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Education Loan
  1. Education Loans
Education is the basis of personal growth and development. It works as a springboard for upward movement in life. Good education is necessary for a better future. Realizing the importance of education, Dena Bank offers loans for higher studies in India and abroad. Dena Bank education loans help deserving students achieve their dream of higher education from national and internationally recognized educational institutions. The bank makes sure that a lack of funds does not come in the way of acquiring professional qualifications. Its schemes for educational loans provide required finance to students so that they can pursue professional, technical and vocational education as well as training courses from educational institutions in India and abroad. Armed with sound education, students are sure to do well in their careers.
 
  1. Types and Features of Dena Bank Education Loans
 
There are 3 Dena Bank student loan schemes available. They are discussed in detail below.
 
1) Dena Vidya Laxmi Educational Loan Scheme
This is a government interest subsidy scheme for Economically Weaker Sections (EWS) of the society. It provides need-based financing to students from less fortunate families so that they can get the best higher education in India and abroad.
 
  1. Eligibility
  • This student loan scheme is available to Indian nationals who have secured admission to a higher education course in well-known educational institutions in India or abroad
  • Submission of mark sheet of the qualifying examination and proof of admission along with loan application at a bank branch
  • Graduate, post graduate, masters, PhD and professional courses in India are covered under the scheme
  • International professional and technical job-oriented graduate courses, post graduate courses like MCA, MBA, MS, etc. and professional qualifications like CIMA (UK), CPA (USA), etc. are covered under this Dena Bank student loan scheme
 
  1. Features
  • The annual parental income of the EWS student applicant cannot be more than Rs. 4.5 lakh. An income certificate for the same issued by a designated authority in prescribed format has to be submitted with the loan application.
  • This Dena Bank student scheme covers technical and professional courses in India (after class 12th) which have been approved by the Ministry of Human Resources Department, Government of India
  • The scheme offers interest subsidy during the moratorium period (course duration plus 6/ 12 months)
  • There is no ceiling on the amount of education loan provided to students admitted to full-time courses conducted by IITs, IIMs and ISB. Dena Bank student education loan covers the full course fee, subject to margin in this case.
  • Students who have been admitted to full-time courses conducted by ‘A’ rated institutions and bank approved educational institutions receive need-based finance, subject to margin. The maximum loan amount for study in India is Rs. 15 lakh and study abroad is Rs. 25 lakh.
  • Students admitted to full-time courses conducted by other institutions also receive funds to meet expenses, subject to margin. The maximum Dena Bank education loan amount for study in India is Rs. 10 lakh and study abroad is Rs. 20 lakh.
  • There is no margin charged for a loan amount of up to Rs. 4 lakh. If the amount of education loan is greater than Rs. 4 lakh, a 5% margin is charged for study in India and 15% for overseas study.
  • This Dena Bank student education loan covers the college/ school and hostel fee. It also covers examination, library and laboratory fees as well as expenses incurred on international airfare, purchase of books, equipment, instruments and uniforms. Any other expenses required to complete the course such as study tours, project work, thesis, etc. are also covered.
  • A processing fee of Rs. 1,000 is levied for overseas study. This amount is refunded on availing the limit.
  • The tenure of loan or the repayment period is a maximum of 15 years for all loans
  • All loans where the loan amount is up to Rs. 7.5 lakh are covered under the Credit Guarantee Scheme managed and operated by the National Credit Guarantee Trust Company Limited (NCGTC)
 
  1. Rate of Interest
 
Type of Educational Institution Interest Rate
Student admitted in bank approved educational institutions MCLR = 9.45%
Student admitted in ‘A’ rated educational institutions MCLR + 1.05% + 0.50% (TP) = 11%
Student admitted in other educational institutions MCLR + 1.05% + 0.50% (TP) = 11%
 
A 1% concession is offered if the interest is serviced on time during the course of study when the repayment holiday is specified. Simple interest is charged during the moratorium period.
 
  1. List of Dena Bank Approved Educational Institutions
 
For study in India:
 
Engineering:
1. Indian Institutes of Technology (IITs)
2. National Institutes of Technology (NITs)
3. Birla Institute of Technology and Science (BITS) – all branches in India
4. Indian Institute of Science (IISc)
5. Madras Institute of Technology
 
Management:
1. Indian Institutes of Management (IIMs)
2. Indian School of Business (ISB)
3. Xavier School of Management (XLRI)
4. Narsee Monjee Institute of Management Studies (NMIMS)
5. Jamnalal Bajaj Institute of Management Studies (JBIMS)
 
Medical Science:
1. Christian Medical College, Vellore
2. All India Institute of Medical Sciences (AIIMS)
3. Postgraduate Institute of Medical Education and Research (PGIMER)
4. Armed Forces Medical College
5. Dr. Ram Manohar Lohia Hospital and Post Graduate Institute of Medical Education and Research
6. Vardhman Mahavir Medical College & Safdarjung Hospital
 
Others:
1. Indian Institute of Foreign Trade (IIFT)
2. National Institute of Design (NID)
3. Delhi School of Economics
 
