Loan against Fixed Deposit: Fixed Deposit के अगेंस्ट लोन लेने का क्या procedure हैं?

क्या आपका या आपके परिवार के किसी व्यक्ति के नाम से फिक्स्ड डिपाजिट (Fixed Deposit) है और आपको पैसे की जरुरत है?

जानिए क्या हैं नियम, FD यानि फिक्स्ड डिपाजिट (Fixed Deposit ) के बदले लोन लेने  का.

भारत में बैंको में ऋण यानि लोन के कई स्कीम होते है ,ये सरे स्कीम बैंक के कस्टमर एवं भारत के अर्थव्यवस्था को ध्यान में रखकर बनाये जाते है. इन ऋण स्कीमों को कई भागों में बाट सकते हैं. जैसे की खुदरा ऋण, MSME  ऋण एवं कॉर्पोरेट ऋण.

खुदरा  ऋण , ऋण राशि के इस्तेमाल पर निर्भर करता हैं. मन लीजिए किसी वयक्ति ने पर्सनल लोन लिया, या पर्सनल व्हीकल लोन लिया तो लोन की राशि का इस्तेमाल वो अपनी निजी सुविधाओं के लिए करेगा और लोन को वो अपने किसी अन्य आय से चुकाएगा।  इस तरह के ऋण खुदरा या Retail ऋण में आते हैं। 

उदहारण के तोर पर आप इन ऋणों को खुदरा या रिटेल लोन कह सकते हैं. जैसे की हाउसिंग लोन या होम लोन, पर्सनल लोन, पर्सनल मोर्टगेज  लोन, एजुकेशन लोन इत्यादि। 

खुदरा ऋण के अंतर्गत लोन अगेंस्ट फिक्स्ड डिपाजिट भी आता हैं अगर ऋण की राशि व्यक्ति के नाम पर लिया जाये ुर ऋण राशि को उपयोग व्यक्तिक या घरेलु खर्चे के लिए किया जाये।

फिक्स्ड डिपाजिट के अगेंस्ट में आप बिज़नेस लोन भी ले सकते हैं तब ये लोन MSME के अन्तर्गत वर्गीकृत किया जायेगा।

आप अपने नाम के फिक्स्ड डिपाजिट या किसी और के डिपाजिट के अगेंस्ट में भी लोन सकते हैं. अगर आप किसी अन्य के फिक्स्ड डिपाजिट के अगेंस्ट में लोन ले रहे हैं तो जिसके नाम से फिक्स्ड डिपाजिट हैं  तो वो व्यक्ति गारंटर माना जायेगा। 

लोन आप अपने नाम पे या अपने कंपनी या फर्म के नाम पर भी ले सकते हैं.

अपने नाम के फिक्स्ड डिपाजिट के अगेंस्ट में ऋण लेने पर ब्याज दर कम होता हैं 

  जिन मामलों में:जमा के खिलाफ ऋण या अग्रिम नहीं दिया जाना चाहिए

ए)      जमा नाबालिग और अभिभावक के नाम पर है जिसे न्यायालय द्वारा नियुक्त किया गया है। ऐसे मामलों में न्यायालय की अनुमति से ही ऋण दिया जा सकता है।

ख)      सिविल कोर्ट / सरकारी प्राधिकरणों द्वारा जमा पर एक कुर्की आदेश है

ग)      जमाकर्ता को पागल करार दिया गया है और वह अपने दम पर अभिनय करने में सक्षम नहीं है।

घ)      जमाकर्ता बैंक के प्रति अत्यधिक ऋणी है और वसूली संदिग्ध है।

ई) एक साझेदारी फर्म में, जमा मामूली रूप से या निम्नलिखित मामलों में प्रमुख / एस के साथ संयुक्त रूप से मामूली के नाम पर हैं:

i) नाबालिग को साझेदारी के लाभों के लिए एक भागीदार के रूप में शामिल किया गया है।

ii) नाबालिग फर्म का भागीदार नहीं है, उसका अभिभावक, जो संयुक्त रूप से जमा राशि रखता है   

