Education Loan- Master Circular- Mar'24.pdf

MASTER CIRCULAR EDUCATION LOANS (Updated up to 31.03.2024) State Bank of India Personal Loans Department Retail Loans Corporate Centre Mumbai i|Page  INDEX Chapter Con...

MASTER CIRCULAR EDUCATION LOANS (Updated up to 31.03.2024) State Bank of India Personal Loans Department Retail Loans Corporate Centre Mumbai i|Page  INDEX Chapter Content Page No. 1 COMMON FEATURES AND PROCESSES OF EDUCATION LOANS 1.1 Type of Loans 1 1.2 Classification under Priority Sector 2 1.3 Loan Applications 2 1.4 Eligible Courses 3 1.5 Student/Co-Borrower Eligibility 3 1.6 CIC Scores/Reports of Borrower/ Co-Borrowers/ Guarantor 4 1.7 Expenses Considered for the Loan 5 1.8 Top-up Loans 7 1.9 Loan Amount 9 1.10 Sanction of Higher Loan amount beyond the Schemes & Other 10 Deviations 1.11 Margins 10 1.12 Interest Rates 11 1.13 Security Requirement 12 1.14 Acceptable Securities & Reckoned Value 14 1.15 Authorized Branches 15 1.16 Delegation of Financial Powers 16 1.17 Takeover of Education Loans 16 1.18 Appraisal/Sanction 16 1.19 Sanction Validity 17 1.20 Disbursements 17 1.21 Repayment 20 1.22 Other Issues on Loans for Studies in India 21 1.23 Other Issues for Loans for Studies Abroad 21 1.24 Loan Follow up and Tracking 26 1.25 SOP on release of Movable / Immovable Property Documents 28 1.26 SOP on Reset of Floating Interest Rate on Equated Monthly 28 Instalments (EMI) 2 SBI STUDENT LOAN SCHEME 2.1 Purpose 29 2.2 Eligible Courses 29 2.3 Student Eligibility 31 2.4 Expenses considered for Loan 31 2.5 Quantum of Loans and Top-up Loans 31 2.6 Margins 31 ii | P a g e  2.7 Acceptable Securities/Collaterals 32 2.8 Interest Rates & Concessions 32 2.9 Processing Charges 32 2.10 Authorized Branches 32 2.11 Appraisal/ Sanction/ Disbursement/ Repayments 32 2.12 Loan Follow-up and Tracking of Borrowers/C-Borrowers 32 3 SBI SCHOLAR LOAN SCHEME 3.1 Purpose 33 3.2 Student/Co-Borrower Eligibility 33 3.3 Eligible Expenses 33 3.4 Loan amount and Securities requirement 34 3.5 Courses Covered 34 3.6 Margin 34 3.7 Rate of Interest 35 3.8 Processing Fees 35 3.9 Sanction & Disbursement of Loans 35 3.10 KYC, Pre-Sanction Checks and Maintenance of Documents 35 3.11 Repayments 36 3.12 Opinion Report 36 3.13 Transfer of Loan Account after Course Completion 36 3.14 In-Principle Approval Letter to Students selected for Admission 36 3.15 Sponsorship to Institutes 36 3.16 Second Education Loan/Top-up Loans 37 3.17 Circle Recommendations for inclusion in the List of Approved 37 Institutions 3.18 Part Time Course from 15 Institutes Covered under the Scheme 37 4 SBI SKILL LOAN SCHEME 4.1 Purpose 39 4.2 Courses and Institution Eligibility 39 4.3 Nationality 39 4.4 Minimum Age 39 4.5 Minimum Qualification 39 4.6 Know Your Customer (KYC) Norms 39 4.7 Quantum of Finance 39 4.8 Margin 40 4.9 Rate of Interest 40 4.10 Processing Charges 40 4.11 Security/ Guarantee 40 4.12 Authorized Branches 40 4.13 Sanction & Disbursement 40 4.14 Moratorium Period 41 iii | P a g e 4.15 Repayment 41 4.16 Pan/ Aadhaar Card 41 4.17 Standard Operating Procedure 41 5 SBI GLOBAL ED-VANTAGE SCHEME 5.1 Purpose 42 5.2 Courses Covered 42 5.3 Student & Co-Borrower Eligibility 42 5.4 Eligible Expenses 42 5.5 Margin 43 5.6 Loan Amount 43 5.7 Processing Fee 43 5.8 Rate of Interest and Concessions 43 5.9 Securities 43 5.10 Disbursements 43 5.11 Moratorium 43 5.12 Repayment Period 43 5.13 Sanction 43 6 SOURCING OF PROPOSALS THROUGH EDUCATION LOAN 44 COUNSELLORS 7 SHAURYA EDUCATION LOAN 7.1 Purpose 46 7.2 Courses Covered 46 7.3 Student & Co-borrower eligibility 46 7.4 Eligible expenses 46 7.5 Margin 46 7.6 Loan Amount 46 7.7 Processing Fee 46 7.8 Rate of Interest & Concession 47 7.9 Securities 47 7.10 Disbursement 47 7.11 Moratorium 47 7.12 Repayment period 47 7.13 Authorized branches 48 Creation of security & authority structure for approving extension of 48 7.14 time for creating mortgage 7.15 Inspection 48 7.16 Other Terms & Conditions 48 8 EDUCATION LOAN SCHEMES FOR STAFF & WARDS OF STAFF 8.1 Purpose 49 8.2 Delegation & Administrative Clearance 49 iv | P a g e 8.3 Interest Rate & Processing Fee 49 8.4 General Terms of The Loans Under Various Schemes 49 8.5 Additional Terms & Conditions 49 EDUCATION LOANS TO OVERSEAS CITIZENS OF INDIA (OCI)/ 9 PERSONS OF INDIAN ORIGIN (PIO) 9.1 Purpose 50 9.2 Other Terms & Conditions 50 10 SPECIAL TIE-UPS FOR EDUCATION LOANS A. Tie-Up With Hindustan Petroleum Corporation Ltd (HPCL) 52 B. Tie-Up With Shree Akhil Bharatvarsheeya Sadhumargi Jain Sangh 57 (SABSJS); Bikaner (Rajasthan) C. Bidyalakhmi Scheme: For Children of Assam Govt. Employees 58 D. Higher Education and Skill Development Guarantee Scheme for 58 Pursuing Higher Education in Delhi E. Bihar Student Credit Card (BSCC) Scheme 58 F. West Bengal Student Credit Card Scheme 59 G. Tie-Up with Birla Institute of Technology & Science (BITS) 61 H. Tie-Up with HCL Training and Staffing Services PVT. LTD. 62 TAKE OVER OF COLLATERALISED EDUCATION LOAN 11 SCHEME (CELS) 11.1 Purpose and Scheme details 65 11.2 Details of Securities 66 11.3 Interim Securities 66 11.4 Procedure for Take over 66 11.5 Other Covenants 67 12 CREDIT GUARANTEE SCHEMES FOR EDUCATION LOANS A. Credit Guarantee Fund Scheme for Education Loans (CGFSEL) 69 B. Credit Guarantee Fund Scheme for Skill Development (CGFSSD) 72 13 EDUCATION LOAN: INTEREST SUBSIDY SCHEMES A. Central Sector Interest Subsidy Scheme (CSIS) 75 B. Padho Pardesh Scheme of Interest Subsidy On Education Loan For 80 Overseas Studies For Students Belonging To Minority Communities C. Dr. Ambedkar Central Sector Schemes of Interest Subsidy on 86 Education Loan for Overseas Studies for Other Backward Classes (OBCs) And Economically Backward Classes (EBCs) List of Circulars issued during the period 01.07.2017 to 31.03.2024 96 v|Page  SBI EDUCATION LOANS INTRODUCTION The Education Loan Scheme was formulated in November 2004 on IBA guidelines as per Govt. of India directives and revised from time to time. The Model Education Loan Scheme was last revised by IBA in March 2021 and implemented by the member Banks. Under the Scheme the Bank extends financial assistance to deserving meritorious students for pursuing higher education in India and abroad. Education Loans are used for development of human capital of the nation and treated as Priority Sector Advances (PSA). As per RBI guidelines, Prior to 04.09.2020, all Education loans with outstanding upto Rs. 10 lakhs, irrespective of limit sanctioned, were being treated as Priority Sector Lending (PSL). However, RBI guidelines on PSL has been revised w.e.f. 04.09.2020, as under: ▪ Loans to individuals for educational purposes, including vocational courses, not exceeding 20 lakhs will be considered as eligible for priority sector classification. ▪ Loans currently classified as priority sector will continue till maturity. ▪ Revised guidelines have prescribed limit cap of Rs. 20 Lakhs for new loans. Govt. of India as well as various State Governments have taken various initiatives like credit guarantees, interest subvention, etc., to improve credit flow to this segment. 1. COMMON FEATURES AND PROCESSES OF EDUCATION LOANS Based on the standing of the Institutions, course contents, expenditure and employability, our Bank is offering Loans through various Education Loan products customizing parameters on loan quantum, security, Interest rates, loan processing, Process flow, etc. The major products, viz., Student Loans (for studies in India and Abroad), Scholar Loans (for studies in elite institutes approved by the Bank), Global Ed-vantage (for studies abroad), Skill Loans (for Skill development), etc., have been positioned to target specific student categories. Though specific product parameters are different, which have been explained in subsequent chapters, the common loan processes, loan applications, eligibility, Courses/institutions, documentation, disbursement, follow up & recoveries, etc., have been explained as follows: 1.1 TYPE OF LOANS All Education Loans are to be sanctioned as term loans and Loans are to be processed, sanctioned, and disbursed through RLMS. 1|Page 1.2 CLASSIFICATION UNDER PRIORITY SECTOR Prior to 04.09.2020, all Education loans with outstanding up to Rs. 10 lakhs, irrespective of limit sanctioned, were being treated as Priority Sector Lending (PSL). However, RBI guidelines on PSL has been revised w.e.f. 04.09.2020, as under: ▪ Loans to individuals for educational purposes, including vocational courses, not exceeding 20 lakhs will be considered as eligible for priority sector classification. ▪ Loans currently classified as priority sector will continue till maturity. ▪ Revised guidelines have prescribed limit cap of Rs. 20 Lakhs for new loans. Priority Sector Advances reporting system has since automated by the Bank. 1.3 LOAN APPLICATIONS a. Common Loan Application along with Checklist of Documents to be submitted by the student applicant (available at the PBBU’s website and placed as Annexure- 1). b. Applications for Education Loans are to be submitted through Vidya Lakshmi Portal (VLP) for non-subsidy cases maintained by NSDL and through Jan Samarth Portal for cases eligible for subsidy, maintained by OPL on behalf of MoHRD and DFS. These sourcing platforms envisages (i) Loan application for students for all banks connected to the portal, (ii) Dashboard for students to track status of loan applications, (iii) Linkages of portal to Banks’ systems so as to monitor the progress on sanction/disbursement, (iv) Window for students about information on government scholarships and education loans of Banks. c. It is mandatory for submission of Student Loan through VLP/ Jan Samarth, with restriction on capturing of proposals in RAAS/RLMS. [SOP for dealing VLP leads is placed at Annexure- 5. User manual for RAAS/RLMS is placed at https://rlms.sbi > user manual> Education Loan in RAAS & RLMS] d. As per DFS instructions, Service charges @ Rs.100.00 + GST per education loan sanctioned through VLP will be paid by