For study abroad:
1. University of Cambridge, UK
2. University of Oxford, UK
3. Imperial College London, UK
4. University College London, UK
5. University of Edinburgh, UK
6. University of Toronto, Canada
7. McGill University, Canada
8. Harvard University, USA
9. Massachusetts Institute of Technology, USA
10. Yale University, USA
11. University of Chicago, USA
12. University of Pennsylvania, USA
13. Columbia University, USA
14. Stanford University, USA
15. California Institute of Technology, USA
16. Princeton University, USA
17. University of Michigan, USA
18. Cornell University, USA
19. Johns Hopkins University, USA
20. Duke University, USA
21. University of California, Berkeley, USA
22. Northwestern University, USA
23. ETH Zurich, Switzerland
24. University of Hong Kong
25. University of Tokyo, Japan
 
v) Documents to be submitted for a Dena Vidya Laxmi Educational Loan
1. Loan application form with personal information
2. Mark sheet/ certificate of the qualifying examination issued by the education board/ university
3. Proof of admission and course prospectus
4. Schedule of expenses for the course
5. Copy of letter confirming scholarship
6. 2 passport size photographs of the applicant, co-applicant and guarantors (if any)
7. Bank account statement of the applicant/ co-obligant for last 6 months
8. Income tax returns of the co-obligant for last 2 years along with the latest salary slip
9. Statement of assets and liabilities of the applicant and co-borrower
10. Details of the net worth of the guarantor or collateral securities along with title clearance report, latest valuation report, or bonds, NSCs, share certificates, LIC policies, etc.
11. Proof of residence
 
2) Padho Pardesh Scheme
This student loan scheme provides interest subsidy for educational loans to students from minority communities for pursuing masters, M.Phil. and PhD abroad. The parental income for this category of students should also be within Rs. 4.5 lakh a year.
 
3) IBA Model Skill Loan Scheme/ Kaushal Wrin Yojana
This Dena Bank student loan scheme provides a loan for courses in vocational education and training.
 
  1. Eligibility
  • The applicant must be an Indian resident
  • This Dena Bank vocational education and training loan is offered to students who have secured admission to a vocational education or training course at Industrial Training Institutes (ITIs), schools recognized by central or state education boards, polytechnics, colleges affiliated to a recognized university or training partners affiliated with National Skill Development Corporation (NSDC)/ State Skill Mission/ Sector Skill Councils/ State Skill Corporation. Such a course should ideally result in a diploma/ certificate/ degree that is issued by the training institute as per the National Skill Qualification Framework (NSQF).
  • There is no specific age requirement for a Dena Bank loan for vocational education and training. However, if the student is a minor, the parent has to execute the loan. The student has to give a letter of ratification to the bank branch on attaining majority.
  1. Features
  • Dena Bank loan for vocational education and training offers finance in the range of Rs. 5,000 and Rs. 1.5 lakh
  • The estimated monthly fee based on the sector and NSQF level is available with NSDC. Beneficiaries of any other grant or reward-based government schemes designed to provide skill training can also avail a vocational training loan.
  • The vocational education loan covers the complete tuition and course expenses. Dena Bank pays such the due amount to the institute directly. The loan also covers any other expenditure necessary to complete the course such as examination fee, assessment fee, library charges, caution deposit, laboratory fee, the cost of books, equipment and instruments, boarding and lodging charges, etc.
  • A nominal margin is charged and taken from the student as down-payment to ensure that he/ she remains serious about the course. The down-payment and interest paid during the course together cannot exceed 10% of the total course fee.
  • There are no processing charges for a Dena Bank vocational education and training loan
  • No third party guarantee or security is taken in this Dena Bank student loan scheme. However the parent has to execute the loan documents with the student as a joint borrower.
  • All loans under this student loan scheme are covered under the Credit Guarantee Scheme managed and operated by National Credit Guarantee Trust Company Limited (NCGTC). A guarantee fee at the rate of 0.50% of the outstanding amount is paid by Dena Bank.
  • A moratorium period of 6 months (after course completion) is provided for courses having a duration of up to 1 year. The moratorium period is 12 months (after course completion) for courses having a duration of more than 1 year.
  • Dena Bank education loans have to be repaid in Equated Monthly Installments (EMIs) after the moratorium period. Loans of up to Rs. 50,000 have to be paid within 3 years. Where the loan amount is between Rs. 50,000 and Rs. 1 lakh, the maximum repayment period 5 years. Loans greater than Rs. 1 lakh have to be repaid within 7 years.
  • Insurance is optional as per the needs of the borrower
  • There are no pre-payment charges i.e. the borrower may repay the Dena Bank education loan anytime after the repayment period commences.
  1. Rate of Interest for Dena Bank Education Loans
 
Repayment Period Interest Rate
Loan for vocational education repayable within 3 years MCLR + 1.55 = 11%
Loan for vocational education repayable in more than 3 years MCLR + 1.05 + 0.50 (TP) = 11%

 
Simple interest is charged during the study period up to the commencement of repayment. However, the servicing of interest is optional for students during the study and moratorium period until the commencement of repayment. A discount of 1% on interest on educational loans is provided if the interest is serviced during the study period and subsequent moratorium period, but before the commencement of loan repayment.
 
c) Applying for Dena Bank Education Loan Online
One can apply for a Dena Bank education loan online or by visiting the nearest bank branch. The applicant has to submit a duly filled loan application form along with required educational documents and loan documents for processing. In case of online application, a Dena Bank representative will get in touch with you to complete the various formalities.