Student Education Loan Provided by Delhi Government :- www.delhi.gov.in

Delhi Govt Launch Scheme for Students :- Education Loan for Students

 

Delhi Govt is providing student education loan for those student who wish to pursue diploma or degree level courses or any specified development course in Delhi also there is one more criteria is that student should be passed 10th or 12th from Delhi board.

Jammu & Kashmir Scholarship 2016-2017

The scheme launched by Delhi Chief Minister (CM) Arvind Kejriwal on 20thJune, it will serve as a huge encouragement to students who are unable to continue their education due to financial issues, 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.

 

SALIENT FEATURES OF THE HIGHER EDUCATION CREDIT GUARANTEE FUND

British Council Scholarship for Abroad Education

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.

 

Renewal Pre-Matric UP Scholarship 2016-2017

ELIGIBILITY CRITERIA

 

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  Scheme.  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 examination.

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 Delhi.

Other reputed and recognized Institutions may be considered on  the basis of employ ability.

The  Private  Institution  in  which  admission  has  been  secured  should  have  NAAC/NBA  grading.* 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.

For private institutions having SFRC grading, A+ or  A  is required.

 

(SFRC  grading  has  been  given  by  the  3rd State  Fee  Regulatory  Committee  (SFRC) and  is  based  on  various  parameters  including  infrastructure,  faculty  and  academic  standard. Institutions are advised to get NAAC/NBA accreditation at the earliest).

 

Note: It would be in order for banks to consider a meritorious student (who qualifies  for  a  seat  under  merit  quota) eligible  for  loan  under  this  scheme  even  if  the  student chooses to pursue a course under Management Quota.

 

Courses Eligible for Studies in Delhi: (Indicative list)

 

UP Scholarship Student List 2016

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   etc.,    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 Govt. of NCT of Delhi.

 

Note:

  1. The above list is indicative in nature. Banks may approve  other  job  oriented  courses  leading to technical/professional vocational/other degrees,  post graduate  degrees/diplomas offered by recognized institutions under this scheme. 

 

  1. Courses other than  the  above  offered  by  reputed  institutions  may  also  be  considered on the basis of employability.

 

  1. The guarantee would  be  available  for  loans  for  only  those  institutions  whose  fee  is  regulated by the Government.

 

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  Rs.  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 Govt. of NCT of Delhi will be covered under this scheme

 

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

repayment.  The maximum interest rate to be charged in Base Rate + 2 %.

 

Note:- Servicing  of  interest  during  study  period  and  the  moratorium  period  till  commencement of  repayment is optional for students.  Accrued interest will be added  to the principal amount borrowed while fixing EMI for repayment.

 

APPRAISAL / SANCTION/ DISBURSEMENT
•Applications  will  be  received  either  directly  at  bank  branches  or  through  on-line  mode. 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 / institution.  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 process. 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.

 

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.  In  case  the  student  discontinues  the  course  midway,  appropriate  repayment  schedule  will  be worked out by the bank in consultation with the student/parent.

The  accrued  interest  during  the  repayment  holiday  period  to  be  added  to  the  principal and repayment in Equated Monthly Installments (EMI) fixed.

1%  interest  concession  may  be  provided  by  the  bank,  if  interest  is  serviced  during  the  study  period  and  subsequent  moratorium  period  prior  to  commencement of repayment.

Repayment of the loan will be in equated monthly installments for a period of  15 years for all categories.

While  EMI  based  repayment  is  the  generally  accepted  practice,  many  times  the  salary  levels  at  the  start  of  the  career  may  not  facilitate  comfortable  payment of EMI in certain cases (e.g. professionals like Doctors). Telescoping  of  repayment  with  stepped  up  installments  with  passage  of  time  may  be  considered in such cases.

 

Note:- No prepayment penalty will be levied for prepayment of loan any time during the repayment period.

 

INSURANCE

Banks may arrange for life insurance policy for the students availing Education Loan.    Individual  Banks  may  work  out  the  modalities  with  insurance  companies.  Schemes  such  as  Pradhan  Mantri  Jeevan  Jyoti  Bima  Yojna  (PMJJBY) and  Pradhan  Mantri  Suraksha  Bima  Yojna  (PMSBY) may  be  availed  to  ensure  reasonability  of  premium  and to cover the loan and act as a safety net for the parents.

 

FOLLOW UP / MONITORING

Banks  will  contact  college  /  university  /  institutional  authorities  to  obtain  progress  report  on  the  student  at  regular  intervals  in  respect  of  those  who  have  availed  loans.  The  UID  number  issued  by  UIDAI  /PAN  may  also  be  captured  in  bank’s  system.  Immediately  on  a  loan  becoming  a  Non-performing  Asset  (NPA),  this  UIDAI/AADHAAR  linkage  could  be  used  to  deny  benefits  of  any  project  or  scheme  of Government of NCT of Delhi to an individual. Banks may enter into Memorandum  of  Understanding  (MoU) with  the  educational  institutions  to  provide  the  educational  loans  to  the  students  if  so  desired.  However  the  student  will  have  the  freedom  to  approach any Bank as per his/her choice/convenience. There may be an annual review  of the asset quality of educational loans between banks and educational institutions.

No processing charges may be levied on the loans sanctioned under the scheme.

OTHER CONDITIONS:

Sanction of loan to more than one child from the same family

Existence of an earlier education loan to the brother(s) and/or sister(s) will not  affect  the  eligibility  of  another  meritorious  student  from  the  same  family  obtaining education loan as per this scheme from the bank.

 

Minimum Age

There  is  no  specific  restriction  with  regard  to  the  age  of  the  student  to  be  eligible  for  education  loan.  However,  if  the  student  was  a  minor  while  the  parent  executed  Documents  for  the  loan,  the  bank  will  obtain  a  letter  of  ratification from him/her upon attaining majority.

 

Top up loans

Banks  may  consider  top  up  loans  to  students  pursuing  further  studies  within  the  overall  eligibility  limit,  if  such  further  studies  are  commenced  during  the  moratorium period of the first loan. The repayment of the loan will commence  provided under the scheme.

 

Joint Borrower

The  joint  borrower  should  normally  be  parent(s)/guardian  of  the  student  borrower.  In  case  of  a  married  person, joint  borrower  can  be either  spouse  or  the parent(s)/parents-in-law.

 

  • No Dues Certificate

 

No  dues  certificate  will  not  be  insisted  upon  as  a  pre-condition  for  considering  education  loan.  However,  banks  shall  obtain  a  declaration/  an  affidavit confirming that no loans are availed from other banks.

 

 

Disposal of loan application

Loan applications have to be disposed of in the normal course within a period  of  15  days  to  1  month,  but  not  exceeding  the  time  norms  stipulated  for  disposing of loan applications under priority sector lending.

 

Credit Score

In  case  of  default  of  loan  credit  score  such  as  Credit  Information  Bureau  (I) Ltd.  (CIBIL) of  parents  as  well  as  students  will  be  affected  which  will  adversely  impact  their  capacity  to  take  future  loans  as  well  as  increases  the  cost of loan.

 

Furnishing of Documents

Students shall have to furnish to the Banks authenticated copies of documents

related to their academic performance sheet, if so desired by the Banks.

 

Sharing of Student’s Progress Reports by Institutions.

In  order  to  reduce  the  possibility  of  deliberate  default,  the  Educational  /  Technical  Training/  Skill  Development  Institutions  will  be  involved  in  the  process.  They  will  share  progress  reports  of  the  students  who  have  taken  loans with the banks, at regular intervals, if so desired by the Banks.

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