A loan is a type of debt.

Like all debt instruments, a loan entails the redistribution of

financial assets over time, between the lender and the borrower.

In a loan, the borrower initially receives or borrows an amount of money, called the
principal, from the lender, and is obligated to pay back or repay an equal amount of
money to the lender at a later time. Typically, the money is paid back in regular
installments, or partial repayments; in an annuity, each installment is the same amount.
The loan is generally provided at a cost, referred to as interest on the debt, which
provides an incentive for the lender to engage in the loan. In a legal loan, each of these
obligations and restrictions is enforced by contract, which can also place the borrower
under additional restrictions known as loan covenants. Although this article focuses on
monetary loans, in practice any material object might be lent.

Acting as a provider of loans is one of the principal tasks for financial institutions. For
other institutions, issuing of debt contracts such as bonds is a typical source of funding.

Contents
[hide]

• 1 Types of loans
o 1.1 Secured
o 1.2 Unsecured
o 1.3 Demand
• 2 Loan payment
• 3 Abuses in lending
• 4 United States taxes
• 5 Income from discharge of indebtedness
 • 6 See also

• 7 References

[edit] Types of loans

[edit] Secured

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property)
as collateral for the loan.

A mortgage loan is a very common type of debt instrument, used by many individuals to
purchase housing. In this arrangement, the money is used to purchase the property. The
financial institution, however, is given security — a lien on the title to the house — until
the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have
the legal right to repossess the house and sell it, to recover sums owing to it.

In some instances, a loan taken out to purchase a new or used car may be secured by the
car, in much the same way as a mortgage is secured by housing. The duration of the loan
period is considerably shorter — often corresponding to the useful life of the car. There
are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives
the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an
intermediary between the bank or financial institution and the consumer.

A type of loan especially used in limited partnership agreements is the recourse note.

A stock hedge loan is a special type of securities lending whereby the stock of a borrower
is hedged by the lender against loss, using options or other hedging strategies to reduce
lender risk.[citation needed]

A pre-settlement loan is a non-recourse debt, this is when a monetary loan is given based
on the merit and awardable amount in a lawsuit case. Only certain types of lawsuit cases
are eligible for a pre-settlement loan.[citation needed] This is considered a secured non-recourse
debt due to the fact if the case reaches a verdict in favor of the defendant the loan is
forgiven.

[edit] Unsecured

Unsecured loans are monetary loans that are not secured against the borrower's assets.
These may be available from financial institutions under many different guises or
marketing packages:

• credit card debt

• personal loans
• bank overdrafts
 • credit facilities or lines of credit
• corporate bonds

The interest rates applicable to these different forms may vary depending on the lender
and the borrower. These may or may not be regulated by law. In the United Kingdom,
when applied to individuals, these may come under the Consumer Credit Act 1974.

[edit] Demand

Demand loans are short term loans that are atypical in that they do not have fixed dates
for repayment and carry a floating interest rate which varies according to the prime rate.
They can be "called" for repayment by the lending institution at any time. Demand loans
may be unsecured or secured.[1]

[edit] Loan payment

The most typical loan payment type is the fully amortizing payment in which each
monthly rate has the same value overtime. [2]

The fixed monthly payment P for a loan of L for n months and a monthly interest rate c
is: [3]

[edit] Abuses in lending

Predatory lending is one form of abuse in the granting of loans. It usually involves
granting a loan in order to put the borrower in a position that one can gain advantage over
him or her. Where the moneylender is not authorized, they could be considered a loan
shark.

Usury is a different form of abuse, where the lender charges excessive interest. In
different time periods and cultures the acceptable interest rate has varied, from no interest
at all to unlimited interest rates. Credit card companies in some countries have been
accused by consumer organisations of lending at usurious interest rates and making
money out of frivolous "extra charges". [4]

Abuses can also take place in the form of the customer abusing the lender by not repaying
the loan or with an intent to defraud the lender.

Different Types of Personal Loans In India

Money always plays the most important role in human lives. The desire to fulfill personal
needs come to everybody's mind but affording for that is not always possible. But in a
country like India, that can't be a barrier to fulfill your and your family's desires. Because,
there are hundreds of banks and other financial organizations in the country who provide
loans for personal reasons. These kinds of loans are known as personal loans. India is
situating on one of the top positions in terms of providing these types of loans.

