Education LOAN :

Scheme and the Rules Governing the grant of Educational Loans to the merit-cum-economically poor students

Following scheme is and the Rules are framed and approved by the Board of Directors at its meeting held on 30-12-2009.

Al round development of the country requires young talented citizen of India. This is possible by higher education. Knowingly or unknowingly education has become commercial. Many talented students cannot afford higher education for paucity of funds. The basic need of the hour is education. Realising this, the Board has decided to provide loans to the student-community. With this end in view, the following Rules were framed and approved by the Board.

The scheme has been formulated for deserving and promising students for higher education.

  • Studies in India (Graduation/PG/Ph.D./Professional/Degree/Diploma etc.)
  • Studies abroad for Graduation / Postgraduate courses/ Research work/Professional courses etc. of reputed universities.

Subject to that the student must have passed PUC/Degree from any recognized Board/University/Institution.

   II) The applicant-borrower must have secured admission in any accredited University or Institution.
  III) For credit appraisal, the applicant-borrower should produce documentary evidence evidencing income of his or her         parents.
 IV) Applicant-borrower must apply for loan with his Parent/Guardian as Co- borrower.
 V) Fee will be remitted by the Bank directly to the Head of the Institution of the borrower-student from time to time.

Maximum Loan would be Rs. 8 Lakhs per student-applicant-borrower in case of student prosecuting his/her studies in India and Rs. 15 Lakhs to the student persuing his/her education abroad. Loan is sanctioned only once. However disbursement of Loan would depend upon the requirement of the student from time to time.

Presently the Rate of Interest is 10% p.a. This is subject, however, to variation from time to time without notice.

The parent or guardian of the applicant borrower should offer their immovable property by way of security. Such property must be situated in any place within the erstwhile undivided Dharwad District.

The Bank reserves its Right to recall the entire loan upon the borrower students discontinuing the education for any reason.

The parent or guardian should give an undertaking to the Bank before the commencement of the academic year in the form of a letter that the borrower student has not discontinued the studies in the same University/Institution. Upon failure to give such an undertaking the Bank gets a full Right to recall the entire loan and take all necessary steps to recover the balance Loan.

The borrower student and parents/guardians should give an undertaking that they will not suppress any materials which disentitles the borrower-students to avail the loan.

The borrower student should repay the loan and interest thereon by monthly installments. The repayment should start promptly and punctually month by month after one year of completion of education. Entire loan upon completion of full education shall be repaid within a span of three years commencing from one year after completion of education. The Bank has got Right to appropriate the repayment first towards interest and the balance, if any towards principle loan. In case of default of any two installments in the payment, the Bank reserves its right to recover the balance then found due at a stretch.

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