To meet expenses connected with the pursuit of specific courses of study at recognized institutions, including professional/job-oriented courses, which offer reasonable opportunity for employment & loan repayment capacity on successful completion.
Should have secured admission to professional/technical courses in India or abroad through entrance test/merit based selection process after completion of HSC (10 plus 2 or equivalent). However, entrance test or selection purely based on marks obtained in qualifying examination may not be the criterion for admission to some of the post graduate courses or research programmes. In such cases, appropriate criteria will be adopted based on the employability and reputation of the institution concerned.
Lakshmi Vilas Bank was founded in 1926 by a group of seven progressive businessmen of Karur under the leadership of Shri V.S.N. Ramalinga Chettiar. Their objective was to cater to the financial needs of people in and around Karur who were occupied in trading businesses, industry and agriculture. The bank was incorporated on November 3, 1926 under the Indian Companies Act, 1913, and obtained the certificate to commence business on November 10, 1926. Subsequent to introduction of the Banking Regulations Act, 1949 and Reserve Bank of India as the regulator for the banking sector, the bank obtained its banking license from RBI on 19,June 1958, and on 11, August 1958 it became a ?scheduled commercial bank? signifying capability to operate as a full-fledged commercial bank.
1.Is there a prepayment penalty levied by the bank for paying off the education loan account before the due date?
There is no prepayment penalty or charges of similar nature applicable for early closures before the end of term at any time during in the tenure.
2.Does the bank charge an overdue fee on education loan?
Penalty at the rate of 2% per annum is billed for all loan amount above Rs. 2 lacs for the overdue period.
3.Should the third party guarantor to the loan be a relative of the student?
Not necessarily. A third party guarantor will be someone with sufficient financial assets commensurate to the amount of loan and is willing to sign as one.