Cent Vidyarthi

Purpose of Loan

For pursuing higher studies, in India & Abroad

Eligibility

The student should be an Indian National.
Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or equivalent).
Where there is no entrance test/merit based selection process and admission is purely based on the marks scored in qualifying examinations, the student should have scored minimum 50% marks in qualifying examination. (10% relaxation for SC/ST categories)

Nature of Facility

Term Loan

Expenses considered for loan

Fee payable to college/ school/ hostel
Examination/ Library/ Laboratory fee
Travel expenses/ passage money for studies abroad
Insurance premium for student borrower, if applicable
Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts.
Purchase of books/ equipment's/ instruments/ uniforms
Purchase of computer at reasonable cost, if required for completion of the course
Any other expense required to complete the course - like study tours, project work, thesis, etc.
While computing loan required, scholarships, fee waiver etc., if any available to the student borrower may be taken into account

Maximum loan amount

Rs. 10 lakh for studies in India & 20 lakh for studies abroad
Loan up to Rs.200 Lakh can be considered/sanctioned on case to case basis by delegated authority on merits subject to condition that the loan amount should be backed by 100% liquid security/collateral security.

Margin

Upto Rs. 4 lacs: NIL,
In India Above Rs. 4 lacs: - 5% ,
In Abroad Above Rs. 4 lacs: - 15% Margin
(Scholarship may be included in margin.)

Rate of Interest

RBLR+CRP

	ROI
	REPO/ RBLR + Spread	Effective ROI
Education loans to Students Pursuing MBA / Engineering courses (Under Cent Tech Vidyarthi) from IIMs / IITs & other Premier Management Institutes & under AA category	Repo + 2.05%	8.55%
Education loans to Students Pursuing MBA / Medical / Engineering courses from Reputed Institutes under A category with collateral Security	RBLR-0.35%	9.00%
Education loans to Students Pursuing MBA / Medical / Engineering courses from renowned Institutes under B category with Collateral Security	RBLR+1.25%	10.60%
Education loans to Students Pursuing MBA / Medical / Engineering courses from other popular Institutes under C category with Collateral Security	RBLR+2.15%	11.50%
Cent Vidyarthi Loan for education in Top Rated Management / Engineering / Medical Institutions Abroad Abroad under D category with Collateral Security	RBLR+1.25%	10.60%

Present ROI :

Loan up to Rs.7.50 Lakh: 11.25%
Loan above Rs.7.50 Lakh: 10.65%
Female/SC/ST students will get 0.50% concession in ROI

Incentive

1% interest concession may be provided by the bank during the study period, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.
Interest is calculated at simple basis during Repayment Holiday / Moratorium Period. Interest will be compounded on monthly rests from due date of first installment.

Disbursement

Payment directly to college / hostel / mess / airlines etc. In appropriate cases disbursement to be made to borrowers subject to satisfactory evidence. Original receipts to be submitted.

Repayment

Repayment of the loan will be in equated monthly installments for a period of Maximum 15 years for all categories after the moratorium period.
Moratorium Period= Course Period + One Year

Security

Loan Amount	Security
Up to Rs.4 lakh:	Mandatorily to be covered under Cent Vidyarthi – NCGTC Guarantee Scheme
Above Rs.4 lakh and up to Rs.7.50 lakh:
Above Rs.7.50 lakhs	Tangible collateral security of minimum realizable value equivalent to the loan amount

Insurance

Comprehensive life insurance policy for the student availing Educational Loan equivalent to loan amount, for a minimum period of loan term (i.e., course period + moratorium period + repayment period) should be obtained and assigned in favor of the Bank.

Central sector interest subsidy scheme:

It need to be noted that while the Central Sector Interest Subsidy Scheme of MoHRD is based on 'IBA Model Educational Loan Scheme', the subsidy is applicable only for loans given for Professional and Technical courses (after 12th standard) in India.

Educational Loans to students under Management Quota

Educational Loans to students under Management Quota are not covered under IBA Model Education Scheme.
These loans are not eligible for Central Sector Interest Subsidy Scheme of MoHRD.
However, Branches can consider educational loans under management quota seats where employment potential is available, subject to the following conditions:

Fee Structure	The payment/reimbursement of fees is restricted to fee structure as approved by the State Government / Government approved regulatory body for payment seats. It should be ensured that the student should have the financial resources to meet the funding gap.
Security	Parent(s)/guardian to be joint borrower(s). NCGTC cover to be taken for loans up to Rs 7.50 lakh. Irrespective of loan amount, 100% tangible collateral security of minimum value equal to loan amount and acceptable to bank should be obtained along with assignment of future income of the student for payment of installments. .
Others	All other terms and conditions as applicable for Cent Vidyarthi Scheme shall be complied with.