Education Loan-get loans for higher education in India / Abroad

Education Loan

get loans for higher education in India / Abroad

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Anywhere BankingLearn more about our Education Loan Scheme under TMB Retail Loan Products.

This is scheme of choice for parents who wish to educate their children in professional courses in India / Abroad and help them get graduation / post graduation in any field of choice of the student. The cost of the education can be born by the loan from our bank.



Student Eligibility

Should be an Indian National.
Secured first class and wish for admissions in Professional / Technical / Other Courses of various studies.
Secured admission to foreign University Institutions.
Any Student who has attained the age of 18 years or Parent of the Student can avail the loan.

Eligible course of study

Studies in India
School education / Graduation / Post Graduation Courses.**
Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.
Courses like ICWA, CA, CFA etc
Courses conducted by IIM, IIT, IISc, XLR1, NIFT etc.
Courses offered in India by Reputed Foreign universities.

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.
** When the age of the student is below 18, Loan may be sanctioned to his parents by complying the relevant condition mentioned further below.

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.
Any other expense required to complete the course - like study tours , project work, thesis etc.

Quantum of Finance
Need based finance subject to repaying capacity of the parents / students with margin and the following ceilings: For Studies in India - Max. Rs. 10.0 Lakhs, For Studies Abroad - Max. Rs. 20.00 Lakhs.
Margin

Upto Rs. 4.00 Lakhs - Nil.
Above Rs.4.00 Lakhs - Study in India - 5%.
Above Rs.4.00 Lakhs - Study Abroad - 15%.

Security

Upto Rs. 4.00 Lakhs - No Security
Above Rs.4.00 Lakhs upto 7.50 Lakhs Suitable Third Party Guarantee
Above Rs. 7.50 Lakhs and upto Rs. 20.00 Lakhs - 100% collateral in any of the form of Immovable property / NSC / Units of UTI / LIC policy / RBI Bonds or any transferable Government securities.

Rate of Interest

Upto 4 Lakhs - BR + 4.75% (13.25% p.a.).
Above 4 Lakhs upto 7.5 Lakhs - BR + 6.25% (14.75% p.a.) *.
Above 7.50 Lakhs upto 20 Lakhs (With 100% Collateral Only) - BR + 5.25% (13.75% p.a.).
* Interest Rate Concession by 1% if covered by 100% collateral security or 0.5% if covered by 50% to 100% collateral security.
Additional 1% interest concession allowed if the interest is serviced during holiday period.
Current Base Rate for Lending (BR) is 8.50% p.a.

Penal Interest
Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest or at such rates prescribed by the bank from time to time on the balance outstanding.
Disbursement
The loan will be disbursed in staged as per the requirement / Demand directly to the institutions / Vendors of books / Equipments / Instruments.

Sanction/Disbursement
All usual documents as per Bank's Rule should be obtained. The Loan to be disbursed in stages as per the requirement / demand directly to the institutions / vendors of books / equipments / instruments to the extent possible.
Repayment

Holiday / Moratorium Period: Course Period + 6 months after completion of the course. If the student got employed within 6 months after completion of the course, the repayment should start immediately after the expiry of one month from the date of employment.
Maximum Repayment period of Loan: The loan to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course

Follow Up
Branch to contact college / university authorities to send the progress report at regular intervals in respect of students who have availed loans.
Guarantee / Co-obligant

Guarantee of Parents.
In case, the loan is sanctioned to Parents suitable third party guarantee is to be obtained.
Wherever loan is sanctioned to Parents, guarantee is to be obtained from the student on attaining his majority.

Interest Payment
Payable at monthly rests from the date of availment of loan. A separate Letter of undertaking is to be obtained from the Parent / Guarantor that the monthly interest will be paid from the income of the Parent / Guarantor.
Processing Charges
1.00% of Limit sanctioned without any maximum cap.
All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Service Tax on All Service Charges extra wherever applicable.

Download the Application Form:

Education Loan Application Form (Format: PDF Document)