The salient features of the "IBA Model Loan Scheme for Vocational Education and Training" are as under :
ELIGIBILITY CRITERIA :
i) Student Eligibility
Ÿ should be an Indian National.
Ÿ Have secured admission to a course run or supported by a Ministry / Dept / Organisation of the Govt or a company / society / organisation supported by National Skill Development Corporation or State Skill Missions / State Skill Missions / State Skill Corporations, preferably leading to a certificate / diploma / degree etc issued by a Govt. organisation or an organisation recognized / authorised by the Govt. to do so.
ii) Courses Eligible
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 / organisation 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. Organisation or an organisation recognised / authorised by the Govt. to do so. Eligible courses will also include courses approved by State Level Bankers Committee (SLBC) / State Level Co-ordination Committee (SLCC).
There is no specific restriction with regard to the age of the student to be eligible for the loan. However, if the student is a minor, while the parent executes documents for the loan, the Branch to obtain a letter of ratification from him / her upon attaining majority.
QUANTUM OF FINANCE :
Need based finance to meet expenses as worked out under Point 5 hereinbelow to be considered subject to the following ceilings :
- For courses of duration upto 3 months : Rs.20,000/-
- For courses of duration 3 to 6 months : Rs.50,000/-
- For courses of duration 6 months to 1 yr : Rs.75,000/-
- For courses of duration above 1 year : Rs.1,50,000/-
RMs may, at their discretion, approve relaxation for considering higher limits for courses of duration above one year, if required, for specific courses offered by reputed institutions having regard to the nature of such courses and employability (ability to repay out of job earnings).
EXPENSES CONSIDERED FOR LOAN :
Tuition / course fee
Examination / library / laboratory fee
Purchase of books, equipments and instruments
Any other reasonable expenditure found necessary for completion of the course (as such courses are localised boarding, lodging may not be necessary. However, wherever it has been found necessary, the same may be considered on merits).
MARGIN : Nil
RATE OF INTEREST :
For latest interest rate refer to latest HO guidelines.
Simple interest to be charged during the study period and upto commencement of repayment.
§ Servicing of interest during study period and moratorium period till commencement of repayment is optional for students.
§ 1% interest concession may be provided if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.
PROCESSING CHARGES : Nil
No security or third party guarantee to be taken. However, the parent will execute loan documents along with the student borrower as joint borrower.
MORATORIUM PERIOD :
Upon completion of the course, repayment will start after a moratorium period as indicated below :
Ÿ For courses of duration upto 1 year : 6 months from the completion of the course.
Ÿ For courses of duration above 1 year : 12 months from the completion of the course.
The loan to be repaid after the moratorium period in Equated Monthly Instalments (EMIs) as follows :
Loans upto Rs.50,000/- : Upto 2 years
Loans between Rs.50,000/- : 2 to 5 years
to Rs.1.00 lakh
Loans above Rs.1.00 lakh : 3 to 7 years
Optional at the requirement of the borrower.
The borrower can repay the loan any time after commencement of repayment without having to pay any pre-payment charges.
OTHER TERMS & CONDITIONS :
All other terms and conditions as applicable to Revised IBA Model Educational Loan Scheme for pursuing higher education in India & abroad will be applicable for this scheme also.