than one member of the family
Loan to different meritorious students of same family can be
allowed on merits subject to the compliance of other terms and
conditions applicable to education loan policy. Each loan shall be
considered separately.
The education loan be given for an individual and the limit of `
4.00 Lacs be also for an individual i.e. education loan is not a loan
for family as a unit. In other words, ` 4.00 Lacs limit is not for
family wise but individual wise. That means, any number of
applicants belonging to the same family may be sanctioned loans
upto ` 4.00 Lacs individually without insisting for any security.
3|Page
4.
Eligible
1. Approved courses leading to Graduate/ Post Graduate degree
Coursesand Post Graduate diplomas conducted by recognized
Studies in
Colleges / Universities recognized by UGC / Government / All
India
Indian Council of Technical Education (AICTE) / All India
Board of Management Schools (AIBMS) / Indian Council of
Medical Research (ICMR) or Regulatory bodies.
2. Courses like I.C.W.A., C.A., C.F.A., etc.
3. Courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NID etc.
4. Approved courses offered in India by reputed foreign
universities.
5. Regular Degree/Diploma courses like Aeronautical, pilot
training, shipping, degree/diploma in nursing or any other
discipline approved by Director General of Civil
Aviation/Shipping/Indian Nursing Council or any other
regulatory body as the case may be, if the course is
pursued in India.
6. All Regular courses conducted by Institutions categorized as
A, B and others. The categorization shall be reviewed from
time to time.
(Amended vide circular no. HO:Retail:49:2014-15:981 dated 17.03.2015)
Note:
5.
a) The above list is indicative in nature. The other job oriented

courses to technical/ professional degrees, post graduate
degrees/ diplomas offered by recognized institution may be
considered under this scheme.
b) Courses other than the above, offered by reputed institutions
may also be considered as per list of approved educational
institutions.
c) For reference the following web sites of Government may be
perused:
www.ugc.ac.in,
www.education.nic.in,
www.aicte.org.in.
Eligibility of 1. Diploma, Degree courses conducted by Colleges/ Universities/
Educational
Educational Institutions approved by UGC (approved under
Institutions
Sec-2 as an University or under Sec-3 as Deemed University)
/ Central Govt. (Parliamentary Act) or State Governments
(State Legislature)/ AICTE/AIBMS/ICMR or any other statutory
councils of India as DGCA/Nursing Council etc.
2. Educational Institution not having approval from above said
Regulators, but either categorized in list A & B institutions or
Head Office approved educational institutions list.(Annexure II)
(Amended vide
17.03.2015)
circular
no.
HO:Retail:49:2014-15:981
dated
3. On the basis of expected future business / value of account /

merits, the Regional Head may recommend new private
institutions not having approval from above said regulators, for
inclusion of their names in our approved list of educational
institutions by submitting the note format as per Annexure-VII.
4|Page
Clarification
6.
Eligible
CoursesStudies
Abroad
Some universities like Punjab Technical University and Manipal

University are having study centers / Distance Learning Mode
all over India and the diploma/ degree is awarded by the
concerned University, which is approved by UGC/Government. It
is clarified that the Education Loan to the students pursuing
courses, conducted by such Study Centers / Distance Learning
Mode is not permissible unless specific approval for grant of
Education Loan to students of such study centers is obtained
from Head Office.
1. Graduation
For job-oriented professional/technical courses/Degree offered
in
by reputed universities/ institutions. (Diploma/ Certification
courses are not permissible)
2. Post Graduation
Courses like MCA, MBA, MS etc. (Post Graduate Degree &
Diploma courses offered by reputed institutions/ universities
only are permissible).
3. The Courses conducted by CIMA-London, CPA in USA etc
4. Degree/ Diploma for Courses like Aeronautical, Pilot training,
and Shipping etc. provided these are recognized by
competent regulatory bodies in India/ abroad for the purpose
of employment in India and abroad.
Field functionaries can peruse website- www.webmetrics.info
(indicative only) and finance education loan to students pursuing
various courses of foreign universities/ Institutions after exercising
due diligence.
An illustrative list of top 100 foreign institutions is attached
as Annexure-III.
Note:
1. In some cases for study abroad, the Foreign Universities
stipulate a condition that the student is required to clear
General English exam / English for Vocational Education
exam, before regular course. In such cases where visa has
been obtained by the student for pursuing courses from
abroad and admission is subject to clearance of General
English / English for Vocational Education exam, Education
Loan can be considered subject to fulfillment of following
conditions :
a)
b)
The student has to clear such exam and shall meet all
expenses related to such English course from his own
sources.
In case of urgency, the applicant may deposit the fee for
the first semester from his/her own sources for pursuing
5|Page
c)
the main education course.

After obtaining the clearance certificate of English
Language or satisfying other pre-conditions, the fee for
the first semester paid by the student from own sources
can be reimbursed or treated as a part of margin, if such
request is received within 3 months of payment of fee,
and further disbursements may be made directly to the
Institution.
2. Medical courses outside India including China and

Russia
Medical courses offered by Institutions in Nepal, approved by
Medical Council of India only are eligible for granting
education loan.
Any Indian Citizens who intend to obtain primary medical
qualification from any foreign country on or after 15th
May2013 are not required to obtain Eligibility Certificate from
Medical Council of India. However, the students are required
to fulfill the Eligibility Criteria for admission to MBBS course as
laid down in the Graduate Medical Education Regulation,
1997.
(Refer circular no. HO:Retail:42:2013-14:1035 dt: 07.02.2014).
7.
8.
9.
Students pursuing medical courses outside India including

China & Russia etc. are required to clear the screening test
after completion of the course, which is mandatory for getting
themselves registered as a medical practitioner in India or to
get employment or do Private Practice. As such, sufficient
collateral security (irrespective of loan limit) and margin shall
be obtained besides due diligence on further placement be
exercised, while granting such loans.
Identification As regards, the modalities to identify / recognition in India of the
of
the Foreign Institution and University, the granting of student visa by
recognition in the consulates of the particular country has to be the guiding
India
of principle regarding the reputation / recognition in India of any
Foreign
foreign institution.
Institution
/
However the sanctioning authority may exercise due diligence on
University
the reputation of the University/ Institution and its subsequent
placement record of passed out students.
Further, the Central Vigilance Commission observed that there
seems to be some nexus between the agents (who arrange to
send students abroad) and the Bank involving such unethical
practices. As such, field functionaries are advised to exercise due
diligence strictly according to education loan scheme to ensure
compliance of laid down guidelines.
Two / Dual Education loan for Diploma and degree courses simultaneously
Courses
may also be considered for two / dual courses provided by the
educational institutions.
Components
a) For General Students:
of Finance
1. Fee payable to college/ school/ hostel (board & lodging).
6|Page
2.
3.
4.
5.
Reasonable Lodging & Boarding charges will be considered in

case the student chooses/ is required to opt for outside
accommodation.
Examination/ Library/ Laboratory fee.
Insurance premium for student borrower, if applicable.
Caution deposit, Building fund/ refundable deposit supported
by Institution bills/ receipts, subject to the condition that the
amount does not exceed 10% of the total tuition fees for the
entire course. (An undertaking to be obtained from the
student that refund will be deposited in the deposit / loan
account with the bank).
Travel expenses/ passage money for studies abroad / College
Bus fare in case of study in India
(Amended vide Circular no. HO:Retail:39:2014-15:764 dt. 19.12.2014)
6. Purchase of computers-essential for completion of the

course*.
7. Purchase of books/ equipments/ instruments/ uniforms*.
8. Any other expenses required to complete the course-like study
tours, project work, thesis, etc*.
* A realistic assessment may be made for the requirement under
these heads, however the maximum amount under these heads
(6, 7 & 8) be capped at 20% of the total tuition fee payable for
completion of course.
In case of fee sponsored / reimbursed to the student by any
organization, the same may be taken into cost component.
Wherever fee/charges are revised upwardly the sanctioning
authority is permitted to consider financing to the same on
bonafide ground/ merits, within the initially agreed repayment
period.
10.
11.
Classification
of Advances
b) For Management Quota:- Fees as approved by the

Government / regulatory bodies for payment seats will be
taken into consideration, subject to viability of repayment of
loan in future.
The loan shall be classified as per the directives of RBI. Presently
the following loans shall be classified into priority sector.
Categorization
of Institutes
Up to ` 10.00 Lacs for studies in India

Up to ` 20.00 Lacs for studies abroad
Category A Institutions 32 Premier Institutions have been
classified as category A institutions (attached as Annexure-I).
Category B Institutions 49 reputed Institutions have been
classified as category B institutions (attached as Annexure-I).
Other Institutions Apart from Premier Institutions classified
in A & B category, Education loan of all other Colleges/
Universities/ Educational Institutions mentioned at S.No.5
shall be financed on normal terms of the IBA model
education loan scheme.
7|Page
12.
Amount
loan
of
Category A
` 25.00 Lacs
Without
Collateral
Security
Note:
Category B
` 10.00 Lacs
Without
Collateral
Security
Other Institutions
Actual as per fee structure of
Institution on normal terms
and conditions of oriental
education loan scheme
1) In case higher loan limit is requested (from the above

mentioned limit) for category A & B institutions, 100%
tangible security with value equivalent to loan amount is
required.
2) Higher amounts can be sanctioned by Head Office/Field
Functionaries as per Discretionary Power Chart.
(Amended vide
17.03.2015)
13.
Topup/Second
Loan
circular
no.
HO:Retail:49:2014-15:981
dated
Top-up / Second Education Loan can be permitted for pursuing

higher education in view of better placement prospects.
A) In case student approaches for top-up/ second loan
during the moratorium period of first education loan: The
same shall be permitted subject to compliance of security
stipulations and other terms & conditions defined as per extant
guidelines of education loan policy.
While considering second education loan, the following action be
taken:
1. Balance confirmation certificate of first loan be obtained from
the party.
2. The existing education loan shall be reviewed and continued
on existing terms & conditions except the commencement of
repayment period which will be synchronized with top-up/
second loan.
3. The top-up / second loan be treated as Education Loan-2 and
separate loan account and documents etc. be obtained,
treating it as a fresh loan.
4. a) The accrued interest of existing first loan shall be
recovered.
b) An undertaking from the borrowers be obtained that the
interest on first and proposed second loan shall be serviced
every month.
However, in exceptional case, Regional Head shall be
empowered to waive this condition no.- 4 on merits and
repaying capacity of the student after completion of course
and getting employment.
8|Page
5. The repayment of the first education loan shall be

rescheduled to align it to the repayment of second loan
and repayment of both the loans shall start
simultaneously, i.e. after 12 months of completion of second
course or 6 months after taking up employment, whichever is
earlier.
6. The rate of interest for second education loan shall be
determined after clubbing the outstanding of first loan account
with proposed loan limit of second education loan and
accordingly the interest rate for loan slab (aggregate) shall be
applicable in second loan account.
7. Further, both accounts will serve with two separate
installments by the borrower. Proper noting of such Two
installments be kept at branch record.
B) In case, student intends to pursue higher education after
expiry of moratorium period of first education loan: No
extension in moratorium period of first education loan be
permitted, irrespective of the fact that student approaches for
top up / second education loan or not.
However, in case student approaches for top up / second
education loan, loan will be assessed afresh.
(Amended vide
17.03.2015)
14.
Margin
Category
A
NIL
circular
Category
B
NIL
no.
HO:Retail:49:2014-15:981
dated
Other Institutions
Up to ` 4.00 Lacs NIL
Above ` 4.00 Lacs 5% For studies in
India
15% For studies
Abroad
Note:
1) Scholarship/assistantship can be treated as margin.
2) Margin may be brought in on year to year basis as and
when disbursements are made on a pro-rata basis.
3) In any eventuality, including management quota, if the total
component of education cost is more than the requested
loan amount, then it shall be ensured that the student has
adequate resources to meet the funding gap, preferably in
such circumstances, the margin shall be brought upfront.
9|Page
15.
Rate
Interest
(Floating)
of
Institutions
Rate of Interest
For
Base Rate
Category A
For
BR+0.50%
Category B
OthersUp to ` 4.00 Lacs
General &
Collateral
working
Security in
Professionals
form of one
Third Party
Above Guarantee
` 4.00 100% collateral
Lacs & security in form
of immovable
Upto `
property or any
7.50
other tangible
Lacs
assets like
pledge of
NSCs / UTI /
LIC (Surrender
Value) / PSU
Bonds etc.
Above ` 7.50 Lacs
Free Scheme Intt

Code Code
Table
10
Code
EL15 TL647 BT658
EL15
TL647
BT659
BT657
BR+2.50%
BR+3.00%
BT657
EL01- TL641BR+1.75% Study Study in
in India India
EL02- TL642Study Study
Abroad Abroad BL175
BR+1.75%
BT657
(Amended vide circular no. HO:Retail:20:2014-15:426 dated 27.08.2014

and HO:Retail:49:2014-15:981 dated 17.03.2015)
Note:
1) Simple interest during study/moratorium period and thereafter
the interest shall be compounded.