the Bank to NSDL for operational convenience. Corporate Centre will arrange for centralized payment of the charges. Operating Units need to recover Rs.100.00 + GST from the borrower’s accounts and credit to “Branch Commission Account” in respect of all loans sanctioned by them, in addition to Processing fees, wherever applicable. e. In case of our Bank, VLP & Jan Samarth Portal are linked with RAAS, and the applications move to RAAS through batch processing, which in turn moves to RLMS with manual intervention after necessary scrutiny. These leads generate 2|Page  business without any marketing effort, without any scope for duplicate leads, and Operating units must focus on prompt disposal within prescribed TAT of 15 days. The disposal of VLP/Jan Samarth Portal leads in RAAS/RLMS are updated in VLP/Jan Samarth Portal with reverse data flow and is reviewed by DFS along with Top Management of the Bank. 1.4 ELIGIBLE COURSES All courses eligible under respective variants/schemes viz. Student Loans, Scholar Loans, Global-Ed-vantage Scheme, West Bengal Student Credit Card Scheme, Shaurya Education Loan and Skill Loans offered on-campus, off – campus, Hybrid mode and Online mode will be eligible for loan subject to compliance of usual due diligence measures and fulfilment of terms & conditions stipulated under the existing provisions of respective schemes. Multi-City courses – a) Will be considered as Student loan for studies in India if final degree is awarded by Indian University/College and will be considered as studies abroad if final degree is awarded by foreign University/College. b) Will be considered as Student loan for studies abroad if loan amount is up to Rs 7.50 lakhs and as Global Ed-Vantage if loan amount is above Rs 7.50 lakhs. 1.5 STUDENT/ CO-BORROWER ELIGIBILITY The student is the primary borrower and co-borrowers are taken for all type of education loans except for a few Scholar loan products (with specific waivers as explained under Scholar Loan Scheme). While the student borrower eligibility is examined from his/her academic records, co-borrower is considered based on his/her relationship with the Borrower and financial discipline. But both the Borrower and Co-Borrowers are also examined based on their CIC scores and residential status. a) Borrower Eligibility: i. Should be Indian National including NRIs (for Studies in India & Abroad). Loan can be sanctioned to students, who are PIO/OCI (for Studies in India only). ii. Where the applicant is not available in India for execution of Loan Documents, this can be done through POA (Format enclosed as per Annexure-6) iii. Should have 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). 3|Page iv. If there is no Entrance Test/ Merit based selection procedure, securing admission to a higher education course in a recognized institute may be considered as eligibility for loan. v. Students who have appeared in any Entrance Test, secured passing marks but could not get admission due to lower ranking and who opt to pursue the course under Management Quota in the same Institution or another Institution for reasons of convenience (proximity) or choice of course, vi. Loan proposals from students who have failed in the last qualifying examination including class XII and subsequently cleared may be considered after satisfying the reasons for the same. Further, in case of any time lag/discontinuation of studies, suitable Gap Certificate (as per Annexure-7) to be obtained. vii. Our scheme does not prescribe any age limit for the students availing the loans (except for Part-time Scholar Loans). NOTE: Customers who are visually challenged/ persons with disabilities are not barred from availing loans if they fulfill scheme specific criteria. b) Co-Borrower eligibility i. The Co-Borrower should ideally be a resident Indian. However, NRI parents in case of Collaterised loans can be considered as Co-Borrower or Guarantor, if they are providing collateral security which is in India and is SARFAESI compliant. In such cases, another resident Indian to be taken as a Guarantor or Co-Borrower. In case of non-Collaterised loans (Scholar Loans & loans below Rs. 7.50 lakhs), only resident Indians to be considered as Co-Borrower. ii. Co-Borrower should be parent/natural guardian of the student borrower. In case of married person, co-obligator can be spouse or the parent(s)/parents- in law. Wherever parents/guardians are not there, the branches may consider grandparent as co-borrower to the loan taking into account their net worth. In cases where the parent/ natural guardian/ spouse/grandparent are not alive, the Operating Units may consider a ‘Major’ sibling/Relative/Third party acceptable to the Bank as co-borrower to the loan account. iii. The Co-Borrower can execute the documents through POA, in case of his/her non-availability due to exigency of services [Defence and Central Armed Police Force (Paramilitary)] or staying abroad (NRIs). The details including formats is available as annexure 6. 1.6 CIC SCORES/REPORTS OF BORROWER/CO-BORROWERS/GUARANTOR a. Borrower/ Co-borrower/ guarantor should not have any adverse credit history. In case of secured loans TU CIBIL score should be between 101-200 for New To Credit (NTC) or more than 591 and in unsecured loans TU CIBIL score should be 101-200 for New To Credit (NTC) or more than 685. 4|Page  b. Report from 2 preferred CICs (Presently, TU CIBIL-Primary and CRIF High Mark-Secondary) to be obtained for secured loans with limits > Rs.5 lakhs and Unsecured loan with limits > Rs.4 lakhs. In case of No Hit, preferred CICs to be substituted with Experian and Equifax respectively. c. In case, the co-borrower/ guarantor is not eligible due to poor credit score as prescribed, he/she can be substituted in order of priority (other parents, spouse, parent-in-law, grandparents, Brother, relatives or a 3rd Party with good financial standing as a co-borrower). In case of Collaterised loans, the property owner can be taken as Co-Borrower. d. The details of CIC requirements have been explained in e-Circular No. NBG/PBU/PL-EDUCATION/30/2022 - 23 dated 19.09.2022, NBG/PBU/PL- GENERAL/12/2020 - 21 dated 24.06.2020 and permissible deviations including authority structure has been explained in e-Circular No. NBG/PBU/PL-Education/56/ 2017-18 dated 17.01.2018 (placed as annexure- 8) 1.7 EXPENSES CONSIDERED FOR THE LOAN (All eligible expenses are independent of each other) a. Fee payable to college/school/hostel (including Boarding & Lodging). b. Where the student will be making his own boarding and lodging arrangements, the sanctioning authority is authorized to fund boarding and lodging expenses on the basis of estimate submitted by the student/parent, provided such expenses are not more than those charged by the educational Institution for boarders. In case, the Institute does not provide for boarding and lodging facilities, such expenses will be assessed based on the reasonable boarding and lodging charges applicable to that area. For studies abroad, living expenses (boarding/ lodging expenses) are generally mentioned in the admission letter issued by the university/ institute. If it is not mentioned in the admission letter, the applicant is required to download it from university/ institute’s website. Maximum eligible expense is restricted to the university’s estimates. c. Examination/ Library/ Laboratory fee. d. Travel expenses/ passage money for studies abroad. e. Purchase of books/ equipment/ instruments/ uniforms/ computer at reasonable cost, if required for completion of the course/ any other expense 5|Page  required to complete the course– like study tours, project work, thesis, etc. considered for loan should be capped at 20% of the total tuition fees payable by the students who do not get any concession/remissions. In case of Government institutes which are owned/managed/established by State Govt./ Central Govt. and institutes approved under Scholar loans – List AA, A & B- 30% of the total tuition fees payable by the students who do not get any concession/remissions. f. Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts could be considered subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course. In case of Government institutes which are owned/managed/established by State Govt./ Central Govt. and institutes approved under Scholar loans – List AA, A & B- 20%. Note: In case of Government institutes which are owned/managed/established by State Govt./ Central Govt. and institutes approved under Scholar loans – List AA, A & B, expenses mentioned in point no. (e) & (f) will not have any capping based on tuition fees if the institute provides estimated expenses. g. In case of Doctorate Program (Ph.D.) courses in India/ Abroad, the quantum of finance for such courses should be arrived at after factoring the Scholarship/ Fellowship/ Honorarium etc., available to the student. h. Cost of a two-wheeler upto Rs. 50,000 can be included in the expenses considered eligible for finance where the loan amount is secured by a suitable third-party guarantee and/or tangible collateral security. Two-wheeler may be necessary in some cases where hostel and college are far apart. i. For courses under Management Quota seats considered under the scheme, fees as approved by the State Government/Government approved regulatory body for payment seats will be taken subject to viability of repayment. j. Tax collection at Source (TCS) on remittances under Liberalized Remittance Scheme (LRS). Operating guidelines for Branches are placed as Annexure 25. k. Contingency expenses upto 5% to meet unforeseen requirement of Student- borrower under Global Ed-Vantage loan only. l. Premium of Edu-Shield/ ‘RiNn Rakhsha’ to cover the loan exposure. Note: In terms of IBA guidelines, insurance premium for student borrower can be considered as expense for the loan. As per IBA, while it is not 6|Page  compulsory for all students taking loan from the Bank to avail the Insurance facility, the branches