e-Circular

PBU-PERSONAL LOANS.
Sl. No. : 872/2009 - 10
Circular No. : NBG/PBU/PL-SCHOLAR/19/2009 -
10
Wednesday,March 31,2010.
.

The Chief General Manager,

State Bank of India,
Local Head Office,
All Circles

Circular No: PB/PL/19 30th March 2010

Dear Sir,
PERSONAL BANKING ADVANCES
SBI SCHOLAR LOAN SCHEME
REVIEW, MODIFICATIONS AND INCLUSION OF NEW INSTITUTES

Based upon the review/ suggestions/ recommendations received from the circles,
the competent authority has reviewed the scheme and approved the following
modifications and inclusion of new institutes under SBI Scholar Loan scheme:

Parameter Existing Instructions Modifications

LOAN Upto Rs. 15 lacs List A 7 IIMs

AMOUNT (61 institutes) Maximum loan amount Rs. 15
lacs
List B The remaining 54
institutes from the existing list
Maximum loan amount Rs. 10
lacs
List C New 39 institutes
Maximum loan amount Rs. 7.50
lacs
(Category-wise detailed list of all
100 institutes covered under the
scheme is mentioned in
Annexure-I)

CO-BORROWER The loan is sanctioned in The loan would be sanctioned

the individual name of the jointly in the name of the student
student only. and his parent/ guardian. In case
Parent/guardian as co- of married person, co-obligator
borrower at the discretion can either be spouse or
of the sanctioning parent/parent-in-law. Parental co-
authority. obligation can also be substituted
by a suitable third party
guarantee
SANCTION & At campus branch or a
DISBURSEMENT branch nearer to the
permanent residence of the
student
At Campus/ Branch designated
by Circle near the campus.
However, after the completion of
the studies and if the student
desires, the loan account can be
transferred to a branch closer to
the place of co-borrower and
preferably which has made KYC
verification at the time of availing
loan for tracking purposes

COURSES Regular full time Regular full time Degree/Diploma

COVERED Degree/Diploma Courses
and not certificate/part-time
courses, through entrance
test/ selection process
Courses and not certificate/part-
time courses, through entrance
test/ selection process. Full time
Executive Management Courses
like PGPX (for IIMs) are also
covered

Other changes are mentioned in Annexure-II.

2. Identification of Branches
A list of identified branches for the existing institutes is mentioned in the annexure-
I. Some circles have not identified the campus/ designated branches for the few
institutes already covered under Scholar Loan Scheme. We request Circles to
identify a campus/ designated branch and advise us. In case there is no branch on
the campus, the circles may identify a designated branch preferably covered under
Super Circle of Excellence.

3. Classification under Priority Sector Lending

As per RBI instructions, education loans upto Rs 10 lacs for studies in India are
classified under Priority Sector Lending.

4. Maximum Business
With the advent of the academic session 2010-11, the branches should book
maximum business from these institutes, as the loans to the students from these
institutes are granted at relaxed rates and terms.

5. Please arrange accordingly.

Yours faithfully,

General Manager
(Personal Banking)