  नाबालिग, फर्म का एक साथी है।

iii) नाबालिग और अभिभावक दोनों साझेदारी फर्म में भागीदार हैं।  

जमा किसी अन्य बैंक में आयोजित किया जाता है - शाखाओं को यह ध्यान देने की सलाह दी जाती है कि अन्य बैंकों के साथ जमा की प्राथमिक या संपार्श्विक सुरक्षा के खिलाफ ऋण और अग्रिम की प्रकृति किसी भी बैंक के RBI निर्देशों के अनुसार प्रतिबंधित है

Pradhan Mantri Jan Dhan Yojna Account: How to get loan of Rs.10000 in your Jan Dhan saving account?

Pradhan Mantri Jan Dhan Yojana : Saving account with Overdraft Facility and many more!

Pradhan Mantri Jan-Dhan Yojana [PMJDY] is National Mission for Financial Inclusion to ensure access to affordable financial services by all citizens within a reasonable distance. The main objective of the PMJDY to ensure access to various financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension to the excluded sections i.e. weaker sections & low income groups, Minority communities, Members of Cooperative Institutions.

Accounts under PMJDY can be opened at any bank branch or at Bank Mitra outlet. PMJDY accounts are being opened with Zero balance. Rupay debit card or Rupay Aadhaar Card and passbook should be issued to all account holders. However, if the account-holder wishes to get cheque book, he/she will have to fulfil minimum balance criteria. Nomination is mandatory.

The following documents are required to open the Pradhan Mantri Jan Dhan Account.

• If Aadhaar Card/Number is available then no other document is required. If address has changed, then a self-certification of current address is sufficient. The accounts can be opened using e_KYC mode wherever the Aadhaar number is made available.
• If Aadhaar Card is not available, then any one of the Officially Valid Documents (OVD) is required like Voter ID Card or Driving License or PAN Card or Passport or NREGA Card. If these documents also contain address, the same can serve as both Proof of Identity and Address.
• If a person does not have any of the OVDs mentioned above, but he/she is categorized as ‘low risk’ by the bank, then account can be opened by submitting any one of the following documents:
• Identity Card with applicant's photograph issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks and Public Financial Institutions;
• Letter issued by a gazetted officer, with a duly attested photograph of the person.

The following benefits are provided to account holder of PMJDY scheme.

a. No minimum balance required.

b. Interest on deposit.

c. Easy Transfer of money across India.

d. Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts.

e. Access to Pension, insurance products.

f. Issuance of RuPay cards to all eligible MGNREGA beneficiaries

g. Accidental insurance cover of ₹1.00 lac to Rupay card holder from the age of 18 year to 70 year.

Accidental insurance cover is available for accidental death or handicap.Insurance is available only if one successful financial or non financial transaction done within 90 days.

Overdraft of Rs.10000 in PMJDY Account!

Overdraft facility is one of the features under Pradhan Mantri Jan Dhan Yojana, According to fresh guidelines overdraft facility under PMJDY account of Rs.5000 is raised to maximum Rs.10000.

The overdraft limit will be sanctioned for a period of three years.

To avail the overdraft facility the age limit of the account holder must be between 18 to 65 years.

There will be no any condition for the overdraft facility of Rs.2000.

The terms & condition to avail the overdraft facility of Rs.10000 in PMJDY account.

• Accounts which are operated satisfactorily for at least six month.
• The account should be active with regular credits. Credits could be from DBT or DBTL or from any other sources,
• Account should be seeded and authenticated with Adhar and mobile number.
• The account holder should not be maintaining any other bank account.
• Minors, KCC or GCC  borrower , more than one member of the same family are not eligible.
• Minimum OD amount Rs.2000 and maximum amount Rs.10000.
• Beyond Rs.2000 following are the basis of calculation of the maximum limit. 