2) 0.50% concession on rate of interest will be applicable to
women beneficiaries, SC/ST & disabled students. However,

the 0.50% concession will be available for only one
characteristic.
3) Rate of interest will not fall below Base Rate under any
16.
circumstances.
Intimation of The rate of interest shall be floating with monthly rest subject to
change
in changes in BR/Spread announced by the Bank / RBI from time to
Interest Rate
time.
The borrower shall be deemed to have notice changes in the rate
of interest whenever there are changes in Base Rate (either
increase or decrease) by display of Base Rate on the website of
Bank/Notice Board of the Branch or published in news papers or
made through entries of the interest rate charged in the
passbook/statement of account furnished to the borrower and the
borrower is liable to pay such revised rate of interest.
In addition, Bank shall have a right to change the spread
(above Base Rate) on reset date.
A condition clause to this effect be also incorporated in sanction
letter.
10 | P a g e
17.
Interest
Switch-over
option
The interest switch over option can be exercised by borrowers

only once during the currency of loan on any occasion, when they
feel that the current prevailing rate of interest of Education loan is
in their favour as compared to interest actually applied in their
account. They may exercise the interest switch over option
subject to paying onetime fee as under:
Particulars
Switch over option fee(payable one time)
Education Loan 0.50% of outstanding as on the date of switch
over
Note: The staff members availing loans for self and
dependent children shall be exempted for paying abovesaid switch-over fee.
The above switch-over option shall be granted subject to
compliance of following:
1. The education loan account must be regular and standard on
the date of exercise of switch-over option.
2. There should not be any inspection irregularity in the account.
3. There should not be any deficiency in documentation.
4. The balance confirmation certificate shall be obtained from the
borrower.
5. The respective sanctioning authority of the loan may permit
the switchover option.
6. The fee recovered shall be credited to Commission Received
Miscellaneous.
7. While considering switchover option other terms of original
sanction shall not be changed.
(Refer circular no. HO:Retail:19:2014-15:442 dt: 29.08.2014)
18.
19.
Interest
During
Moratorium
and
study
Period
Servicing of interest during moratorium period is optional for

students.
Simple Interest shall be charged per month during moratorium

period (moratorium period consists of study period plus grace
period of one year or six months after getting job whichever is
earlier). When moratorium period is over, the entire outstanding of
the interest amount shall be capitalized i.e. added back to the
principal amount. Further interest shall be charged on monthly
compounding basis; accordingly, EMI shall be fixed and intimated
to the borrower in writing.
Concession
If the monthly interest is serviced regularly (monthly basis)
in Rate of during the moratorium period (study + grace period), a
interest
concession of 1% in rate of interest is allowed for
moratorium period (study + grace period) and this
concession shall be allowed only after expiry of the
moratorium period (study + grace period). In case of default
in servicing the interest, the normal rate of interest as
applicable shall be levied and no subsequent concession will
be allowed. However, normal rate of interest on compound
rate will be charged after moratorium period and shall be
applicable during the repayment period.
11 | P a g e
20.
Penal Interest
21.
Process Fee
22.
Primary
Security/
Coobligation
There may be a situation wherein after allowing 1% refund of

interest for servicing of regular interest during moratorium period,
the actual recovered interest rate may fall below the base rate. In
such cases, it must be ensured that actual recovered interest
after allowing concession shall not fall below the base rate of the
bank.
2% over the normal rate of interest shall be charged on loan
above ` 4.00 Lacs on overdue amount and for the overdue
period.
1. For study in India: NIL irrespective of loan limit.
2. For study abroad: ` 1000/- +Service tax, if any. However, the
fee would be refunded to the student on taking up the course
(excluding service tax if paid to Government).
Parents / Guardian to be joint borrower (s) / co-obligants
(irrespective of their means and age of student).
OR
In case of married person, co-obligator can be either spouse or
the Parent(s) / Parent(s)-in-law. Parental co-obligation can also
be substituted by a suitable third party guarantee. The
discretionary powers shall vest with RLCC-RH for acceptance of
above-said third party guarantee.
23.
Collateral
Security
Institutions
Loan Limit
Collateral
Security
NIL
NIL
For Category A institutions

Upto ` 25.00 Lacs
A)
For For Category B institutions
Upto ` 10.00 Lacs
Category A &
In case higher loan limit is requested (apart from the above
B institutions
mentioned limit) for category A & B institutions, 100% tangible
security with value equivalent to full loan amount is required.
B) For Other
Institutions
a) Loan upto ` No collateral security.
4.00 Lacs
b) Loan above 1. Collateral security in the form of one suitable third party
guarantee, preferably of other family member / close relative.
` 4.00 Lacs &
However, the Regional Head in exceptional cases waive third
upto ` 7.50
party guarantee if satisfied with the net worth/ means of
Lacs
parents who would be executing the documents as joint
borrowers(s).
Note:
Inspite of third party guarantee, if security in shape of immovable
property or any other tangible securities like pledge of
NSCs/UTI/LIC (Surrender Value)/ PSU Bonds etc. is provided
having value equivalent to 100% of loan amount, concession in
rate of interest shall be permitted as detailed at S.No. 17.
12 | P a g e
c) Loan above Mortgage of immovable property or any other tangible security

like pledge of NSCs/UTI/LIC (Surrender Value)/ PSU Bonds etc.
` 7.50 Lacs
having value equivalent to 100% of loan amount.
OR
C) Other
conditions
Extension of charge on unencumbered portion of land and

building already mortgaged with Bank be accepted provided the
residual value of unencumbered portion, as permissible in
respective scheme, wherein the property is originally mortgaged,
should be at least equivalent to amount of proposed education
loan if the conduct of the existing account is satisfactory and falls
under standard/regular category.
In case of Commercial Pilot Course, Life Insurance Cover
shall be obtained.
24.
Education
LoanIssuance
In-Principle
Sanction
Letter
In all cases, assignment of future income of the student

on getting employment after completion of the course for
payment of installment. An appropriate affidavit to this
effect be obtained from all joint borrowers.
a. The loan proposals shall be entertained promptly at the
designated Nodal / Sanctioning branches and in-principle
of
sanction be communicated to respective students on the spot.
b. Field functionaries are advised to visit:
Nearby Colleges/ Universities/ Educational Institutions
approved by UGC / Central or State Governments/ AICTE /
AIBMS / ICMR, other regulatory bodies including all
premier institutions classified in A and B categories
(Amendment conveyed vide Circular No. HO/Retail/49/2014-15/981
dated 17/03/2015)
OR
Educational institutions approved by our bank

OR
Institutions mentioned in list of A rated universities,

colleges and technical institutions is based on their rating
given by National Assessment and Accreditation Council
[NAAC] uploaded at website www.naac.gov.in
c. Liasioning be made with these institutions so as they may

provide the list of students getting admission in their
institution.
25.
Prepayment
Penalty
26.
Clarification
on Coobligations:
d. Subsequently, branches shall issue In-Principle sanction letter

to students getting admission under various courses
conducted by these institutions (copy of format enclosed as
Annexure-IV).
NIL- The student and co-obligants are free to prepay the loan
amount.
a) In case the student is an orphan, the Regional Head can
waive the condition of Co-obligants after obtaining two
references about the conduct/integrity of the student.
13 | P a g e
b) Sanctioning Authority on merits can consider coobligation of one parent where it is not feasible, as in the
case of widow / widower / divorcee / separated /
estranged parents / single parents / one parent as NRI etc.
27.
Insurance
c) Sanctioning Authority, on merit basis, can accept two

alternate joint borrowers of sound means, in case of
student whose parents are having adverse remarks in
their credit history (CIBIL etc.) and adverse features of
loan accounts standing in their name.
a) Bank may arrange for Life Insurance policy for the students
availing education loan.
(Refer circular No. HO/Mktg./JV/10/2013-14/424 dt. 31.07.2013).
While obtaining such insurance cover, the prior consent of

student / co-borrower shall be obtained and kept on record.
b) The insurance premium has to be borne by the student /
co-borrower.
c) The insurance of mortgage property obtained as collateral
security shall be insured under agreed bank clause. The
premium shall be borne by the student / co-obligants.
Note:
28.
Repayment
Sanctioning authority may consider the premium amount of Life

