The main objective to offer loan from this bank is to give financial support from the naming system to poor and meritorious students for pursuing higher education in India and abroad.
Indian National who has secured admission to professional/technical courses in recognised institutions in India or Abroad through Entrance Test/Merit based Selection Process after completion of H.S.C. (10+2 or equivalent).
Approved courses leading to graduate/post graduate degree and P.G. diplomas conducted by recognised colleges/universities recognised by UGC/Govt./AICTE/AIBMS/ICMR etc.
Courses like ICWA, CA, CFA etc.
Courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NID etc.
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.
Approved courses offered in India by reputed foreign universities.
Courses other than the above offered by reputed institutions may also be considered on the basis of employability.
For job oriented professional/technical courses offered by reputed universities.
MCA, MBA, MS, etc.
Courses conducted by CIMA-London, CPA in USA etc.
Degree/Diploma courses like aeronautical, pilot training, shipping etc. provided these are recognised by competent regulatory bodies in India/Abroad for the purpose of employment in India/Abroad.
Fee payable to college/school/hostel (lodging & boarding charges should be reasonable), Examination/Library/Laboratory fee, Purchase of books/equipments/instruments/uniforms, Insurance premium for student borrower, if applicable.
Caution Deposit/Building Fund/Refundable Deposit supported by Institution bills/receipts, subject to the conditions that amount does not exceed 10% of the total tuition fees for the entire course. Purchase of computers essential for completion of the course at reasonable rate.
Travel expenses/Passage Money for studies abroad. Other expense required to complete the course â€" like study tours, project cost, thesis etc.
Need based finance subject to repaying capacity of the parent(s)/students with following ceilings:
Studies in India: Maximum up to Rs.10 lakhs
Studies Abroad: Maximum up to Rs. 20 lakhs
The ceilings fixed for studies in India and abroad correspond to the limits fixed by the RBI for treatment as Priority Sector lending.
For loan up to Rs. 4.00 lakh : nil
For loan above Rs. 4.00 lakh
Studies in India: 5.00%
Studies Abroad: 15.00%
Up to Rs. 4 lakh, nil, only co-obligation of Parent(s)/Guardian. Parent(s)/Guardian to be joint borrower(s).
Above Rs. 4 lakhs & up to Rs. 7.5 lakh, Besides the parent(s)/guardian executing the documents as Joint Borrower(s), Collateral Security in the form of suitable Third Party Guarantee.
Above Rs. 7.50 lakh, Parents(s)/Guardian to be joint borrower(s)
Tangible Collateral security of suitable value acceptable to bank, along with the assignment of future income of the student for payment of instalments.
Interest will be charged at current rate depending on the quantum of loan.
Simple Interest is 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. Accrued interest will be added to the principal amount borrowed while fixing EMI for repayment. Rebate of 1% on the interest charged in the moratorium period may be provided by the bank, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.
Repayment Holiday/Moratorium is "Course Period+ 1 Year" or "6 months after getting the job, whichever is earlier.
Repayment of the loan will be in EMI for period as under: For loans up to Rs. 7.50: A maximum period of 10 yrs (excluding repayment holiday) For loans above Rs. 7.50 lakh: A maximum period of 15 yrs (excluding repayment holiday) Pre-payment Penalty: No pre-payment penalty will be levied for pre-closure/pre-payment of loan any time during the repayment period.
No processing/up-front charges will be levied on loans sanctioned under the scheme.
For further details please click on the link: Meghalaya Rural Bank Educational Loans