Personal loans are simply those retail loans which are provided for the purpose of
fulfillment of personal needs and expenses of individuals (prospective loan borrowers).
The personal loans in India primarily are provided under five major categories. Though
the loan amount and the rate of interest vary from bank to bank, but the purposes of
providing these loans are same. Apart from the personal purposes, if someone possess the
desire to establish his own business then also the Indian banks always welcome by
providing the business start-up loans. Here, we will discuss about these kinds of loans.

Consumer Durable Loans : - These kinds of loans are being provided for purchasing
consumer durable products like television, music system, washing machines and so on.
These are one of the unique kind of loans that are provided by the Indian banks to attract
more and more people towards them. Under this category of personal loan, you will get
an amount ranging from Rs.10,000 to Rs.1,00,000. But there are several banks which
provides a minimum amount of Rs.5,000 and the maximum amount of Rs.2,00,000 under
this loan. Banks provide this loan for maximum of a time period of 5 years.

Festival Loans : - This kind of personal loan is provided to help people to fulfill their
personal and family's desire during the festival time. Usually, leading banks of India
provide this loan on the festive season at cheaper or discounted rate. This is the best type
of loan for those people who want to avail a small amount of loan. Under this category of
loan, banks do provide an minimum amount of Rs.5.000 and you can get an maximum
amount of Rs.50,000 under this type of loan. But the festival loan is restricted up to 12
months. Repayment is to be done by equated monthly installments (EMI). The rate of
interest on this loan varies from bank to bank.

Marriage Loans : - Nowadays, this type of personal loan is equally getting popular among
the people of urban and rural sectors. The loan amount depends on various factors
including age of the applicant, security pledged by the applicant (if secured loan),
repayment capacity of the applicant etc. Under the marriage loan, the rate of interest is
governed by the prevailing market rate at the time when the loan is disbursed.

Pension Loans : - There are several banks in India which take care of the old aged people
as well. That's why the people who have retired from their jobs will also be able to avail
personal loans. This type of loan is called a Pension loan. Under this kind of loan, the
banks provide the maximum amount which is up to 7 to 10 times of the amount which
was received as the last pension.

Personal Computer Loans : - In this age of Information technology revolution, having an

owned computer almost becomes a necessity. There are several Indian banks which offer
loans that fulfill that desires of people. Under this category of loan, up to Rs.1,00,000 of
amount can be borrowed. Banks also provide separate loan for purchasing of software
and that can be provided up to an amount of Rs.20,000. The rate of interest is being
charged according to prime lending rate and there are some banks who charge extra 2%
on the loan amount.

So, from the above discussion, one thing is quite clear that whatever your purpose is and
whenever you need to meet your financial expenses, the Indian banks are always ready to
spread their helping hands to you.

AGRICULTURE LOAN

Agricultural loans are available for a multitude of farming purposes. Farmers may apply
for loans to buy inputs for the cultivation of food grain crops as well as for horticulture,
aquaculture, animal husbandry, floriculture and sericulture businesses. There are also
special loans to finance the purchase of agricultural machinery such as tractors,
harvesters and trucks. Construction of biogas plants and irrigation systems as well as the
purchase of agricultural land may also be financed through special types of agricultural
finance. Here is some information about the kind of agricultural credit and loans provided
by public sector banks in India.State Bank of India

State Bank of India presents a wide range of financial schemes for agriculturalists. These
schemes include crop loans, Produce Marketing Loan Scheme, Loan Against Warehouse
Receipts, Kisan Credit Card Scheme, agricultural term loans, Land Development
Scheme, Minor Irrigation Scheme, Farm Mechanisation Scheme, Financing Of Combine
Harvesters, Kisan Gold Card Scheme, Land Purchase Scheme, Krishi Plus Scheme,
Arthias Plus Scheme, Dairy Plus Scheme, Broiler Plus Scheme, Finance To Horticulture,
Lead Bank Scheme and Agri Business Heads Scheme. The Bank also provides Micro
Finance through Self Help Groups and loans through 30 regional rural banks.