4 times of the average monthly balance,or 50% of credit summations in account during the preceding six months.

Interest will be charged in the availed loan amount as per the Bank's guidelines i.e MCLR+3%.

 

What is Lok Adalat and What is the Procedure for settlement of Loan in Lok Adalat?

Lok Adalat is a process of administering justice without resorting to litigation, Its process is voluntary and works on the  principle that both the parties to the dispute are wiling to sort out their disputes amicably. Through this mechanism, disputes can be settled in a simpler, quicker and cost effective manner.

 

There are certain advantages in using the forum of Lok Adalat by banks in compromise settlement of NPAs. There are no Court fees involved when fresh disputes are referred. It can take cognizance of any existing suit in the Court/DRT. If no settlement is arrived at, the parties can continue with the Court/DRT proceedings. The award is having legal status and is binding on a decree. The award is not appealable, as it is arrived at through the consent of parties. It is a speedier system of administration of justice.

What is the Constitution of Lok Adalat? 

 

1.      Lok Adalat is the body constituted within the legal system to encourage settlement of disputes in an atmosphere of conciliation without going to the Courts and for arriving at a workable solution amicably. It can take cognizance of  both suit filed  and non suit filed cases.

2.   The Lok Adalats shall,for the purpose of holding any determination under the Act, have the same powers as are vested in the civil Court under the Code of Civil Procedure while trying  a suit in respect of the following :

      a) The summoning and enforcing the attendance of any witness and examine him on oath;

      b) The discovery and production of any documents

      c) The reception of any evidence on affidavits;

      d) The requisitioning of any public record or document or copy of such record or document  from

          any court or office.

      e) Such other matters as may be prescribed.

3.     The Lok Adalat has the power to specify its own procedure for determination of any dispute coming before it. All the proceedings before the Lok Adalat shall be deemed to be a judicial proceedings and every Lok Adalat shall be deemed  to a Civil Court for the purposes of Indian Penal Code and Criminal Procedure Code.

 

What is the Jurisdiction of Lok Adalat?

Normally the local Chief Judicial Officer identifies cases for reference to Lok Adalats, It has  jurisdiction in respect of

 1.      cases pending before the court.

2.      Matters falling within the jurisdiction of the court but not brought before the court (non suit filed)

3.      Matters pending before Debt Recovery Tribunals.

 

If a case is Pending Before Court whether it can be taken to Lok Adalat?

Court may refer the case to Lok Adalat

a)      where the parties to the case agree to refer the case to Lok Adalat,

b)      where one of the parties applies to the court for referring the case to Lok Adalat and court is satisfied as to the chances of settlement after giving reasonable opportunity of being heard to the parties,

c)      where the court  is satisfied that the matter is an appropriate one to be taken cognizance by Lok Adalat, after giving reasonable  opportunity of being heard to parties.

 

Where no Case is Pending Before the Court :

On an application to the Authority  / Committee organizing Lok Adalat, from anyone of the parties to the matter, such authority / committee may refer the matter to Lok Adalat, if it is a matter that need to be determined by Lok Adalat, after giving reasonable opportunity of being heard to the other party. In case the matter is not settled before the Lok Adalat, the parties will be advised to seek remedy in a court.

 

Eligibility for Coverage for Lok Adalat.

 

The scheme includes all NPA accounts  both suit filed and non-suit filed, with outstanding balance upto Rs.20 lakh.  However, it must be noted that in case no settlement could be arrived at and no Award has been made in respect of a non suit filed case, then mere reference to Lok Adalat would not save the documents from the  operation of Law of Limitation. In  other words, if no Award has been made in respect of a non suit filed case, then the documents should be kept live by obtaining Balance Confirmation  from  time to time. How ever in respect of non-suit filed accounts the value of security held should not exceed Rs.1.00 cr for the account/s to become eligible for settlement under lok adalat scheme.  Suit field account with outstanding balance above Rs.20 lakhs can be referred to the lok adalat conducted by the DRT irrespective of the value of security held.

