Education Loan in Delhi : Apply for Educational Loan Online in Delhi

Government of NCT of Delhi, as a part of its 70 Action Points, has envisaged a Higher Education and Skill Development Guarantee Scheme for students who wish to pursue diploma or degree level courses or specified skill development courses in Delhi and have done their class X and class XII from Delhi. For courses for which the qualifying examination is class X, students who have done class X from Delhi will be eligible under the scheme.

Under the scheme, bank loans upto Rs.10 lakhs taken by the students will be provided guarantee through a Higher Education and Skill Development Credit Guarantee Fund to be created by the Government for providing guarantee to the banks in case of default. Students will not be required to furnish any collateral or margin money and the scheme will be universal in nature regardless of the student’s background.

Objective of the Scheme

The Higher Education and Skill Development Guarantee Scheme outlined below aims at providing financial support from the banking system to meritorious students for pursuing higher education in Delhi. The main emphasis is that a meritorious student is provided with an opportunity to pursue higher education with the financial support from the banking system with reasonable and affordable terms and conditions.

Salient Features of the Higher Education Credit Guarantee Fund

The scheme envisages creation of a corpus of Rs. 30 Crores called the Higher Education and Skill Development   Credit Guarantee Fund (hereinafter referred to as the Fund), initially which will be used to provide appropriate guarantee.

Banks wishing to avail of this facility will have to pay an Annual Guarantee Fee (AGF) of 0.5% of the outstanding amount as on the date of application of the guarantee cover upfront to the front within 30 days from the date of Credit Guarantee Demand Advice Note (CGDAN) of guarantee fee. All subsequent AGFs could be collected on the basis of the outstanding loan amount as at the beginning of the financial year.

On default of the loan and invocation of claim, the Fund shall settle 75% of the claims (out of the 100% of total amount under default) after the credit facility has been recalled and the recovery proceedings have been initiated under due process of law and the balance 25% of the claim, if any, shall be paid after conclusion of the recovery proceedings and ascertaining the net/final loss incurred by the lending institution.

The scheme shall be confined to education loans sanctioned by Member Banks of Indian Bankers Association (IBA) or other Banks/Financial Institutions as identified by Govt. of NCT of Delhi.

Students Eligibility

• Students who wish to pursue diploma or degree or specified skill development courses in Delhi and have done their Class-X and Class – XII from Delhi are eligible under this For courses for which the qualifying examination is Class-X, students who have done Class- X in Delhi would be eligible under this Scheme. Students who are children of employees of Govt. of NCT of Delhi or Officials/government servants who are posted with the Govt..of NCT of Delhi are also eligible under this scheme.
• The student should have secured admission to a higher education course or specified Skill development courses (diploma or degree including bachelors, Masters and Doctoral Degree) in recognized institutions in Delhi through Entrance Test/ Merit Based Selection process after completion of Secondary Examination/Senior Secondary Examination/required qualifying
• The guarantee would be available for loans for all recognized diploma/degree courses from Government Institutions

/Universities and constituent colleges of University of Delhi. It would also be available for Private/ Self-financed Institutions located in Delhi having NAAC/NBA/SFRC grading. The department will persuade all the Private Institutions to get accreditation from NAAC/NBA. Till such time, grading as given by the Third State Fee Regulatory Committee (SFRC) set up by Directorate of Higher Education and Directorate of Training & Technical Education may be used for Private Institutions, since this grading is based on the infrastructure, faculty and academic standards of the institutions as also the costs being incurred by it.

• It would also be available for Institutions of Technical/Training Skill Development such as courses by World Class Skill Centre or any other technical training/skill development institutions specified by the Government of NCT of
• Other reputed and recognized Institutions may be considered on the basis of
• The Private Institution in which admission has been secured should have NAAC/NBA * Since presently all institutions do not have NAAC/NBA grading, SFRC grading will also be considered for a limited period.**

*For private institutions having NAAC/NBA accreditation, minimum grade of A or B is required.

Courses Eligible for Studies in Delhi: (Indicative list)

• Approved courses leading to graduate/ post graduate degree and PG diplomas conducted by recognized colleges/ universities recognized by UGC/ Government/ AICTE/ AIBMS/ ICMR etc
• Courses like ICWA, CA, CFA etc
• Courses conducted by IIT, NIFT, NLU, IIFT etc
• Regular Degree/Diploma courses like aeronautical, pilot training, shipping, including those run by Polytechnics , degree/diploma in nursing, physiotherapy or any other discipline approved by Director General of Civil Aviation/Shipping/Indian Nursing Council or any other regulatory body as the case may be, if the course is pursued in Delhi.
• Skill Development Courses as may be specified by of NCT of Delhi.

