Karnataka Bank Education Loans are offered to deserving students who want to pursue higher studies in India or abroad under the Vidyanidhi Education Loan Scheme.

Eligibility
Any student, representing himself / herself if major, or a minor student represented by parent or guardian, of Indian nationality, who has secured admission to a professional / technical / other course, in India or abroad.

Courses Eligible

Studies abroad:

• Graduation - Only for job oriented professional / technical courses offered by the reputed Universities
• Post Graduation - MCA, MBA, MS
• Courses conducted by CIMAA in London, CPA in USA

Studies in India:

• Graduate Courses - B.A., B.Sc., B.Com., B.C.A., B.B.M.
• Post Graduate Courses - Masters and Ph.D
• Diploma in Engineering
• Professional Courses - Engineering, Medical, Agriculture , Veterinary, Law, Dental , Management , Computer, Pharmacy, Physiotherapy, Hotel Management , ICWA, CA, CFA
• Courses conducted by IIM, IIT, XLRI, NIFT
• Courses offered in India by reputed foreign universities
• Evening Courses of approved Institutes
• Other Courses leading to Diploma / Degree conducted by Colleges / Universities approved by UGC / Govt. / AICTE / AIBMS / ICMR
• Courses offered by National Institutes and other reputed private Institutions

Documents to be Submitted
Academic Records and admission approval

Maximum Loan Amount

• Study Abroad -Rs.15.00 lakhs
• Study in India-Rs.7.50 lakhs

Expenses Covered under Loan

• Tuition Fees
• Hostel Fees and Boarding and Lodging Fees if resident outside Hostel
• Examination / Laboratory and Library Fees
• Purchase of Books/ Study material / Equipment and Uniforms
• Caution Deposit / Building Fund / Refundable Deposits (supported by Receipts issued by the Institution )
• Travel expenses/passage money for study abroad
• Purchase of Computer if certified as essential for completion of course
• Other expenses like Project Work, Study Tour and Thesis, which are necessary for completion of course

Security

• For loans up to Rs.2 lakh - Loan shall be given jointly with Parent / Guardian. A Guarantor with networth not less than loan amount shall join the transaction in addition to Parent / Guardian.
• For loans above Rs.2 lakh - Loan shall be given jointly with Parent / Guardian and collateral equal to 100% of the loan is required. In case land and buildings are already mortgaged, the same can be used as security on II charge basis provided adequate security cover of 100% of the loan amount is available. Computers purchased with the loan would have to be hypothecated to the Bank.

Rate of Interest

• Upto Rs.4.00 lakh - 12.25% p.a
• Above Rs.4.00 lakh - 13.25% p.a

Repayment
The loan shall be repaid in 5 to 7 years after commencement of repayment. If the student secures employment during the gestation period, the repayment schedule should be advanced to commence immediately.

The completion of the course includes internship or apprenticeship if compulsory for award of Degree. If the student does not complete the course within the scheduled time, a maximum time limit of 2 years is permitted. If the student is unable to complete the course for reasons beyond his control then extension may be granted if deemed necessary to complete the course.

The accrued interest during the repayment holiday will be added to the principal and repayment in equated monthly installments (EMI) shall be fixed.

Loan Holiday
There is a holiday on repayment for the duration of the Course extending up to 6months or 1 year after getting a job, whichever is earlier.