Punjab & Sind Bank Education Loan

Eligibility Criteria:

(i) Student Eligibility 
 
Student should be an Indian National
Secured admission to professional / technical courses in India or abroad through entrance Test / Merit Based Selection process.
 
(ii)  Courses Eligible:
 
(a) Studies in India (Indicative List):

• Graduation courses : B.A. B.Com, B.Sc., etc.
• Post Graduation courses : Masters & Phd.
• Professional Courses: Engg. , Medical, Agriculture , Veterinary, Law ,Dental, Management  , Computer etc.
• Computer certificate courses  of reputed institutes accredited to Deptt. of electronics or institutes affliated to university.
• Courses like ICWA , CA , CFA etc.
• Courses conducted by IIM, IIT, IISc , XLRI, NIFT, etc.
• Courses offered in India by reputed foreign universities
• Evening courses of approved institutes
• Other courses leading to diploma / degree etc. conducted by colleges/ universities approved by UGC/ Govt/ AICTE /AIBMS/ ICMR etc.
• Other courses leading to diploma / degree etc. conducted by colleges/ universities approved by UGC/ Govt/ AICTE /AIBMS/ ICMR etc.
• Courses offered by National Institutes and other reputed private institutions
• Nursing Course / Teacher Training Courses / B.Ed. will be eligible for education loan  provided the training institutions are approved either by the Central Govt. or by State Govt.  and such courses should lead to Degree or Diploma course  and not to only certification course . The fees to be considered  for the purpose  should be the fees structure as stipulated in Central / State Govt. colleges.

(b) Studies Abroad:
 
Graduation: For job oriented professional/technical  courses offered by reputed universities
Post Graduation: MCA, MBA, MS etc.
Courses conducted CIMA-London, CPA in USA etc.
Diploma courses of reputed / recognized foreign Institutes/ Universities.
 
(iii) Skill Development Study Courses : 
Education Loans can be allowed only by the sanctioning authorities / branches specially       
designated by the respective Zonal Office for the courses  mentioned below :
Regular Degree / Diploma courses of Aeronautical  & Shipping of institutes recognized by the competent local aviation / shipping   authority  ( In India as well as abroad ) .
Recognized courses for Commercial Pilots/Air Hostesses, however care should be taken that the course should be provided by the approved & Institute of repute.
Select Vocational training and Skill development  study courses ( Full time as well as part time ) are eligible provided the courses are offered by recognized and well reputed institutions.
ZM to designate one or two suitable branches  for these courses.

(iv) Courses not covered: Correspondence courses are not eligible.
   
(v) The new courses can be added in the scheme by Head Office depending upon the future prospects/ recognition by user institutions.
 
Quantum of Finance:
Need based finance subject to repaying capacity of the parents /students subject to the  following ceilings.

• Studies in India - Maximum Rs.10  lacs
• Studies abroad  - Maximum Rs.20  lacs

Expenses eligible for finance: Fees payable to college / School/ Hostel / purchase of books / equipment /uniforms/ / travel expenses / passage money for studies abroad/ any other expenses required to complete the course like study tours/ project work, thesis etc .

Expenses not eligible for finance : Caution Deposits / Building fund / refundable deposit 
   
Margin:

• Upto Rs. 4.00 lac. - NIL  
• Above Rs. 4.00 lac Studies in India - 5%
• Studies Abroad - 15%

Scholarship/assistantship to be included in margin.
Margin may be brought in on year to year basis as and when disbursements are made on a pro-rata basis.

Security:

• Study in India - Upto Rs.4 lac - No Security
• Study in Abroad - Upto Rs.4 lac - No Security
• Third Party Guarantee and / or Collateral - Above Rs.4 lac & Upto Rs.7.50 lac (For Study India & Abroad Both)
• Collateral & Third Party Guarantee - Above Rs.7.50 lac (For Study India & Abroad Both)

(i) Assignment of future income of the students for payment of instalments.
(ii) The loan documents should be executed by both the student and the parent/guardian as joint borrower.
(iii) The Collateral security can be in the form of land/building/Govt. securities/Public Sector bonds/Units of UTI,NSC,KVP,LIC Policy, gold, shares/debentures, bank deposit in the name  of student/parent/guardian or any other third party with suitable margin.
(iv) Wherever the land/building is already mortgaged, the unencumbered portion can be taken as  security on II charge basis provided it covers the required loan amount.
(v) In case the loan is given for purchase of computer, Laptop, Medical or Engineering accessories etc., the same is to be hypothecated to the Bank.

