REGIONAL OFFICE, NO.

24, CRESCENT ROAD, BANGALORE
Loan to Students of IIMs *
Indian Institutes of Management (IIMs) are premier Management Institutes in the country. Students passing out of IIMs command
preference in the job market. In order to encourage students of IIMs to avail educational loans from our Bank, it has been decided to
offer them certain concessions in existing Cent Vidyarthi Scheme. The details of concessions offered to the students seeking
admission in IIMs are given hereunder:
Description

Concessions to IIM students

Maximum loan amount

Rs 20 lakh

Expenses considered for the loan

i.

Margin

Nil

Guarantee

Not required ( neither from parents not 3rd parties)

Borrower

Loan to be sanctioned in individual name of the student.
Parent/ natural guardian may also be taken as co-borrowers

Fee payable to college/ school/ hostel. Reasonable lodging and boarding
charge will be considered in case the student chooses / is required to opt for
outside accommodation.
ii. Examination/ Library/ Laboratory fee.
iii. Travel expenses
iv. Insurance premium for student borrower, if applicable.
v. Caution deposit, Building fund/refundable deposit supported by Institution
bills/receipts.
vi. Purchase of books/ equipments/ instruments/ uniforms.
vii. Purchase of computer at reasonable cost, if required for completion of the
course.
viii. Any other expense required to complete the course - like study tours, project
work, thesis, etc.
ix. Visit to foreign universities in Exchange Programme.
x. Living Expenses upto Rs.120000/- p.a. on declaration basis.

(Optional).

Security

No collateral security.
Assignment of future income of the student.
Comprehensive Life Insurance Policy in the name of the student for at least the
loan amount and for a minimum period of loan term ( i.e. course period +
moratorium period + repayment period) assigned in favour of Bank.

Other concessions

Debit Card, Internet Banking facility and Any Where Banking facility may be
provided to the students on request at normal charges.

Special Incentive

Interest subsidy is available for the course period plus 12 months after completion
of the course or 6 months after securing a job whichever is earlier, to students with
a parental upper annual income limit of Rs.4.50 lakh for loans. Even loans in
excess of Rs.10 Lacs qualify for interest subsidy under Central Sector Interest
Subsidy Scheme of MoHRD for the portion of loan upto Rs.10 Lacs.

Repayment

Maximum 15 years to commence 12 months after completion of the course or 6
months after securing a job whichever is earlier.

Processing Charges

NIL

Pre payment charges

NIL

Rate of Interest

Base Rate %

(a)

Spread % (b)

Effective Rate % (a+b)=(c)

-Male Students without joint borrower

10.25

+0.50

10.75

-Male Students with joint borrower

10.25

-

10.25

-Female, SC,ST, Minority Community Students

10.25

-

10.25

Main documents to be submitted

Sanctions

1.
2.
3.
4.
5.
6.
7.
On

Disbursement

Hassle free disbursement as per schedule of I.I.M.

*- Subject to changes as at the date of sanction

Application in the prescribed form
Admission letter from the educational Institution
Attested Copies of Marks sheets
Estimate of expenses from the educational institution
Proof of identification (parent as well as student)
Proof of residence
Income proof of parents/Guardian
the spot