 

What is the Working of Lok Adalats :

The advocates of plaintiff Bank as well as the defendant are given advance intimation of reference of the cases to Lok Adalats. The place and date of sitting of the same are also informed to the parties. If the parties are mutually agreeable to settle the disputes through conciliation, the Lok Adalat passes and appropriate Award immediately. The Award so made shall be deemed to be a decree of Civil Court. Every Award made by a Lok Adalat shall be final and binding on all the parties to the dispute and no appeal shall lie to any Court against the Award.

 

The State / District level Legal Aid Committee/s Boards identifies the place/s of Lok Adalat and communicate the same to the  Steering committee, which in turn gets in touch with individual banks on possibilities of holding Lok Adalat.

Once  both the parties have agreed  for settlement, an Award will be passed by Lok Adalat which is deemed to be a decree of a civil court. With a view to make the borrower to adhere to the settlement the Award shall have single / double default clause.

 It may also be noted that in respect of non suit filed accounts to refer the cases to lok adalat , the jurisdiction of the Loak Adalat is linked to the jurisdiction of the Local legal Services Authority (LLSA) . In respect of cases falling with the jurisdiction of DRTs Which will have territorial jurisdiction over more than one district the reference of cases shall be done only be the State  legal Services Authority.

What is the Settlement Formula in Lok Adalat?

The settlement of dues through the forum of Lok Adalat has been flexible having regard to the book balance on the date of account becoming NPA, interest and other costs charged to the borrower’s account thereafter value of security repaying capacity of the  borrower and cost of recovery etc.

The repayment in installments extended over a period of one to three years with proper justification may be considered.

The settlement should contain a default clause that incase the borrower fails to abide  by the terms of the compromise , the entire debt without any concession will fall due for payment and the bank may initiate further legal proceedings, by way of filing execution petition based on the  award passed by Lok Adalat.

What is the  Repayment Period of settled loan in Lok Adalat?

Repayment period in case of compromise through Lok Adalat can be considered over a period of 1 to 3 years in exceptional  cases, with proper justification.

Settlement of Claim in Banks

Settlement of Claim in Bank

  What is a settlement of claim?

Settlement of claim refers to payment/release of a deceased/dissolved customer’s money’s assets etc., remaining with the bank or allowing access to the lockers standing in his/her name to the rightful claimants (nominees, legal heirs, successors) of the deceased in accordance with law in such a manner that Bank’s interests remain protected in the event of any future adverse action.

 

The fundamental objective of settling the claim is to ensure that only the rightful claimants get the moneys etc., or access to lockers belonging to the deceased individual in accordance with the law. A person may succeed to the deposits/assets of a deceased account holder/depositor/borrower/locker holder either on the basis of testamentary succession (i.e., on the basis of Will) or intestate succession (i.e., dying without executing any Will).  In either case, the claim application is required to be submitted by all the claimants.

Procedure for settlement of claim

 

When a person approaches the bank for preferring a claim on testamentary/intestate basis, the Bank will call for the records pertaining to the accounts/assets/articles/securities of the deceased lying with the Bank and verify as to whether:

a)      Deposit account/safe custody receipt/safe deposit locker stands in joint names of deceased and claimant/s with survivorship clause in favour of the claimant/s.

b)      Nomination has been made and registered in respect of the deposit account/safe custody receipt/safe deposit locker in favour of the claimant

 

In case the deposit account/safe custody receipt/safe deposit locker is in a single name of the deceased only, or in joint names of the deceased and others without survivorship clause, or without nomination registered in respect thereof, then the documents mentioned below are required to be submitted by the claimant/s:

 

a. Claim application in the bank’s format

b. Death certificate issued by a competent authority

c. Declaration in the Bank’s format as to the legal heirs and the religion of the deceased given  by a customer/person well known to the Bank and who is good for the value of the claim.

