LOGO

ARUNACHAL PRADESH STATE CO-OPERATIVE APEX BANK LTD

(Sponsored by Government of Arunachal Pradesh)

Head Office :: D-Sector, Naharlagun, District : Papum Pare, Arunachal Pradesh - 791 110

NSTFDC     CMFMP     Micro Finance SHG

EDUCATION LOAN

PURPOSE

A Term loan scheme  to Indian Nationals for pursuing higher education ( Diploma, Degree, Masters, M. Phil. , PhD courses in Technical line) in India and Abroad where admission is secured and approved by GOI.

ELIGIBILITY
Any Indian citizen pursuing Diploma, Degree, Masters, M. Phil., PhD. Courses in Technical line with valid proof of admission of student in any recognized college/ university.

TYPE of LOAN
Term loan for three to seven years in the joint name of parent or guardian (in case of orphan) and student pursuing the course.

ELIGIBLE COURSE
All technical courses duly approved by GOI/ State Govt./ AICTE having employment prospect in India/ Abroad. Certificate courses shall not be eligible under the scheme.

  1. Diploma
  2. Degree
  3. Masters
  4. M. Phil.
  5. PHD
  6. Professional courses

EXPENSES COVERED UNDER THE LOAN SCHEME

  1. College fees
  2. Hostel charges
  3. Examination fees
  4. Laboratory fees
  5. Library fees
  6. Cost of course books
  7. Cost of equipments/ instruments
  8. Computer/ laptop/ assistive devises
  9. Cost of uniforms
  10. Caution deposits
  11. Building fund
  12. Refundable deposits
  13. Travel expenses/ passage money for studies abroad.
  14. Two wheeler up to Rs. 50,000.00
  15. Expenses for study tour/project work

AMOUNT OF LOAN

Need based finance subject to the repaying capacity of parent/ guardian/ student with following ceilings.

  1. Studies in India                        : Maximum Rs.10, 00,000.00
  2. Studies Abroad                        : Maximum Rs. 15, 00,000.00

PROMOTERS CONTRIBUTION

  1. Up to Rs.4, 00,000.00 : 10%
  2. Above Rs.4, 00,000.00 for study in India : 15%
  3. Above Rs.4, 00,000.00 for study abroad : 25%

RATE OF INTEREST ON LOAN
Simple interest @ 11% p.a. on net loan amount. Penal interest @2% over the normal rate shall be charged in case of default of the loan/ installment.

REPAYMENT OF LOAN AMOUNT

  1. The repayment of loan installment to start after one months from the date of first drawl.
  2. Repayment period of loan and monthly installment to be fixed basing on duration of course subject to a maximum of seven years.
  3. In case of default in repayment, compounding interest will be charged for the defaulting period.

OTHER TERMS

  1. The loan amount shall be directly paid to the concerned institution after obtaining requisition letter from the authority of the institution.
  2. The loan amount shall be released in a phase manner basing on the successful progress of course by the student.
  3. In case of discontinuation of course by the student, the entire loan amount disbursed shall be recalled immediately.
  4. In case of unsuccessful result or continuous poor result in term examinations, the bank shall review and reconsider release of further loan amount.
  5. The student shall submit copy of marks sheets/ certificates after every term/ semester/ trimester to the bank to become eligible for next drawl.
  6. No change of college/ university shall normally be allowed in the middle of course.

PROCEDURE FOR OBTAINING LOAN

  1. The parent/guardian should have KYC compliant minimum six month’s old account with the Apex Bank Branch.
  2. The parent/ guardian shall apply for loan in the prescribed loan form.
  3. All documents as per schedule given below should be enclosed
  4. All loan applications must be routed through the concerned Branch Manager only.
  5. Loan shall be sanctioned basing on the lending policy of the bank.
  6. The Bank reserves the right to reject any loan application without assigning any reason.
  7. Any incomplete loan application shall be summarily rejected

FEES and OTHER CHARGES
The following fees and charges shall be recovered from the borrower:

  1. Nominal membership fee of Rs. 500.00
  2. Processing fee @ 1% of loan amount
  3. Any statutory fees that may be levied by GOI/State Govt from time to time.
  4. Overdue interest @2% above normal rate of interest in case of default.
  5. Any other charges that may be fixed by the bank Management from time to time.

SECURITY
The following securities should be made available by the borrower to secure the loan amount.

  1. Service security or permanent source of income proof of parent/Guardian.
  2. Third party guarantee
  3. Tangible security in the form of asset with value to cover the loan amount in full with
  4. Undertaking by the student to pursue the course sincerely and complete the course in time.

CHECK LIST OF DOCUMENTS
The following documents should be submitted at the time of applying for loan under the scheme.

  1. Loan application in prescribed form duly completed and signed
  2. Three nos. of PP size photo of parent/ Guardian and student
  3. Mark sheet of last qualifying examination.
  4. Proof of admission to the proposed course
  5. Bank account statement of applicant
  6. Income tax assessment for last two years
  7. Proof of income/ salary slip of applicant
  8. Schedule of expenses for the proposed course issued by institution.
  9. Proof of ID and address of applicant
  10. Matriculation certificate of student for age proof.

The terms and conditions mentioned above are only illustrative. The Bank may ask for any additional documents/ informations depending on the history and track records of applicant with the Bank.