1. OBJECTIVE & PURPOSE:

The Star Educational Loan Scheme aims at providing financial support from the bank to deserving/ meritorious students for pursuing higher education in India and abroad. The main emphasis is that every meritorious student is provided with an opportunity to pursue education with the financial support on affordable terms and conditions.

2. ELIGIBILITY CRITERIA:

    a) STUDENT'S ELIGIBILITY:

• Should be an Indian National;
• Secured admission to professional/technical courses in India or Abroad through Entrance Test/Merit based selection process.
• Good academic career.
• The student should not have outstanding education loan from any other Institution.
• Father/Mother should be co-borrower.
• Branch nearest to the permanent residence of student will consider the loan.

ELIGIBLE COURSE:

          (i) Studies in India (Indicative list):

• Graduation courses : BA, B.Com., B.Sc., etc.
• Post Graduation courses : Masters & Phd.
• Professional courses : Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc
• Computer certificate courses of reputed institutes accredited to Department of Electronics or institutes affiliated to university.
• Courses like ICWA, CA, CFA, etc.
• Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID and other Institutes set up by Central/State Govt.
• Evening courses of approved institutes.
• Other courses leading to diploma/degree, etc. conducted by colleges/universities approved by UGC/Govt./AICTE/AIBMS/ ICMR, etc.
• Courses offered by National Institutes and other reputed private institutions with prior approval of Head Office.
• Courses offered in India by reputed foreign universities with prior approval of Head Office.
  

2.  Special scheme for students admitted to IITs, at concessional rate of interest.

 (ii) Studies abroad:

• Graduation: For job oriented professional/technical courses offered by reputed universities.
• Post Graduation: MCA, MBA, MS, etc.
• Courses conducted by CIMA - London, CPA in USA, etc.

3. EXPENSES CONSIDERED FOR LOAN:

• Fee payable to college/school/hostel*
• Examination/Library/Laboratory fee.
• Purchase of books/equipments/instruments/uniforms.
• Caution deposit/building fund/refundable deposit supported by Institution bills/receipts.
• Travel expenses/passage money for studies abroad.
• Purchase of computers - essential for completion of the course.
• Insurance cover for the student.
• Any other expense required to complete the course - like study tours, project work, thesis, etc.

* As per brochure/ demand letter from the institution.

4. QUANTUM OF FINANCE:
Need based finance subject to repaying capacity of the parents/students with margin and the following ceilings: 
Studies in India - Maximum Rs.10.00 lakh 
Studies abroad - Maximum Rs.20.00 lakh.

5. MARGIN:
Up to Rs.4 lakh : Nil
Above Rs.4 lakh - Studies in India : 5%
Studies Abroad : 15%
·    Scholarship could be included in margin.
·   Margin to be brought in on year to year basis as and when disbursements are made.

6. SECURITY:

• Up to Rs. 4 lakh : No security
• Above Rs.4 lakh & upto Rs.7.5 lakh : Collateral security in the form of a suitable third party guarantee.
• Above Rs.7.5 lakh : Collateral security of suitable value or at the discretion of the Bank suitable third party guarantee alongwith the assignment of future income of the student for payment of installments.

Note: The security can be in the form of land/building/Govt. Securities/Public Sector Bonds/NSC/KVP/LIP/ Banks Term Deposit etc.,in the name of Student/Parent/Guardian/Guarantor with suitable margin.

7. RATE OF INTEREST*:

• Up to Rs.7.50 lacs - 1.75% below BPLR, Min. 11.00% p.a.
• Above Rs.7.50 lacs - 0.75% below BPLR, Min. 12.00% p.a.
• Simple interest during the repayment holiday/moratorium period.
• Penal interest @2% for loans above Rs.4 lakh for the overdue amount and overdue period.
• Int. Concession of 0.50%p.a. for woman beneficiaries
• 1% int. concession if interest is serviced during moratorium period, where repayment holiday is specified for interest/repayment under the scheme (concession available for moratorium period)

8. INSURANCE: All the student borrowers are offered a specially designed Term Insurance cover and the premium can be included as an item of finance.

9. REPAYMENT:

• Repayment holiday/Moratorium : Course period + 1 year or 6 months after getting job, whichever is earlier.
  
• The loan is to be repaid in 5-7 years after commencement of repayment.