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    tarun panwar
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    The document summarizes changes made to the IBA Model Educational Loan Scheme. It notes that the original scheme had no margin required for loans up to 4 lakhs rupees, a 5% margin for loans over 4 lakhs for studies in India, and a 15% margin for loans over 4 lakhs for studies abroad. It was amended to waive the margin up to 7.5 lakhs rupees if the loan was eligible for credit guarantee coverage. However, the government's Credit Guarantee Fund Scheme kept the original margins. So the IBA approved restoring the original margins and noted the loan would be eligible for credit guarantee coverage up to 7.5 lakhs rupees. Banks

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    Csis circular-I

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    The document summarizes changes made to the IBA Model Educational Loan Scheme. It notes that the original scheme had no margin required for loans up to 4 lakhs rupees, a 5% margin for loans over 4 lakhs for studies in India, and a 15% margin for loans over 4 lakhs for studies abroad. It was amended to waive the margin up to 7.5 lakhs rupees if the loan was eligible for credit guarantee coverage. However, the government's Credit Guarantee Fund Scheme kept the original margins. So the IBA approved restoring the original margins and noted the loan would be eligible for credit guarantee coverage up to 7.5 lakhs rupees. Banks

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    4 views2 pages

    Csis Circular-I

    Uploaded by

    tarun panwar
    The document summarizes changes made to the IBA Model Educational Loan Scheme. It notes that the original scheme had no margin required for loans up to 4 lakhs rupees, a 5% margin for loans over 4 lakhs for studies in India, and a 15% margin for loans over 4 lakhs for studies abroad. It was amended to waive the margin up to 7.5 lakhs rupees if the loan was eligible for credit guarantee coverage. However, the government's Credit Guarantee Fund Scheme kept the original margins. So the IBA approved restoring the original margins and noted the loan would be eligible for credit guarantee coverage up to 7.5 lakhs rupees. Banks

    Copyright:

    © All Rights Reserved
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    of 2

    ffi

    Indian Ban kst Association

    No.CIR/RB-ELS/441

    June 3, 2016

    Chief Executives of all Member Banks

    Dear Sirs/Madam,

    IBA Model Educational Loan Scheme for


    ad -2015

    We refer to the IBA circular No. CIR/RB-ELS/6 dated 17th August 2015 forwarding the
    revised IBA Educational Loan Scheme [2015] for Pursuing Higher Education in India &
    Abroad to member banks for adoption and implementation by banks.

    The IBA Model Educational Loan Scheme, prior to the latest revision, had the following
    provision for margins:
    Marsin:

    Upto { 4lakhs NIL


    Above { 4 lakhs Studies in India 5%
    Studies Abroad 15%

    In the recent revision we had incorporated the following provision to the above clause.
    "However, up to t 7.5 lakhs, margin will be NIL, if loan is eligible for the Credit
    Guarantee.tt

    In the meantime, the Government of India through Ministry of Human Resource


    Development, Department of Higher Education on 16n September 2015 released Credit
    Guarantee Fund Scheme of Educational Loans [CGFSEL] notified in the Gazette of India.
    They have kept the margins same as in original IBA Model Educational Loan Scheme
    [2012]. The matter was placed before the IBA Managing Committee Meeting held on 27n
    May 2016. The Committee after deliberations accorded its approval to amend the IBA
    Model Educational Loan Scheme [2015] to restore the original clause for margin.
    Accordingly, the amendment would read as under:

    MARGIN
    apto t 4 lakhs NIL
    Above f 4 hkhs Studies in India 5%
    Studies Abroad I5%

    Worfd Trade Centre Complex, Centre 1, 6th Floor, Cuffe parade, Mumbai _ 4OO O0S. . Tet: +91 .
    22 2217 4O4O Fa<i +g1 22 Z21B I 2215 4131
    Website : wwwiba.org.in
    lndian Banks' Association CONTINUATION SHEET

    Howeve4 upto ? 7.5 lakhs, loan is eligible for the Credit Guarantee coverage.

    Scholarship/ assistantship to be included in margin.


    Margin may be brought-in on year-to-year basis as and when disbursements are
    made on a pro-rata basis.

    The R-EVISED IBA MODEL EDUCATIONAL LOAN SCHEME is enclosed for your
    use. The members are requested to kindly note the changes and communicate the
    modification to all the branches sanctionins education loans

    Yours faithfully,

    K Unnikrishnan
    Deputy Chief Executive

    Encl. a\a

    v
    RB:ELN: ELS 2016 1062016 amendt margin

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