Insurance policy of the students as one of the component of
finance, if requested by student / co-borrower.
For loan upto ` 7.50 Lacs
- Upto 10 years
For Loan above ` 7.50 Lacs - Upto 15 years
a) Moratorium Period/ repayment holiday (course period + Grace
period). The moratorium period be permitted within the overall
repayment period of respective loan. However, in case of
longer duration courses, the sanctioning authority may
consider courses exclusive of moratorium period on merit of
the proposal.
b) Grace Period- 12 months after completion of the course or 6
months after getting the job, whichever is earlier.
c) Regional Heads are empowered to permit extension in study
period upto a maximum of two years, in cases where the
student is not able to complete the course/study for reasons
beyond his/her control after examining the facts and
genuineness of the case. In case the student discontinues the
course midway appropriate repayment schedule will be
worked out in consultation with the student/parents.
d) In case of second education loan, the repayment of the first
education loan shall be rescheduled to align it to the
repayment of second loan and repayment of both the loans
shall start simultaneously, i.e. after 12 months of completion of
second course or 6 months after taking up employment,
whichever is earlier.
14 | P a g e
e) In case of education loan considered for undertaking

course like I.C.W.A., C.A., C.F.A., etc, the repayment shall
commence in accordance to scheme subject to maximum
moratorium period (Study period + Grace period) of 60
months, from the date of first disbursement.
f) Moratorium period for working persons may be
considered upto study period only.
g) Moratorium period under customized scheme may be varied
as per the approved terms of the scheme.
h) Repayment of loan is generally accepted via Equated Monthly
Installment method. However, after moratorium period (study
+ grace period), many times the salary level at start of the
career of the student may not facilitate comfortable payment of
EMI, in such a situation, Telescoping / Stepped-up installment
method can be adopted. However, the Regional Head is
authorized to permit such Telescoping / Stepped-up
installment option after examining the repaying capacity
of borrower on merit of the case.
29.
Disbursement
Further while permitting Telescoping / Stepped-up installment

option, during initial repayment period, the installment amount will
be of lesser amount (but shall be more than accrued monthly
interest) say 1 year and thereafter the installment be reset on the
basis of then outstanding plus accrued interest (if any) in EMI for
the residual repayment period, ensuring that the account
positively liquidate in overall repayment period. Due-diligence
shall be exercised by the Regional Head while permitting such
option.
1. For studies in India:
Loan shall be disbursed in stages as per requirement /
demand, directly to the institutions/vendors of books/
equipments/ instruments etc. to the extent possible.
2. For studies abroad:
In stages as per requirement/demand, directly to the
institutions subject to obtention of certified copies of relevant
pages of passport and visa of the student.
The consulates / embassies / High commissions of some
countries require a confirmation of enrolment at the time of
applying for visa by the student.
For this purpose, the said issuing authorities insist for release of
tuition fee for first semester to the education provider / university
out of the sanctioned loan. As such, Tuition fee for first
semester may be released to the institution without insisting
for visa from the student, subject to the condition that in case
the visa is not granted, the parents of the students will deposit the
loan amount with upto date interest immediately. Further
disbursement shall be made after obtaining the copy of visa duly
verified with the original one.
15 | P a g e
Note:
30.
Follow-up
monitoring
1. During the study period, in case the students fails in one or

two subjects and the institution permits the students to keep
terms and permit for appearing in next semester / term exam,
in such case subsequent installments could be disbursed after
verification of the same and confirming the said permission
from the institution.
2. Reimbursement of tuition fee, paid before release of advance
may be considered by the respective sanctioning authority
provided it is not more than six months old after collecting
evidence of such payment. However, this discretion will not be
used as a matter of routine and reimbursement of tuition fee
older than 6 months shall not be allowed in any case.
To contact college / University authority to obtain progress report
on the student at regular interval for keeping a track record of the
student. In case of studies abroad loan disbursing branch shall
obtain the SSN/unique identification number/identity card and
note the same in banks records. THE UID number issued by
UIDIA may also be captured in bank record as a tool to track the
student.
Although the obtention of PAN details of the student is not a precondition for education loan, however, the student may be asked
to submit PAN during the course of studies, If not available at the
time of sanctioning of loan.
The PAN detail also has its value in future tracking of the student.
Further, branches will not take coercive methods for recovery of
their dues and practices such as displaying names and
photographs of defaulting students have been stopped
forthwith. Any violation be viewed seriously.
31.
Asset
Classification
If the repayments in education loans are extended due to

revision in the repayment period under the new Model Education
Loan Scheme the same may not be treated as restructuring.
However, this treatment would be available only to education
loans which are standard in the books of banks on the date of
such extension of repayment period.
Further, such extensions should not be given with a retrospective
effect and any extension in repayment period should be need
based and take into account the repayment capability of the
borrowers. Sanctioning authority is empowered for permitting
such extension in existing education loans as per new terms, as it
does not tantamount to restructuring as per IBA guidelines.
(Refer circular no. HO:Retail:20:2013-14:568
HO:Retail:49:2014-15:981 dated 17.03.2015).
dt:
13.09.2013
&
Repayment of the loan is expected to come from future earnings

of the students after completion of education. As such, education
16 | P a g e
loan cannot be classified NPA during the moratorium period or

upon failure of the borrower to service interest during the
moratorium period which is otherwise optional. The classification
of education loan NPA during the moratorium period is not only
unlawful but also an act of playing with the future of students and
Nation.
32.
33.
However, in case the education loan account becomes nonperforming assets (NPA), there shall not be any reversal of
interest accrued during the repayment holiday / moratorium
period. (Refer circular no. HO:Retail:47:2013-14:1182 dt: 28.03.2014)
Disposal
of a) Normally the loan shall be disposed off within 15 days of
application,
receipt of duly completed application with supporting
Loan
documents.
Disposal
period
& b) Rejection of loan application, if any, shall be done by referring
punitive
the matter to the next higher authority with valid reasons for
measures
declining the proposal and obtaining their permission. The
status of declined application be conveyed to the student
along-with the reason for rejection. Punitive action shall be
taken in case Branch Managers repeatedly reject education
loan proposal without any valid reason/flimsy ground.
Capability
The branches may issue capability certificate (Financial) for
certificate
student for going abroad for higher studies based on the financial
(Financial)
and other supporting documents as the same are required by
some of the foreign universities. The requisite charges as defined
in service booklet shall be recovered from the borrower (s).
Due diligence is required for issuing financial capacity certificate
to avoid irregularities in issuance of such certificates for
submission to foreign universities.
(Ref: Circular No. HO:Retail:36:2013-14:908 dated 06.01.2014 )
34.
35.
No
dues The applicant may not be insisted upon to obtain no dues
certificate
certificate. In lieu of this, branches may obtain a
declaration/affidavit that no loan has been taken for this purpose
from other financial institutions.
Discretionary
(` In Lacs)
Powers
Category
For study in India / Abroad
Scale I
7.50
a)
For Scale II
10.00
General
Scale III
15.00
Public
Scale IV
20.00
AGM& RLCC-AGM
25.00
DGM & RLCC-DGM
30.00
GM & RLCC-GM
40.00
HLCC-ED & above
100.00
(Amended vide circular no. HO:Retail:49:2014-15:981 dt: 17.03.2015)
17 | P a g e
b) For
Staff
36.
37.
Clarification
on
sanctioning
powers
Place of posting of the employee availing Sanctioning

the Loan
Authority
All Branches/RO (other than RH)/Service RLCC-RH
Branch/STC (other than STC, Noida) /
Currency Chest / COPEC / Data Centre/
Stationary
Godown
(Except
stationary
Godown
at
Faridabad)
/
Regional
Inspectorates (other than RI Heads)
All Staff posted at Head Office/Stationary HLCC-ED
Godown at Faridabad/STC, Noida/ Regional
Heads and Regional Inspectorate Heads
1. The sanctioning authority is permitted to sanction loan to
different members of the same family, treating such loans as
an independent loan.
2. Discretionary power to consider loan for Commercial Pilot

Licenses and Air Hostess is presently vested with Head
Office.
Delegation of a. The powers have been delegated to GM (Retail) / Regional
Powers
for
Head (GM) for entering into agreement / MOU with
entering into
Educational Institutions (having approval from any regulatory
agreement
bodies) on normal terms of education loan scheme.
with
b. The name of our bank be included as a preferred financer in
educational
the brochure of such approved institutions.
institutions
(approved by
Further, while entering into agreement / MOU, following
regulatory
conditions shall be stipulated that:
authorities)
\
The institution shall note the particulars of the loans

availed by the students from Oriental Bank of Commerce
on their records.
On completion of the course by the students, the institution

shall provide information related to placement (On campus
or Off Campus), details of employer, designation, place of
posting etc. of the students to the bank.
The institutions not having approval from any regulatory authority

and where the bank intends to finance education loan to their
students, the proposal will be placed to CRMC as per normal
practice on case to case basis.
38.
Deviation
Manager
a) HLCC-ED is empowered to permit deviation in the scheme

within the overall framework of IBA/ RBI guidelines.
b) Deviations in Rate of Interest (subject to minimum of Base
Rate), Process fee shall be allowed by the authority as under:
Deviation Authority
ROI
Process Fee
HLCC-ED
Upto 2.00%
FULL
CAC
Upto 3.00%
18 | P a g e
c) RLCC-RH is empowered for permitting 100% waiver in interest

switch-over fee.
(Refer Circular No. HO:Retail:19:2014-15:442 Dt. 29.08.2014)
39.
40.
Approval
of In case of courses offered by Institutions not approved by the
courses/
concerned statutory regulatory bodies, branches may consider
institutions
loan only if the institution is approved from Head Office by routing
their request for approval through RO on the prescribed Performa
as per Annexure-VII.
The Regional Office will make independent appraisal about the
institution, its Infrastructure, academic facilities and placement
record. Thereafter they may submit specific recommendations to
Retail Credit Department, HO for inclusion of the institution in
Banks approved list of Educational Institutions.
Private
In case of Private Institutions which conduct courses leading to
institutions
Diplomas / Certificates on Computers, E-Commerce and other Hiwhich
Tech curriculum, the Regional Heads are authorized to
conduct
approve the names of such institutions like APTECH etc.
courses
subject to the condition that the ceiling of the education loan
leading
to amount shall be ` 50000/-.
diplomas/cert
ificates
on 1. NIIT: The NIIT is an approved institution & the education loan
ceiling for courses conducted by it shall be ` 1.75 Lacs.
computers,
Approved courses are Diploma in IT (DIT), Honors Diploma in
e-commerce
IT (HND), ANIIT, GNIIT & Post Graduate certification
and other hiprogramme in Business Analytics (PGCBA).
tech
curriculum
List of NIIT Centres and other guidelines (Refer Circular No.
HO:Retail:46:2013-14:1169 dated 24.03.2014).
2. NIIT Imperia: Limit is Rs. 4.00 lacs (For other details refer
Circular no. HO:Retail:37:2012-13:679 dated: 29.12.2012)
Details are also attached as annexure .
41.
CIBIL
3. M/s. Jain International Trade Organization (JITO): (Refer

circular no. HO:Retail:24:2012-13:494 dt: 05.10.2012)
The CIBIL report be extracted in each case (Cost be borne by the
party) and analyze for taking prudent decision while considering
education loan proposal.
In case where student does not have any identity proof at the time
of application of education loan, he / she may be asked for
submission of same during the course of studies.
42.
Credit Rating
The PAN detail / Aadhar detail has its value in future tracking of
the student.
For Category A Institutions:
Education loan upto ` 25.00 Lacs may be sanctioned on merit
irrespective of their Rating grade.
For Category B Institutions:

Education loan upto ` 10.00 Lacs may be sanctioned on
merit irrespective of their Rating grade.
19 | P a g e
43.
Appraisal/
Sanction/
Disbursement
In other cases, education loan upto ` 7.50 Lacs may be

sanctioned on merit irrespective of their Rating grade.
For Education Loans with tangible security, guidelines issued by

RMD Deptt. in this regard from time to time shall be complied
with.
A) For Category A & B institutions
1. The Nodal branch/ Branches located nearby to Category A &
B institutions shall sanction education loan proposals at their
branch. However they may forward the application to the
branch situated nearest to the residence/native place of the
students, if opted for by the student.
2. In case, loan is sanctioned & disbursed at Nodal branch and
student is having his/her residence/native place at different
locations, the loan sanctioning branch shall comply the aspect
of pre-sanction visit and other due diligence procedures with
the help of branch located near-by residence/native place of
student.
3. Branches located nearby the residence/native place of the
student shall verify the KYC norms & extend their prompt cooperation for fulfilling the procedural guidelines at the request
of loan sanctioning branch.
4. Other branches shall also consider the loan proposals
according to above said discretionary powers, in case the
student is having place of residence / native place in the
vicinity of said branch and he / she opts for the same.
5. The Nodal branches will keep good liaison with institutes by
informing them about the benefits of the categorization to fetch
bulk number of education loan proposals with their help. It is
also advised to explore the possibility for display of our special
terms at the websites of Category A & B institutes with mobile
nos. of nodal officers at Branch, RO & HO.
6. The loan proposals shall be entertained promptly at the
7. The Nodal Branches shall keep a detailed record of their
Marketing efforts, loan proposals received and its disposal.
Such record shall be submitted to their respective Regional
Offices and they in-turn prepare a consolidated progress
report to review their performance. A copy of such report be
also endorsed to our office for perusal and onward action.
8. The Regional Head in co-ordination with Nodal branches
shall make wider publicity in campus during admission
sessions by way of displaying banners, posters and
distribution of pamphlets, organizing education loan camps in
the campus etc. and shall extend full support to the branches.
20 | P a g e
B) For other institutions:

The loan shall be allowed preferably at the place of domicile. The
Regional Heads may consider/ allow education Loan at a place
other than the place of domicile on merits. The branches have
been allowed to sanction education loan to the students
belonging to the same district irrespective of the distance.
However, if the loan is to be disbursed by the branch located
outside the district of domicile of the student, the discretion shall
lie with the Regional Head.
In education loan scheme, the service area approach concept is
not applicable.
44.
Grievance
Redressal
Mechanism
The contact details of the chief grievance officer be displayed at

branch premises as per guidelines and shall be informed to the
applicants/ students.
45.
Provision for Proposal for change of course / education Institution by the

change
of students can be considered on case to case basis by sanctioning
course
/ authority provided: education
a) Job prospects are not affected adversely
Institution
b) Repayment period is not affected
c) Loan amount is not increased
(Refer to CS&P Circular No. HO/CS&P/ 35 /2012-13/420 dated 13.09.2012)
46.
47.
However, the above-said change be permitted on valid genuine

ground and merit of the proposal.
Documentation Documentation in case of Minor Student - In case the student is
& opening of
minor, the education loan documents shall be executed by the
Savings
father of the student / guardian as co-borrower as well as on
Accounts
behalf of the minor student. On attaining majority, the student will
consent, confirm and acknowledge the documents, the loan
amount with interest and other costs within 3 months from the
date of attaining majority as per terms of the agreement of
term loan for education
Validity
Sanction
Saving Bank account of the student / co-obligants shall be

opened.
of The terms of sanction shall remain valid for 6 months. The
borrower should avail sanction limit within the prescribed period
after executing documents etc.
21 | P a g e
B. SALIENT FEATURES OF CATEGORY A & B INSTITUTIONS

Categorization of institutions in A & B categories will supersede all existing
customized schemes for the students of IIMs, IITs, XLRI, ISB, IMT and MDIGurgaon.
S.No. Particulars
Terms
1.
Category A & All Regular/Part time courses conducted by category A & B
B institutions institutions are eligible for financing. The benefits granted to these
institutions shall be as under:
Particular
Loan Limit
Category A
` 25.00 Lacs
Category B
` 10.00 Lacs
Rate of Interest
BR= 10.25%
BR+0.50% =10.75%
Margin
Process Fee
Collateral Security
Special Rider
NIL
NIL
NIL
NIL
NIL
NIL
In case higher loan limit is requested (apart
from the above mentioned limit) for category
A & B institutions, 100% tangible security with
value equivalent to full loan amount is
required.
List of A & B category institutions is attached as Annexure-I

2.
For Category A & B institutions

Appraisal /
Sanctioning /
Disbursement 1. The Nodal branch/ Branches located nearby to Category A &
B institutions shall sanction education loan proposals at their
branch. However they may forward the application to the
branch situated nearest to the residence/native place of the
students, if opted for by the student.
2. In case, loan is sanctioned & disbursed at Nodal branch and
student is having his/her residence/native place at different
locations, the loan sanctioning branch shall comply the aspect
of pre-sanction visit and other due diligence procedures with
the help of branch located near-by residence/native place of
student.
3. Branches located nearby the residence/native place of the
student shall verify the KYC norms & extend their prompt cooperation for fulfilling the procedural guidelines at the request
of loan sanctioning branch.
4. Other branches shall also consider the loan proposals
according to above said discretionary powers, in case the
student is having place of residence / native place in the vicinity
of said branch and he / she opts for the same.
5. The Nodal branches will keep good liaison with institutes by
22 | P a g e
informing them about the benefits of the categorization to fetch

bulk number of education loan proposals with their help. It is
also advised to explore the possibility for display of our special
terms at the websites of Category A & B institutes with mobile
nos. of nodal officers at Branch, RO & HO.
6. The loan proposals shall be entertained promptly at the
7. The Nodal Branches shall keep a detailed record of their
Marketing efforts, loan proposals received and its disposal.
Such record shall be submitted to their respective Regional
Offices and they in-turn prepare a consolidated progress report
to review their performance. A copy of such report be also
endorsed to our office for perusal and onward action.
23 | P a g e
C-EDUCATION LOAN SCHEME FOR WORKING PROFESSIONALS FOR PART TIME

COURSES
S.No. Purpose
To provide finance for pursuing Part time professional courses to
enhance their career prospects.
1.
Eligibility
1. Indian national
2. Up to 55 years of age
3. Passed at least graduation exam
4. Must be working in public/private/ defense enterprises etc.
5. Have secured admission in an approved institution(including A & B
Category Institutions) on part-time basis.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13
Component
of finance
Loan
Amount
Margin
Rate of
interest
Penal
Interest
Process/
upfront fee
Sanctioning
Authority
Security
Moratorium
period
Repayment
As per normal terms of education loan scheme.

As per fee structure of institution.
25%
As per normal terms of Oriental Education Loan Scheme.
2% penal interest over the normal interest rates on the overdue
amount for irregular period.
As per normal terms of Oriental Education Loan Scheme.
As per discretionary power chart under Oriental Education Loan
Scheme.
1. As per Normal terms of Oriental Education Loan Scheme
2. Electronic Clearance System (ECS) / NACH Debit / Standing
Instructions/Auto Collection Procedure from the operative
accounts of the borrower with us, given the mandate to collect
the EMI of the borrower.
Upto study period only.
As per normal terms of Oriental Education Loan Scheme, subject to

condition that last repayment date will be upto retirement date.
General
a) In case of education loan to working professionals, Salary
Conditions
Certificate along with deductions duly certified by employer shall
be obtained and kept on record after verification.
b) b) Branch Manager shall ensure that agreed installment is
serviced regularly from salary. Letter of authority duly confirmed
by the employer for deduction of monthly installment from salary
be obtained OR ECS/NACH Debit /Standing instruction mandate
shall be obtained.
c) The CIBIL report & Credit Rating be extracted in each case (Cost
be borne by the party) and analyzed for taking prudent decision
while considering education loan proposal for working
professional.
d) All the other usual terms and conditions of Oriental Education
Loan Scheme shall be complied with.
For
Concessional Rate of Interest and relaxation in security clause to
Category A
students of Category A & B Institutions(detailed in Oriental
&
B
Education Loan Scheme) will be applicable.
Institutions
24 | P a g e
D- EDUCATION LOAN CUSTOMIZED SCHEME FOR NIIT IMPERIA

Communicated vide Circular No. HO:Retail:37:2012-13:679 Dt. 29.12.2012
M/s NIIT Ltd. is a premier educational institution in the field of extending computer education
in India. The company under the brand name of NIIT Imperia is conducting special courses
for working executives for further improving their knowledge / skill in collaboration with
reputed institutions.
The course durations are ranging from 6-12 months and on its completion the respective
institution issue certificate to all participants.
S.No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Particulars
Purpose
Terms
To provide finance for pursuing Part time professional courses
for enhancing skill/ career prospects.
Eligibility
Indian national
Up to 55 years of age
Passed at least graduation exam
Working as an executive in public/private/ defense
enterprises
Have secured admission in an approved institution on parttime basis.
Component 1. Admission fee/tuition fee/Examination fee
of finance 2. Books & Stationery
3. Equipments
Loan
` 4.00 Lacs (maximum)
Amount
Margin
25%
Rate of
Base Rate+ 2.50% p.a. with monthly rest
interest
Penal
2% penal interest over the normal interest rates on the overdue
Interest
amount for irregular period.
Sanctioning
Branch Manager irrespective of the Scale / Category of branch
Authority
Security
NIL
Repayment
5 years OR up to retirement, whichever is earlier.
Moratorium
NIL or upto study period.
period
Process/
NIL
upfront fee
Place
of The loan can be considered at place of domicile or place of
availment
posting / service.
General
e) Salary Certificate along with deductions duly certified by
Conditions
employer shall be obtained and kept on record after verification.
f) Branch Manager shall ensure that agreed installment is serviced
regularly from salary. Letter of authority duly confirmed by the
employer for deduction of monthly installment from salary be
obtained OR ECS/SI/post dated cheques for minimum 24
months installment be obtained
g) All the other usual terms and conditions of IBA model education
loan scheme for study in India & Abroad shall be complied with.
25 | P a g e
E-Oriental Education Loan Scheme For Vocational Education & Training

S.No. Particulars
Terms
1.
Purpose
The scheme aims at providing financial support to students for
pursuing employment oriented skill development courses with
affordable terms and conditions.
2.
Eligibility for Student who is / has:Loan
1. An Indian National
2. Minimum qualification, as required by the Institution/
Organization running the courses eligible under the scheme.
3. Secured admission in courses run or supported by Central/
State Govt. institutions i.e. National Skill Development
Corporation or State Skill Missions / State Skill Corporations
leading to certificate / diploma / degree etc.
Financing more than one member of the family
3.
4.
5.
6.
Loan to different students of same family can be allowed on

merits subject to the compliance of other terms and conditions
applicable to education loan policy. Each loan shall be
considered separately.
Eligible
Vocational / Skill development courses of duration from 2
Courses
months to 3 years leading to certificate / diploma offered by a
recognized State / Central Govt. institution or Statutory /
technical body or training department of Govt. etc.
Minimum
There is no specific restriction with regard to the age of the
Age
student to be eligible for education loan. However, in case the
student is minor, the parents will execute the loan documents on
behalf of the student. A letter of authority has to be obtained
from the student upon his/ her attaining majority.
Components 1. Tuition / course fee.
of Finance
2. Examination / Library / Laboratory fee.
3. Caution Deposit
4. Purchase of books, equipments and instruments
5. Any other reasonable expenditure found necessary for
completion of the course (Local Boarding/ Lodging expenses
are not necessary to finance and may be considered only on
merits).
6. Life Insurance premium of the student, if obtained.
Loan
Course Duration
Loan Amt.
Amount
For courses of duration upto 3 months
` 20,000/For courses of duration above 3 months & upto ` 50,000/6 months
Courses of duration above 6 months upto 1 year ` 75,000/For courses of duration above 1 year
` 1,50,000/(Amended vide circular no. HO:Retail:18:2012-13:349 dated 24.08.12)
Note:- The bank may consider the higher limit for courses of
duration above 1 year on merit basis. However, HLCC-ED is
26 | P a g e
empowered for permitting loan amount above ` 1,50,000/-.

Vocational courses are exempted from preview of service tax,
as such, the component of service tax may not be taken into the
criteria for extending education loans.
7.
Security
1. No collateral or third party guarantee.