EXPENSES CONSIDERED FOR LOAN

1. Fee payable to college++/ school/ hostel*
2. Examination/ Library/ Laboratory fee

• Insurance premium for student borrower

1. Caution deposit, Building fund / refundable deposit supported by Institution bills/receipts. **
2. Purchase of books/ equipment / instruments / uniforms***
3. Purchase of computer at reasonable cost, if required for completion of the course***

• Any other expense required to complete the course – like study tours, project work, thesis, etc.***
• While computing the loan required, scholarships, fee waiver etc., if any available to the student borrower may be taken into

QUANTUM OF FINANCE

Need based finance to meet the expenses worked out as per para 5 above will be considered taking into account margins as per para 7 subject to the following ceiling:

Studies in Delhi – Maximum upto Rs. 10 lakhs.

• Ordinarily loans upto 7.5 lakhs where conditions as prescribed under the Credit Guarantee Fund Scheme for Education Loans (CGSEL) of Govt. of India are satisfied can be granted by the Banks under the Govt. of India scheme as and when the same becomes operational.
• However loans above Rs. 7.5 lakhs & upto Rs. 10 lakhs and loans in respect of Private Institutions which presently do not have NAAC accreditation as required under Govt. of India scheme but have SFRC grading of A+ or A and otherwise satisfy the requirements under the scheme of of NCT of Delhi will be covered under this scheme

PM E Mudra Loan SBI Bank : SBI e-Mudra / PM-SVANidhi Loan

MARGIN

 Upto Rs. 10 lakhs                   –          Nil

SECURITY

 Upto Rs. 10 lakhs           –      Parents/legal guardians to be joint borrower(s).

No security

RATE OF INTEREST

 Interest to be charged at rates linked to the Base rate as decided by individual banks

• Simple interest to be charged during the study period and up to commencement of The maximum interest rate to be charged in Base Rate + 2 %.

Infant Mudra Loan : Loan without a Guarantee of up to Rs 50000 for your Child

APPRAISAL / SANCTION/ DISBURSEMENT

• Applications will be received either directly at bank branches or through on-line Upon receipt of application, standard acknowledgement giving a reference number will be issued. The acknowledgement will contain contact details of the bank official who, could be contacted in case of delay in disposal of application.
• Domicile Certificate issued by the Tehsildar (Executive Magistrate), Revenue Department, Govt. of NCT of Delhi, will be accepted by the Banks as proof of domicile, if required
• Normally, sanction/rejection will be communicated within 15 days of receipt duly completed application with supporting documents
• In the normal course, while appraising the loan, the future income prospect of the student only will be looked into
• State Level Bankers Committee (SLBC) will provide information regarding loans sanctioned under the Govt. of India scheme to students of Delhi on quarterly basis
• Rejection of loan application, if any, shall be done with the concurrence of the controlling authority of the branch concerned and under intimation to the Directorate of Higher Education, Delhi and conveyed to the student stating reason for rejection
• Students may submit their loan applications either at the bank branches near the residence of parents or to the educational institution. However, after the loan is sanctioned, the cases would be transferred to the bank branch near the institution for follow up with student / The KYC compliance for the purpose has to be done by the branch nearest to the residence of parents.
• The loan to be disbursed in stages as per the requirement/ demand directly to the Institutions/ Vendors of equipment / instruments to the extent possible
• The Directorate of Higher Education in collaboration with State Level Bankers Committee will set up a portal to monitor the entire Loans sanctioned will be immediately uploaded on the Portal.
• Recovery proceedings by Banks will also be monitored by the Dte. of Higher Education and Banks will upload the information regarding recovery and default status every six months.
• Grievance Redressal Committee will be formed which will be headed by Director, Higher Education with one member each from Indian Bankers Association (IBA), Lead Bank, Canara Bank to handle any complaint, grievances including those relating to cases rejected by Banks. The committee will meet on a monthly basis or as frequently as may be necessary.

REPAYMENT

Repayment Holiday / Moratorium     –     Course period + 1 year.