should explain to the borrowers the benefits arising out of an insurance policy covering life. In some Education Loan products there are interest rate concessions offered which outweighs the cost of premium, which need to be explained to the students. As a measure of de-risking the Education Loan portfolio, every effort must be made that the students, who are availing Education Loans above Rs. 7.5 Lakhs from the Bank should be suitably covered by Life Insurance Policy. The policy should cover the loan amount plus approximate estimated accrued interest as at the commencement of the repayment, for the full tenure of the loan i.e., study and moratorium period plus the loan repayment period as applicable. However, in case of students who are eligible for Interest Subsidy, the insurance policy may be obtained for the loan amount only. Though various insurance policies are available in the market, the students may be appropriately counselled to obtain suitable insurance policy from the SBI Group viz., Rinn Raksha or Shield. However, the choice of Insurance Company should be left to the borrower and the policy needs to be assigned in favor of the Bank. Since Rinn Raksha is a Group Credit Life Insurance Policy no separate assignment is required, however, Smart Shield and insurance policies issued by other insurance companies has to be assigned in favor of the Bank. Expense estimates for studies in India is available in INR and loans are assessed and approved in INR. In case of Studies abroad, Expense estimates are in foreign currencies, but loans are assessed in INR and may result in gaps due to fluctuation in exchange rate. Therefore, Expenses in terms of INR need to be calculated based on TT Selling rate of the captioned Foreign Currency. 1.8 TOP-UP LOANS/ SECOND LOAN a) Education Institutions often enhance the fees during the course period increasing overall cost. In case of studies abroad, the overall cost may go up due to depreciation of INR vis-à-vis foreign currency. Students often opt for study tour in mid-course. In such scenarios, the funding of enhanced cost may be considered on a case-to-case basis subject to overall limits within the Scheme, viz., Student/ Scholar/ Global Ed-vantage/ Shaurya, and coverage of additional loans with collateral security as prescribed under the scheme. In both the cases, a second Top up loan can be sanctioned, subject to 7|Page  prescribed margins. For e.g., No Collateral security to be taken if the overall loan limit including the Top – up loan is up to Rs. 7.50 lakhs. b) Students often opt for higher education after completion of the first course, a trend visible in Engineering and Medical students. Second loan (Top Up Loan) for further studies, is permitted to pursue a professional course in India or abroad, subject to required margins and securities and within overall loan limits as prescribed under different schemes. c) If 1st loan obtained under Student Loan and 2 nd loan required is under Student/ Global Ed-vantage Loan, collaterals for total loan amount to be obtained. If 1st loan obtained under Student Loan and 2 nd loan required is under Scholar Loan, collateral security as applicable of Scholar Loan to be obtained. If 1st loan obtained under Scholar Loan and 2nd loan required is under Student/ Global Ed-vantage Loan, collaterals for total loan amount to be obtained. d) If the Top-up loan is sanctioned under condition (a), the moratorium and loan term will be aligned with the 1st loan. For loans sanctioned under condition (b) or (c) and further studies are commenced during the moratorium period of the first loan, the repayment of the 1st loan will be extended and moratorium and loan payment period of both the loans will be aligned based on the moratorium applicable to the 2nd Loan. The combined repayment to be shifted to one year after the completion of Higher Studies, or 6 months after taking up a job whichever is earlier. e) Where the student is pursuing higher studies by availing Second Loan from some other Bank, there will be no change in the moratorium period. f) For Students opting for loans from SBI for Higher Studies, already having Education loan account with other Banks, the proposal will not be entertained, unless the previous loan is closed or shifted to our Bank. g) When the students opt for higher studies without availing 2nd (Top Up) Loan from our Bank due to the reasons (i) Availability of Scholarship for the Higher studies or (ii) Concessional/ Low fee structure, moratorium period can be extended for the duration of the higher studies also, subject to submission of documentary evidence on Scholarship & fee structure for higher studies. h) The Top-up education loan may be preferably given from the same branch from where first loan was availed. However, if the student finds this inconvenient, the second loan can be sanctioned at a branch closer to the place of co-borrower & Collaterals. 8|Page 1.9 LOAN AMOUNT Need based financing based on the total Expenses considered under Paragraph-5 less minimum stipulated margins or additional margins offered by the Borrower (s). Loans are sanctioned based on employability of the course and expected income generation, as repayments are ideally made out of gainful employment of the student. Maximum loan ceilings are capped as follows under various Schemes and product wise details are available under the respective schemes: Student Loans: Loan Limit Ranked All other under Top institutes eligible 100 by NIRF as per extant norms Studies of MBBS/ MD/ MS (Medical) in Upto Rs. Upto Rs. 30.00 India 50.00 lakhs lakhs All courses other than MBBS/ MD/ MS Upto Rs. Upto Rs. 20.00 (Medical) in India including engineering, 30.00 lakhs lakhs management, dental courses etc. For higher Loan Limit (studies in India), CGM of the Circle is empowered to approve deviation on case-to-case basis as under: Studies of MBBS/ MD/ MS (Medical) in No Upper Upto Rs. 50.00 India Cap lakhs All courses other than MBBS/ MD/ MS Upto Rs. Upto Rs. 50.00 (Medical) in India including engineering, 50.00 lakhs lakhs management, dental courses etc. Scholar Loans: i. List AA – Unsecured upto Rs.50 lakhs, Secured – no upper limit. ii. List A – Unsecured upto Rs.40 lakhs, Secured – no upper limit. iii. List B – Unsecured upto Rs.30 lakhs, Secured – no upper limit. iv. List C – Unsecured upto Rs.7.50 lakhs, Secured – upto Rs. 30 Lakhs Global Ed-Vantage: More than Rs. 7.50 lakhs and up to Rs.1.50 Cr Shaurya Education Loan: i. Studies in India- up to Rs. 40 lakhs ii. Studies Abroad- up to Rs. 1.50 Cr Skill Loans: Up to Rs.1.50 lakhs 9|Page 1.10 SANCTION OF HIGHER LOAN AMOUNT BEYOND THE SCHEMES & OTHER DEVIATIONS There are no deviations permitted on loan amounts under Scholar Loan, Skill Loans and Student Loans for studies abroad Schemes. Deviations under Student Loan, refer point 1.9. All proposals to be examined considering employability & income generation from the courses besides collaterals available. For Studies abroad, both under Student and Global Ed-Vantage Schemes, other than those mentioned below, proposals can be considered based on merit, employability & income generation from the course along with good academic records besides adequate collaterals, with the administrative approval of the Circle CGM on a case-to-case basis. Foreign Institutes/Universities in USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand and Europe [Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, United Kingdom] 1.11 MARGINS Minimum margins to be stipulated at the time of loan assessment for financing expenses pertaining to studies in India or abroad are as follows: Student Loans: Upto 4 lakhs: nil Above 4 lakhs: 5% for studies in India, 15% for studies abroad Scholar Loans: Up to 4 lakhs: nil 4 – 7.5 lakhs: 5% Above 7.5 lakhs: nil Global Ed-Vantage loans: Above Rs. 7.5 Lakhs & up to Rs. 20 Lakhs: 15% Above Rs. 20 Lakhs- 10% Shaurya Education Loan: Upto 4 Lakhs- nil Above 4 Lakhs- 5% Skill Loans: nil 10 | P a g e  Scholarship, teaching/research assistantship can be included in the margin. Customer may bring in additional margins, to reduce loan burden, which will be captured in system during loan process and will be reflected in the Loan documents (Arrangement letter & Agreements). Borrower/ Co-borrower can contribute the margin component while availing the first disbursement from our Bank. If a borrower/ co-borrower has already made certain payments to the Institute before availing loan from our Bank, the amount may be considered as ‘margin’ contributed by the borrower/ co-borrower and additional margin may not be obtained while availing first or subsequent disbursement. Further, Borrower/ Co-borrower can also contribute Margins on pro-rata basis during each disbursement as stipulated in the loan document/agreement. The margins will be deposited in the Savings Bank Account of the Borrowers and Loan component will be debited to the loan account and total amount will be remitted to the College/Institute/University. The detail process of margin appropriation has been explained in e-Circular No. NBG/PBU/PL- Education/73/2017-18 dated 28.03.2018, which can be referred. 