BOI Loan Scheme for Vocational Studies

1. OBJECTIVE :
   
   The Model Loan Scheme for Vocational Education and Training aims at providing financial support from the banking system to those who have the minimum educational qualification, as required by the institution/organization running the course eligible under the scheme.
2. 
   
3. ELIGIBILITY CRITERIA :
   
4. Student Eligibility :
   • The student should be an Indian National
   • Have secured admission in a course run or supported by a Ministry/Department / Organisation of the Govt. or a company / society / organization supported by National Skill Development Corporation or state Skill Missions / state Skill Corporations, preferably leading to a certificate / diploma/ degree, etc. issued by a Govt. organization or an organization recognized / authorized by the Govt. to do so.
5. Courses Eligible :
   
   1. Vocational/ Skill development courses of duration from 2 months to 3 years run or supported by a Ministry/Department / Organisation of the Govt. or a company / society / organization supported by National Skill Development Corporation or state Skill Missions / state Skill Corporations, preferably leading to a certificate / diploma/ degree, etc. issued by a Govt. organization or an organization recognized / authorized by the Govt. to do so. State Level Bankers Committee (SLBC) / State Level Coordination Committee (SLCC) may add other skill development courses / programmes, having good employability.
      
   2. Minimum Age :
      • There is no specific restriction with regard to the age of the student to be eligible for the loan. However, if the student was a minor, while the parent executes documents for the loan, the bank will obtain a letter of ratification from him/her upon attaining majority.

1. QUANTUM OF FINANCE :
   
   Need based finance to meet expenses, subject to the following ceilings:-
2. For courses of duration up to 3 months Rs.20,000/-

• For courses of duration 3 to 6 months Rs.50,000/-
• For courses of duration 6 months to 1 year Rs.75,000/-
• For courses of duration above 1 year Rs.1,50,000/-

1. EXPENSES CONSIDERED FOR LOAN :
   
2. Tuition / course fee

• Examination / Library / Laboratory fee
• Caution deposit
• Purchase of books, equipment’s and instruments
• Any other reasonable expenditure found necessary for completion of the course. (As such courses are localized boarding, lodging may not be necessary. However, wherever it has been found necessary, the same could be considered on merits).

1. MARGIN :
   
   Nil
2. 
   

1. RATE OF INTEREST :
   
   3% over Base Rate presently 13.20 % p.a. (Floating Rate at monthly rests)
2. Note :
3. Simple interest will be charged during the study period and up to commencement of repayment.

• Servicing of interest during study period and the moratorium period till commencement of repayment is optional for students.
• 1% interest concession to be provided if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.
• Interest concessions to girl students – 0.50 % for loans up to Rs. 50,000/- and 1 % for loan above Rs. 50,000/-

1. PROCESSING CHARGES :
   
   Nil
2. 
   
3. SECURITY :
   
   No collateral or third party guarantee will be taken. However, the parent will execute loan document along with the student borrower as joint borrower.
4. 
   
5. MORATORIUM PERIOD :
   
   Upon completion of the course, repayment will start after a moratorium period as indicated below :
   For courses of duration upto 1 year - 6 months from the completion of the course
   For courses of duration above 1 year - 12 months from the completion of the course
6. REPAYMENT :
   
   The loan will be repaid after moratorium period in Equated Monthly Installments (EMI’s) as follows:
   
   

   Loans up to Rs. 50,000/-	Up to 2 years
   Loans between Rs. 50,000/- to Rs. 1.00 lakh	2 to 5 years
   Loans above Rs. 1.00 lakh	3 to 7 years

7. PREPAYMENT :
   
   Any time, without any penalty/pre-payment charge.
8. INSURANCE :
   
   Optional at the requirement of the borrower.

For more information & apply online visit: http://www.bankofindia.co.in