Succession certificate, if any, obtained from a competent court/authority authorizing the claimant/s to receive the debts.

d. Affidavit in the Bank’s format from any one of the attesting witnesses to the Will in case the deceased has left behind a Will.

e. Will, where the claim is based on the will of the deceased which is not probated

                                   or

     Will with its Probate issued by a competent court, where the Will is probated.

f.  Letters of administration, where an administrator is appointed by a competent court

g. Letter of authority (preferably attested by a Notary Public) in Bank’s format from the duly   identified legal heirs authorizing any one or several of them to receive the amount/securities under the claim form the bank.

h. Indemnity agreement

i.  Stamped receipt/discharge/acknowledgement

Steps involved in settlement of claim

  Accounts with nomination clause:

* Application for deceased claim from nominee/guardian of nominee

* Copy of death certificate (verified with the original)

* Identity proof.

Joint Account with either or survivor Clause:

* Application for deceased claim from survivor

* Copy of death certificate (verified with the original)

 For cases other than nomination/joint accounts with survivorship clause (upto  
      Threshold limit:

* Application for deceased claim

* Copy of death certificate (verified with the original)

* Letter of Indemnity signed by claimant

* Receipt from legal heirs

 

 Time norms for settlement of claims

In the case of accounts with survivor/nominee clause, claims have to be settled within a period not exceeding 15 days from the date of receipt of claim papers.

 In all other cases (without survivor/nominee clause), the claim should be settled within  One month from the date of receipt of claim application along with requisite documents.

 

 Payment of interest in case of term deposits of deceased depositors

 

On the maturity of deposit, interest shall be paid at the contracted rate.

In the case of premature withdrawal, the bank will pay interest at the applicable rate for the period for which the deposit has remained with the Bank without charging penalty.

In case of deposit being claimed after the date of maturity, interest should be paid at the Rate of  2% above the Savings Bank rate from the date of maturity till the date of payment in such cases.

 Credits to deceased customer’s account

 

As per the instructions in force, an account styled “Deceased Estate of Shri………………the deceased” where pipeline flows would be credited provided no withdrawals are made. The balance lying in such accounts may be paid by following the procedure for Settlement of Claims referred above.

Policy on Settlement of Claims in respect of deposits of missing persons:

 

Based on the provisions relating to settlement of claims in respect of deposits of deceased persons put in place by the Bank, policy on settlement of claims in respect of the deposits of missing persons has been approved by the Board. The guidelines of the policy on settlement of Claims in respect of Missing Persons are given below:

a) If the depositor has registered nomination with the Bank, the balance outstanding in the

account of the missing depositor will be transferred to the account of / paid to the nominee after the bank is satisfied about the identity of the nominee.

b) The above procedure will be followed even in respect of a joint account where nomination is registered with the bank.

d) In a joint deposit account, when one of the joint account holders dies, the bank is required to make payment jointly to the legal heirs of the missing depositor and the surviving depositor(s), in the absence of a mandate. However, if the joint account holders had given mandate for disposal of the balance in the account in the forms such as either or survivor, former / later or survivor, anyone of survivors or survivor, the payment will be made as per the mandate.

e) In the absence of nomination and when there are no disputes among the claimants, the bank will pay the amount outstanding in the account of missing depositor to the claimants following the prescribed procedure. To ensure that the depositors are not put to hardship on account of delays in settlement of claims, certain powers have been delegated to different authorities in the Bank.

Interest Payable on term deposit of Missing Depositors:

a) On maturity of the deposit, interest shall be paid at the contracted rate.

b) In the case of premature withdrawal, the Bank will pay interest at the applicable rate for the period for which the deposit has remained with the Bank without charging penalty.

c) In case of deposit being claimed after the date of maturity, interest should be paid at the rate 2 per centage points above the Savings Bank rate from the date of maturity till the date of payment in such cases.