2. Parents / guardian to be joint borrower (s) (irrespective of
their means and age of student).
OR
In case of married person, co-obligator can be either spouse
or the Parent(s) / Parent(s)-in-law. Parental co-obligation can
also be substituted by a suitable third party guarantee. The
discretionary powers shall vest with RLCC-RH for
acceptance of above-said third party guarantee.
8.
Rate
Interest
of
Loan
Limit
Rate
of Interest
Free
Scheme
Interest
Table
Code 10
Code
Code
BT657
EL07
TL646
Upto
` BR+2.50%
1.50 Lacs
The rate of interest shall be floating with monthly rest subject to
changes in BR/Spread announced by the Bank / RBI from time
to time.
Simple interest during moratorium period (Study+Grace Period)
and thereafter the interest shall be compounded.
Special Rates
0.50% concession over the normal rate of interest will be
applicable to women beneficiaries, SC/ST & disabled students.
However, the 0.50% concession will be available for only one
characteristic. The benefit will not be merged with other benefit.
Floor Rate:
9.
10.
11.
12.
Margin
Processing
Charges
Prepayment
Penalty
Moratorium
Period
Rate of interest will not fall below Base Rate under any
circumstances.
NIL
NIL
NIL-The borrower may repay the Loan in advance either in full
or in part.
Upon completion of course, repayment will start after the
moratorium period as under:
For courses of duration upto 1 year- 6 months from the
completion of course.
27 | P a g e
13.
14.
15.
16.
For courses of duration above 1 year- 12 months from

the completion of course.
of Servicing of interest during moratorium period is optional for
students.
Service
Interest
During
Simple Interest shall be charged per month during moratorium
Moratorium
and
study period. When moratorium period is over, the entire outstanding
of the interest amount shall be capitalized i.e. added back to the
Period
principal amount. Further interest shall be charged on monthly
compounding basis; accordingly, EMI shall be fixed and
intimated to the borrower in writing.
Concession If the monthly interest is serviced regularly (monthly basis)
in Rate of during the moratorium period, a concession of 1% in rate of
interest,
if interest be allowed for moratorium period and this concession
monthly
shall be allowed only after expiry of the moratorium period.
accrued
However, while allowing such 1% concession it must be
interest
is ensured that actual recovered interest after allowing concession
served
shall not fall below the base rate of the bank.
during
the
In case of default in servicing the interest, the normal rate of
moratorium
interest as applicable shall be levied and no subsequent
period
concession will be allowed. However, normal rate of interest on
compound rate will be charged after moratorium period and
shall be applicable during the repayment period
Deemed
The borrower shall be deemed to have notice of changes in the
Service of
rate of interest whenever there are changes in Base Rate either
Notice in
increase or decrease in interest rates. By display of Base Rate
Case of
on the website of Bank/Notice Board of the Branch or published
change in
in news papers or display on banks website or made through
Base Rate
entries of the interest rate charged in the passbook/statement of
and
consequently account furnished to the borrower and the borrower is liable to
on applicable pay such revised rate of interest.
rate of
interest
Repayment
Loan Limit
Repayment Period
Upto 2 yrs.
Loan upto ` 50000
Loan above ` 50000 and upto ` 1.00 Lac In 2 to 5 yrs.
In 3 to 7 yrs.
Loan above ` 1.00 Lac
The above repayment period is exclusive of moratorium period.
17.
18.
In case the student discontinues the course midway appropriate

repayment schedule will be worked out in consultation with the
student/parents.
Clarification This clause shall be governed as per the Model Education Loan
on
Co- scheme for pursuing higher education in India & abroad (Main
obligations
education loan scheme).
Insurance
Bank may arrange for Life Insurance policy for the students
availing education loan. While obtaining such insurance cover,
28 | P a g e
the prior consent of student / co-borrower shall be obtained and

kept on record.
19.
20.
The insurance premium has to be borne by the student / coborrower. However, sanctioning authority may consider the
premium amount as one of the component of finance, if
requested by student / co-borrower.
Disbursement Loan shall be disbursed in stages as per requirement / demand,
directly to the institutions/vendors of books/ equipments/
instruments etc. to the extent possible.
Follow-up
The Bank will keep a track record of the student in coordination
monitoring
with the educational institution.
Although the obtention of PAN details of the student is not a
pre-condition for education loan, however, the student may be
asked to submit PAN during the course of studies, If not
available at the time of sanctioning of loan.
21.
The PAN detail also has its value in future tracking of the
student.
List
of The institutions listed on NSDA website can be viewed at
training
the link - http://www.skilldevelopment.gov.in/content/traininginstitutions
providers
All the Trainees undergoing training with any of these
institutions would be eligible for Vocational Education Loans.
(Refer Circular no. HO:Retail:41:2013-14:1034 dated:07.02.2014)
22.
23.
24.
25.
26.
Rejection of Rejection of loan application, if any shall be done with the

application
concurrence of next higher authority and conveyed to the
student stating the reason for rejection.
No
due The applicant may not be insisted upon to obtain no dues
certificate
certificate. In lieu of this, branches may obtain a declaration /
affidavit that no loan has been taken for this purpose from other
financial institutions.
Discretionary All Branch Managers irrespective of their Scale upto ` 1.50
Powers
Lacs.
Deviation
Manager
Other
Conditions
HLCC-ED may permit higher amount on merit basis.

HLCC-ED
Wherever any condition is not mentioned in the scheme, the
same shall be governed by the existing IBA approved Model
Education Loan Scheme.
29 | P a g e
FREQUENTLY ASKED QUESTIONS ON EDUCATION LOAN SCHEME (FAQ)

Ques.1.
Where the project cost is more than Rs.4.00 Lacs and the applicant requests for
loan up to Rs.4.00 Lacs, for study abroad, and balance amount is to be arranged by
the sponsor.
i.
Whether the applicant should be advised to arrange the total margin before
disbursement of the loan or he/she can arrange the margin in stages as per
requirement linked with the disbursement of the loan?
ii.
How much margin should be stipulated in loans up to Rs. 4.00 Lacs?
iii.
Whether personal guarantee of sponsor should be obtained or not?
Ans.
i.
Loans upto Rs.4.00 lacs are to be sanctioned at NIL margin irrespective of the
total cost of the project (i.e. fees boarding / lodging etc.) The branch should
satisfy itself regarding the sources of the borrower / co-applicants to meet the
balance amount. A simple letter from the sponsor agreeing to sponsor the
balance cost is not sufficient. The sponsor should be a close relative and his
capacity to meet the balance cost should be supported with requisite
documentary evidence.
ii.
For loans up to Rs.4.00 lacs, NIL margin be stipulated as per education loan
scheme.
iii.
No third party guarantee should be obtained, for loans up to Rs.4.00 Lacs.

However, Personal Guarantee of sponsor may be obtained in loan above
Rs.4.00 Lacs.
The loan should be released as per the fee structure / schedule of the School /
Institution where the admission is sought. If the first such installment is Rs.4.00
Lacs or less and the loan sanctioned is also up to Rs. 4.00 Lacs, the entire first
installment may be released without insisting for any margin. For loans
sanctioned above Rs.4.00 Lacs, margin be obtained as per the Education Loan
Scheme of the Bank.
However, it is relevant to comply that in case the applicant is requesting
lesser amount of loan as compared to the total cost of education, then the
margin preferably be obtained on upfront basis.
If the sanctioning authority is satisfied with the future source of margin, then
they may consider the acceptance of prorate margin at the time of each
disbursement.
Ques.2
Whether Education Loan for Commercial Pilot Course having duration of less
than one year can be provided or not.
Ans.
Duration of Commercial Pilot Course is not specified in the Education Loan

Policy, as such for Education Loan for Commercial Pilot course can be
considered irrespective of the duration, however such a loan would require an
approval from the Head Office (at present) and each case would be considered
on independent merit basis.
30 | P a g e
Ques.3.
Ans.
Ques4.
Ans.
Ques5.
Ans.
Ques6.
Ans.
Ques7.
Ans.
Ques8.
Ans.
Whether Life Insurance Cover of the applicant is to be obtained separately for

Commercial Pilot Courses?
The obtention of life Insurance Policy is optional. However, Life Insurance cover
for the students pursuing Commercial Pilot Course is mandatory and the sum
assured be minimum to loan limit.
What criteria should be adopted to recognize courses like Nursing, Teacher
Training B.Ed for the purpose of grant of education loan and the fees to be
considered for such courses?
Teacher Training/ Nursing/B.Ed. courses will be eligible for education loan
provided the training institutions are approved either by the Central Government
or by State Government and such courses should lead to Degree or Diploma
courses and not to Certification course. Fees as approved by the Government /
regulatory bodies will be taken, subject to viability of repayment.
Whether Bank is considering education loan to students who have secured
admission under Management Quota for pursuing B.Sc Nursing Courses?
Yes, Bank is financing such loans subject to condition that the loan amount shall
be equivalent to fees as approved by the Government / regulatory bodies.
Can we consider request for education loan in respect of Nursing Colleges
having provisional approval/recognition?
The Indian Nursing Council gives permission to Nursing Colleges to start new
course for a period of 1 year which is renewed on a yearly basis. The practice of
renewing the permission is done on a year-to-year basis for both the existing
nursing colleges as well as new nursing colleges. Banks could consider
applications from the student borrowers seeking education loan for pursuing
nursing courses in these institutions which are having provisional approval/
recognition.
How to deal with requests for sanction of collateral free loans to more than one
student from the same family? Is the collateral free limit of Rs. 4.00 Lacs for a
student or for a family as whole for the purpose of the scheme?
Repayment of the education loan is based on the future earning potential of the
student. Going by the spirit of the scheme, limit of Rs. 4.00 Lacs collateral free
loan is student specific and not family specific. There is no restriction on giving a
second or third collateral free loan to other siblings when one of the siblings has
already taken a collateral free loan.
How to consider request from students who have to stay outside the college
campus due to non-availability of hostel accommodation?
Banks could consider reasonable lodging & boarding expenses, for the purpose
of fixing loan limit under the scheme, in case the student is not in a position to get
allotment for hostel accommodation within the campus and is required to stay
outside the campus in private accommodation.
31 | P a g e
Ques9.
Whether the repayment period could be extended at the request of the borrower?
Ans.
Extension of moratorium period or repayment beyond the time specifies at the

sanction would amount to restructuring of the loan and will be governed by the
RBI guidelines on restructuring of advances. However, in case the student takes
up higher studies immediately upon completion of the course, the
commencement of repayment would get shifted to 6 months from employment or
one year from completion of the course, whichever is earlier without treating the
change as restructuring. This would be so irrespective of whether the student
had taken fresh/top up loan for higher studies or not.
If the repayments in education loans are extended due to revision in the
repayment period under the new Model Education Loan Scheme the same may
not be treated as restructuring. However, this treatment would be available only
to education loans which are standard in the books of bank on the date of
such extension of repayment period. Further, such extensions should not
be given by bank with a retrospective effect and any extension in repayment
period should be need based and take into account the repayment capability of
the borrowers.
Ques10.
Ans.
Whether any incentive is available for girl students?

