The candidate should be an Indian national
The candidate must have a good academic record
The candidate must have a confirmed admission for the Diploma in Advanced Computing course
The candidate should apply for the loan to the Bank in the same city where he is residing
The candidate should also satisfy the other conditions such as educational and economic background, etc. as per the laid down procedure of the Bank
The applicant for the Educational Loan from the bank should be a full time student

Q2. What may be the loan amount disbursed for the Diploma in Advanced Computing Course?
The loan amount may be upto 85 % of the fee payable to C-DAC for the Diploma in Advanced Computing course The remaining 15 % of the fee should be contributed by the candidate

Q3. What guarantee/securities does the bank ask for while sanctioning the loan?
Two guarantors having worth at least double the loan amount with their respective details such as name and address, occupation and relationship, if any, with the candidate. Paper securities, viz. Term Deposit Receipts, Shares Certificates, N.S.Certificates, Units, which can be in the name of the candidate or his/her guarantor, if possible, and L.I.C. Policy for an amount equal to or greater than the loan amount in the name of the candidate should be furnished.

Q4. Who can be the guarantors ?
Earning Parents, Brothers, Sisters, other close relatives and friends can be guarantors. C-DAC/ATC does not stand guarantee to any candidate to enable him to avail the bank loan facility.

Q5. What assistance does C-DAC/ATC give for availing this facility?
C-DAC/ATC issues a letter of admission to the candidate which should be shown to the bank on the basis of which the application for the loan is processed by the bank.

Q6. What is the rate of interest applicable on the loan amount?
Is it Simple Interest or Compound Interest? The interest applicable on loan amount is as per policy guidelines of respective bank presently it is around 12.5% per annum upto a loan amount of Rs.2,00,000/-. The interest is Compound Interest computed quaterly. In case the schedule of re-payment is not adhered to, penal interest @ 2% is levied.

Q7. Is there any other amount which has to be paid to the Bank ?
Some of the banks may charge an amount @ 2% of the balance loan amount, which is payable to the bank towards the Deposit Insurance and Credit Guaranty Corporation of India (DICGC) fees in addition to the instalment together with the interest payable. The other processing charges and/or stamp agreement charges are to be paid seperately as per the policy of respective bank.

Q8. When does the repayment begin?
The repayment normally will start six months after the completion of the course or on securing gainful employment, whichever is earlier. It may also start immediately after the actual disbursement of the loan

Q9. What is the exact amount which I have to repay to the bank including the DICGC fee as well as the interest on the loan amount ? What is the maximum repayment period?
If the loan amount is Rs.55,000/-, and the instalment is of Rs.1,462.00 per month, then a total of 48 such monthly installments will have to be paid to the Bank by the candidate towards repayment of the principal amount. Interest payments the amount of which would vary every time, are to be paid separately every quarter. The maximum period of repayment is 04 years

Q10. Names of the banks who have sanctioned educational loans for the students of our previous batches

Bank of India

State Bank of India

Central Bank

Union Bank of India

Bank of Baroda

Bank of Maharashtra

Canara Bank

Syndicate Bank

Vijaya Bank

Vysya Bank

The United Western Bank

HDFC Bank

Dena Bank

Andhra Bank

UCO Bank

Q11. How much time does one normally take to get the loan disbursed?
It takes about 1- 3 weeks depending upon the readiness of guarantors, paper securities and other relevant documents

Q12. What are the supporting documents asked by the bank for sanctioning the loan?
Application form Paper Securities / Mortgage of property Life Insurance Policy etc.

Q13. Do you also get the loan for Hostel Fee and Text Books?
Yes. Hostel Fee and Text Books amount upto Rs. 25,000/- for six months may be included for the sanction of the total Educational Loan amount.

Q14. What are the main steps in obtaining the educational loan from scheduled banks ?

Meet the Bank Manager / Loan Processing Department

Obtain the Application Form

Fill up the form.

Obtain the signatures of guarantors, attach paper securities, Life Insurance Policy

Submit the application form along with the required relevant documents

Follow-up with the Loan Processing Department on a regular basis

Collect the DD drawn in favour of C-DAC, ACTS and payable at Pune and forward it to ACTS Pune.

IMPORTANT NOTE:
It is recommended that all applicants who wish to apply for a bank loan visit their respective banks immediately after the Entrance Test in order to discuss and understand the Loan Procedure. They should also be in full readiness in respect of the guarantors, paper securities and insurance polices, etc. required for processing and disbursal of the Educational Loan.

The answers to the questions given here are general guidelines and may vary slightly from bank to bank.

The Bank of India vide their Circular Number HO 93/15 dated April 21, 1999 have recognized the Diploma in Advanced Computing course of C-DAC for the processing of Educational Loan under "Vidya Vardhini Scheme". The applications of the educational loans shall be processed by the various branches of Bank of India in the respective cities. The disbursal of the loan amounts to the interested candidates shall take place after the completion of all the required formalities with the bank.