• State Bank of Bikaner and Jaipur (SBBJ) - External website that opens in a new
window
• State Bank of Hyderabad (SBH) - External website that opens in a new window
• State Bank of Indore (SBIR) - External website that opens in a new window
• State Bank of Mysore (SBM) - External website that opens in a new window
• State Bank of Patiala (SBP) - External website that opens in a new window
• State Bank of Saurashtra (SBS) - External website that opens in a new window
• State Bank of Travancore (SBT) - External website that opens in a new window

Schemes of Nationalised Banks

1. Allahabad Bank (External website that opens in a new window) - offers the
Kisan Credit Card and Kisan Shakti Yojana Scheme. The Kisan Credit Card
(External website that opens in a new window)offers the Kisan Credit Card and
Kisan Shakti Yojana Scheme. The Kisan Credit Card is a unique scheme for
farmers through which they can draw a cash loan for crop production as well as
domestic needs from the card-issuing branch within the sanctioned limit. The
 Kisan Shakti Yojana provides farm investment credit, as well as
personal/domestic loans including repayment of debt to moneylenders. The
permissible loan limit will be 50 per cent of the value of land or 5 times the net
farm income, whichever is lower, less the outstanding amount, if any, in Agril.
2. Andhra Bank (External website that opens in a new window) - provides facilities
to farmers like AB Kisan Vikas Card, AB Pattabhi Agricard, AB Kisan Chakra,
rural godowns, agri clinics, agri service centres, self help groups and solar
cookers. They also provide other schemes such as Kisan Sampathi, tractor
financing, Kisan Green Card, Surya Sakhti and loans to dairy agents.
3. Bank of Baroda (External website that opens in a new window) - offers farmers
the Baroda Kisan Credit Card. It also has schemes for the purchase of agricultural
implements, heavy agricultural machinery like tractors, irrigation and other
infrastructure. Bank of Baroda also finances the development of agri industries
like horticulture, sericulture, fisheries, dairy and poultry.
4. Bank of India (External website that opens in a new window) - has a Kisan
Credit Card Scheme that helps farmers raise short-term funds for agriculture and
other farm-based activities, on an on-going basis, with very flexible and friendly
repayment terms. It also offers an agricultural loan for development of agriculture
related industries, purchase of machinery and other agricultural purposes.
5. Bank of Maharashtra (External website that opens in a new window) - offers
agriculturists a Mahabank Kisan Credit Card and financial schemes for digging
new wells, purchasing harvesters, livestock, vehicles and land. Repayment terms
for different agricultural loans range from three to fifteen years.
6. Canara Bank (External website that opens in a new window) - provides Kisan
Credit Cards. Limits up to 50,000 have no margin while those above 50,000 have
a margin of 15 to 20 percent. Other than this, Canara Bank provides a wide array
of financial schemes for different agricultural purposes.
7. Central Bank of India (External website that opens in a new window) - The
Central Kisan Credit Card is a credit service provided to farmers on the basis of
their holdings for purchasing agricultural inputs. Only those farmers having a
good track record for the past 2 years with the bank as a borrower or depositor
and who are not defaulters to any credit institution would be considered for loans.
8. Corporation Bank (External website that opens in a new window)- offers a range
of loan schemes to farmers. They are the Corp Gram Mitra Yojana, Corp Arthias
Loan Yojana, Corp Kisan Tie-Up Loan Scheme, Corp Kisan Farm Mechanisation
Scheme and Corp Kisan Vehicle Loan Yojna.
9. Dena Bank (External website that opens in a new window) - Dena Bank has
sponsored 2 Regional Rural Banks namely Dena Gujarat Gramin Bank in Gujarat
and Durg Rajnandgaon Gramin Bank (DRGB) in Chhattisgarh. The bank has set