Banks provide 0.5% concession in interest rate to girl students pursuing higher
education in India and abroad, subject to minimum of Base Rate.
Ques11.
Whether request received for sanction of loan to meet partial cost of studying
abroad can be considered?
It is not uncommon for students to take up part-time jobs as permitted by the
institutions where they are studying to part fund their education. So they will not
be taking loan for meeting entire cost of studies (usually amount mentioned in I-20).
Banks may sanction loan for meeting part cost as requested by students in such
cases.
Ans.
Ques12.
Ans.
Can the Bank consider request for loan received from NRI?
Requests received from NRIs can be considered if student is Indian passport
holder and they meet other eligibility requirements. However, it would be
necessary to accept as security any collateral which is enforceable in India.
Ques12.
How to consider license courses like Aircraft Maintenance engineering/Pre Sea

training which are neither degree nor diploma, through such courses are
approved by authorities like DGCA without affiliating to any university for award
of degree?
The Aircraft Maintenance engineering/Pre Sea training courses must be either a
Degree Course recognized by a competent University or Diploma Course
recognized by appropriate State Body to be eligible for loan. The employability of
the students and employment potential of the courses selected has to be
considered while appraising the loan application.
Ans.
32 | P a g e
Ques13.
Whether Bank can issue Financial Capacity Certificate for submission to Foreign
Universities?
Ans.
Yes. However, due diligence is required in issuing financial capacity certificate for
avoiding irregularities in issuing financial capacity certificate for submission to
foreign universities.
Central Vigilance Commission (CVC) vide communication dated 07.11.2013 has
informed about irregularities in issuing financial capacity certificate for
submission to foreign universities.
Loans are granted against third party FDs and further FDs are made in the name
of the intending beneficiary to be able to issue financial capacity certificate. Once
the financial capacity certificate is issued, the FDs are closed prematurely within
a day. All such transactions are carried out through Chartered Accountants and
Travel Agents who work as intermediaries for fees.
Branches should not allow creating FDRs out of overdraft allowed which defeats
the purpose when certificate of financial capacity to support the students study
abroad is being issued. Third party loans against FDRs or certificates being
issued for this purpose are barred as it is nothing but to hoodwink the foreign
universities by dubious Chartered Accountants and Travel Agents for admission
of courses. This not only brings disrepute to our Bank but also image of the
country as well. Indirectly or directly this also results in our youth going abroad
and trying to find work while studying to earn so that they can support their
studies financially. In many cases such students are working illegally which is not
allowed under student visa.
Ques14.
Ans.
What are the guidelines for reversal of interest in case of NPA accounts?
In case the education loan account becomes non-performing assets (NPA), there
shall not be any reversal of interest accrued during the repayment holiday /
moratorium period.
33 | P a g e
Annexure-I
S.No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
S.No.
1
2
3
4
5
6
7
8
9
LIST OF INSTITUTIONS (CATEGORY-A)

Name of Institution
Indian Institute of Management Ahmedabad
Indian Institute of Management Bangalore
Indian Institute of Management Calcutta
Indian Institute of Management Indore
Indian Institute of Management Kozhikode
Indian Institute of Management Lucknow
Symbiosis Centre For Management & HRD (SCMHRD), Pune
Symbiosis Institute of Business Management (SIBM), Pune
Indian Institute of Technology Delhi
Indian Institute of Technology Kanpur
Indian Institute of Technology Kharagpur
Indian Institute of Technology Madras
Indian Institute of Technology Mumbai
Indian Institute of Technology Roorkee
Indian School of Business(ISB), Hyderabad
Xavier Labour Relations Institute (XLRI), Jamshedpur
Birla Institute of Technology & Sciences(BITS) - Pilani
Indian School of Mining Dhanbad
Indian Institute of Science (IISC), Bangalore
Management Development Institute (MDI), Gurgaon
Institute of Management Technology- Ghaziabad
Indian Institute of Foreign Trade (IIFT), Delhi
Narsee Monjee Institute of Management Studies (NMIMS), Mumbai
Xavier Institute of Management (XIM), Bhubaneswar
Faculty of Management Studies (FMS), Delhi
Indian Institute of Forest Management (IIFM), Bhopal
National Institute of Fashion Technology (NIFT), New Delhi
Jamnalal Bajaj Institute of Management Studies (JBIMS), Mumbai
Mudra Institute of Communication (MICA), Ahmedabad
Tata Institute of Social Sciences (TISS), Mumbai
S P Jain Institute of Management and Research (SPJIMR), Mumbai
Institute of Rural Management, Anand
LIST OF INSTITUTIONS (CATEGORY-B)

Name of Institution
Indian Institute of Foreign Trade (IIFT), Kolkata Campus
Marine Engineering & Research Institute, Kolkata
Indian Institute of Management Lucknow- Noida Campus
Indian Institute of Management Shillong
ICFAI Business School -Hyderabad
LN Welingkar Institute of Management, Mumbai
LBSIM, Delhi
Birla Institute of Technology, Mesra
IMI, New Delhi
34 | P a g e
10 FORE School of Management, Delhi

11 Goa Institute of Management, Goa
T. A. Pai Management Institute (TAPMI), Manipal [Post Graduate Diploma in
12 Management]
13 IIT-SJSOM, Mumbai
AMITY Group of Institutes (Institutions promoted by Ritanand Balved Education
14 Foundations (RBEF) (Amity Universe), NOIDA,UP)
15 Department of Management Studies, IIT, Delhi
16 Department of Industrial & Management Engineering, IIT, Kanpur
17 Nirma Institute of Management, Ahmedabad
18 Institute of Management Technology- Nagpur
19 Institute of Management Technology- Hyderabad
20 Institute of Management Technology- Dubai
21 National Institute of Design (NID), Ahmedabad
22 National Institute of Industrial Engineering (NITIE), Mumbai
23 Dr. B R Ambedkar National Institute of Technology (NIT), Jalandhar
24 Malaviya National Institute of Technology (NIT), Jaipur
25 Maulana Azad National Institute of Technology (NIT), Bhopal
26 Motilal Nehru National Institute of Technology (NIT), Allahabad
27 National Institute of Technology (NIT), Agartala
28 National Institute of Technology (NIT), Calicut
29 National Institute of Technology (NIT), Durgapur
30 National Institute of Technology (NIT), Hamirpur, Himachal Pradesh
31 National Institute of Technology (NIT), Jamshedpur
32 National Institute of Technology (NIT), Kurukshetra
33 National Institute of Technology (NIT), Patna
34 National Institute of Technology (NIT), Raipur
35 National Institute of Technology (NIT), Rourkela
36 National Institute of Technology (NIT), Silchar
37 National Institute of Technology (NIT), Srinagar
38 National Institute of Technology (NIT), Surathkal
39 National Institute of Technology (NIT), Tiruchirapalli
40 National Institute of Technology (NIT), Warangal
41 Sardar Vallabh Bhai National Institute of Technology (NIT), Surat
42 Visvesvaraya National Institute of Technology (NIT), Nagpur
43 Indian Institute of Technology Guwahati
44 Indian School of Business(ISB)-Mohali Campus
45 BITS (Pilani) Goa Campus
46 BITS (Pilani) Hyderabad Campus
47 S.P. Jain Centre of Management, Dubai/ Singapore
48 S.P. Jain Institute of Management, Singapore & Sydney (GBBA)
National Institute of Fashion Technology (NIFT), Campuses: Bengaluru, Mumbai &
49 Chennai
35 | P a g e
Annexure-II
List of Approved Education Institutions
S.No
1
2
3
4
5
6
7
8
Name of the Institutions

Dhirubhai Ambani Insitute of
Information & Communication, Gandhi
Nagar, Ahmedabad
Symbiosis Centre for Management &
Human Resource Development, Pune
Ansal Institute of Technology, Sector
55, Gurgaon
Indian Institute of Planning &
Management, Qutab Institutional area,
New Delhi 110 016. All Centres
Modi Apollo International Institute, 24A,
Lajpat Nagar IV, New Delhi 110 024
WLC College, India Ltd.
ICFAI Business School (IBS).
All the Institutes of the Group.
Pandit Deendyal Petroleum University
(PDPU) (GERMI) run by IPM,
Gandhinagar & IPT, Gandhinagar.
S.P. Jain Centre of Management,
Dubai/ Singapore.
10
S.P. Jain Institute of Management

(Mumbai)
11
S.P. Jain Institute of Management

(GBBA)
Narsee Monjee Institute Of
Management and Higher Studies
(NMIMS)
University of Petroleum & Energy
Studies. Dehradun
12
13
14
Modi Institute of Technology & Science,

Laxmangarh
15
NIIT
Courses Approved
Diploma in Information & Communication
Technology
All courses
All courses
All courses
All courses
All courses
All courses
All courses
(i) Global MBA / BBA Programme

(ii) Product Marketing & Management
(iii)Banking Management
(i) Executive MBA course for general students
(ii) MBA course for Working Executives
(regular)
(iii) Post Graduate IT course called MIT
(Masters in Information Technology)
All courses
All courses
(i) MBA
(ii) M.Tech.
(iii) BBA
(iv) B.Sc.
(v) B.Tech and all the other courses approved
by UGC
(i) Computer Science and Engineering
(ii)Electronics and Communication Engineering
(iii) Information Technology
(iv) Master of Computer Science
(v) M.Tech. in Computer Science (v) MBA
Diploma in IT, Honors Diploma in IT, ANIIT,
GNIIT & Post Graduate certification programme
in Business Analytics (PGCBA)
36 | P a g e
16
LBIIHM - Pitampura
17
18
19
Dayand Sagar Institution

Institute of Management Studies,
Dehradun (Its Group Institutes)
Asian School of Media Studies
20
Times Business School, New Delhi
21
NIIT Imperia
(i) Degree Courses recognized by UGC/HRD

Ministry
(ii) Bachelor in Hotel Management & Tourism
(IASE)
(iii) B.Sc./M.Sc. In Hotel Management, Catering
Technology & Tourism (PTU)
All courses
All courses
(i) M.Sc. in Mass Communication, Adv. &
Journalism + PG Diploma
(ii) B.Sc. in Mass Communication, Adv. &
Journalism + Graduate Diploma
(iii) B.Sc./ M.Sc. In Multimedia Technologies
(iv) BBA
(v) MBA
Other Diploma Courses conducted by the
Institute are not allowed
1. MBA ( 2 years)
2. Integrated MBA (4 Years)
3. BBA (3 years)
4. BJMC ( 3 years)
5. PG Diploma in Finance (11 months)
6. PG Diploma in Human Resources (11
months)
7. PG Diploma in Marketing & Sales (11
months)
8. PG Diploma in Media & Communication (11
months)
9. PG Diploma in Advertising & PR (11 months)
All Courses
37 | P a g e
Annexure-III
List of Top 100 Foreign Institutions
S.No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
Foreign Institutions
California Institute of Technology Caltech
Harvard University
University of Oxford
Stanford University
University of Cambridge
Massachusetts Institute of Technology
Princeton University
University of California Berkeley
Imperial College London
Yale University
University of Chicago
University of California Los Angeles UCLA
Swiss Federal Institute of Technology Zurich
Columbia University New York
Johns Hopkins University
University of Pennsylvania
University of Michigan
Duke University
Cornell University
University of Toronto
University College London
Northwestern University
University of Tokyo
Carnegie Mellon University
National University of Singapore
University of Washington
Georgia Institute of Technology
University of Texas Austin
University of Illinois Urbana Champaign
Ludwig Maximilians Universitt Mnchen
University of Wisconsin Madison
University of British Columbia
University of Melbourne
cole Polytechnique Fdrale de Lausanne
London School of Economics and Political Science
University of Edinburgh
University of California Santa Barbara
New York University
McGill University
King's College London
University of California San Diego
Washington University Saint Louis
University of Hong Kong
Karolinska Institute
Australian National University
University of Minnesota
University of North Carolina Chapel Hill
Peking University
Tsinghua University China
38 | P a g e
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
Seoul National University

