MASTER CIRCULAR
Reg: Scheme for Education Loan to the students of IIMs & 4 reputed institutions. CO:RTL-BKG:2009-10:111 dated July 3, 2009.
2. Instruction Circular No.747, dated June 21, 2011.
3. Instruction Circular No.855, dated January 28, 2012. Indian Institutes of Management (IIMs) are premier Management Institutes in the country. Students passing out of IIMs command prefer
ence in the job market. In order to encourage students of IIMs to avail educational loans from our Bank, various concessions are offered in existing Cent Vidyarthi Scheme. In view of the suggestions from field functionaries and to make the product more competitive the “Scheme for Educational Loan to the students of IIMs” is further modified superseding the previous guidelines. It is also clarified that the Scheme is applicable to students admitted to IIMs through the Common Admission Test (CAT) and pursuing two year full time management course. The scheme is also applicable to students pursuing full time regular management course (through XAT/CAT) in the four reputed institutes. The scheme is not applicable for any part time courses or one year courses. The revised details of concessions offered to the students pursuing studies in IIMs and 4 Reputed Institutes are given hereunder. This circular supersedes the previous circulars on the subject and applicable with immediate effect. Sr.No. Parameter Concessions/relaxations permitted to students of IIMs and 4 Reputed Institutions
1. Joint Borrower Loan to be sanctioned in individual name of the student. Parent(s)/guardian of the student may also be taken as joint-borrower. In case of a married person, joint borrower can be spouse or the parent(s)/parents-in-law. (Optional)
2. Maximum Loan Amount Rs.20.00 lakh
3. Margin No Margin
4. Security No collateral Security. No third party guarantee. Assignment of future income of the student. Comprehensive life insurance policy for the student availing Educational Loan to the minimum of loan amount for a minimum period of loan term (i.e., course period + moratorium period + repayment period) assigned in favour of the Bank. Premium to be paid regularly by the borrower.
5. Rate of Interest Male students without joint borrower Base Rate + 0.50%
Male students with joint borrower Base Rate
Female/SC/ST/Minority Community students Base Rate
No further interest concession will be given for servicing of interest during moratorium period. The revised interest rate is applicable to new borrowal accounts only.
6. Expenses considered for loan i. Fee payable to college/ school/ hostel. Reasonable lodging and boarding charge will be considered in case the student chooses / is required to opt for outside accommodation. Examination/ Library/ Laboratory fee. iii. Travel expenses
iv. Insurance premium for student borrower, if applicable. v. Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts. vi. Purchase of books/ equipments/ instruments/ uniforms. vii. Purchase of computer at reasonable cost, if required for completion of the course. viii. Any other expense required to complete the course - like study tours, project work, thesis, etc. ix. Visit to foreign universities in Exchange Programme. x. Living Expenses upto Rs.120000/- p.a. on declaration basis.
7. Others All other terms and conditions of Cent Vidyarthi Scheme as per Instruction Circular No. 839, dt 19.12.2011 and following instructions from time to time shall be complied with. The list of IIMs and 4 other reputed institutions is mentioned hereunder. IIMs
1 Indian Institute of Management, Ahmedabad, Gujarat
2 Indian Institute of Management, Bangalore, Karnataka
3 Indian Institute of Management, Kolkata, West Bengal
4 Indian Institute of Management, Indore, Madhya Pradesh
5 Indian Institute of Management, Kashipur, Uttarakhand
6 Indian Institute of Management, Kozhikhode, Kerala
7 Indian Institute of Management, Lucknow, Utter Pradesh
8 Indian Institute of Management, Raipur, Chattisgarh
9 Indian Institute of Management, Ranchi, Jarkhand.
10 Indian Institute of Management, Rohtak, Haryana.
11 Indian Institute of Management, Shillong, Meghalaya
12 Indian Institute of Management, Trichhy, Tamil Nadu
13 Indian Institute of Management, Udaipur, Rajasthan
Other 4 Reputed Institutions
1 Xavier Labour Relation Institute (XLRI), Jamshedpur.
2 Xavier Institute of Management, Bhubaneswar (XIMB).
3 SP Jain Institute of Management and Research (SPJMR), Mumbai.
4 Management Development Institute (MDI), Gurgaon. Alll Branches/Offices are advised to market the modified scheme vigorously and mobilise maximum business. (Dr. Ram S. Sangapure)
General Manager – Retail Banking.
