Up to Rs 10 lakhs

Interest rate

11.5% up to Rs 2 lakhs and 13.5 percent on Rs 2 to10 lakhs.

Details of interest/payment

Maximum period is 10 years (principal amount)

Payment commences 6 months after completion of course or getting employment (whichever is earlier).

Accumulated interest is to be paid within 2-3 years of course completion.

Interest during course is simple. After the course, interest is compound.

If student does not return to India in 6 months, the interest charged is at commercial rates.

Margin money

Student has to arrange 25% of all tuition and living costs.

Mortgage on property (in parents’ names), shares, LIC, NSCs, Unit Trust, other investments.

These must be at least 200% of the loan amount.

Documents required

Bank forms, letter of admission from overseas university clearly stating living costs and tuition fees and other costs.

Student should have secured first division in previous studies (excluding language).

Where to apply

Any Bank of India branch in India.

Time taken

Usually processed within 1 month.