Hong Kong University of Science & Technology
Korea Advanced Institute of Science & Technology KAIST
University of Manchester
Brown University
University of California Davis
Catholic University of Leuven
Boston University
Pennsylvania State University
Kyoto University
University of Sydney
cole Polytechnique
Nanyang Technological University
Scuola Normale Superiore di Pisa
Leiden University
University of Queensland
Pohang University of Science & Technology
University of Gttingen
Ohio State University
Rice University
Universitt Heidelberg
Delft University of Technology TU Delft
Erasmus University Rotterdam
Wageningen University and Research Centre
University of Bristol
University of Basel
University of Southern California
University of Amsterdam / Universiteit van Amsterdam
Utrecht University / Universiteit Utrecht
Humboldt Universitt zu Berlin
Freie Universitt Berlin
Michigan State University
Durham University
Monash University
University of Arizona
University of Notre Dame
University of California Irvine
Tufts University
Ghent University / Universiteit Gent
University of Massachusetts Amherst
University of Pittsburgh
Emory University
University of Glasgow
McMaster University
Vanderbilt University
University of Colorado Boulder
Technische Universitt Mnchen
Uppsala University
Stockholm University
Maastricht University
Purdue University
39 | P a g e
Annexure-IV
In-Principle Letter
(On Banks Letter Head)
Model In-Principle Education Loan Sanction Letter
Date:
(Name & Address
of the Prospective
Education Loan Borrower)
Reg: In-principle sanction letter for prospective Education Loan
Dear Sir/ Madam,
Heartiest Congratulations on your successful admission to _____________ course
offered by ___________ (Name of Institute) and wish you all the success.
Based on the offer letter issued by the institute confirming your admission, we offer inprinciple sanction letter for education loan on normal terms & conditions of our
Education Loan scheme.
However, it may be noted that the regular sanction shall be subject to submission of
complete loan application along-with duly authenticated required documents & our
formal sanction. The issuance of this letter may not be treated as binding upon the Bank
and, the Bank reserves the right to sanction or reject any loan proposal on merits of the
case.
We await your formal loan application for our consideration.
With regards,
Sincerely yours
Branch Manager
40 | P a g e
Annexure-V
_______________________
Branch office: ________________
Note: Model Draft of Education Loan Process Note to be amended as per the requirement
FOR APPROVAL
Date of receipt of proposal at the branch
Date of submission of proposal to Regional Office
Date of submission of proposal to Corporate Office
Date of raising query, if any, by the Corporate Office
Date of receipt of the query
Name of Borrower (s)

Branch / Region
Memorandum for
Deviation, if any
Concession, if any
1. BORROWERS PROFILE
Name of Borrower (s)
Address
Asset Classification
Line of activity
Credit Rating
CIBIL Report (Transunion &
Personal)
Date of last sanction/review
& Authority
Date of review/renewal
Dealing with the bank since
41 | P a g e
2. DETAILS OF FACILITIES:Nature of facility
Existing
Limit
O/S
Proposed
ROI
(Amt. in Lacs)
Margin
Grand Total
3. PRESENT PROPOSAL IN BRIEF:4. Value of A/C:5. CREDIT FACILITIES SANCTIONED BY OUR BANK TO INDIVIDUAL/GROUP
CONCERN :6. MARGIN:7. RATE OF INTEREST:8. MORATORIUM PERIOD & REPAYMENT:9. FUTURE PLACEMENT AND EXPECTED INCOME:10. INCOME AND REPAYMENT ASPECT OF LOAN:11. DISBURSEMENT:12. BANKS POLICY:13. ANY CONCESSION/RELIEF BY WAY OF MARGIN / COMMISSION / INTEREST:14. DETAILS OF SECURITIES OFFERED AND THEIR VALUE:a. Title Clearance Report:
b. Valuation report
15. PRE SANCTION VISIT REPORT
16. RECOMMENDATIONS:Terms of Sanction:Nature of facility
Classification of
advance
Amount
Purpose
Education Loan - For Study in India / Abroad

Priority / Non priority sector
` _________________ (Rupees ________________ only)
Pursuing __________ years ___________________(name
of the course).
42 | P a g e
Cost of study
` ____________ (Total Cost)
Margin
Rate of interest
BR + _______% i.e. _________% p.a.
The interest shall be levied on monthly simple basis, only

during the moratorium period (Study + Grace Period).
Interest to be charged on monthly compounding basis
after the moratorium period (Study + Grace Period), the
interest shall be charged on compounding basis.
1% concession in interest rate may be provided for

moratorium period, in case the accrued monthly interest
is served regularly on monthly basis.
Penal interest at the rate of 2.00% shall be charged on

irregular amount and for the period of irregularity.
Intimation of change in The borrower shall be deemed to have notice of changes in
Interest Rate:the rate of interest whenever there are changes in Base
Rate (either increase or decrease) by display of Base Rate
on the website of Bank/Notice Board of the Branch or
published in news papers or made through entries of the
interest rate charged in the passbook/statement of account
furnished to the borrower and the borrower is liable to pay
such revised rate of interest.
In addition, Bank shall have a right to change the
spread (above Base Rate) on reset date.
Tenor of Course
Repayment
i.
Total Repayment
Period
ii.
Moratorium
Period.
iii.
Repayment of
Interest
Process /Upfront fee

Disbursement
Prepayment penalty
i.
In ________ equal monthly installments (including

moratorium period).
ii.
______________________ (study +grace period)
iii.
The accrued monthly interest of existing and

proposed loan
shall be recovered on monthly
basis.
Rs _______/- plus service tax, if any.

Loan shall be disbursed in stages as per requirement /
demand directly to the institutions / vendors of books /
equipments / instruments etc. to the extent possible.
However, the receipts from the institution for the amount
paid as per the disbursed amount be submitted.
NIL
General Terms & Conditions of Sanction including Security, Undertakings and

specific riders for education loan will be as mentioned in Sanction Letter (Model
Draft)
Submitted for approval Please
43 | P a g e
Annexure-VI
_______________________
Branch office: ________________
Note: Model Draft of Education letter sanction letter to be amended as per the
requirement.
Ref No:
Date:
________________ (Borrower)
________________
________________ (Address)
Dear Sir,
Education Loan A/c - __________________________________ (Borrowers Name)
In reference to your loan application dated: ________, We are pleased to communicate
our sanction with attached detailed terms and conditions.
You are requested to go through the terms & conditions of sanction and one copy of the
same be signed and returned to us as an acceptance of the terms & conditions of
sanction.
The credit facilities shall be released on compliance of following:
1. Complying with all the terms & conditions of sanction.
2. Executing proper loaning documents as prescribed.
3. Creating effective charge on all the securities in favour of the bank as per the
terms of sanction.
4. Creation of a valid registered/equitable mortgage over the property proposed to
be mortgaged in the account.
In case any clarification is needed, the matter be bought to under signatory.
Yours faithfully,
Branch Incumbent
Branch Office ____________
44 | P a g e
ORIENTAL BANK OF COMMERCE

Branch Office _______________
TERMS & CONDITIONS OF SANCTION
Date: ________
Name of Borrower
Branch/Region
Date of sanction
Nature of facility
Classification of
advance
Amount
Purpose
Cost of study
Margin
Rate of interest
Education Loan - For Study in India / Abroad

Priority / Non priority sector
` _________________ (Rupees ________________ only)
Pursuing __________ years ___________________(name of the

course).
` ____________ (Total Cost)
BR + _______% i.e. _________% p.a.
The interest shall be levied on monthly simple basis, only during the
moratorium period (Study + Grace Period).
Interest to be charged on monthly compounding basis after the
moratorium period (Study + Grace Period), the interest shall be
charged on compounding basis.
1% concession in interest rate may be provided for moratorium
period, in case the accrued monthly interest is served regularly.
Penal interest at the rate of 2.00% shall be charged on irregular
amount and for the period of irregularity.
Intimation of change in Interest Rate:The borrower shall be deemed to have notice of changes in the rate
of interest whenever there are changes in Base Rate either increase
or decrease. By display of Base Rate on the website of Bank/Notice
Board of the Branch or published in news papers or made through
entries of the interest rate charged in the passbook/statement of
account furnished to the borrower and the borrower is liable to pay
such revised rate of interest.
In addition, Bank shall have a right to change the spread
(above Base Rate) on reset date.
Tenor Of Course
45 | P a g e
Repayment
ii.
Total Repayment
Period
ii.
In ________ equal
moratorium period).
iii.
Moratorium
Period.
iii.
______________________ (study +grace period)
iv.
iv.
Repayment of
Interest
The accrued monthly interest of existing and proposed loan

shall be recovered on monthly basis.
Process /Upfront fee

Disbursement
Prepayment penalty
monthly
installments
(including
` _______/- plus service tax, if any.
Loan shall be disbursed in stages as per requirement / demand

directly to the institutions / vendors of books / equipments /
instruments etc. to the extent possible.
However, the receipts from the institution for the amount paid as per
the disbursed amount be submitted.
NIL
GENERAL TERMS & CONDITIONS OF SANCTION:1. a) The above loan shall be collaterally secured by the following Security;
Registered / equitable mortgage of __________________________standing in
the name of __________________________ having a market value of Rs.
________ and realizable value of `__________ as per valuation dated
______________
The borrower/ co-obligant / guarantor will extend their co operation and provide
with full details of their moveable/immoveable assets and liabilities for preparing
their revised credit report.
The properties obtained as mortgage in the account shall be adequately insured
with the agreed Bank clause. The cost shall be borne by yourself.
b) Assignment of future income of the student on getting employment after
completion of the course for payment of installment. An appropriate affidavit to
this effect be obtained from all joint borrowers.
2. The Terms of sanction shall remain valid for 6 months. Please avail sanction limit
within the prescribed period after executing documents etc.
3. Branch Official be permitted to visit the property to assess the real value of
property before release of loan.
46 | P a g e
4. Facility shall be released after vetting of documents including mortgage