Encl: Annexure-I and Annexure-II

 Annexure-I

S. INSTITUTES UNDER SBI SCHOLAR Campus/

Circle
No. LOAN SCHEME Designated Branch
LIST 'A' (Max. loan amt Rs. 15
lacs)
Indian Institute of Management (IIM), IIM Branch,
1 Ahmedabad
Ahmedabad Ahmedabad
Indian Institute of Management (IIM), Bannerghatta Road
2 Bangalore
Bangalore Branch, Bangalore
Indian Institute of Management (IIM), IIM Joka Branch,
3 Kolkata
Kolkata Kolkata
Indian Institute of Management (IIM), CAT Sukhniwas
4 Bhopal
Indore Branch, Indore
Indian Institute of Management (IIM), Behta Saboli Branch,
5 Lucknow
Lucknow Lucknow
Indian Institute of Management (IIM), Calicut REC Branch,
6 Kerala
Kozikode Kozikhode
Indian Institute of Management (IIM), Laitumkhrah Branch,
7 Guwahati
Shillong (new) Shillong
LIST 'B' (Max. loan amt. Rs. 10 lacs)
Indian Institute of Technology (IIT), IIT Powai Branch,
1 Mumbai
Mumbai Mumbai
Indian Institute of Technology (IIT), IIT Kanpur Branch,
2 Patna
Kanpur Kanpur
Indian Institute of Technology (IIT), IIT Campus Branch,
3 Chennai
Chennai Chennai
Indian Institute of Technology (IIT), Kharagpur Branch,
4 Kolkata
Kharagpur West Bengal
Indian Institute of Technology (IIT), ICD, Amingaon
5 Guwahati
Guwahati Branch, Guwahati
Indian Institute of Technology (IIT), IIT Hauz Khas
6 Delhi
Delhi Branch, Delhi
Indian Institute of Technology (IIT), IIT Roorkee Branch,
7 Delhi
Roorkee Roorkee
Indian Institute of Technology (IIT),
8 Ahmedabad Not identified
Gandhinagar (new)
Indian Institute of Technology (IIT),
9 Chandigarh Not identified
Roopnagar (new)
Indian Institute of Technology (IIT),
10 Delhi Not identified
Rajasthan (new)
Indian Institute of Technology (IIT),
11 Hyderabad Not identified
Hyderabad (new)
Indian Institute of Technology (IIT),
12 Patna Not identified
Patna (new)
Indian Institute of Technology (IIT),
13 Bhubaneswar Not identified
Bhubaneswar (new)
Indian Institute of Technology (IIT),
14 Chandigarh Not identified
Mandi (new)
Indian Institute of Technology (IIT),
15 Bhopal Not identified
Indore (new)
IT BHU, Banaras (to be converted into BHU Branch,
16 Lucknow
IIT Varanasi) Varanasi
 Faculty of Management Studies Delhi University
17 Delhi
(FMS), Delhi Branch, Delhi
IIT Powai Branch,
18 IIT-SJSOM, Mumbai Mumbai
Mumbai
NCERT Branch,
19 Indian Institute of Foreign Trade, Delhi Delhi
Delhi
Institute of Management Technology Ghaziabad Branch,
20 Delhi
(IMT), Ghaziabad Ghaziabad
Dept of Management Studies, IIT, IIT, Hauz Khas
21 Delhi
Delhi Branch, New Delhi
Narsee Monjee Institute of
22 Management &Higher Studies Mumbai PBB Branch, Juhu
(NMIMS), Mumbai
Jamnalal Bajaj Institute of
PBB Churchgate
23 Management Studies (JBIMS), Mumbai
Branch, Mumbai
Mumbai
Nirma Institute of Management, Gujarat High Court
24 Ahmedabad
Ahmedabad Branch, Ahmedabad
S P Jain Institute of Management and Andheri West
25 Mumbai
Research (SPJIMR), Mumbai Branch, Mumbai
Fortune Tower
Xavier Institute of Management (XIM),
26 Bhubaneswar Branch,
Bhubaneswar
Bhubaneswar
Symbiosis Institute of Business
27 Mumbai MIDC Hinjwadi
Management (SIBM), Pune
Xavier Labour Relations Institute Jamshedpur Branch,
28 Patna
(XLRI), Jamshedpur Jamshedpur
Management Development Institute Mehrauli Road
29 Delhi
(MDI), Gurgaon Branch, Haryana
National Institute of Industrial training NITIE Campus
30 Mumbai
(NITIE), Mumbai Branch, Mumbai
Dept of Industrial & Management IIT Kanpur Branch,
31 Patna
Engineering, IIT, Kanpur Kanpur
Alipore Branch,
32 Marine Engineering College, Kolkata Kolkata
Kolkata
Delhi College of Engineering (DCE), Samaypur Branch,
33 Delhi
Delhi Delhi
Birla Institute of Technology & Science Chirava Branch,
34 Delhi
(BITS), Pilani Delhi
College Campus
35 Anna University, Chennai Chennai
Branch, Chennai
National Institute of Design (NID), Paldi Branch,
36 Ahmedabad
Ahmedabad Ahmedabad
Christian Medical College (CMC), Vellore Town
37 Chennai
Vellore Branch, Vellore
Bangalore Medical College (BMC), Fort Branch,
38 Bangalore
Bangalore Bangalore
Jawaharlal Institute of Post-Graduate
JIPMER Campus
39 Medical Education and Research Chennai
Branch, Pondicherry
(JIPMER), Pondicherry
Madras Medical College (MMC), Park Town Branch,
40 Chennai
Chennai Chennai
Grant Medical College (GMC), Byculla Branch,
41 Mumbai
Mumbai Mumbai
Armed Forces Medical College Golibar Maidan
42 Mumbai
(AFMC), Pune Branch, Pune
King Edward Medical College (KEMC), Parel Branch,
43 Mumbai
Mumbai Mumbai
 Maulana Azad Medical College IP Estate Branch,
44 Delhi
(MAMC), Delhi New Delhi
All India Institute of Medical Sciences AIIMS Campus
45 Delhi
(AIIMS), Delhi Branch, New Delhi
Lady Hardinge Medical College Cannaught Circus
46 Delhi
(LHMC), Delhi Branch, New Delhi
Kasturba Medical College (KMC),
47 Bangalore Manipal Branch
Manipal
Post Graduate Institute of Medical
48 education & Research (PGIMER), Chandigarh Not identified
Chandigarh
Indian Institute of Forest Management TT Nagar Branch,
49 Bhopal
(IIFM), Bhopal Bhopal
Mudra Institute of Communication Bopal Branch,
50 Ahmedabad
(MICA), Ahmedabad Ahmedabad
Indian Institute of Science (IISC), IISc Branch,
51 Bangalore
Bangalore Bangalore
Institute of Rural Management, Anand Anand Branch,
52 Ahmedabad
(IRMA) Anand
Tata Institute of Social Sciences Deonar Branch,
53 Mumbai
(TISS), Mumbai Mumbai
Indian School of Mines (ISM), ISM Branch,
54 Patna
Dhanbad Dhanbad
LIST 'C' (Max. loan amt Rs. 7.5 lacs)
National Institute of Technology (NIT),
1 Hyderabad To be identified
Warangal
National Institute of Technology (NIT),
2 Chennai To be identified
Tiruchirapalli
National Institute of Technology (NIT),
3 Bangalore To be identified
Surathkal
National Institute of Technology (NIT),
4 Bhopal To be identified
Raipur
National Institute of Technology (NIT),
5 Bhubaneswar To be identified
Rourkela
National Institute of Technology (NIT),
6 Delhi To be identified
Kurukshetra
National Institute of Technology (NIT),
7 Kerala To be identified
Calicut
National Institute of Technology (NIT),
8 Kolkata To be identified
Durgapur
National Institute of Technology (NIT),
9 Patna To be identified
Jamshedpur
National Institute of Technology (NIT),
10 Patna To be identified
Patna
National Institute of Technology (NIT),
11 North-East To be identified
Silchar
National Institute of Technology (NIT),
12 North-East To be identified
Agartala
National Institute of Technology (NIT),
13 Chandigarh To be identified
Hamirpur
National Institute of Technology (NIT),
14 Chandigarh To be identified
Srinagar
Malaviya National Institute of
15 Delhi To be identified
Technology (NIT), Jaipur
Maulana Azad National Institute of
16 Bhopal To be identified
Technology (NIT), Bhopal
Sardar Vallabh Bhai National Institute
17 Ahmedabad To be identified
of Technology (NIT), Surat
 Motilal Nehru National Institute of
18 Lucknow To be identified
Technology (NIT), Allahabad
Dr. B R Ambedkar National Institute of
19 Chandigarh To be identified
Technology (NIT), Jalandhar
Visvesvaraya National Institute of
20 Mumbai To be identified
Technology (NIT), Nagpur
Birla Institute of Technology & Science
21 Hyderabad To be identified
(BITS), Hyderabad Campus
Birla Institute of Technology & Science
22 Mumbai To be identified
(BITS), Goa Campus
23 St. John's Medical College, Bangalore Bangalore To be identified
Christian Medical College (CMC),
24 Chandigarh To be identified
Ludhiana
Dayanand Medical College (DMC),
25 Chandigarh To be identified
Ludhiana
Amrita School of Medicine (ASM),
26 Kerala To be identified
Kerala
Netaji Subash Institute Of Technology
27 Delhi To be identified
(NSIT), Delhi
Dhirubhai Ambani Institute of
28 Information & Communication Ahmedabad To be identified
Technology (DAIICT), Gandhinagar
University College of Engineering
29 Bhubaneswar To be identified
(UCE), Burla
LN Mittal Institute of Technology
30 Delhi To be identified
(LNMIT), Jaipur
31 Jadavpur University, Kolkata Kolkata To be identified
Veermata Jeejabai Technical Institute
32 Mumbai To be identified
(VJTI), Mumbai
33 College of Engineering , Pune Mumbai To be identified
University Institute of Chemical
34 Mumbai To be identified
Technology (UICT), Mumbai
Centre for Environmental Planning &
35 Ahmedabad To be identified
Technology (CEPT), Ahmedabad
School of Planning & Architecture,
36 Delhi To be identified
New Delhi
National Law School of India University
37 Bangalore To be identified
(NLSIU), Bangalore
National University of Juridical
38 Kolkata To be identified
Sciences (NUJS), Kolkata
Loyola Institute of Business
39 Chennai To be identified
Administration (LIBA), Chennai
 Annexure II
SBI SCHOLAR LOAN SCHEME

Parameter Extant Instructions Proposed Instructions

Purpose Loans will be granted to No change
deserving/meritorious students
for pursuing full time courses in
India at selected premier and
reputed institutions identified by
the Bank. The list will be revised
periodically

Eligibility The applicant should be an No change

Indian National and should have
secured admission to full time
professional/ technical courses
in selected institutes

Eligible Fee payable to college/ No change

Expenses school/ hostel
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
Purchase of computers, 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
Type of Loan The loan will be sanctioned as a No change
term loan
Institutes & Presently 61 List A 7 IIMs
loan amount Maximum loan amount Rs.15 Maximum loan amount Rs. 15
lacs lacs
List B The remaining 54
from the existing list
Maximum loan amount Rs. 10
lacs
List C New 39 institutes
proposed to be added
Maximum loan amount Rs.
7.50 lacs
(Annexure-I)

Courses Regular full time Regular full time

covered Degree/Diploma Courses and Degree/Diploma Courses and
not certificate/part-time courses, not certificate/part-time
through entrance test/ selection courses, through entrance test/
process selection process. In case of
IIMs full time Executive
 Management Courses like
PGPX are covered
Rate of A) 1.50% below SBAR i.e. No change
Interest 10.25% at present
B) i) Simple Interest to be
charged during moratorium/
repayment holiday
ii) Interest concession of 1% for
the entire period of loan if the
interest is serviced during
course period and moratorium
iii) 0.50% concession in interest
for girl student
iv) Penal interest @ 2% is to be
charged for loans above Rs. 4
lacs for the overdue amount and
overdue period
Margin Upto Rs. 4 lacs: Nil No change
Above Rs. 4 lacs: 5%
Scholarship/ assistantship to
be included in the margin
Margin may be brought in on
year to year basis as and
when disbursements are
made on a pro-rata basis

Sanction & At campus branch or a branch At Campus/ Branch designated

Disbursement nearer to the permanent by Circle near the campus.
residence of the student However, after the completion
of the studies and if the student
desires, the loan account can
be transferred to a branch
closer to the place of co-
borrower and preferably which
has made KYC verification at
the time of availing loan for
tracking purposes
Co-borrower The loan is sanctioned in the The loan would be sanctioned
individual name of the student jointly in the name of the
only. student and his parent/
Parent/guardian as co-borrower guardian. In case of married
at the discretion of the person, co-obligator can either
sanctioning authority. be spouse or parent/parent-in-
law. Parental co-obligation can
also be substituted by a
suitable third party guarantee
Security No security The loan would be sanctioned
jointly in the name of the
student and his parent/
guardian. In case of married
person, co-obligator can either
be spouse or parent/parent-in-
law. Parental co-obligation can
also be substituted by a
suitable third party guarantee
Processing Nil No change
Fee
Opinion Opinion Report on student will No change
Report not be compiled as we are
relying on the student getting a
favourable placement and
repaying the loan out of his
 future income

Moratorium Up to 6 months after completing No change

Period the course
Repayment Maximum 5-7 years after No change
commencement of repayment
Extension of time for
completion of course may be
permitted for maximum period
of 2 years if the student is not
able to complete course
within scheduled time
The interest accrued during
repayment holiday period is to
be added to the principal and
repayment in Equated
Monthly Installments (EMI)
fixed
Sanctioning Disposal norm is of two to three No change
of Loan days, after submission of
applications application, complete in all
respects, for completing
formalities and disbursement of
the loan. Circle authorities are
requested to depute dedicated
teams to these institutes during
the relevant period for assisting
students in completion of
formalities for the loans

ATM/ Internet Any student obtaining an An ATM-cum-Debit card and

Banking education loan from us has to Internet Banking facility will be
Facility preferably open a savings bank immediately provided to all the
account with the respective students applying for this loan.
branch. He will be given a However, there would be no
minimum period of 3 months to such condition of building
build a minimum balance of Rs. certain balance within a
1000. An ATM-cum-Debit card mentioned period of time
and Internet Banking facility
would be immediately provided
to him
Option of At the end of education term, After the completion of the
transferring the branch manager will give the studies and if the student
the account borrower an option to transfer desires, the loan account can
after the his account and loan to a be transferred to a branch
course- location convenient to him (e.g. closer to the place of co-
completion the city where he is going to be borrower and preferably which
posted for work). This will has made KYC verification at
ensure that the student the time of availing loan for
continues to use his Savings tracking purposes
Bank Account and it becomes
easier for the Branch Manager
of the transferee branch to
follow up in case there is any
irregularity in the loan account.
However, this is an option and
the student may choose to leave
the account in the original
branch
KYC norms Education loan to students, who No change
have secured admission to the
selected institutes, is sanctioned
and disbursed from a branch
which is conveniently located
on-campus or near the institute.
Pre-sanction check of the
students identity & address is
done by the branch near the
permanent residence of the
student on the request of the
branch which is disbursing the
loan