1.12 INTEREST RATES All the Loans sanctioned with effect from 22.06.2021 carry floating rate of interest during the loan tenure. All the Loans sanctioned on and after 22.06.2021 are linked to EBLR (floating) except West Bengal Student Credit Card (WBSCC) which is linked to EBLR (fixed). The existing loan accounts prior to 22.06.2021 will continue to be on fixed rate (wherever applicable)/ floating rates linked to MCLR/Base rates with annual resets as per the original terms (wherever applicable). Card Rates: For Student Loans, Global Ed-vantage Loans interest rates are EBLR (floating) plus 200 bps irrespective of ticket size. For Skill Loans, interest rate is EBLR (floating) plus 150 bps. For West Bengal Student Credit Card Scheme, interest rate is EBLR plus 150 bps (fixed). The updated interest rates are available at PBBU Website. The interest rates for various categories of Scholar Loan, Shaurya Education Loan & Tie-ups are explained in respective chapters. Concessions on Card rates available for all loans excluding Scholar & Skill Loans i) 50 bps for Girl students and (ii) 50 bps for insurance coverage of the loan amount plus accrued interest during moratorium, for the loan tenure through SBI Rinn Raksha/other insurance policies assigned in favour of the 11 | P a g e  Bank. However, for loan upto Rs.7.50 lakhs, which are covered under Credit Guarantee Scheme, 50 bps concessions for insurance coverage will not be available. Concession for West Bengal Student Credit Card Scheme is explained in chapter 9. Note: Education Loan to Staff & ward of Staff (not retired staff) are not eligible for 50bps concession for insurance coverage of the loan amount plus accrued interest during moratorium, for the loan tenure through SBI Rinn Raksha/other insurance policies assigned in favor of the Bank. There are no concessions on Card rates under Scholar Loan Scheme unless it is approved by Corporate Centre on an Institute basis for Admission years. Servicing of interest during Moratorium. 1% interest concessions during the complete loan tenure were available for servicing of interest during moratorium, in respect of loans sanctioned before 01.06.2018. Servicing of interest means repayment of interest amount debited to the loan account within 30 days. In eligible cases, at the time of regeneration of repayment schedule one month before repayment start date (i) manually interest @1% per annum will be reversed & credited to SB Account of the Borrower and (ii) repayment schedule will be regenerated by reducing interest rate by 1%. Penal Charges: Penal charges for loans above Rs.4 lakhs @ 2% p.m. on the amount of default for the period of default, over and above the applicable rate if the EMIs remain unpaid for a period of 30 days from the due date, for any reason, including failure of SI/ NACH/ return of Cheques. 1.13 SECURITY REQUIREMENT a) Upto Rs. 7.5 lakhs: No tangible collateral security, only Co-obligation of parent(s)/ guardian(s) to be obtained as the loans are covered under Credit Guarantee Scheme-CGFSEL. As per CGFSEL guidelines, Third-Party Guarantee, Collateral Security and Rinn Raksha Coverage will not be required. The securities/ guarantees obtained for loans sanctioned prior to 15.09.2019 (introduction of CGFSEL scheme) will continue. b) Above Rs. 7.5 lakhs i. Co-obligation of parent(s)/guardian(s) together with tangible collateral security of suitable value. Liquid Collaterals are preferred ones with values covering 100% of the loan amount and the owner of such collateral will join as Co-Borrower/ Guarantor. In case of immovable collaterals, owner of 12 | P a g e property will join as Co-Borrower/Guarantor. Security requirement details are as under: Scheme Limit sanctioned Security requirement (In case of immovable collaterals) Student Above Rs. 7.5 Lakhs Realizable value should cover Loan and up to Rs. 20 Lakhs 100% of the loan amount Above Rs. 20 Lakhs Realizable value should cover 110% of the loan amount Global Above Rs. 7.5 Lakhs to Realizable value should cover Ed- Rs. 20 lakhs 100% of the loan amount Vantage Loan Above Rs. 20 Lakhs Realizable value should cover 110% of the loan amount Scheme Category Limit sanctioned Security requirement (In case of immovable collaterals) Scholar List AA Up to Rs. 50 Lakhs Not Applicable Loan Above Rs. 50 Lakhs Realizable value should cover 110% of the loan amount List A Up to Rs. 40 Lakhs Not Applicable Above Rs. 40 Lakhs Realizable value should cover 110% of the loan amount List B Up to Rs. 30 Lakhs Not Applicable Above Rs. 30 Lakhs Realizable value should cover 110% of the loan amount List C Up to Rs. 7.50 Not Applicable Lakhs Above Rs.7.50 Realizable value Lakhs up to Rs.20 should cover 100% of Lakhs the loan amount Above Rs. 20 Lakhs Realizable value up to Rs.30 Lakhs should cover 110% of the loan amount 13 | P a g e  ii. The documents should be executed by both the student and the parent/guardian as Co-Borrower (wherever applicable). In case the student is a minor, the documents will be signed by the guardian acting ‘for self’ as well as ‘for and on behalf of the minor’. iii. The Law Department opined that for the purpose of Education Loan documentation the guardian is defined as “Natural guardian, the legal guardian i.e., a guardian appointed by any authority, or a person in-charge of the care of the person and property of the student who intends to avail such loan facility”. 1.14 ACCEPTABLE SECURITIES & RECKONED VALUE Type of Security Value to be reckoned Own Bank Deposit (TDR/ Face Value -TDR STDR/ RD) Face value plus accrued Interest-STDR/RD Insurance Policy (SBI Life/ LIC) Surrender Value Govt Securities/Bond issued by Face value or Issue Price, whichever is lower PSUs Mutual Fund schemes of SBI Margin shall be set as per extant CPPD MF (FMP / DAF) circular instructions vide e-circular no: CCO/CPPD-COLLATERAL/42/2019-20 dated 20.06.2019 Land /Building Realizable Value a. The security can be in the form of land/ building/ Govt. Securities/ Bonds issued by PSUs/LIC policy, Mutual Fund, Bank Deposit in the name of student/ parent/ guardian/ any other third party and such other tangible liquid securities as may be deemed appropriate by the sanctioning authority subject to the margins stipulated in the scheme for finance against the securities concerned. b. FCNR (B) deposits (deposits with SBI only) can be accepted as Collateral security subject to fulfilment of under noted criteria (Ref.: e – Circular Master Serial No. 1353/2022 – 23 dated 27.02.2023): (i) FCNR (B) Term Deposits denominated in USD, GBP and Euro to be accepted as liquid collateral to cover all variants of Education Loan with collateral coverage of 115% of the loan amount. (ii) Rupee equivalent of FCNR (B) deposit to be calculated at the RALOO (Revaluation of Assets & Liabilities of Overseas Offices) rate of the month preceding to the month of sanction. (iii) Review of collateral security to be done annually by CPC/branch head to ensure maintenance of 115% collateral coverage. 14 | P a g e  (iv) Undertaking from the borrower/guarantor/depositor to be obtained as per Annexure-30 for providing additional security for any shortfall occurring due to adverse movement in exchange rate, during the currency of loan and/or till the loan account is liquidated and advising that facility of pre – mature withdrawal will not be available for FCNR (B) deposits held as Collateral. (v) The deposit can be in the name of student/ parent/ guardian/ third party. Document will be executed by depositor himself at home branch and not by Power of Attorney holder. Third Party deposits held in individual capacity will only be accepted. Non – personal deposits will not be accepted for Third – Party Loan. c. All charges in connection with valuation of property, TIR from Bank Advocate and Stamp Duty etc., to be borne by the borrower. Multiple TIRs will be required in respect of loan amount more than Rs.1 crores and specific type of title deeds as per Loan policy of the Bank. 1.15 AUTHORISED BRANCHES i) For Scholar Loans (Part-time scholar loans is explained in subsequent chapter). a. Mapped Branches: Scholar loans will be sanctioned as per the Delegation of Financial Powers vested with these branches. Any proposal beyond Branch delegation is to be sanctioned by linked CPC (RACPC/ RASMECC/ RACC). b. Non-Mapped Branches (at the place of permanent residence/ place of employment of co-borrower/ location of property): All Scale-III and above branches can sanction Scholar Loans. For others, loans to be sanctioned by linked CPC (RACPC/ RASMECC/ RACC). ii) For Student Loans & Global Ed-Vantage Loans & Skill Loans: a. At BPR centers: All Branches are authorized to source Education Loan Proposals under various schemes and the proposals will be sanctioned and loan maintenance will be done at the CPCs mapped against the Branches. b. At non-BPR centers: All Branches are also authorized to source Education Loan Proposals under various schemes and the proposals will be sanctioned by the RACC/RBOs and loan maintenance will be done by the RACC. (For operational convenience, proposals for studies abroad may be 15 | P a g e  handled at larger (higher than Scale-III) Branches CPCs, who are conversant with FEMA guidelines and various mode for Forex remittances) The loan proposals can be processed/ sanctioned at the permanent place of residence/ place of employment of the Co-Borrower, or the location of Collaterals. 1.16 DELEGATION OF FINANCIAL POWERS Financial Power for sanction of Education Loans is as applicable to Term Loans, whether the loans are secured or unsecured, including Scholar Loans. (Latest instructions can be referred in e-Circular no. CDO/ORG-DFP/3/2023 - 24 dated 14.03.2024). 1.17 TAKEOVER OF EDUCATION LOANS Takeover of Education Loans with limit of Rs. 10 Lakhs & above for both Studies in India and abroad is permissible. The loan can be taken over anytime during the tenure of the loans. The details of the scheme have been explained in Chapter-10. 