documents,where applicable .
5. Advance/Facility sanctioned, shall be used for the specific purpose for which it is
sanctioned and not for any other purpose.
6. In case of cost overrun in the studies, the borrower shall arrange funds from its
own sources to meet the shortfall.
7. A joint either or survivor SAVINGS ACCOUNT in the name of the borrower/coborrower be opened.
8. The borrower shall deposit the fee paid receipts issued by the institution for the
amount disbursed at regular intervals.
9. All photocopies of papers submitted by the borrower for the purpose of the loan
should be authenticated by a duly authorized official of the borrower and should
be verified by branch.
10. Undertakings as per ANNEXURE A shall be provided.
11. All other terms and conditions applicable to Education Loan as per ANNEXURE
B shall be strictly complied with.
Branch Manager
Branch Office____________
47 | P a g e
Annexure-A
UNDERTAKINGS
A. An undertaking shall be obtained from the mortgager that no dues of tax are
outstanding against them and all required Statutory and/or Regulatory permissions or
guidelines as are applicable in context to their immoveable properties, from local or
other competent authorities have been obtained.
Not to create any further charge, lien or encumbrance over the assets and properties of
the company to be charged to the bank in favour of any other bank, financial institution,
Company, firm or person.
B. The borrowers/co-borrowers shall undertake as under:
1.
2.
3.
4.
5.
6.
That the names of Borrower, or its Directors/ Guarantors do not figure in any
list of defaulters circulated by RBI or any Bank and Financial Institution nor the
names of partners/directors appear in caution list issued by RBI/ECGC/DGFT
etc.
That to issue appropriate undertaking /affidavits/ certificates as the Bank may
require from time to time certifying that the funds comprising of entire amount
of loan/ facility/sum due/ amount outstanding in the account have been used
exclusively for the purpose for which they were obtained and the same have
not been diverted / siphoned and no misrepresentation has been caused of
any kind or accounts falsified/any fraudulent transaction have been carried out
etc.
That to keep the Bank informed of the happening of any event likely to have a
substantial effect on their income.
That as per HO Circular HO/R&L/14/2001-2002/355 dated 09-02-2002 issued
by Recovery & Law department an AFFIDAVIT and UNDERTAKING about the
names, age and address of the legal heirs of the borrowers/
obligants/guarantors be recorded and upgraded from time to time so as to
ensure that in the event of the death of the obligant /defendant during litigation,
no time is lost in bringing on record the legal heirs of the deceased.
That no loan has been taken for this purpose from any bank/financial
institution.
That the borrower will submit performance report from his education institution
at regular intervals.
48 | P a g e
Annexure-B
SPECIFIC RIDERS FOR EDUCATION LOAN
1. The student is expected to take up his studies seriously and shall work hard and try
her best to maintain a good academic record and shall intimate to the Bank the result
of periodical tests/examinations conducted by the institution. The student shall not
participate in any unlawful activity which will debar him from pursuing his studies and
shall follow all the rules and regulations in force and maintain such dignity and
decorum as is expected of the student by the institution. If the performance of the
student is not satisfactory or if any adverse report in respect of the progress/conduct
of the student comes to Banks knowledge, the Bank will be at liberty to recall the
loan amount and the student and/or the guardian shall be liable to repay immediately
the outstanding dues together with interest and other costs.
2. The student shall not without the prior consent of the Bank change the course of his
studies, place of study or the institution as stated in his application.
3. The student shall during the currency of the loan deep the Bank informed from time
to time of any change of address on account of his being on vacation, study leave,
study tour or his being required to stay away from the station.
4. After completion of the course of her studies, it will be the responsibility of the student
to secure gainful employment and immediately upon securing such employment,
inform the Bank accordingly giving full particulars of such employment and the
income there from.
5. In case the student has undertaken higher studies in India and intends to go abroad
for further studies or for taking up a job, he shall intimate to the Bank immediately
and thereupon the Bank may decide whether the loan has to be repaid in full before
the student leaves the country or whether to allow the loan to be continued on
revised terms and conditions.
6. The student shall not enter into any pecuniary obligation or financial liability during
the currency of the loan without the prior permission of the Bank.
7. The student is ordinarily not expected to take up employment during the course of his
studies without the prior permission of the Bank. Where, however, he wishes to take
up a job during the course of his studies, he should produce a certificate from the
institution that such employment will not interfere with his studies. Full particulars
about the nature of the employment, the working hours salary and other relevant
matters should be advised to the Bank immediately. Upon receiving such intimation,
the Bank may consider whether to continue the loan arrangement and, if so, to what
extent thereof.
49 | P a g e
Annexure- VII
ORIENTAL BANK OF COMMERCE
REGION _____________________
Recommendations for approval of the Educational Institution not formally approved by
AICTE / Govt. of India / Indian Universities / State Govt. and the Courses conducted
therein for granting of Education Loan to the students applying for such courses in such
institutions
Full name
institution
of
the
educational
Constitution
institution
of
the
educational
Founded in the year

Names of founders / promoters of
the educational institution
Past experience of the promoters in
the education line
Any particular group of which it
belongs
Year in which the studies for the
courses has first commenced
Whether applied for affiliation to
AICTE or any other University or
Government Body?
If so, give
details.
Whether the institution is a
franchisee of any other institution?
If so, give details.
Whether affiliated to any foreign
university or body? If so, give
details.
Names of the Management Team /
Board of Trustees / Board of
Directors.
50 | P a g e
Details of the Courses offered by the Institution

Particulars
Course - Course - Course

I
II
III
- Remarks
Name of the course

Name of the qualification, which
the Course will lead to
Total duration of the course
Whether course is full time or
part time?
Annual fees payable for the
Course under all heads
Fees payable for the full
duration of the course
Admission process followed
Whether it is distance learning
or oral coaching?
Details of Infrastructural Facilities available with the Institution
Land & Building
Hostel Facilities
Laboratory Facilities
Computer Facilities
Whether the land is owned by
the Educational Institution?
Whether all infrastructural
facilities are available
Any infrastructural facilities are
yet to be completed or provided
Financial resources of the Institution
Whether any aid or grant is
available to the institution?
What are the sources of finance
for running the institution?
Whether the institution is
financially self sustaining?
51 | P a g e
Recommendations
Placement track record of the institution
1.
Name of the companies
where placement has been
made
2.
Average package range
From Rs.______________
To Rs.________________
3. Percentage & number of

students got campus
placement in last 2 years
Recognition from trade &
industry
Local reputation of the
institution based on feedback from intellectuals /
professionals
Whether adequate, qualified

and professional faculty
available?
We recommend for placing the above Educational Institution on the approved list of
Educations Institutions of our Bank for the following courses conducted therein for grant
of Education Loan to the Students applying for such courses in the institution.
Name of the Course(s):
1.
2.
3.
4.
Signature of Regional Head
52 | P a g e
Annexure-VIII
List of Documents/ Information to be provided by the applicant along with Loan
Application Form
(These documents are indicative, relevant documents be obtained on case to case
basis)
1 1. Proof of Identity and address (PAN Card, Driving License/Voter ID Card, Passport,
Ration Card etc.) Any two documents may be obtained.
2. Proof of age of the applicant should also be obtained
2 Passport size photographs of applicant/parents/co-obligants/ Guarantor.
3 ITR/Form-16, Proof of income of parents/co-obligants
4 Bank Statement of account for the last six months.
5 Matriculation or Higher Secondary or Senior School Board Certificate / Marks Sheet /
Degree (last exam passed).
6 Admission Letter / Slip issued by the Institution in India or Abroad giving complete
details of Fee/Charges.
7 Receipt of Fees, if any.
8 Details of Scholarship available, if any.
9 Brochure issued by the institution giving information about recognition of the course by
appropriate authority/university.
10 Declaration/Affidavit (duly notarized) that no loan has been taken for this purpose from
other financial institutions/Banks.
11 Passport /Visa in case of Students going abroad and Permission for release of Foreign
Exchange wherever required.
12 Documents/ proof of Movable collateral security like FDR/NSC/LIP, wherever required in
case of Loans exceeding Rs.7.50 Lac.
13 Details of collateral securities offered along with proof of ownership with complete chain
of Title deeds, latest House Tax Receipt, Non-encumbrance Certificate, Latest Search
Fee Receipt, from advocate on panel of the bank, Income Tax and Other Statutory dues
clearance certificates. , in case of Loans exceeding Rs.7.50 Lac.
14 Salary certificate along with deductions duly certified by employer in case of working
professionals/Defense Personnel seeking assistance for part-time courses
15 In case of Loan to working executive, Letter of authority duly confirmed by the employer
for deduction of monthly installment from salary OR ECS/NACH debit Mandate/Standing
Instruction be obtained.
16 CIBIL Report
Note: All the documents mentioned above shall be self attested.
Credit Risk Rating to be done as per Credit Risk Rating Model for Retail Loans and
Credit Risk Scoring Sheet to be attached with the Process Note
53 | P a g e
Annexure-IX
LIST OF LOANING DOCUMENTS TO BE OBTAINED BEFORE DISBURSEMENT OF LOAN
1.
Education Loan Agreement DOC. 30.
2.
Agreement of Guarantee- DOC. 11 wherever required.
3.
Common Agreement DOC 38
4.
Affidavit/undertaking as per Banks format
5.
Receipt of Fees duly verified by the Student.
6.
Appropriate documents like Memorandum of deposit of title deed / Mortgage
deed along with Original title deed(s) for creating charge over the property in
favour of our Bank depending upon the nature of charge in case of Loans
exceeding Rs.7.50 Lac, unless otherwise specifically exempted by the
Competent Authority. NEC / Valuation Certificate of the property from the
advocate/valuer on panel of the bank
7.
Names of Legal heirs of borrower(s) and guarantor (s) on Affidavit duly
notarized.
8.
CIBIL Report
9.
Credit Rating Report
54 | P a g e

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Education Loan Scheme

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ORIENTAL EDUCATION LOAN SCHEME 31.03.

Circular No. and Date

HO:Retail:42:2013-14:1035 dt: 07.02.2014

Circulars related to customized schemes:

Circular No. and Date

IITs & XLRIs

HO:Retail:03:2014-15:19 dt: 08.04.2014

HO:Retail:04:2014-15:16 dt: 08.04.2014

HO:Retail:49:2014-15:981 dt: 17.03.2015

Circulars related to Vocational Education & Training Scheme

Circular No. and Date

HO:Retail:41:2013-14:1034 dt: 07.02.2014

Education Loan scheme

EDUCATION LOAN SCHEME

a) The above list is indicative in nature. The other job oriented

3. On the basis of expected future business / value of account /

Some universities like Punjab Technical University and Manipal

the main education course.

2. Medical courses outside India including China and

Students pursuing medical courses outside India including

Education Loan scheme

Reasonable Lodging & Boarding charges will be considered in

6. Purchase of computers-essential for completion of the

b) For Management Quota:- Fees as approved by the

Up to ` 10.00 Lacs for studies in India

(Amended vide circular no. HO:Retail:49:2014-15:981 dated 17.03.2015)

Education Loan scheme

1) In case higher loan limit is requested (from the above

Top-up / Second Education Loan can be permitted for pursuing

Education Loan scheme

5. The repayment of the first education loan shall be

(Amended vide circular no. HO:Retail:49:2014-15:981 dated 17.03.2015)

Education Loan scheme

Free Scheme Intt

(Amended vide circular no. HO:Retail:20:2014-15:426 dated 27.08.2014

the interest shall be compounded.

women beneficiaries, SC/ST & disabled students. However,

Education Loan scheme

The interest switch over option can be exercised by borrowers

Servicing of interest during moratorium period is optional for

Simple Interest shall be charged per month during moratorium

Education Loan scheme

There may be a situation wherein after allowing 1% refund of

For Category A institutions

c) Loan above Mortgage of immovable property or any other tangible security

Extension of charge on unencumbered portion of land and

In all cases, assignment of future income of the student

Educational institutions approved by our bank

Institutions mentioned in list of A rated universities,

c. Liasioning be made with these institutions so as they may

Education Loan scheme

d. Subsequently, branches shall issue In-Principle sanction letter

c) Sanctioning Authority, on merit basis, can accept two

While obtaining such insurance cover, the prior consent of

Sanctioning authority may consider the premium amount of Life

Education Loan scheme

e) In case of education loan considered for undertaking

Further while permitting Telescoping / Stepped-up installment

Education Loan scheme

1. During the study period, in case the students fails in one or

If the repayments in education loans are extended due to

Repayment of the loan is expected to come from future earnings

loan cannot be classified NPA during the moratorium period or

Education Loan scheme