up a Rural Development Foundation for training unemployed youth in rural areas.
Other financial schemes of the bank are the Dena Swacch Gram Yojana, Dena
Kisan Gold Credit Card Scheme and the Dena Bhumiheen Kisan Credit Card
Scheme.
10. Indian Bank (External website that opens in a new window) - has a wide range
of schemes for agriculturalists such as Swarojgar Credit Card, Gramin Mahila
 Sowbhagya Scheme, Kisan Bike Loan Scheme, Yuva Kisan Vidya Nidhi Yojana
and Indian Bank Kisan Card Scheme.
11. Indian Overseas Bank (External website that opens in a new window) - offers
agri business consultancy services that include conducting feasibility and market
studies, preparation of detailed project reports and formulation of rehabilitation
packages for sick agro units.
12. Oriental Bank of Commerce (External website that opens in a new window) - It
has two agricultural projects - the Grameen Project and the Comprehensive
Village Development Programme. The Grameen Project involves disbursing
small loans ranging from Rs. 75 onwards to mostly women. Training is also
provided in villages in using locally available raw material to produce pickles and
jams. The Comprehensive Village Development Programme focuses on providing
an integrated package of rural finance to villagers to build up their village.
13. Punjab and Sind Bank (External website that opens in a new window) - offers a
range of financial schemes for farmers like the Zimidara Credit Card, tractor
finance scheme, drip irrigation scheme, Kheti Udyog Khazana Yojana, vermi
composting scheme, horticulture clinic and private veterinary clinic with dairy
unit scheme.
14. Punjab National Bank (External website that opens in a new window) - This
bank has a special website called PNB Krishi (External website that opens in a
new window) for agriculturalists. It gives details on crop practices, plant
protection, farm machinery, market prices and other farming news and activities.
The website also provides a list of financial schemes offered by Punjab National
Bank on production credit, investment credit, composite loans, animal husbandry
and farm mechanization.
15. Syndicate Bank (External website that opens in a new window) - offers a wide
range of agricultural loan products such as the Synd Jai Kisan Loan Scheme,
Jewel Loan Scheme for Agriculture, Syndicate Farm House Scheme, Finance for
Hi-tech Agriculture, Development of Irrigation Infrastructure scheme, Syndicate
2/3/4 Wheelers Scheme and the Syndicate Kisan Credit Card (S.K.C.C).
16. UCO Bank (External website that opens in a new window) - This Bank provides
the UCO Hirak Jayanti Krishi Yojana to meet the long-term credit needs of the
farming community in rural areas for agriculture, allied activities as well as for
personal purposes. Only farmers below 60 years are eligible to apply. Minimum
quantum of the loan is Rs. 25,000/- and the maximum is Rs. 5 lakhs.
17. Union Bank of India (External website that opens in a new window) - Facilities
provided to farmers include Kisan ATM Cards and special Kisan ATM Machines.
These ATM's are easy to operate and do not require farmers to have a high level
of literacy. They are voice enabled in the local language, have a touch screen
monitor and work on a bio-metric authentication system like finger print
verification.
18. United Bank of India (External website that opens in a new window) - The range
of financial schemes offered to agriculturalists include the United Krishi Laghu
Paribahan Yojana, United Krishi Sahayak Yojana, United Gramyashree Yojana,
Gramin Bhandaran Yojana and the United Bhumiheen Kisan Credit Card.
 19. Vijaya Bank (External website that opens in a new window) - This bank offers
one comprehensive financial scheme known as the Vijaya Krishi Vikas (VKV)
Scheme. This scheme provides a simple package to farmers to meet entire
agricultural credit requirements such as crop production, investment credit and
consumption credit. All farmers including owners, tenant cultivators, leased land
farmers and sharecroppers are eligible for this scheme.

