Karnataka Bank: Education Loans

Education Loan Eligibility in Karnataka Bank

Any student, representing himself/ herself if major, or a minor student represented by parent or guardian, of Indian nationality, who has secured admission to a professional/ technical/other course, in India or abroad.

Courses offered by Karnataka Bank

Studies in India

Graduate Course –B.A, B.Sc, B.Com, B.C.A, B.B.M.: Post Graduate Courses- Master and Ph.D : Diploma in Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, Pharmacy, Physiotherapy, Hotel Management, ICWA, CA, CFA: courses conducted by IIM, IIT, XLRI, NIFT; Courses offered in India by reputed foreign universities: Evening Courses of approved institutes: Other Courses leading to Diploma / Degree conducted by College/ Universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR; Courses offered by National Institutes and other reputed private Institutions

Studies in abroad

Graduation – only for job oriented professional/ technical courses offered by the reputed Universities: Post Graduation – MCA, MBA, MS: Courses conducted by CIMAA in London, CPA in USA

Maximum Amount of Loan

For studies in India – Max of Rs. 7.50 lakh

For studies Abroad- Max of Rs. 15.00 lakh

Expenses Covered

Tuition Fees: Hostel Fees and Boarding and Lodging Fees if resident outside Hostel: Studies in India Studies Abroad – Examination/ Laboratory and Library Fees: Purchase of Books/ Study material/ Equipment and Uniform; Caution Deposit/ Building Fund/ Refundable Deposits (supported by Receipts issued by the Institution); Travel expenses./ passage money for study abroad; Purchase of Computer if certified as essential for completion of course; other expenses like project work, study Tour and Thesis, which are necessary for completion of course.

Margin of Education Loan

Upto Rs. 2 lakh- No margin required. Above Rs. 2 lakh – 25% for the studies in India and abroad. Sholarship/ Assistantship may be rekoned as pat of margin. Margin may be brought in on year to year basis as and when disbursements aremadeon a pro-rata basis.

Security of Loan

For loan up to Rs. 2 lakh: Loan shall be given jointly with Parent/ Guardian. A Guarantor with networth not less than loan amount shall join the transaction in addition to parent/ Guardian. For loan above Rs. 2 lakh: loan shall be given jointly with Parent/ Guardian and collateral equal to 100%of the loan is required. In case land and buildings are already mortgaged, the same can be used as security on II charge basis provided adequate security cover of 100% of the loan amount is available. Computers purchased with the loan have to be hypothecated to the Bank.

Rate of Interest

For loan up to 4 lakh 12% p.a.

For loan above Rs. 4 lakh : 12.50%

Repayment of Edcuation Loan

The loan shall ve repaid in 5 to 7 year after commencement of repayment. If the student secures employment during the gestation period , the repayment schedule should be advanced tocommenceimmediately. The completion of the course includes intership or apprentriceship if compulsory for award of Degree. If the student dose not complete the course with in the scheduled time, a maximum time limit of 2 year is permitted. If the student is unable to complete the course for reason beyond his control then extension may be granted if deemed necessary to complete the course.

The accrued interest during the repayment holiday will be added to the principal and repayment in equated monthly installments (EMI) shall be fixed

Loan Holiday

There is a holiday on repayment for the duration of the Course extending up to 6 month or year after getting a job, which is earlier.

Simple interest will be charge during the loan repayment holiday. Compounded interest rates will apply after the loan holiday with monthly rests. Penal interest at 2% will be chargedfor loans above Rs. 2 lakh for the overdue amount and voer due period.