Diaspora : Education 


NRI students are worried about massive cuts in higher-education student-loan programmes in the US and other countries. However, Indian banks are now stepping in to offer loans to NRIs. The following guidelines are more or less common across all nationalised banks but may vary at individual banks or branches.
Purpose: To meet tuition, admission and other fees, maintenance cost, cost of books and equipment for higher studies. Caution deposits and other refundable deposits can also be financed under the scheme. 

Amount of loan: For studies in India Rs 10 lakh; for studies abroad: Rs 20 lakh.

Persons eligible: 
a) Indian nationals
b) Students who have passed the entrance test and have secured admission for technical/professional courses.

Eligible courses: 
a) All technical /professional courses including certificate courses, diplomas; graduate/ PG and/or doctorate degree studies in recognised schools/colleges/ institutions. Courses in medicine, surgery, dental science, architecture, veterinary science, agri sciences and in various branches of engineering , technology, computer science, industrial management, business administration and other management sciences) 
b) Computer courses which are conducted by institutes given due accreditation by the department of electronics, Govt of India.
c) Any other specialised course in computer science.

Borrower: Student and parent or guardian jointly. This means if an NRI wishes to educate his/her nephew/niece any other such relative the student and the supporting NRI as guardian may avail the loan jointly.

Margin: Up to Rs 4 lakh: Nil; above Rs 4 lakh: (i) Studies in India 5%, (ii) Studies abroad 15%.

Repayment: 12 months after completion of course or 6 months after getting job, whichever is earlier. To be repayed in 60 monthly installments.

Security: Collateral equal to loan amount plus interest payable up to one year after completion of course. When the loan amount exceeds Rs 4 lakh, such collateral security may be any one or more of: Govt securities, UNITS of UTI, surrender value of a LIC policy, National Savings Certificates, KVPs, IVPs, bank deposit receipts after effecting necessary lien/assignment in favour of the bank and/or mortgage of properties or other tangible assets.

Documents to be submitted:
a) Application (student and parent or guardian jointly)
b) Two copies of passport size photos
c) Testimonials in original from head of institution and from one or two other respectable persons not related to the student.
d) Proof of admission to the course.
e) Schedule of expenses for the course.
f) Salary certificate/ statement of income
g) Copy of passport of guardian and student.

May 2009

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