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Nainital Bank Gyani Education Loan for Higher Studies in India and Abroad

This Nainital Bank study loan helps students finance their education and realise their dreams of pursuing professional and technical courses in India or abroad. The maximum loan amount you can get is Rs. 35 lakh for professional and technical courses in India, Rs. 75 lakh for MBBS and MD/MS in India and Rs. 70 lakh for studying abroad.

Features of Nainital Bank Gyani Education Loan Scheme

Why this Loan?

  • The loan is meant to help students who have secured admission into a higher education course in a recognised institution in India or abroad through entrance test or merit-based selection process
  • This Nainital Bank Education loan is disbursed as a series of payments over the required number of years and not as a lump sum
  • The loan can be taken for all expenses directly related to the course including for fees, purchase of books, laptops, hostel fees, lab fees, examination fees, etc.

Loan Amount

  • The maximum loan amount you can get is Rs. 35 lakh for studying in India and Rs. 70 lakh for studying abroad. However, the bank offers a loan amount of up to Rs. 75 lakh for students pursuing MBBS and MS/MD in India

Interest

  • Loans up to Rs. 7.5 Lakh: The interest rate for this quantum of loan is the sum of Naini Repo Linked Lending Rate (NRLLR) and a 2.0% spread. With the NRLLR at 7.0%, this makes the effective interest rate for this loan 9.0% as of November 2020
  • Loans above Rs. 7.5 Lakh: The interest rate for this quantum of loan is the sum of Naini Repo Linked Lending Rate (NRLLR) and a 1.75% spread. As the NRLLR is 7.0%, this makes the effective interest rate for this loan 8.75% as of November 2020
  • Girl students get a concession in interest of 0.50% for both segments, i.e. loans up to and above Rs. 7.5 lakh

Repayment

  • Loans up to Rs. 7.5 Lakh: The repayment period for these loans is 10 years
  • Loans Above Rs. 7.5 Lakh: The repayment period for this loan is 15 years
  • The loan amount for each year is repayable in 12 equated monthly instalments, with the first instalment becoming due after the end of moratorium period
  • The moratorium period for this loan is not mentioned on the Nainital Bank website. Please check with the bank for details

Security Needed

  • As of November 2020, these details are not available on the bank’s website. Please get in touch with the bank for more information

Eligibility

  • The applicant must be an Indian national
  • The student should have gained admission into a recognised higher education course in a recognised institution in India or abroad through Entrance Test or Merit-based selection process
  • Students who have secured admission into eligible courses through Management Quota are also eligible for the loan. The bank grants the loan on a case-to-case basis by assessing the application. The fees should be within the limits of the fees structure approved by State Government or a Government approved Regulatory Body for admission to such paid seats in government colleges, private self-financing colleges, co-operatives and colleges run by universities

Eligible Courses

  • Professional courses from colleges and universities approved by the government, UGC, AICTE, AIBMS, ICMR, etc. Evening courses in the category are also eligible
  • Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Architecture, Computer, etc. courses
  • Courses from IIM, IIT, IISc, XLRI, NIFT, NID, etc.
  • Study programmes that lead to CWA, CA, CS, CFA, etc. accreditations
  • Computer certificate courses from accredited institutes
  • Courses offered by national institutes and reputed private institutions are also eligible
  • Job-oriented or technical courses offered by reputed foreign universities at Graduate level, Postgraduate programmes like MCA, MBA, MS and Reputed Courses like CIMA (London), CPA (USA), etc.

Borrower Contribution to Total Cost (Margin Money)

  • Loan up to Rs. 4 Lakh: Students need to pay 5% of the total course expenses as margin money
  • Loans above Rs. 4 Lakh: Students need to pay 15% of total course expenses as margin money
  • Any scholarship or assistantship received by the student is taken as a contribution towards the margin

Note: Margin money refers to the amount the borrower contributes to the overall amount required.

Processing and Other Charges

  • As of November 2020, these details are not available on the bank’s website. Please get in touch with the bank for more information

Uses of the Loan

  • College, school and hostel fees
  • Examination, library and laboratory fees
  • Caution deposit, building fund or refundable deposit supported by institution bills or receipts
  • Cost of books, equipment, instruments, uniforms
  • Purchase of computer, if required for the course
  • Travel expenses including passage money for foreign studies
  • Insurance premium for the borrower student, if applicable
  • Other expenses needed for completing the course such as study tours, project work, thesis, etc.

Other Features to Know

  • The bank may ask for the student’s progress report to be submitted with the bank at regular intervals
  • The loan is disbursed directly to the school, book seller or publisher, computer seller, and so on and not to the applicant(s)
  • The applicant must pay applicable margin money upfront for each disbursement

Documents Needed

  • Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
  • A declaration/ affidavit from the borrower confirming that, no educational loans have been availed from other banks
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus as proof of admission
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • For the co-borrower, documents as age, ID, signature, address and employment, business or income proofs are required
  • For studying abroad, a self-attested copy of the passport is also required along with a self-attested form issued by the institute for visa purposes

Reference Facts:

  • Nainital Bank Website: www.nainitalbank.co.in
  • Headquarters: Nainital, Uttarakhand
  • Regional Office Numbers: +91 20 240 1083 (Noida), +91 5946 250 321 (Haldwani), +91 135 276 1103 (Dehradun)