Threshold Limit:

The Reserve Bank of India has advised the Banks to fix a threshold limit up to which claims in respect of missing persons could be settled without insisting on production of any documentation other than [i] FIR and non-traceable report issued by police authorities and [ii] Letter of Indemnity keeping in view the imperative need to avoid inconvenience and undue hardship to the common person. Accordingly, Bank has fixed a threshold limit of Rs.0.50 lakhs for settlement of claims in respect of missing persons under the simplified procedure for settlement of claims.

Simplified procedure for settlement of claims in respect of missing persons – documents
to be obtained [up to threshold limit]:

Under the simplified procedure recommended by the RBI for settlement of claims in respect

of missing persons where the amount involved is within the threshold limit prescribed as prescribed above, the claim could be settled without insisting on production of any documentation other than [I] FIR and Non-Traceable Report issued by Police Authorities and [ii] Letter of Indemnity.

 Joint FD withdrawal Rule in Hindi

अगर आप बैंक में FIXED DEPOSIT या RECURRING  DEPOSIT  खोलना चाहते हैं तो फिर आप इसे JOINT में या फिर सिर्फ अपने नाम से भी खुलवा सकते हैं.

अगर आप सिर्फ अपने नाम से कोई ACCOUNT OPEN करवा रहे हैं तो इसमें नॉमिनी (NOMINEE ) ज़रूर REGISTER करवाए एवं उसकी पावती लें। 

अगर आपने सिर्फ अपने  नाम से  FIXED DEPOSIT खुलवाया हैं तो उसका ऑपरेशन आपको स्वयं करना पड़ेगा  आप कभी भी अपने हस्ताक्षर से DEPOSIT को बंद या RENEW करा सकते हैं.

मगर यदि आपने JOINT में DEPOSIT खुलवाया हैं और उसका ऑपरेशन मैंडेट EITHER OR SURVIVOR या फिर ANY ONE दिया हैं तो सिर्फ PREMATURE CLOSURE (परिपक़्वता से पहले ) के समय दोनों के हस्ताक्षर आवश्यक हैं। 

How to Download or Generate Receipt of Fixed Deposit opened Online

Banks are now providing various services online like Fund Transfer, Account Opening, Bill & utlility Payment and many more.

Now you can also open fixed deposit or recurring deposit by your own through Net Banking or APPs and manger your fund and gain maximum interest. You can also close the FD or RD whenever you need.

The receipt or passbook of Fixed Deposit or the Recurring Deposit opened through Net Banking or Bank's App can be taken from the Branch however it is not necessary.

You can generate the receipt in the Deposit section of the Net-Banking or Banks App by selecting the appropriate option.

In Bank's App.

Open the Bank's App- Go to Deposit Management-go to view receipt- select the appropriate option among Fixed Deposit, Tax Saver Deposit, and RD-Recurring Deposit.

In Net Banking-

Go to Accounts- Select Deposit Account- in Navigate Select opening of deposit account- give following details to open the FD or RD.

Death Claim Settlement Procedure in Bank:बैंक में Death Claim Settlement का पूरा प्रोसीजर 

In a Joint  account where main account Holder is deceased:

The claimant must submit the written intimation as soon as possible to the Bank for to initiate the claim processing.In the above situation, if main account holder is deceased then the settlement is depends upon the mandate of mode of operation in the account.

If mode the mode of operation is Either or Survivor, then the Joint holder has the full right on the Balance of the account otherwise NOC from the legal heirs of deceased is required.

Documents are required to submit  to the Bank for settlement of the claim.

1. Application form for death claim settlement as per the Bank's format.

2. PAN card, Adhar card or Voter ID of deceased.

3. Death certificate of deceased

4. PAN card, Adhar card or Voter ID of claimant.

In a Saving account where account is having nomination:

The claimant must submit the written intimation as soon as possible to the Bank for to initiate the claim processing. The settlement of the claim will be done in favour of the nominee.