1.18 APPRAISAL/SANCTION Presently, Loans are processed through RLMS. The detailed User Manual is placed at https://rlms.sbi > user manual> Education Loan in RAAS & RLMS. Other instructions: a) Insurance cost and GIC can be included in the Project cost. b) Pre-Sanction Survey (PSS) invariably to be done for all Education Loans. In case of Scholar Loans, PSS can be done subsequently within 3 months of sanction of the loans. c) In case of Education Loans to the wards of Defence Salary Package (DSP)/ Central Armed Police Salary Package (CAPSP)/ Indian Coast Guard Salary Package (ICGSP) account holders, PSS of office and residence of the co- applicant (i.e., DSP/ CAPSP/ ICGSP account holder) has been waived. d) Registration under CERSAI is to be done within 30 days in case of collateralized loans where land & Building have been offered as security. Any other registration, if applicable under any State’s Act need to be done. The 16 | P a g e  details of registration to be captured in CBS as per Circular No. R&DB/CERSAI/53/2019 - 20 dated 05.08.2019. e) Normally, sanction/rejection will be communicated within 15 days of receipt of duly completed application with supporting documents. f) Reimbursement: Fee already paid to the Institute (last installment for semester/ term) by the borrower from their own sources (including arranged from friends/relatives) may be considered for reimbursement provided the reimbursement is claimed within 6 months of the payment. It should be ensured that the claims for reimbursement are genuine and appropriate safeguards to be exercised by verifying receipts/proof of payment/ account statement etc. In such cases, the project cost will consist of future expenses + amount reimbursed (as mentioned above). 1.19 SANCTION VALIDITY a. Since Education Loans carry all the features of Term Loans, the sanctions will remain valid for 6 months, as applicable to Term Loans as per Loan Policy of the Bank. b. Revalidation of sanction will be required where the Loan Account not opened or Account Opened and not disbursed. In case of revalidation of sanction, the loan will have to be processed again. 50% of the original processing fee to be recovered upfront along with request for revalidation of sanction. c. Fresh documentation and Collateral creation will be made. The effective interest rate for the loan will be as applicable on the date of account opening after re-sanction. 1.20 DISBURSEMENTS (Disbursement through CBS not permitted w.e.f. 01.04.2022) All the eligible expenses considered for the loan will be disbursed in phases as per demand of the Institutes or the student as per requirement. Bank takes Loan exposure in our Book in INR for all type of Education loans i.e., loans which are disbursed in INR and remitted in INR for studies in India and remitted in foreign Currencies for studies abroad. a) Studies in India: i. Remittance will be sent towards Fees payable to college/school/hostel (including Boarding & Lodging, Examination/Library/Laboratory fee, etc.), directly to the Account of the Educational Institutions as per their demand 17 | P a g e  by debit to Loan Account as well as the required margin from the Savings Bank Account of the Borrower(s). Expenses not payable to the Education Institutes directly but included in the estimates, viz., Mess Charges, Travel expenses, Cost of books/equipment/ instruments/uniforms, etc., can be transferred directly to the Borrower(s) Savings Bank Account. Such disbursements are to be made as per required expenses pertaining to the Semester/Course units. All the payments to be made through RTGS/NEFT/SB Collect or any electronic mode, without any cash payments. The student will have to submit the Money receipt from the Institute along with progress report on studies undertaken before next disbursement and kept with loan file. However, due to compelling reason, if progress report is not available before next disbursement, it is to be approved by the sanctioning authority/AGM (RACPC) and will be obtained subsequently. ii. Insurance Premium, wherever applicable will be paid directly to insurance company and Policy will be obtained in the joint name of the Borrower and the Bank or will be assigned in favor of our bank. iii. Cost of a two-wheeler upto Rs. 50,000 wherever, included in the expenses where the loan amount is secured by a suitable third-party guarantee and/or tangible collateral security, to be disbursed directly to the Dealer. The two-wheeler to be registered with Hypothecation clause under “Vahan” website. iv. In certain cases, the student/parents are required to deposit a part of the admission fee etc. on the day they go for counseling. It becomes difficult for them to raise funds in the absence of a firm admission letter. In such cases, the sanctioning authority are authorized to sanction and release the loan in the name of the Institution, provided (i) the admission is sought in cases where the results of the entrance test e.g. All India Engineering Entrance Examination (AIEEE), IIT-JEE and other Entrance Exams has been announced and (ii) the student has secured a good position in the merit list and will be in a position to secure admission in a reputed Institution after counseling /finalization of the admissions. v. In case of payments made to the College/institution at the time of admission or thereafter during the study period, due to some exigencies, which are within the project cost of the sanctioned loan, the same can be reimbursed within 6 months of payment after adjusting the margin amount as per loan agreement. 18 | P a g e b) Studies Abroad: The Study Expenses to be remitted out of the Loan account and the SB Account of the Borrower (s) towards agreed margin through Fx-Out, SWIFT, remittance to 3rd party intermediary (where Institute mandates for) or Foreign Travel Cards for meeting the specific requirements. The Mode of Transfer will be decided as per the customer’s convenience & acceptance after providing relevant information on respective charges incurred/ levied. All the Education related remittances are covered under outer limits prescribed under LRS (Liberalized Remittance Systems) of RBI. Therefore, all remittances are to be routed through the SB Account of the Borrower, containing their PAN for proper monitoring. The guidelines for various mode of remittances are as follows. i. Fx-Out: All the Branches and CPCs are authorized to send remittances through Fx-Out for sending forex remittances to institutes directly without involvement of any B-Category Forex Branches. Please refer to the instructions contained in Circular No. NBG/PBBU/NRI-LRS/15/2021-22 dated 13.01.2022. ii. Swift Operations: Please refer to latest Circular instructions & Standard Operating Procedure (SOP) regarding Swift Operations vide Circular No. NBG/PBBU/NRI-LRS/15/2021-22 dated 13.01.2022. The Education Loan Account Handling Branch/CPC parks the amount to be remitted in the SB Account of the Borrower and the ‘B’ Category Branch to be advised to send the remittance through Swift. iii. Remittance through a Third Party: Wherever a foreign Institution/ University has appointed/ authorized a Third Party/ Intermediary Agency for fee collection, fee may be remitted through them for payment to the said foreign Institution/ University towards the ‘fees of student borrower’ with following risk mitigation measures: a) Verification of the relative payment instructions of Foreign Institution/ University, b) Specific instructions and authorization from student and co-borrower(s). Authorization copies to be kept with the loan documents as permanent record and for audit purposes. c) Student/ co-borrower(s) to submit the acknowledgement/ receipt of foreign Institution/ University confirming the receipt of fees, within one month of payment of fees by Bank. No further disbursement to be permitted if the receipt/ acknowledgement of the previous payment is not received by Bank. (Detailed SOP is placed at Annexure-10] iv. FTC: Purchase of Foreign travel card (FTC) by students availing education loans for studies abroad will be mandatory and at least 25% of living expenses should be disbursed through FTC. The remaining portion of living 19 | P a g e  expenses shall be remitted through FTC or any other mode as per customer’s demand and convenience. v. GIC/Blocked Account: VISA authorities of some countries require deposit of living expenses per annum in advance under Guaranteed Investment Certificates (GIC) or Blocked Accounts maintained with authorized banks. 1.21 REPAYMENT a) The Loans are sanctioned as Term Loans and to be repaid in EMIs over a maximum repayment term of 15 years (180 EMIs) for Student, Scholar and Global Ed-vantage Education Loans. For Skill Loans repayment term is shorter based on loan quantum, as explained separately under the Product “Skill Loans”. The repayment of EMI starts 12 months after the completion of the course or 6 months after getting the employment, whichever is earlier for Student and Scholar Loan Schemes. In case of Global Ed-Vantage Loans, repayment of EMI starts 6 months after the completion of the course. b) The total moratorium can be extended beyond 12 months to a maximum of 30 months (all inclusive) by giving extensions of 6 months at a time, considering employability of the student or as recommended by SLBC/ RBI to defer repayment on account of national disasters. A request letter from the student and co-borrower should be obtained before considering extending the moratorium period. On receipt of the request letter a suitable letter to be exchanged with the borrower/guarantor as per the specimen enclosed to this circular and acknowledged copy filed with the documents (Annexure-11). c) If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years (inclusive of initial moratorium and extended period). If the student is not able to complete the course for reasons beyond his control, the 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. d) The Branch/CPCs will setup SIs towards payment of revised EMI from the linked SB Account or the Salary Account of the Student Borrower or NACH, if salary account is outside the bank, as applicable. The Branch will exchange the letter on revised EMI and obtain SI/ NACH mandate for their record. 