Approval Since no tangible security or In principle sanction letters may

letters to the guarantee is obtained, a letter
students conveying the sanction of loan
i.e., disbursement of loan
subject to completion of
formalities, will be sent to all the
students who secure admission
to these institutes by the
identified branches. An
attractive brochure containing
the salient features of the
scheme should be annexed to
such approval letters
Relationship The Branch Managers of the
Building identified branches will be
Activities advised to initiate suitable
relationship building activities
with the institute. They should
personally visit campuses and
meet the students during their
spare time to convince the
students to take loans from SBI
Sponsorship The circle CGM may grant
to institutes sponsorship of Rs. 2 lacs per
annum for the main cultural
event/ college magazine of a
particular institute subject to the
following conditions:
Minimum 40% of the batch
size of the institute should
take Education loan from SBI
The institute has to mention
SBI name and logo as the
Preferred Financer on their
application brochure,
advertisements, web site,
etc. The institute should
insert SBI Education Loan
brochures along with their
application forms
Second If a student approaches the
Education bank for a loan for further
Loan studies, the same can be
granted to him/ her subject to
the following conditions:
The combined loan amount
be issued subject to producing
the documents as the loans will
be secured by co-
borrower/third-party guarantee
No change
The circle CGM may grant
sponsorship of Rs. 3 lacs per
annum for the main cultural
event/placement sessions/
college magazine of a
particular institute subject to the
following conditions:
Minimum 40% of the batch
size of the institute should
take Education loan from
SBI
The institute has to mention
SBI name and logo as the
Preferred Financer on their
application brochure,
advertisements, web site,
etc. The institute should
insert SBI Education Loan
brochures along with their
application forms
If a student approaches the
bank for a loan for further
studies, the same can be
granted to him/ her subject to
the following conditions:
The combined loan amount
 should not exceed the
maximum permissible loan
amount under SBI Scholar
Loan Scheme
The second education loan The second education loan
may be preferably given from
the same branch as the first
loan. However, if the student
finds this inconvenient, he
may request for the second
loan from a branch
convenient to him and get the
first loan transferred to that
branch
The student will be given a
maximum period of seven
years after completing the
second course to repay both The student will be given a
the loans
Loans for This scheme does not cover If a student who has been
further Education Loans to students
studies going abroad for pursuing
abroad education. Such students may
be granted Education Loans as
per the provisions of our
Education Loan Scheme. If a
student who has been granted
an Education Loan under SBI
Scholar Loan scheme
approaches us for a second
Education Loan for pursuing
studies abroad, the same may
be granted to him if he furnishes However, for the first loan
adequate tangible collateral
should not exceed the
maximum permissible loan
amount under SBI Scholar
Loan Scheme
may be preferably given from
the same branch as the first
loan. However, if the student
finds this inconvenient, he
may request for the second
loan from a branch closer to
the place of co-borrower and
preferably which has made
KYC verification at the time
of availing loan and get the
first loan transferred to that
branch
maximum period of seven
years after completing the
second course to repay both
the loans
If the second loan is availed
for pursuing studies from an
institute covered under SBI
Scholar Scheme, combined
loan amount would be
maximum permissible for the
second institute under
Scholar Loan Scheme.
If the second loan taken for
pursuing studies is not
covered under SBI Scholar
Loan Scheme, then the loan
will be considered under SBI
Student Loan Scheme
subject to the terms and
conditions applicable for the
combined loan amount under
SBI Student Loan Scheme.
However, for the first loan,
interest rate applicable to
SBI Scholar Loan would
continue and for the second
loan interest rate applicable
to Student Loan should be
charged
granted an education loan
under SBI Scholar Loan
scheme approaches us for a
second Education Loan for
pursuing studies abroad, the
same may be granted to him
if he furnishes adequate
tangible collateral security for
the combined amount of the
loan, and as per the
provisions of our SBI Student
Loan Scheme.
interest rate applicable to
security for the second loan, and
as per the provisions of our
Education Loan Scheme.
SBI Scholar Loan would
continue and for the second
loan interest rate applicable
to Student Loan should be
charged.