Documents are required to submit  to the Bank for settlement of the claim.

1. Application form for death claim settlement as per the Bank's format.

2. PAN card, Adhar card or Voter ID of deceased.

3. Death certificate of deceased

4. PAN card, Adhar card or Voter ID and one photo of claimant

5. Bank account details of claimant.

In a account where account holder and nominee all are died:

In this case the settlement will be done in favour of the legal heirs. If legal heirs gives NOC in favour of any claimant then settlement will be done in favour of claimant.

 

Documents are required to submit  to the Bank for settlement of the claim.

1. Application form for death claim settlement as per the Bank's format.

2. PAN card, Adhar card or Voter ID of deceased.

3. Death certificate of deceased

4. PAN card, Adhar card or Voter ID and one photo of claimant

5. Bank account details of claimants

6. Legal Heirs Certificate/ Succession certificate

7. NOC of legal heirs

If the account is not having nominee:

In this case the settlement will be done in favour of the legal heirs. If legal heirs gives NOC in favour of any claimant then settlement will be done in favour of claimant.

 

Documents are required to submit  to the Bank for settlement of the claim.

1. Application form for death claim settlement as per the Bank's format.

2. PAN card, Adhar card or Voter ID of deceased.

3. Death certificate of deceased

4. PAN card, Adhar card or Voter ID and one photo of claimant

5. Bank account details of claimants

6. Legal Heirs Certificate/ Succession certificate

7. NOC of legal heirs.

Government Skill Development Loan Scheme for Student

Government Skill Developments Loan for Student

Are you a Student? Do You wish to pursue a Skill Development Course and don't have money?

Then read the below article about the Skill Development Loan, You can get the loan from your nearest Bank Branch !

Given a huge thrust on skill development in recent years, a need has been felt to provide institutional credit to individuals for taking skill development courses aligned to National Occupations Standards and Qualification Packs and leading to a Certificate/Diploma/Degree by the Training Institutes as per National Skill Qualification Framework (NSQF).

Skill Loan Scheme aims at providing a loan facility to individuals who intend to take up skill development courses. The Scheme provides an opportunity to economically poor students who aspire to enhance their skills by undergoing skill development courses so that they can gain confidence in venturing into gainful activities.

Accordingly, “Skill Loan Scheme” has been developed to support the national initiatives for skill development & communicated by the Ministry for implementation

Student Eligibility for Skill Development Loan:

• The student should be an Indian National.

• Any individual who has secured admission in a course run by Industrial Training Institutes (ITIs), Polytechnics or in a school recognized by Central or State Education Boards or in a college affiliated to recognized University, Training partners affiliated to National Skill Development Corporation (NSDC)/Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a Certificate /Diploma / Degree issued by such organization as per National Skill Qualification

• Framework (NSQF).

• The Government of India / State Governments may, from time to time, notify institutes/organizations for the purpose.

• There is no specific restriction with regard to the age of the student to be eligible for skilling loan. However, if the student is a minor, while the parent executes documents for the loan, the bank will obtain a letter of acceptance/ratification from him / her upon attaining majority.

• Minimum Qualification: As required by the enrolling institutions/organizations as per NSQF.

Course Eligibility for Skill Development Loan?

Training Institutes: Courses run by Industrial Training Institutes (ITIs), Polytechnics or in a school recognized by Central or State Education Boards or in a college affiliated to recognized University, training partners affiliated to National Skill Development Corporation (NSDC)/Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a Certificate / Diploma / Degree issued by such organization as per National Skill Qualification Framework (NSQF) is eligible for

a Skilling Loan.The Government of India / State Governments may, from time to time, notify

institutes/organizations for the purpose.

Training Courses: Courses run by above mentioned Training Institutes aligned to National Skill Qualification Framework (NSQF) shall be covered by the Skill Loan.