20 | P a g e 1.22 OTHER ISSUES ON LOANS FOR STUDIES IN INDIA a) Education Loans to 2 or more Children of one Person: There is no ceiling in maximum aggregate amount of loan when two or more wards of a parent/guardian individually avail loan. Educational Loan is given for an individual and not for the family as a unit. b) Switchover from one Course to another: Students, especially those who go for Engineering or Management studies, sometimes avail loans for courses/Institutions which may not be their first choice, with a view to obviating forfeiture of admission. For example, a student seeking admission to B.E. (Electronics) in a good college may initially get admission into B.E. (Civil) in the same college or even into B.E. (Electronics) in a comparatively lower grade college. Later, upon availability of admission in B.E. (Electronics) in the Institution of his choice, he may like to switchover. c) Whenever the switchover involves migration from one Institution to another, the fee already deposited is refunded by the transferor Institution after deducting a small amount. Switchover from one course to another after availing the loan will be permissible in order to facilitate smooth administration of the loan so that the student does not lose an opportunity to get admission in a better course/Institution and to improve his employment prospects thereby. Sanctioning authority will be authorized to consider reimbursement of additional expenses incurred in connection with such switchover, since repayment of the loan is incumbent upon employment prospects in respect of the course undertaken as also the Institution from which the same is undertaken. 1.23 OTHER ISSUES FOR LOANS FOR STUDIES ABROAD a) Sanction Letters generated from System: Sanction letters/ arrangement letters, as required by VISA authorities, evidencing the source of fund, should be generated from System and MUST NOT be issued on the Bank’s Letter Heads. System generated sanction/ arrangement letters containing Collateral details to be shared for verification by VISA authorities to obviate frauds though in-principle sanction letters on Bank’s Letter Heads. b) Residential Status of Indian Students: As per definition of resident under FEMA and the intention of the students to stay abroad for an uncertain period, though not for permanent settlement, they are treated as non-residents from FEMA angle. As non-residents, students will be eligible to receive remittances from India as per limits set by RBI from 21 | P a g e  time to time. They will also be eligible for all other facilities available for NRIs under FEMA. However, it is clarified that these instructions do not dilute in any way the utilization of the existing foreign exchange remittance facilities to students regarding their academic pursuits. c) Switchover from one Course to another: Switchover from one course to another at the same or another institution is permissible. In such case, new application to be sourced and sanctioned. Account opening and disbursement will be made accordingly. Where, the request is received for change of course at the same institute or otherwise and the new course involves similar or less cost & payouts, the existing loan account can continue and a suitable letter to be exchanged along with noting in CBS. Where course change involves multiple institutes and the net payout is higher than the undisbursed amount, a fresh loan to be sanctioned covering Net requirement and the existing loan account to be closed through (i) refunds by the institutes, (ii) transfer from the new loan (iii) and payment by the Borrower (s). d) Deduction of Forex remittance Charges by our Foreign Offices/ Correspondent Banks: Normally Remittance Commission is recovered by our Foreign Office/Correspondents resulting in short payment of fees to the educational Institution abroad. The Institution then lists the student as defaulter although the amount involved may be small causing embarrassment to the student. To avoid such situation, the branches remitting through SWIFT should mark the instructions “All charges to the remitter and not to beneficiary” in their advice. As the charges cannot be ascertained at the time of remittance an undertaking may be taken from the remitter as under “All charges to the remitter and not to the beneficiary. Your charges if any may be debited to education loan account no____.” e) DISLOCATION DUE TO RUSSIA – UKRAINE WAR ‘ACADEMIC MOBILITY PROGRAM’ FOR CONTINUING STUDIES: (Refer e-circular NBG/PBU/PL-EDUCATION/34/2022 - 23 dated 29.10.2022 and NBG/PBU/PL-EDUCATION/69/2022 - 23 dated 27.03.2023 for detailed information & clarification) Existing Education Loan borrowers who have been granted loan for medical studies in Ukraine will be allowed to complete their medical courses under Academic Mobility Program as approved by National Medical Council vide their Public Notice dated 06.09.2022. Academic Mobility Program involving colleges/institutions situated in following countries will be considered for completing the course: 22 | P a g e  Poland, Austria, Czech Republic, France, Georgia, Kazakhstan, Lithuania, Moldova, Slovakia, Spain, Uzbekistan, US, Italy, Belgium, Egypt, Belarus, Latvia, Kyrgyzstan, Greece, Rumania, Sweden, Israel, Iran, Azerbaijan, Bulgaria, Germany, Turkey, Croatia and Hungary Disbursement of existing undisbursed limit and additional loan to meet additional fee to undertake this program may be financed subject to fulfilment of existing norms of the scheme. The option will be available only to the existing borrowers as on date of e - Circular to facilitate completion of course and will not apply for fresh loans. Benefit of Academic Mobility Program to be also applicable for cases prior to the National Medical Council announcement. Students who went to Ukraine prior to 25.09.2020 are also eligible. f) Medical courses conducted by foreign universities at off - shores campuses i.e., in India: Loan for pursuing graduate courses of foreign universities at campuses in India should be granted only if the arrangement has specific approval of National Medical Commission. g) GIC for studies in Canada: In order to apply for study permit in Canada under Student Partner Program (SPP) in India, a student must purchase a Guaranteed Investment Certificate (GIC) for an amount of CAD 20635 or as specified by immigration, Refugee & Citizenship Canada (IRCC). This GIC pertains to living expenses and are to be reckoned in the Education Expenses for studies in Canada while assessing the loan requirement. Further, We can also finance education loan to such students who have already availed GIC with other Banks/FIs through own fund. We may also consider the same as Margin while sanctioning education loan. We may also consider reimbursing the GIC amount subject fulfilment of all other instructions. Students availing Global Ed-vantage with us will have option to avail GIC facility from the Bank of his / her choice or convenience. However, all possible efforts to be made to offer our GIC to candidates in provinces other then Quebec Province from Branches of SBI Canada. Activation of GIC issued by SBI Canada can be activated through KYC confirmation of the Domestic Branches providing Education Loans, without visit of Branches of SBI Canada in Canada. 23 | P a g e  h) Blocked Account for studies in European Countries: Similar to GIC for studies in Canada, VISA authorities of some European countries require deposit of Living Expenses to the designated Bank Accounts, called as Blocked Accounts, before processing of VISA proposals. Such amounts to be deposited are a part of Education Expenses and can be covered under Education Loans and disbursed before issuance of VISA. i) Disbursement of Tuition Fees/Living Expenses before issuance of Admission Letter as per University/VISA authority requirement: Some Institutes/Universities across various Countries have started demanding for remittance of fees/living expenses before issuing Admission Letter/Letter of Enrolment to the student, which are a mandatory document for applying for Student VISA in the respective country. VISA issuing authorities also require the proof of funds before issuance VISA vide a Sanction Letter/ disbursement of loans and depositing to a Deposit Account/remitting to the Institution. The detailed instruction in this regard is as explained below: Scenario Instructions Scenario 1: College/ The amount will be remitted by Branch/ University/VISA issuing CPC as per the specific requirement. authorities has requested Disbursement of tuition fee to be made only for payment of tuition fee/ in cases where the Institute/ University living expenses/GIC has provision for refund of the money in before issuance of the event of VISA rejection. Branches to Admission Letter/ VISA. ensure that such refunds shall go to education loan account. Fee/ expenses for 1st semester/term shall only be paid. Any shortfall or adverse forex fluctuation to be borne by the borrower. A Letter of Consent will be obtained from the borrower(s) in this regard, as per Annexure-12 attached. The Operating Units to obtain a copy of Admission Letter, student’s College ID Card and a stamped copy of student’s VISA mandatorily within 90 days of 1st disbursement or before 2nd disbursement, whichever is earlier. No further disbursement will be permitted in the loan account until student submits the proof of admission to the Branch/CPC. 24 | P a g e  Scenario 2: College/ The amount will be disbursed by Branch/ University/ VISA issuing CPC & credited to the SB account of the authorities has requested borrower with a hold/lien on the disbursed for proof of funds before amount. issuance of Admission Fee/ expenses for 1st semester/term shall Letter/ VISA by only be disbursed. disbursement in the loan A Letter of Consent will be obtained from account. the borrower(s) in this regard, as per Annexure-13 attached. Once the copy of VISA is received, the Branch/CPC to remove hold/lien marked on the SB Account and remit tuition fee directly to the account of Institute/University by debiting SB Account leaving the remainder & balance for living expenses. Scenario 3: College/ A system generated Sanction Letter to be University/ VISA issuing provided (No manual Sanction Letter to be authorities have requested issued) for proof of funds before issuance of Admission Letter/ VISA vide a Sanction Letter. FAQs related to National Medical Commission (i) Whether Academic Mobility Program approved by National Medical Commission (NMC) permitting Indian medical students at Ukraine to complete their courses through an arrangement under which residual course is completed at other universities outside Ukraine whereas final degree is awarded by the parent Ukrainian university, is applicable for cases prior to approval of countries identified for Academic Mobility Program by NMC? Response: Benefit of Academic Mobility Program to be applicable for cases prior to the NMC announcement. (ii) Is the circular only applicable to students coming under National Medical Commission (NMC) which has replaced Medical Council of India (MCI) on 25.09.2020? If a student has already joined a college in Ukraine prior to 2020, are the rules still applicable for Academic Mobility Program? Response: Students who went to Ukraine prior to 25.09.2020 are also eligible. (iii) Is it required to get a letter/mail from the parent University in Ukraine stating various factors like the years completed in their college by the student, academic status, reason for transfer, whether the transfer is of temporary nature, whether the final degree is awarded by the parent university, recommendation to another university in another approved country etc? 25 | P a g e Response: These serve as measures of normal due diligence. Hence, may be obtained. (iv) Does the University in the country to which the student get transferred is required to state in their offer letter details like the parent university from where the student got transferred, the remaining course duration, whether the final degree is awarded by the new university or not etc? Response: These serve as measures of normal due diligence. Hence, may be obtained. (v) Whether any proof is to be submitted by the student to confirm that criteria of Screening Test Regulations 2002 are fulfilled? Response: Conformity to Screening Test Regulation 2002 has to be ensured. 1.24 LOAN FOLLOW UP AND TRACKING ▪ PAN Card of the student and the Parent/Guardian to be mandatorily obtained for all Education Loans along with application or before 1st disbursement. ▪ Aadhaar details, should be obtained as an OVD, wherever available. But Aadhaar is mandatory for Education loans covered under Interest Subsidy Schemes (WBSCC, CSIS, etc. at present). ▪ Passport details are mandatory requirement for studies abroad. Bank should obtain the Unique Identification Number (UIN)/Social Security Number (SSN), as applicable, College Identity Card copy/Immigration details and note the same in the Bank’s records. ▪ In case of the Parent/Co-Borrower having transferable job, the “address for correspondence” must be meticulously noted in the system as well as in the records, so that whenever the parent is transferred, the Bank will be in a position to track them. ▪ Operating Units need to obtain the progress reports on studies at regular intervals and periodicity may be fixed as per semester or annual system of examination. Subsequent disbursements to be made based on the demands of the institutions, money receipt towards last disbursement and progress report on studies. Authority to be satisfied/approve non-submission of progress report. ▪ Updated contacts like e -mail IDs, Addresses, Mobile/Phone numbers, etc of the students & Co-Borrowers should be obtained during each disbursement and kept on record. ▪ Repayment of EMI should be set as SI from the linked SB Account/Salary Account or through NACH, if the Salary Account of the Student after employment is maintained with other Banks. Failed SI/NACH to be followed up and remedies available under Sec-25 of PSG Act-2007 to be used for recovery of overdue EMIs. ▪ The Borrowers and the Co-Borrowers as well as Employers, wherever required, to be contacted for irregular loan repayments. 26 | P a g e ▪ The Loans to be recalled, where the Borrowers repeatedly fails to meet EMI payment obligations. In case of accounts covered with liquid collaterals, collaterals to be appropriated by giving a reasonable notice to the Borrowers. SARFAESI action to be initiated for accounts covered with mortgaged properties after the accounts turns to NPAs. In case of unsecured loans recovery proceedings/legal actions to be initiated against the Borrower (s), along with proper record keeping. In respect of loans with CGFSEL/CGFSSD covers, details of recall & initiation of recovery proceedings are required for submission of claim (explained on Chapter-11). ▪ While recovery proceedings are not difficult in case of Collaterised loans, tracking of Students in unsecured loans is challenging due to their movement for employment. In such cases, Alumni may be contacted to track the students as well as social media sites can be visited, where the new generation are highly active. To track Education loan borrowers through various Social Media Sites/CIBIL Data, Operating Units to follow the ‘Standard Operating Procedure for tracking EL borrower’ given in ‘Annexure- 14’. The same has also been uploaded in the PBBU site under the link- StateBankTimes> Department 2> Personal Banking Business Unit> Assets> Education Loan> SOP-Tracking EL borrowers. ▪ Since there is no provision to update the address through self-service channels (INB) as the change in address requires authentication as per KYC norms, The Branch will explain the borrower to share the current address in INB and this would not change their permanent address. ▪ Borrowers can update their current/temporary residential address, by logging to INB and by clicking on the hyperlink ‘update the temporary address for education loan account’ displayed on the ‘Account Summary’ page. As this data cannot be treated as authenticated, it would not be sent to CBS and would remain with Internet Banking Department (INB), GITC only. The same can be used for tracking student borrowers. A report of all these changes are generated by INB on weekly basis and Branches can view these reports through a link in Branch admin interface (192.168.25.52). SMS alerts are sent to all account holders on their mobile number available in CBS. ▪ Additionally, to track borrowers, data from CICs can be obtained and updated contact to be used. 27 | P a g e 1.25 RBI GUIDELINES- RESPONSIBLE LENDING CONDUCT: RELEASE OF MOVABLE / IMMOVABLE PROPERTY DOCUMENTS ON REPAYMENT/SETTLEMENT OF PERSONAL LOANS Reserve Bank of India (RBI), vide their Circular no. RBI/2023-24/60; DoR. MCS. REC. 38/01.01.001/2023-24 dated 13.09.2023 have issued detailed operational guidelines for release of documents related to movable /immovable properties kept as security against loan accounts that include strict penal action of compensation at the rate of Rs. 5000/- per day for non – compliance of the instructions, for all cases in which release of original movable / immovable property documents falls due on or after December 1, 2023. 2. To ensure meticulous compliance of the RBI instructions by the operating functionaries, under noted Standard Operating Procedures (SOPs) have been approved: (i) Release of Title Deeds on Repayment/ Settlement of Education Loans (ii) Release of Financial Securities Education Loans 3. SOPs are placed at SBI Times >> Manuals/ Master Circular/ Policies/SOP >> SOP and also placed as annexure 31. 1.26 FLOATING INTEREST RATE LOANS: RESET OF EQUATED MONTHLY INSTALMENTS (EMI) AND/OR RENOR ON ACCOUNT OF CHANGE IN RATE OF INTEREST Reserve Bank of India vide their circular no. RBI/ 2023-24 /55; DOR.MCS.REC.32/ 01.01.003/2023-24 dated 18th August 2023 has issued guidelines regarding ‘Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Personal Loans’, stipulating to extend the guidelines to all existing as well as new loans by 31st December 2023. 2. To provide a reference for situations arising out of fluctuation in rate of interest on an ongoing basis, a Standard Operating Procedure (SOP) on reset of EMI and/or tenor on account of increase in rate of interest in case of floating rate education loans has been approved and SOP is enclosed at SBI Times > Manuals/ Master Circular/ Policies/SOP > SOP and also as annexure-32. Refer circular NBG/PBU/PL-EDUCATION/32/2023 - 24 dated 16.02.2024 for detailed instructions. 28 | P a g e  2. SBI STUDENT LOAN SCHEME 2.1 PURPOSE The Scheme seeks to extend financial assistance to deserving/meritorious students for pursuing higher education in India and abroad. 2.2 ELIGIBLE COURSES a. Studies in India: Full time courses leading to Diploma (including integrated courses)/ Graduate (including integrated courses)/ Pathway courses leading to degree/diploma /Post-Graduate Degrees, Post-graduate Diplomas (including integrated courses)/ Doctorate Programmes (Ph.D.) conducted by colleges/universities recognized by UGC/Govt./AICTE/ AIBMS/ ICMR, etc. Courses like ICWA, CA, CFA, etc. (Latest fee structure of CA course is available on: www.icai.org) Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID, ISB, etc.