PRADHAN MANTRI VIDYA LAKSHMI KARYAKRAM

Terms and conditions – IBA SCHEME

1. All documents have to be completed as per Bank’s guidelines before disbursement

of loan. As per IBA scheme, the loan documents should be jointly signed by the student
and parent/guardian. Hence Mr/Mrs …………. Father/mother of the student will become
the joint borrower for this loan.

2. Irrevocable letter of authority by the parent/s to his/her employer to deduct the loan
amount from the salary, in case of default towards the monthly loan installments and
remit to the Bank.

3. Undertaking letter should be given by the parent/s to remit the loan installments
from the salary in case of default by the borrower at the time of disbursal of the loan.

4. Parent/Guardian’s undertaking letter for payment of insurance premium on due

dates to be obtained (if applicable).

5. The continuance of the loan until the completion of the course will depend upon the
student’s academic performance in the examination conducted by the institutions.

6. Additional security by way of mortgage of immovable property to be provided when

the loan exceeds the prescribed limit. EM should be created as per Bank’s norms.
Latest EC and valuation receipt to be produced (if applicable). EM to be registered with
SRO wherever applicable.

7. (a) The student borrower should not change the course/College without the prior
approval of the credit sanctioning authority.

(b) Progress reports should be submitted by the borrower and academic performance of
the student borrower will be reviewed for each semester/year.

8. The proportionate amount of FIRST YEAR fee paid by the applicant ( if the loan is
applied during the first academic year itself) may be reimbursed on production of
relevant stamped receipts issued by the college/institution.

9. Tuition fee/Examination fee etc. should be directly remitted to the institution.

10. Apart from the above, the following terms and conditions to be carried out in case
of loan for studies abroad.

a. The student should furnish to the Bank the letter of admission issued by the foreign
university (I20). Passport, visa and other original certificates of the student should be
produced for verification along with copies.

b. Amount will be released directly to the College/Foreign University/Air Lines and

receipts/undertaking to be given by the parent/student.

11. All the borrowers and guarantors must furnish their passport size photos
 PRADHAN MANTRI VIDYA LAKSHMI KARYAKRAM

12. Bank is entitled to charge and recover interest, various fees, and charges as per
actual/prescribed tariff from the borrower as applicable from time to time.

13. The limits shall be availed within the prescribed time limit from the date of
communication of sanction.

14. The advance must be used for the purpose for which it is sanctioned. Unless
otherwise specified, the working capital limits disbursed are valid for a period of one
year from the date of sanction. For any request for renewal/enhancement, application
should be made at least three months in advance furnishing all the relevant data as
required by Bank.

15. Valuation of the property, wherever given as security, should be done by the Bank’s
approved Engineer/Revenue authorities.

16. Default in payment of interest/installments on the respective due date will attract
overdue interest on the defaulted amount at 2 % over and above the
contractual/maximum interest rates or at such rates as applicable from time to time.

17. The Bank may at its discretion recall the entire advance upon default of a single
installment/interest.