There is no minimum course duration.

List of approved training institutes is available in the website of National Skill Development Corporation at the following link: http://www.nsdcindia.org/affilates-centers

Eligible expenses for Skill Development Loan?

Tuition / course fee. Banks shall pay such tuition / course fee directly to the Training Institute.

Any other reasonable expenditure found necessary for completion of the course including but not limited to assessment fee, Examination fee, Library charges, Laboratory fee, Caution deposit, purchase of books, equipment’s and instruments (As such courses are localized, boarding, lodging may not be necessary based on the cost of living in the particular area. However, wherever it has been found necessary, the same could be considered on merit

Quantum of Finance for Skill Development Loan?

Loans will be in the range of Rs. 5,000/- to Rs. 150,000/-. The estimated per month fees, based on sector & NSQF level, will be available with the NSDC. Skill loan could be availed by beneficiaries of other grant/reward based Government schemes for skill training to cover the cost of such skill training not covered under such grant/reward.

[ i.e If the student has availed grant /reward etc., from State Government to meet part of cost of study, in such cases, for the balance amount, student may avail loan under this scheme]

Margin amount in Skill Development Loan ?

- NIL

Interest Rate for Skill Development Loan ?

As per the Latest Rate of Interest of the Bank.

Simple interest will be charged during the initial repayment holiday period.1% interest concession is available during repayment holiday period & subsequent moratorium period, if any, if the interest is serviced as and when debited, but not later than 30 days of debit.

Concession in rate of interest at 25 bps below the applicable card rate is extended to SC/ST/Women.

Concession in rate of interest at 50 bps (inclusive of 25 bps available for SC/ST/Women) below the applicable card rate for girl students for new loans.

Interest concession of 0.50% is extended to Physically Challenged students .

Processing Charges for skill Development Loan ?

- NIL

Prepayment Charges of Skill Development Loan?

The borrower can repay the loan any time without having to pay any prepayment charges. In case a student is not able to complete the course because of accident/death/disability the bank can seek a pro-rata reimbursement of the unfinished portion of the course amount from the training institute. This will reduce the loan burden on the student.

Security for Skill Development Loan?

Co-obligation of Parent/s, Grand Parent/s ( if parents are deceased) .

No other collateral security.

Moratorium Period in Skill Development Loan?

[Initial repayment holiday]

Courses of duration up to 1 year :Course period + 6 months

Courses of duration above 1 year :Course period +12 months

Repayment Tenor of Skill Development Loan?

Loan up to Rs.50000/-:Repayment period [after moratorium] Up to 3 years

Loan above Rs.50000/-& up to Rs.1 lakh: Repayment period [after moratorium] Up to 5years

Loan above Rs. 1 lakh: Repayment period [after moratorium] Up to 7 years

Servicing of the interest debited during initial repayment holiday period is optional.However, the borrower may service such interest to lessen the burden of EMI. Otherwise, the accumulated interest will be added to the principal at the beginning of the repayment period to arrive at EMI.

Repayment : Repayment of loan in Step- Up EMI /Balloon payment:

The education loans shall be repaid in EMI to be re-set in the following order:

For the first three years from the date of commencement of repayment : EMI will be at a minimum of 50% of net income of the student borrower.

For the next three years: : EMI will be at a minimum of 60% of net income of the student borrower , prevailing as on date of commencement of fourth year.

For remaining years: EMI shall be fixed based on the balance outstanding at the beginning of seventh year so that the entire loan will be closed within the balance repayment period. Wherever, student borrower has higher repayment capacity, in such cases, higher EMI shall be fixed.

Where the student discontinues the course midway, appropriate repayment schedule will be worked out in consultation with the student/parents.

Other Guidelines in Skill Development Loan?

Loan should be availed preferably from the Bank/ Branch situated near to the place of domicile of the parents.

Reimbursement of fees only for the first year of the course is permitted