** (** Courses conducted by Scholar Institutes which are not eligible under Scholar Loan Scheme, will be considered under Student Loan Scheme) Courses offered in India by approved reputed foreign universities. Courses/ Institutes approved by the Director General of Civil Aviation (DGCA)/ Director General of Shipping (DGS). The DGCA & DGS publishes the list of approved Courses/ Institutes on their respective websites from time-to-time. Kindly refer to https://www.dgshipping.gov.in and https://www.dgca.gov.in to confirm the validity of approval granted by DGS & DGCA. Teacher Training Course/Nursing Courses/B.Ed. will be eligible for Student Loan provided the training Institutions are approved either by the Central Government or by State Government and such courses should lead to Degree or Diploma Course and not to Certification Course. The fees to be considered for the purpose should be the fee structure as approved by State Government or a Government approved Regulatory Body for merit seats in Government/Private Self-Financing Colleges, Cooperative and Colleges run by universities, as the case may be. Reference(s) for verifying the accreditation/ recognition of the Institute/University: www.ugc.ac.in, www.education.nic.in, www.aicte.org.in The GM (Network) may approve Institutions/tie-ups with educational Institutions and the specific courses for which loans may be granted, for their area of operations, depending on future prospects/recognition by user Institutions. The LHO concerned will advise all other Circles directly regarding the name of the Institution, and other details of the arrangements, subject to compliance of KYC norms both by the student and the parent. A record of such arrangements should be maintained at the LHO and brief details 29 | P a g e thereof, advised on monthly basis to the Personal Banking Business Unit at Corporate Centre for building up data base. Such Institutions/ courses should be reviewed periodically, for renewal of the arrangement or otherwise. While approving the courses by GM (Network), aspect relating to the reputation/standing of the course and Institution in respect of which Education Loan could be provided, may be examined with a view to ascertaining the employment prospects of the course and applicant’s future income. b. Studies abroad: Full time courses leading to Degree/Diploma (including integrated courses) post completion of 10+2 or equivalent. Graduation: For job-oriented professional/ Technical courses offered by reputed Institutions (including Foundation/Pathway/Integrated Courses) Post-graduation: MCA, MBA, MS, etc. Job oriented professional/ technical Post Graduate Diploma/ Certificate courses offered by reputed Institutions. Doctorate Programmes (Ph.D.) courses Courses conducted by CIMA (Chartered Institute of Management Accountants) - London, CPA (Certified Public Accountant) 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. Verification of the accreditation/recognition of the Institute/University to be done through www.usnews.com, www.topuniversities.com (qs.com). Above Referred websites for verification of institutes for studies in India and Abroad are illustrative only, the operating units may refer any other website for verification). c. Off Campus/Off-Shore campus/Distance Education/Foreign Universities Imparting Technical Education in India. Off Campus/Off-shore campus/ Study Centre: Loans may be granted to students studying at Off-campus/Off-shore campus/Study Centers of various universities in India subject to the approval by UGC. The notifications and list of approved Institutes by UGC are available in UGC website www.ugc.ac.in. Distance Education: Loans may be granted to students admitting for full-time courses conducted by various universities in India subject to the approval by UGC. Foreign Universities in India imparting Technical Education: Loans may be granted to Off-campus/Off-shore campus/Study Centers of various universities in India subject to the approval by UGC/AICTE. Please refer to www.aicte- india.org. Medical courses conducted by foreign universities at off - shores campuses i.e., in India: Loan for pursuing graduate courses of foreign universities at campuses in India should be granted only if the arrangement has specific approval of National Medical Commission. 30 | P a g e Operating units to be guided by the UGC/AICTE Notifications placed in their websites mentioned herein above, issued from time to time while considering the education loan proposals and exercise due diligence while approving/sanctioning the loans for the courses offered by unrecognized institutes in the light of the AICTE/UGC notifications issued recently. 2.3 STUDENT ELIGIBILITY (Explained in Chapter-1) 2.4 EXPENSES CONSIDERED FOR LOAN (Explained in Chapter-1) 2.5 QUANTUM OF LOAN & TOP UP LOAN The maximum loan limits are as follows: ▪ Studies in India: Loan Limit Ranked under All other Top 100 by institutes eligible NIRF as per extant norms Studies of MBBS/ MD/ MS (Medical) in Upto Rs. 50.00 Upto Rs. 30.00 India lakhs lakhs All courses other than MBBS/ MD/ MS Upto Rs. 30.00 Upto Rs. 20.00 (Medical) in India including engineering, lakhs lakhs management, dental courses etc. For higher Loan Limit (studies in India), CGM of the Circle is empowered to approve deviation on case-to-case basis as under: Studies of MBBS/ MD/ MS (Medical) in No Upper Cap Upto Rs. 50.00 India lakhs All courses other than MBBS/ MD/ MS Upto Rs. 50.00 Upto Rs. 50.00 (Medical) in India including engineering, lakhs lakhs management, dental courses etc. ▪ Studies Abroad - Maximum Rs. 7.50 lakhs (limits above Rs.7.50 lakhs covered under Global Ed-vantage Scheme). 2.6 MARGINS ▪ Upto Rs.4 lakhs: Nil. ▪ Above Rs.4 lakhs: − Studies in India: Minimum 5 % − Studies Abroad: Minimum 15 %. (Further details explained in Chapter-1) 31 | P a g e 2.7 ACCEPTABLE SECURITIES/COLLATERALS (Explained in Chapter-1) 2.8 INTEREST RATES & CONCESSIONS Loan Limit Benchmark rate CRP Rate Type Upto Rs 7.5 Lakhs EBR 2.00% Floating Concession 0.50% concession in interest for girl students Above Rs. 7.5 Lakhs EBR 2.00% Floating Concession 0.50% concession in interest for girl students 0.50% concession for students availing of SBI Rinn Raksha or any other existing policy assigned in favor of our Bank Note: For updated Product Code list, please refer to latest Interest rate Change circular. 2.9 PROCESSING CHARGES Student loans for studies in India a) Loan amount upto Rs 20 lakhs – NIL b) Loans amount above Rs. 20 lakhs - Rs.10,000/- plus taxes Student loans for studies abroad a) All those students who approach us for an education loan of above Rs. 4.00 lakhs and upto Rs. 7.50 Lakhs for studies abroad, will be required to make a deposit of Rs.5000/- b) The amount will be maintained in the form of a Bankers Cheque payable to “SBI A/c......(name of the borrower)” c) If the applicant avails the loan, the amount of Rs.5000/- will be adjusted against the contribution of margin money by him. If no margin is payable by him, the amount may be adjusted against the interest payable on the loan. If the applicant does not avail the loan within a period of 6 months of sanction of the loan, the amount will be appropriated and credited to Commission A/c. 2.10 AUTHORISED BRANCHES (Explained in Chapter-1) 2.11 APPRAISAL/SANCTION/DISBURSEMENT/REPAYMENTS (Refer annexure 29 & Chapter-1) 2.12 LOAN FOLLOW-UP AND TRACKING OF BORROWERS/C-BORROWERS (Explained in Chapter-1) 32 | P a g e  3. SBI SCHOLAR LOAN SCHEME 3.1. PURPOSE Loans will be granted to deserving/meritorious students for pursuing courses in India at selected premier and reputed institutions identified by the Bank. The list is updated through e-Circulars and in RAAS/RLMS periodically. 3.2 STUDENT/CO-BORROWER ELIGIBILITY ▪ Student should be an Indian National. ▪ Secured admission to full time professional/ technical courses through Entrance Test/Selection process in any of the selected Premier Institute (Updated list of Institutes covered under Scholar Loan Scheme is attached as Annexure 28.) ▪ Part-time course for select institutes (for details, refer to 3.18) ▪ Other eligibility norms including Nationality, CIC Scores, etc., have been explained in Chapter-1. 3.3 ELIGIBLE EXPENSES ▪ Fee payable to college/school/ hostel (including Boarding & Lodging) ▪ Examination/ Library/ Laboratory fees ▪ Purchase of books/ equipments/ instruments/ uniforms ▪ Caution deposit/ building fund/ refundable deposit supported by institution bills/ receipts [not to exceed 10% of tuition fees for the entire course] ▪ Travel expenses/ expenses on exchange programme* ▪ Purchase of computer/ laptop, if essential for completion of course* ▪ Any other expense required to complete the course like study tours, visits to foreign universities in exchange programs, project work, thesis, etc.* * No voucher/ receipt required; purpose (end use) need to be self-certified. Expenditure not to exceed 30% of the loan amount (upto a lumpsum amount of max Rs.1 Lac). Expenditure beyond 30% or up to Rs. 1 lakh permitted subject to production of voucher/receipt. NOTE: As a measure of de-risking the Education Loan portfolio, every effort must be made, that the students who are availing Education Loans above Rs. 7.5 Lakhs from the Bank should be suitably covered by Life Insurance Policy. The policy should cover the loan amount plus approximate estimated accrued interest as at the commencement of the repayment, for the full tenure of the loan i.e., study and moratorium period plus the loan repayment period as applicable. However, in case of students eligible for Interest Subsidy, the amount of insurance policy can be obtained for the loan amount only. 33 | P a g e 3.4 LOAN AMOUNT AND SECURITIES REQUIREMENT Categor Maximum Loan Limit y Without any tangible collateral, With tangible collateral and only Parent/Guardian as co-borrower Parent/Guardian as co-borrower List ‘AA’ Upto Rs.50 lakhs (without co- No upper limit borrower) ** List ‘A’ Upto Rs.40 lakhs No upper limit List ‘B’ Upto Rs.30 lakhs No upper limit List ‘C’ Upto Rs.7.5 lakhs Above Rs.7.5 lakhs and upto Rs.30 lakhs **The requirement of co-borrower has since been made optional for all institutions covered under list AA Security requirement explained in Chapter-1 3.5 COURSES COVERED Regular full time Graduate/Post-graduate/Integrated Core Courses (through entrance test/selection process) are covered under the Scheme. ▪ Executive Management Courses like PGPX, EPGP of all IIMs and other reputed institutions like XLRI-Jamshedpur, MDI and ISB Hyderabad. ▪ Specific courses other than those mentioned above approved by Corporate Centre, which are updated through e-Circulars from time to time (Refer latest updated e-Circulars). ▪ Part-time Graduate/Post Graduate Degree & PG Diploma/Certificate Courses for Working Professionals being run by Scholar Institutes covered under List AA & List A and also institutes from List B & List C approved by Corporate Centre from time to time (Details explained at Paragraph-3.18) 3.6 MARGIN ▪ Upto Rs. 4 lakhs: NIL ▪ Above Rs. 4 lakhs & Upto Rs. 7.5 lakhs: 5% ▪ Above Rs. 7.5 lakhs: NIL