The major aim of education loan in Oriental bank of commerce is to provide financial backing to deserving students in order to accomplish higher studies in India & abroad with reasonable terms & conditions.
Student must be an Indian national and meritorious. They must secure 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 after completion of HSC (10+2 or equivalent).
It is important to notify that entrance test or selection on merit may not be the criterion for admission in some of the post graduate courses or research programmes. In such cases, bank (sanctioning authority) will have to adopt appropriate criteria based on employability (placement) and reputation of the institute concern.
An attractive feature of this bank is to offer loan to more than one member of the family. Loan to different meritorious students of same family can be allowed on merits subject to the compliance of other terms and conditions applicable to education loan policy. Each loan shall be considered separately.
To studies in India, students can get loan for 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. Students can also pursue courses like I.C.W.A., C.A., C.F.A., etc. Students can take admission in courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NID etc. and approved courses offered in India by reputed foreign universities. Other courses include evening courses of approved / accredited institutes, Computer Certificate courses of reputed institutes accredited to the Deptt. of Electronics or Institutes affiliated to Universities, 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, nursing Courses conducted by institutes approved by State / Central Govt./ Regulatory body.
Eligible Courses to study in abroad include graduation that is job-oriented professional/technical courses offered by reputed universities. Post-Graduation Courses like MCA, MBA, MS etc. Students can take admission in courses conducted by CIMA-London, CPA in USA etc, 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.
It is important to inform that in some cases for study abroad, the Foreign Universities stipulate a condition that the student is required to clear General English exam / English for Vocational Education exam, before regular course. In such cases where visa has been obtained by the student for pursuing courses from abroad and admission is subject to clearance of General English / English for Vocational Education exam, Education Loan can be considered subject to fulfilment some conditions such as the student has to clear such exam and shall meet all expenses related to such English course from their own sources. In case of urgency, the applicant may deposit the fee for the first semester from his/her own sources for pursuing the main education course. After obtaining the clearance certificate of English Language, the fee for the first semester paid by the student from own sources can be reimbursed or treated as a part of margin, if such request is received within 3 months of payment of fee, and further disbursements may be made directly to the Institute.
Special feature of education loan offered by this bank is loan for Two / Dual Courses. Education loan for Diploma and degree courses instantaneously may also be considered for two / dual courses provided by the educational institutions. Another feature is Top-up/Second Loan. Second Education Loan can be permitted to gain higher education for 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 are defined as per extant guidelines of education loan policy.
Finance is provided for 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. Examination/ Library/ Laboratory fee, Insurance premium for student borrower, if applicable, 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. Travel expenses/ passage money for studies abroad, Purchase of computers-essential for completion of the course, Purchase of books/ equipments/ instruments/ uniforms and any other expenses required to complete the course-like study tours, project work, thesis, etc.
Up to Rs. 10.00 Lacs for studies in India and up to Rs. 20.00 Lacs for studies abroad.
Up to Rs. 4.00 Lacs, it is nil. Above Rs. 4.00 Lacs 5% for studies in India and 15% for studies Abroad.
It is to note that scholarship/assistantship can be treated as margin. Margin may be brought in on year to year basis as and when disbursements are made on a pro-rata basis. Rate of Interest: Upto Rs 4.00 lac â€" Nil.
Penal Interest 2% over the normal rate of interest shall be charged on loan above 4 Lacs on overdue amount for the overdue period.
Processing Fee for study in India is nil irrespective of loan limit. For study abroad: Rs.1000/- +Service tax, if any. However, the fee would be refunded to the student on taking up the course (excluding service tax if paid to Government).
Prepayment Penalty is nil.
No collateral or third party guarantee. Parents / guardian to be joint borrower (s) (irrespective of their means and age of student). Co-obligation of spouse/ parents-in-law in case of married women.Loan above Rs. 7.50 Lacs, there is no security. Parents / guardian to be joint borrower (s) (irrespective of their means and age of student). Co-obligation of spouse/ parents-in-law in case of married women.
In case of commercial pilot course obtaining of Life Insurance Cover shall be obtained. Parents / guardian to be joint borrower (s) (irrespective of their means and age of student). Co-obligation of spouse/ parents-in-law in case of married women.
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.
For loan up to Rs. 7.50 Lac, the period is Up to 10 years. For Loan above Rs. 7.50 Lacs, the period is Up to 15 years. The moratorium period be permitted within the overall repayment period of respective loan.
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. For studies abroad, Disbursement is 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.
For further details please click on the link: Oriental Bank Educational Loans