The Star Educational Loan Scheme aims at providing financial support from the bank to deserving/ meritorious students for pursuing higher education in India and abroad. The main emphasis is that every meritorious student is provided with an opportunity to pursue education with the financial support on affordable terms and conditions.
a) STUDENT’S ELIGIBILITY:
b) ELIGIBLE COURSE:
          (i) Studies in India (Indicative list):
Note :Â 1. Professional courses not approved by AICTE and conducted by Institutes not recognised by State Universities is outside the purview of the eligibility under the scheme.
          2. Special scheme for students admitted to IITs, at concessional rate of interest.
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 (ii) Studies abroad:
* As per brochure/ demand letter from the institution.
Need based finance subject to repaying capacity of the parents/students with margin and the following ceilings :
Studies in India – Maximum Rs.10.00 lakh
Studies abroad – Maximum Rs.20.00 lakh.
Upto Rs.4 lakh : Nil
Above Rs.4 lakh – Studies in India : 5%
Studies Abroad : 15%
   Scholarship could be included in margin.
  Margin to be brought in on year to year basis as and when disbursements are made.
Upto Rs. 4 lakh : No security
Above Rs.4 lakh & upto Rs.7.5 lakh : Collateral security in the form of a suitable third party guarantee.
 Above Rs.7.5 lakh : Collateral security of suitable value or at the discretion of the Bank suitable third party guarantee alongwith the assignment of future income of the student for payment of installments.
Note : The security can be in the form of land/building/Govt. Securities/Public Sector Bonds/NSC/KVP/LIP/ Banks Term Deposit etc.,in the name of Student/Parent/Guardian/Guarantor with suitable margin.
No processing charges.
One time charges for any deviations from the scheme norms including approval of courses outside the scheme –
In respect of loans availed by borrowers from rural areas from the Rural Branches – Charges Nil
All the student borrowers are offered a specially designed Term Insurance cover and the premium can be included as an item of finance.
Repayment holiday/Moratorium : Course period + 1 year or 6 months after getting job, whichever is earlier.
The loan is to be repaid in 5-7 years after commencement of repayment.
Processing/upfront charges | For Studies in India- NIL. |
 | For Studies Abroad – Rs.1000 for issuance of sanction letter for obtaining of VISA. Amount refundable on availing loan. |
Document /Stamp Charges | At Actuals |
Change of Institution | Studies in India – Rs.250/- Studies Abroad-  Rs.500/ |
Agreement(copy to borrower) Xerox charges | Â Loan upto Rs.2 lacs- Rs. 25/-* Loan over Rs.2 lacs- Rs.100/-* Plus copying charge of Rs.1 per page |
One time charges for any deviations from the scheme norms including approval of courses outside the scheme –
Upto Rs.4.00 lacs – Rs.500/-
Above Rs.4.00 lacs to Rs.7.50 lacs – Rs.1,000/-
Over Rs. 7.50 lacs upto Rs.20.00 lacs – Rs.2,000/-
In respect of loans availed by borrowers from rural areas from the Rural Branches – Charges NIL.
i)Â Â Â Loan to be disbursed in stages as per requirement / demand, directly to the Institution/ Vendors of books/equipments/instruments to the extent possible;
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ii)Â Â Student to produce mark list of previous term/semester before availing next installment ;
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iii)Â Student / Parent to provide latest mailing address, in case of any change ;
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iv)Â Student /Parent to inform Branch immediately on change of course /completion of studies/termination of studies/ any refund of fees by college /institution /successful placement /obtaining of job/change of job etc.,
On Line facility available for submission of application, tracking of application status and resume completion of incomplete application .
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For further information, you may contact nearest branch of the Bank. Loan at the sole discretion of Bank of India.