Oriental Bank of Commerce Education Loan

Education Loan scheme

EDUCATION LOAN SCHEME Purpose To provide financial support to meritorious students for pursuing higher studies in India & abroad with affordable terms & conditions. Eligibility For Loan Student who is / has: - 1. An Indian national. 2. Meritorious student 3. Secured admission to a higher education course in an institute recognized by a statutory body in India or abroad through entrance test/ merit based selection process Eligible Courses 1. Studies in India 1. Approved courses leading to Graduate/ Post Graduate degree and Post Graduate diplomas conducted by recognized Colleges / Universities approved / accredited by Government of India/ State Government/ UGC / Government /AICTE /AIBMS / ICMR or Regulatory bodies. 2. Courses like I.C.W.A., C.A., C.F.A., etc. 3. Courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NIDetc. 4. Approved courses offered in India by reputed foreign universities 5. Evening courses of approved / accredited institutes 6. Computer Certificate courses of reputed institutes accredited to the Deptt. of Electronics or Institutes affiliated to Universities. 7. Regular Degree/ diploma courses like Aeronautical, Pilot training, Shipping etc. approved by Director General Of civil Aviation/ shipping, if the course is pursued in India 8. Nursing Courses conducted by institutes approved by State / Central Govt./ Regulatory body. Note: a) The above list is indicative in nature the other job oriented courses to technical/ professional degrees/ diplomas offered by recognized institution may be considered under this scheme. Eligible Courses a) Studies in Abroad 1. Graduation For job-oriented professional/technical courses offered by reputed universities. 2. Post Graduation Courses like MCA, MBA, MS etc. 3. Courses conducted by CIMA-London, CPA in USA etc 4. Degree/ Diploma Courses like Aeronautical, Pilot training, and Shipping etc. provided these are recognized by competent regulatory bodies in India/ abroad for the purpose of employment in India and abroad. Two / Dual Courses Education loan for Diploma and degree courses simultaneously may also be considered for two / dual courses provided by the educational institutions. Top-up/Second Loan Second Education Loan can be permitted for pursuing higher education in view of better placement prospects in case the student approaches for top-up/ second loan during the moratorium period of the first education loan subject to compliance of security stipulations, other terms & conditions defined as per extant guidelines of education loan policy. Components of Finance 1. Fee payable to college/ school/ hostel (lodging and boarding). Reasonable Lodging & Boarding charges will be considered in case the student chooses/ is required to opt for outside accommodation. 2. Examination/ Library/ Laboratory fee. 3. Insurance premium. 4. Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course. 5. Travel expenses/ passage money for studies abroad. 6. Purchase of computers-essential for completion of the course*. 7. Purchase of books/ equipments/ instruments/ uniforms*. 8. Any other expenses required to complete the course-like study tours, project work, thesis, etc*. *Terms & Conditions apply. Amount of loan Up to Rs. 10.00 Lacs for studies in India Up to Rs. 20.00 Lacs for studies abroad * Higher Loan amount can be considered. Margin Up to Rs. 4.00 Lacs NIL Above Rs. 4.00 Lacs 5% For studies in India 15% For studies Abroad Note: 1) Scholarship/assistantship can be treated as margin. 2) Margin may be brought in on year to year basis as and when disbursements are made on a pro-rata basis.     Penal Interest 2% over the normal rate of interest shall be charged on loan above Rs. 4.00 Lacs on overdue amount for the overdue period.     Prepayment Penalty NIL Security Clause a)Loan upto Rs. 4.00 Lacs b) Loan above Rs. 4.00 Lacs & upto Rs. 7.50 Lacs c)Loan above Rs. 7.50 Lacs 1. No security. 2. Parents / guardian to be joint borrower (s) (irrespective of their means and age of student). 3. Co-obligation of spouse/ parents-in-law in case of married women. 4. In case of commercial pilot course obtaining of Life Insurance Cover shall be obtained. 1. Parents / guardian to be joint borrower (s) (irrespective of their means and age of student). 2. Co-obligation of spouse/ parents-in-law in case of married women. AND 1. Collateral security in the form of one suitable third party guarantee, preferably of other family member / close relative. In case of commercial pilot course Life Insurance policy shall be obtained. 1. Parents / guardian to be joint borrower (s) (irrespective of their means and age of student). 2. Co-obligation of spouse/ parents-in-law in case of married women. 3. Mortgage of immovable property or any other tangible security like pledge of NSCs/UTI/LIC (Surrender Value)/ PSU Bonds etc. having value equivalent to 100% of loan amount. OR Extension of charge or 2nd charge on unencumbered portion of land and building already mortgaged with Bank or other Banks/PSUs/FIs be accepted provided the residual value of unencumbered portion is at least equivalent to amount of proposed education loan if the conduct of the existing account is satisfactory and falls under standard/regular category. 1. Assignment of future income of the student on getting employment after completion of the course for payment of installment. An appropriate affidavit to this effect be obtained from all joint borrowers. Insurance Bank may arrange for Life Insurance policy for the students availing education loan. While obtaining such insurance cover, the prior consent of student / co-borrower shall be obtained and kept on record. The insurance premium has to be borne by the student / co-borrower. However, sanctioning authority may consider the premium amount as one of the component of finance, if requested by student / co-borrower. Repayment For loan upto Rs. 7.50 Lacs - Upto 10 years For Loan above Rs. 7.50 Lacs - Upto 15 years Moratorium Period/ repayment holiday (course period + Grace period of one year or six months after getting job whichever is earlier) (The moratorium period be permitted within the overall repayment period of respective loan) Disbursement 1. For studies in India: Loan shall be disbursed in stages as per requirement / demand, directly to the institutions/vendors of books/ equipments/ instruments etc. to the extent possible. 2. For studies abroad: In stages as per requirement/demand, directly to the institutions subject to obtention of certified copies of relevant pages of passport and visa of the student. The Institute eligible under Education loan scheme 1. Diploma, Degree courses conducted by Colleges/ Universities/ Educational Institutions approved by UGC / Central or State Governments/ AICTE/AIBMS/ICMR or other regulatory bodies. 2. The Education Institute not having approval from above said Regulators, but their names are included in approved Educational Institute list.