Development Credit Bank Education loan Details
Rules and Regulations
Purpose :
Educational Loans for providing financial support to deserving/ meritorious students for pursuing higher education in India and abroad.Loan type : Amortizing Term Loans in equal installments post moratorium period
Borrower Segments :
The student
The parent/guardian
Individuals of Indian Nationality who have secured admission to recognized courses/universities in India or Abroad through entrance test/selection process
Individuals of Indian Nationality who have secured admission to recognized courses/universities in India or Abroad through entrance test/selection process
a) Salaried
b) Self Employed Professionals
c) Self employed Business
Courses eligible :
Courses eligible :
a) Studies in India
b) Studies Abroad
- Post graduation courses from recognised universities
- Professional courses from reputed institutes:.
- Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc.
- Courses conducted by CIMA London, CPA USA, etc.,
- Courses in Universities which take admissions through TOEFL,GMAT,GRE,SAT exams
Only one course at a time will be financed
Loan Amount :
a) Studies in India
Minimum Rs. 25,000
Maximum Rs. 7,50,000
Maximum Rs. 7,50,000
b) Studies abroad
Minimum Rs. 1,00,000
Maximum Rs. 15,00,000
Expenses Considered :
Maximum Rs. 15,00,000
Expenses Considered :
- Tuition and other fees
- Maintenance costs, books & equipments, uniform, etc.
- Caution fund/ building fund/ refundable deposit
- Travel expenses/passage money for studies abroad for the first time only
- Any other expense required to complete the course like study tours, project work, thesis, etc.
All the above expense should be supported by institution bills/receipts
Tenor :Maximum 5 years after commencement of repayment for studies in India and 3 years for studies abroad
Moratorium period : The holiday period enjoyed by the borrower towards repayment of the loan. Moratorium period shall not exceed course duration + 6 months
Margins :
Moratorium period : The holiday period enjoyed by the borrower towards repayment of the loan. Moratorium period shall not exceed course duration + 6 months
Margins :
a) Upto Rs. 4 lacs - Nil
b) Above Rs. 4 lacs - Studies in India: 5%
Studies abroad: 15%
Studies abroad: 15%
Scholarship/assistantship to be included in margin
Security :
Security :
- Upto Rs. 4 lacs: no security/collateral required
- Above Rs. 4 lacs upto 7.5 lacs: Collateral in the form of a satisfactory third party guarantee.
- Above 7.5 lacs: Collateral security upto 100% of the loan amount and guarantee of an earning acquaintance of the student for 100% of the loan amount.
Collateral can be in the form of:
- Land/ building/,govt. securities/Public Sector Bonds/ Units of NSC, KVP, LIC policy, shares/ debentures, bank deposit in the name of student/ parent/ guardian or any other third party for 100% of the loan.
- In case the loan is given for purchase of computer the same to be hypothecated to the Bank
- Interest Rate : Fixed
Repayment during moratorium periodhe borrower has to repay the interest accrued during the moratorium period on a monthly basis.
Applicant/Co-applicant
Applicant/Co-applicant
- Student
- Parent/guardian of the student borrower
Disbursement :
- Disbursement of the loan will be made in stages as per the demand directly to the college/institution.
- Student should furnish to the bank after every semester, suitable evidence of his satisfactory progress in the course of his studies. Satisfactory performance will be a pre-requisite for availability of finance for the subsequent years. Bank will have the option to discontinue disbursement of sanctioned loan or recall it at any time if the progress of the student is not satisfactory.
Mode of repayment :
- Post Dated cheques
- Standing Instructions, if the customer has bank account with DCB
Contact : Delhi Tel: 3312675, 3321326
Bangalore Tel: 5595071
Chennai Tel: 8312267-70
Hyderabad Tel: 3202191, 3205764
Mumbai Tel: 2872465
Bangalore Tel: 5595071
Chennai Tel: 8312267-70
Hyderabad Tel: 3202191, 3205764
Mumbai Tel: 2872465
