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Personal Banking

Last Updated on: 01/04/2024



Objective of the Scheme

The Educational loan scheme is designed to aim at providing Term Loan to students (Indian Nationals) for pursuing higher education in India in the Select Premier Institutions (refer below link for the list of institutions), in the country's best Engineering and Medical colleges, top B-Schools, Law colleges & other reputed institutions

Courses Eligible

  • Regular full time Degree/Diploma Courses through entrance test/selection process
  • Full time Executive Management Courses like PGPX are also covered.
  • No Certificate/ Part time courses are covered under this scheme

Purpose of the Loan

  • Loans to students admitted to top rated institutions
  • Loans to students admitted to other domestic institutions
  • Loans to students seeking studies abroad

Eligible Person

  • Student should be an Indian National and have secured admission in the Select Premier Institutions (refer Annexure for the list of institutions)
  • Secured admission to Professional/Technical courses through Entrance Test/Selection process
  • No minimum qualifying marks stipulated in the last qualifying examination

Maximum Loan Amount & Security:


No security, only Parent/

Guardian as co-borrower

With tangible collateral of full value and Parent/ Guardian as co-borrower

List 'A'

Rs. 15.00 Lacs

Above Rs. 15.00 lac up to Rs. 30.00 lac

List 'B '

Rs. 7.50 Lacs

Above Rs. 7.50 lac up to Rs. 30.00 lac



Rate of Interest*

List 'A': RLLR+0.40%

List 'B': RLLR+0.90%

* Interest rate and spread are subject to change as per prevailing guidelines

Holiday Period

Course period + 1 year or 6 months after getting job, whichever is earlier


  • Maximum 180 months after commencement of repayment
  • Repayment to commence after course period + l year or 6 months after getting job. whichever is earlier
  • Servicing Interest during the moratorium period is optional to the borrowers. If the interest is not serviced during the moratorium period, then the accrued interest during the moratorium period/repayment holiday period to be added to the principal and repayment to be fixed in Equated Monthly Installments (EMI).
  • 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

Other Conditions

  • The loan to be disbursed in stages as per the requirement / demand directly to the Institutions / Vendors of equipment's / instruments to the extent possible.
  • If the loan amount sanctioned is less than Rs.7.50 Lacs in both the category, the same will be covered under Credit Guarantee Fund Scheme for Educational Loan (CGTFSL) Scheme.
  • The loans granted under this scheme will also qualify for interest subsidy under Central Sector Interest Subsidy (CSIS) Scheme