Insurance: The Bank tied up with Bajaj Allianz Life Insurance Company Ltd. to provide more value added proposition and offer low cost life insurance cover to our education loan borrowers on voluntary basis, under the Group Insurance Scheme.

Processing Charges: Borrower to deposit a sum of Rs.1,000/- ( for courses in India) and  Rs.2000/- ( for studies abroad )  in lieu of Processing fee  , in Saving account ( to be kept under reserve . Withdrawl  thereof  may be allowed  to the borrower  only after full availment of the loan. Otherwise the same will be  recovered as processing fee.

Repayment Schedule:
Repayment holiday / Moratorium : Course period + 1 year or 6 months  after getting job, whichever is earlier .The loan to be repaid in 5-7 years after commencement of repayment.  If the student is not able to complete the course within the scheduled time , extension of time for completion of course may be permitted for a maximum period of 2 years.  In case  the student is not able to complete the course for reasons beyond his control, sanctioning authority may at its discretion consider such extension as  may be deemed necessary to complete the course.
The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Instalments (EMI) fixed.

Multiple Loans:

(A.) Zonal Managers are authorized to allow sanction of  second / additional education loan to student   on case to case basis subject to following:

• The appraising / sanctioning authority should be satisfied  with the repaying capacity of the borrower as well as co-borrower.
• The borrower and co-borrower should offer sufficient collateral  to adequately cover both the loans.
• The tenure of second course should not be more than 3 years.
• The interest in the first loan would  be paid on regular basis after completion of the first course.
• Second loan be raised on complete appraisal of the student / borrower  and should be in line with the existing guidelines of education loan.
• The repayment in both the loans to start on completion of second course ensuring that the repayment of the composite loan is within 5 years of the completion of second course.
• This facility would be available for only one additional course on confirmed admission to a reputed course. The student can avail two study loans out of which one loan can be  for studying abroad.  At any point of time , number of education loans  would not exceed  two.
• On the request of the borrower and depending upon the repayment capacity of the borrower / co-borrower  the first loan may  be rephased  , to be repaid alongwith second loan within 5-7 years  after commencement  of repayment.

(B.) If the parent opts for second loan / loan for more than one child , the family as a unit has to be taken into account for considering multiple loans . Security to be  taken in relation to  total quantum of finance sanctioned and  subject to prescribed margin and repaying capacity of the parents / students.

(i) The sanctioning authority to explore the option for service of interest during the education of  his children first , after ensuring the capacity of the parent to service the interest of both the loans till the wards start employment .
(ii) The first child should stand as guarantor in second case and vice-versa.

On-line lodging of applications :

The Bank has introduced  On-line lodging of education loan applications . The ON-Line system developed automatically generates a Unique reference number which should be invariably quoted for all future correspondence with applicant . It is desired that all such On-Line applications satisfying the eligibility criteria be properly recorded and disposed off  through the nearest convenient  branch in accordance with  our Education Loan policy subject to the confirmation of particulars furnished by the applicant and compliance of Bank’s usual lending norms.

Appraisal /Sanction / Disbursement:

• In the normal course, while appraising the loan the future income prospects of the student will be looked into.  However, where required, the means of parent/guardian could also be taken into account to evaluate re-payment capability.

• The loan to be sanctioned as per delegation of powers and preferably from the Branch nearest to the place of domicile of students / parents.

• No application for educational loan received should be rejected without the concurrence of the next higher authority.

• The loan to be disbursed in stages as per the requirement/demand directly to the Institutions/Vendors of books/equipments/instruments to the extent possible.

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