Tuesday, April 19, 2011


Learn more about our Education Loan Scheme under TMB Retail Loan Products.

This is scheme of choice for parents who wish to educate their
children in professional courses in India / Abroad and help them get
graduation / post graduation in any field of choice of the student.
The cost of the education can be born by the loan from our bank.

Student Eligibility

Should be an Indian National.
Secured first class and wish for admissions in Professional /
Technical / Other Courses of various studies.
Secured admission to foreign University Institutions.
Any Student who has attained the age of 18 years or Parent of the
Student can avail the loan.

Eligible course of study

Studies in India
School education / Graduation / Post Graduation Courses.**
Professional courses: Engineering, Medical, Agriculture, Veterinary,
Law, Dental, Management, Computer etc.
Courses like ICWA, CA, CFA etc
Courses conducted by IIM, IIT, IISc, XLR1, NIFT etc.
Courses offered in India by Reputed Foreign universities.

Studies Abroad
Graduation: For Job oriented Professional / Technical courses offered
by reputed universities.
Post Graduation: MCA , MBA , MS, etc.
Courses conducted by CIMA-London, CPA in USA etc.
** When the age of the student is below 18, Loan may be sanctioned to
his parents by complying the relevant condition mentioned further

Expenses considered for Loan

Fee payable to College / School / Hostel.
Examination / Library / Laboratory fee.
Purchase of Books / Equipments / Instruments / Uniforms.
Caution Deposit / Building Fund / Refundable Deposit supported by
Institution Bills / Receipts.
Travel expenses / passage money for studies abroad.
Purchase of computers - essential for completion of the course.
Any other expense required to complete the course - like study tours ,
project work, thesis etc.

Quantum of Finance
Need based finance subject to repaying capacity of the parents /
students with margin and the following ceilings: For Studies in India
- Max. Rs. 10.0 Lakhs, For Studies Abroad - Max. Rs. 20.00 Lakhs.

Upto Rs. 4.00 Lakhs - Nil.
Above Rs.4.00 Lakhs - Study in India - 5%.
Above Rs.4.00 Lakhs - Study Abroad - 15%.


Upto Rs. 4.00 Lakhs - No Security
Above Rs.4.00 Lakhs upto 7.50 Lakhs Suitable Third Party Guarantee
Above Rs. 7.50 Lakhs and upto Rs. 20.00 Lakhs - 100% collateral in any
of the form of Immovable property / NSC / Units of UTI / LIC policy /
RBI Bonds or any transferable Government securities.

Capability Certificate
Foreign Universities require the students to submit a certificate from
their bankers about the sponsors? solvency and financial capability,
with a view to ensure that the sponsors of the students going abroad
for higher studies are capable of meeting the expenses till completion
of studies. Charges: Rs. 100/- per lakh or part there of. Minimum Rs.
100/-, Maximum Rs. 500/-.
Rate of Interest

Upto 4 Lakhs - BR + 3.50% (13.00% p.a.).
Above 4 Lakhs upto 7.5 Lakhs - BR + 3.50% (13.00% p.a.) *.
Above 7.50 Lakhs upto 20 Lakhs (With 100% Collateral Only) - BR +
3.00% (12.50% p.a.).
* Interest Rate Concession by 0.50% if covered by 100% and above
collateral security.
Additional Incentive of 1% in R.O.I for servicing the interest during
study and moratorium period.
Current Base Rate for Lending (BR) is 9.50% p.a.

Penal Interest
Any irregularity or default in repayment will attract penal interest
of 2.00% p.a. over and above the above rate of interest or at such
rates prescribed by the bank from time to time on the balance

The loan will be disbursed in staged as per the requirement / Demand
directly to the institutions / Vendors of books / Equipments /

All usual documents as per Bank's Rule should be obtained. The Loan to
be disbursed in stages as per the requirement / demand directly to the
institutions / vendors of books / equipments / instruments to the
extent possible.

Holiday / Moratorium Period: Course period + 1 year after completing
the course. If the student got employed within 1 year after completion
of the course, the repayment should start immediately after the expiry
of one month from the date of employment.

Maximum Repayment period of Loan: The loan to be repaid in 5-7 years
after commencement of repayment. 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.
If the student is not able to complete the course for reasons beyond
his control, sanctioning authority may at his discretion consider such
extensions as may be deemed necessary to complete the course

Follow Up

Branch to contact college / university authorities to send the
progress report at regular intervals in respect of students who have
availed loans.
Guarantee / Co-obligant

Guarantee of Parents.

In case, the loan is sanctioned to Parents suitable third party
guarantee is to be obtained.

Wherever loan is sanctioned to Parents, guarantee is to be obtained
from the student on attaining his majority.

Interest Payment

Payable at monthly rests from the date of availment of loan. A
separate Letter of undertaking is to be obtained from the Parent /
Guarantor that the monthly interest will be paid from the income of
the Parent / Guarantor.

Processing Charges1.00% of Limit sanctioned without any maximum cap
for studies abroad. No processing / upfront charges may be collected
on educational loans for studies in India.

All the above Terms and Conditions are subject to change and
sanctioning of the loans is at the sole discretion of the Bank.
Service Tax on All Service Charges extra wherever applicable.

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