Education Loan

get loans for higher education in India / abroad
Education Loan

Learn more about this scheme under TMB Retail Loan Products. This is scheme of choice for parents who wish to educate their children in professional courses in India / Abroad and help them get graduation / post graduation in any field of choice of the student. The cost of the education can be borne by the loan from our bank.

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Student Eligibility
  • Should be an Indian National.
  • Secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test / Merit Based Selection process after completion of HSC (10 plus 2 or equivalent). In case of some of the post graduate courses or research programmes the criteria is based on employability and reputation of the institution concerned.
Eligible course of study
    Studies in India
  • Approved courses leading to graduate / post graduate degree and PG diplomas conducted by recognized colleges / universities recognized by UGC / Government / AICTE / AIBMS /ICMR etc.
  • Courses like ICWA, CA, CFA etc.
  • Courses conducted by IIM, IIT, IISC, XLRI, NIFT etc.
  • Regular Degree / Diploma courses like Aeronautical, pilot training, shipping, nursing or any other discipline approved by Director General of Civil Aviation / Shipping / Indian Nursing Council or any other regulatory body as the case may be, if the course is pursued in India.
  • Hotel Management Course
  • Courses offered in India by Reputed Foreign universities.
  • Courses offered by National Institutes and other reputed private institutions. Banks may have the system of appraising other institution courses depending on future prospects / recognition by user institutions.
    Studies Abroad
  • Graduation: For Job oriented Professional / Technical courses offered by reputed universities.
  • Post Graduation: MCA , MBA , MS, etc.
  • Courses conducted by CIMA-London, CPA in USA etc.
  • Degree / Diploma courses like aeronautical, pilot training, shipping etc provided these are recognized by competent regulatory bodies in India / abroad for the purpose of employment in India / Abroad.
  • Upto Rs. 4 Lakhs - Nil.
  • Above Rs. 4 Lakhs - Study in India - 5%.
  • Above Rs. 4 Lakhs - Study Abroad - 15%.
However, upto Rs. 7.50 Lakhs, margin will be "Nil", if loan is eligible under Credit Guarantee Scheme.
  • 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-rate basis.
  • Upto Rs. 7.50 Lakhs - No Security. Parents to be joint borrower(s).
  • Above Rs. 7.50 Lakhs - Co–obligation of parent(s) together with 100% tangible collateral security (need not necessarily be belonging to the joint borrowers) along with the assignment of future income of the student for payment of instalments.
Rate of Interest
  • Click MCLR Rates of Interest for MCLR based interest rates. For further details please contact our nearest branch.
  • Upto Rs. 10 Lakhs (Study in India / Abroad) Priority - MCLR + BSS 1.75% + CRP 0.50%.
  • Above Rs. 10 Lakhs upto Rs. 20 Lakhs (Study Abroad) Non Priority - MCLR + BSS 2.00% + CRP 0.50%.
  • NCGTC guaranteed loans for the limits up to Rs. 7.50 Lakhs - MCLR + BSS 1.75% + CRP 0.50%. Subject to maximum cap of MCLR + 2%.
  • The MCLR is subject to reset on anniversary.
Penal Interest
Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest or at such rates prescribed by the bank from time to time on the balance outstanding.
  • Repayment Holiday / Moratorium Period: Course period + 1 year or 6 months after getting job whichever is earlier. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course. In case the student discontinues the course midway, appropriate repayment schedule will be worked out by the bank in consultation with the student / parent.
  • Maximum Repayment period of Loan: The loan is to be repaid in Upto 15 years after commencement of repayment.
The loan to be disbursed in stages as per the requirement / demand directly to the Institutions / Vendors of books / equipments / instruments to the extent possible.
Processing Charges
1.00% of the limit sanctioned without any maximum cap for studies in abroad. However, the processing charges fee collected be refunded upon the student taking up the course. No processing / upfront charges may be collected on educational loans for studies in India.
Documentation Charges
Prepayment Charges
No prepayment penalty will be levied for prepayment of loan any time during the repayment period.
Capability Certificate
Some of the foreign Universities require the students to submit a certificate from their bankers about the sponsors' solvency financial capability, with a view to ensure that the sponsors of the students going abroad for higher studies are capable of meeting the expenses till completion of studies. Charges: Rs. 100.00 per Lakh or part there of. Minimum Rs. 100.00, Maximum Rs. 500.00.

All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Goods & Service Tax (GST) on All Service Charges extra wherever applicable.

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Interest Subsidy Scheme administered by Ministry of Tourism: