The quantum of finance under the scheme is capped at Rs. 7.5 lakhs for studies in India and Rs. 15 lakhs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books, etc. The minimum amount of loan would be Rs. 50,000/-.

EXPENSES CONSIDERED FOR THE LOAN:
Fees payable to college/university/hostel
Examination/Library/Laboratory fees
Purchase of Books/Equipment/Instruments
Caution/refundable deposits supported by the Institution's bills/receipts
Travel expenses/passage money for studies abroad
Purchase of computers (when essential for the completion of the course)
Any other expenses required to complete the course, like study tours/project work/thesis, etc.
MARGIN
No margin for loans upto Rs. 4 lakhs. For loans above Rs. 4 lakhs, 5% margin for studies within India and 15% for higher studies overseas.
RATE OF INTEREST
Quantum of Loan is upto Rs. 4 lacs the Rate of Interest is At PLR, currently not exceeding 12% p.a.
Quantum of Loan is above Rs. 4 lacs teh rate of interest is At 1% above PLR, currently not exceeding 13% p.a
REPAYMENT
The loan would be repayable in a maximum of 84 instalments from the commencement of repayment. The 1st instalment would be due 1 year after the completion of the course or 6 months after getting a job, whichever is earlier. However the total tenure of the scheme, i.e. from the date of the 1st disbursement to the date of the last instalment, should not exceed 12 years. The periodical interest applied on the loan account, prior to the commencement of the actual repayment, should be recovered from the account of the co-applicant, as and when due
ROLE OF GUARDIAN
The parent(s)/guardian of the student would be treated as a co-applicant of the loan. His/her role would be, necessarily, like the primary debtor. He/she would be responsible for the payment of the interest accrued on the loan account, prior to the commencement of the EMIs.
SECURITY
Third Party Guarantee:
It is necessary to have a 3rd party guarantee agreement in place, especially in cases where the loan would be not be secured by liquid collaterals (e.g. Units, FDs, NSCs, paid-up LIC policies, etc.). The guarantor should not be a close relation of the student (i.e. parents/siblings/spouse, etc.) and should be good for 100% of the loan amount. No 3rd party guarantee need be insisted upon for loan upto Rs. 4 lacs. Computers and other related hardware financed under the scheme would have to be, necessarily, charged to the Bank as primary security.
Collateral Security:
Educational Loans sanctioned would need to be secured by collateral securities, to the minimum extent of 100% of the loan amount. The requirement of obtaining 3rd party guarantee need not be insisted upon in cases where liquid securities adequately cover the total loan. Such collateral securities would include -
    First or pari-passu charge on unencumbered land and building
    Govt. Securities / PSU Bonds
    Surrender value of 'paid-up' insurance policies
    Demat shares/securities
    Units and other pledgeable securities like NSCs
    Bank FDs
    Other freely transferable securities like KVPs and IVPs
    As in the case of 3rd party guarantee, no collaterals need be insisted upon for loans upto Rs. 4 lacs.
Additional Security:
In educational loans, since the ultimate exposure is on the earning capacity of the student, post-completion of the course, it is essential to organise a LIC policy assuring the life of the student, the sum assured being at least 100% of the loan amount. This policy should be assigned in the name of the Bank and the Bank must ensure that the policy is kept alive during the currency of the loan. To ensure this, the annual premium may be included in the computation of the loan requirement, along with the tuition fees and other recurring charges. Further, the future income of the student needs to be assigned in favour of the Bank for meeting the instalment obligations
DISBURSEMENT
The loan will be disbursed in full or in suitable instalments taking into account the requirement of funds and/or fee schedule as assessed by the Bank directly to the educational institution/ vendor of books/equipment/instruments to the extent possible..
PROCESSING CHARGES/ADMISSION FEEM
Nil
PENALTY FOR EARLY CLOSURE
Nil