Posted by MedGuru Bureau on November 01, 2006

Vidyasagar Student loan

Purpose of the loan: To provide financial assistance to needy and meritorious Indian students for pursuing studies from High School onwards, including graduation, technical and professional courses.

Loans are also provided for studying abroad for job oriented courses at degree level and advanced studies in all areas for post-graduation. For payment of fees to school/college and for purchase of books, hostel fees, examination fees, etc.


Need based finance is permitted within a maximum of Rs.7.50 lakhs for inland study and Rs.15 lakhs for study abroad. Institutions offering courses should have approval of Central Govt. & State Govt. /University affiliation/Autonomous Institutes/AICTE/DOEACC.


Up to Rs. 4.00 Lakhs Nil for both inland and Foreign Studies

Above Rs. 4.00 Lakhs 5% for inland studies 15% for studies abroad

Rate of Interest:

(Subject to changes as advised by Bank / RBI from time to time)

- Up to Rs. 4 lakhs 10.75%

- Above Rs. 4 lakhs 11.75%


Up to Rs. 4.00 lakhs: Joint documentation with parents/guardian.

Above Rs. 4.00 lakhs: Collateral security of suitable value or Co-obligation of Third Party having required net worth with Assignment of future income of the student.

Repayment Conditions:

To be repaid in 5 to 7 years.

Initial repayment holiday of one year both for principal & interest from the date of completion of course or six months of getting a job whichever is earlier.

Interest will be debited quarterly on simple basis during the repayment holiday/moratorium period. After commencement of repayment, the accrued interest is added to the principal amount and EMIs fixed on total outstanding amount.

Penal Interest @ 2% will be charged for above 2.00 Lakhs for the overdue amount and overdue period.

Live Punjab News Service

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