TMB Education Loan

Features & Benefits of TMB Education Loan:

Objective/ Purpose of Loan:

TMB Education Loan aims to help students fund their higher studies and living expenses. It may vary from other loans as it is offered at the considerably lesser interest rate and the repayment schedule may be delayed until the course completion.

Rate of Interest:

• Up to INR. 4 Lakhs – BR + 3.50 percent i.e. 14.25 percent per annum
• Between INR. 4 Lakhs and INR. 7.50 Lakhs – BR + 3.50 percent i.e. 14.25 percent per annum
• Between INR. 7.50 Lakhs and INR. 20 Lakhs (Only with 100 percent security) – BR + 3 percent i.e. 13.75 percent per annum
• Interest Rate Reduction by 0.50 percent is applicable if loan is covered by complete collateral security.
• Added incentive of one percent in R.O.I for checking the interest during the course and moratorium term.
• Present Base Rate for Lending (BR) is 10.75 percent per annum.

Interest Payment:

Interest is payable on a monthly basis from the date the loan is disbursed. A separate letter of accountability is to be acquired from the parent and sponsor stating that this will be paid from their regular income.

Penal Interest:

Any indiscretion or evasion in repayment of the loan will get you a penal interest of two percent per annum.

Processing Charges:

One percent of the amount approved without any maximum cap for international studies is the usual processing fee. But for education in India, no such charges are levied.

Repayment:

• Window / Moratorium Period: Course duration + 1 year after completion of the course.
• If the student lands with a job in one year after completing the course, the loan settlement must start instantly after the expiration of one month from the day of joining work.
• Maximum Repayment Tenure of Loan: The loan should be settled in five to seven years after the window period. If the student is unable to finish the course in the said time, an extension will be given for two years at the max.
• If the student cannot complete the course for valid reasons, the bank may or may not allow more time at its discretion.

Amount of Loan:

• As a loan is purely based on need, it is given by checking the repayment capacities of the parties involved.
• For education in India, one can get up to INR. 10 lakhs and for international education, the maximum loan sum given is INR. 20 lakhs.

Security:

• Up to INR. 4 Lakhs – No collateral needed.
• For a loan between INR. 4 Lakhs and INR. 7.50 Lakhs – appropriate third party guarantee required.
• For a loan between INR. 7.50 Lakhs and INR. 20 Lakhs – 100 percent collateral security in the form of property papers, LIC Policy, bonds, etc must be shown.

Capability Certificate:

International universities need the students to give them an official document from their banker about the guarantor’s creditworthiness and financial capacity, with an aim to make sure that the sponsors are able to meet any unexpected expenses until the course is completed.

Charges: INR. 100 per one lakh or part thereof. The maximum amount payable for this is INR. 500.

Margin:

• Up to INR. 4 Lakhs – Nil.
• More than INR. 4 Lakhs:
  • 5 percent for studying in India
  • 15 percent for studying overseas

Expenses considered for the TMB Education Loan:

• Course fee
• Hostel fee
• Exam fee
• Library fee
• Lab fee
• Cost of books, apparatus, laptop (if necessary), study projects and uniforms
• Caution Deposit & other funds
• Travel expenses
• Passage fare (For education abroad)

Eligible Courses:

INDIA:

• High School, Higher Secondary, Bachelors and Masters
• Professional Courses: Engineering, Medicine, Dentistry, Veterinary, Law, Computer, Agriculture etc.
• Courses like CA, ICWA, CFA etc
• Courses held by IIT, IIM, NIFT, IISc, and XLR1.
• Courses offered in India by known international universities.

ABROAD:

• Bachelors in any employment-oriented course provided by accredited universities.
• Masters in MBA, MCA & MS.
• Courses held by CIMA-London, CPA in USA etc.

Student Eligibility:

• The prospective student must be an Indian citizen.
• He/ she should have achieved first class in the previous public exam.
• He/she should already have gotten admission in a recognized Indian or international institute or university.
• If the student is below age 18, loan may be approved to parents by obeying the applicable conditions.

Documents required:

• Photocopies of relevant mark sheets
• Photocopies of National ID cards
• Admission paper from the institution
• Permanent address proof of student, parent and sponsor
• Income proofs of all the parties involved.

Disbursement of Loan:

The TMB education loan will be paid in stages according to the requirement or demand of the university. All the regular documents as per the TMB Bank guidelines must be submitted for the loan to get approved.