Schemes of Cooperative Agricultural Banks

1. National Bank for Agriculture and Rural Development or NABARD
(External website that opens in a new window) - is responsible for refinance
disbursement to commercial banks, State cooperative banks, State cooperatives,
rural development banks, Regional Rural Banks (RRBs) and other eligible
financial institutions. It also sanctions money through its Rural Infrastructure
Development Fund for projects covering irrigation, rural roads and bridges, health
and education, soil conservation and drinking water schemes. NABARD also
offers a Kisan Credit Card Scheme and crop loans under the Rashtriya Krishi
Bima Yojana.

Banks and RRB's introduced the Kisan Credit Card Scheme of NABARD in their
areas of operation. In this scheme eligible farmers are provided with a Kisan
Credit Card and a passbook or card-cum-pass book. The revolving cash credit
facility allows any number of withdrawals and repayments within the limit. This
limit is fixed on the basis of operational land holding, cropping pattern and the
scale of finance. Sub-limits may be fixed at the discretion of banks.

This Kisan Credit Card is valid for 3 years subject to annual review. As incentive
for good performance, credit limits may be enhanced to take care of increase in
costs, change in cropping pattern, etc. Each drawl should be repaid within a
maximum period of 12 months. Conversion or rescheduling of loans is allowed in
case of damage to crops due to natural calamities. Security, margin, rate of
interest and other details are fixed according to RBI norms.
2. Bihar State Co-operative Bank Limited (BSCB) - External website that opens
in a new window - Offers a range of loans and financial schemes to
agriculturalists.
3. Haryana State Co-operative Apex Bank Limited (HARCOBANK) - External
website that opens in a new window - The bank offers crop loans, Kisan Credit
Cards, cash credit against hypothecation of stocks and interim finance by way of
cash credit.
4. National Federation of State Co-operative Banks Limited (NAFSCOB) -
External website that opens in a new window - This federation offers a range of
agricultural loans through member State Cooperative Banks, District Central
Cooperative Banks and Primary Agricultural Cooperative Societies.
5. Orissa State Co-operative Bank Limited (OSCB) - External website that opens
in a new window - The bank has introduced Kisan Credit Cards in the S.T.
Cooperative Credit Sector. It also organizes seminars on agri finance. OSCB has
 17 Central Cooperative Banks and around 810 mini banks in different districts of
Orissa.
6. Repatriates Co-operative Finance and Development Bank Limited (External
website that opens in a new window)- This bank does not have any specific
agricultural loan, but offers a range of financial products that can be accessed by
people who wish to develop agriculture and related activities.
7. Punjab State Cooperative Agriculture Development Bank Ltd (External
website that opens in a new window) - Initially, the bank only gave farmers loans
to pay off old debts and purchase land. Today, the bank provides loans for various
purposes like improvement of alkaline and saline lands, purchase of tractors,
installing tube wells and other modern agricultural equipment. It also offers
financial schemes for poultry development, dairy development, horticulture,
floriculture, sheep rearing and inland fisheries.
8. Andhra Pradesh State Cooperative Bank Limited (APCOB) - External
website that opens in a new window - has a loan portfolio that covers crop loans,
medium term loans and long term loans for agricultural purposes. It also supports
government sponsored District Rural Development Agency projects through
IRDP loans and cooperative sugar factories, spinning mills, weaver's societies,
employees' cooperative credit societies and other organizations. APCOB has also
extended finance to apex cooperative institutions in the State such as APCO,
MARKFED and GCC.

HOME LOANS

Home is where the heart is! Owning a home is a lifelong dream for most of the people. Not
long ago, turning this dream into a reality was a daunting task for the common man with
property rates going high all the time. But now, thanks to the proliferation of home loans
and housing finance companies, one can aspire to own a roof over one's head. Not only
home loans are easily available but with intense competition in the housing finance
industry, companies are pulling out all the ways to lure the potential customers. Interest
rates have drastically come down over the years and innovative home loan products have
swamped the market.

However, it is always advisable not to go for home loans blindly. In a situation where there are several lucrative offers to
be chosen from, the best is to go for the creditor who is a long trusted name in the business. Also, before applying for
home loan anywhere, it is worthwhile to go through the minute of the minutest detail of the company. If you are not good
at business, you must consult some expert before taking any kind of loan from any party. As far as home loan is
considered, make sure your EMI’s are well within your limit. Think and discuss hundred times before you opt for any plan
so that your home remains ‘your sweet home’ and does not turn out to be an EMI nightmare.

How to Choose a Home Loan

There is no common formula to opt for a home loan. What may be good for you may not be good for someone else and
what may not be good for you can prove to be an excellent plan for others. So, basically choosing the best loan plan
means that you will have to explore that which home loan plan fits best to your needs in a particular situation.

Choosing a Finance Company

Once you have figured your requirements, your resources and your future plan, the next most crucial step would be
choosing the housing finance company (HFC). It is very important to choose the financer with extreme care and proper
contemplation. You must check out its past track record as you are planning to enter in to a long-term relationship with it.
If you can, you must talk to few people who are availing this service already to know the execution of the terms

RealEstate Glossary
When one sets out to conduct any sort of property transaction, one is confronted by an avalanche of technical jargons
related to real estate and home loans. It is imperative that one does get acquainted with these technicalities so as not to
be duped by unscrupulous elements. Once one is acquainted with these terms, it would become relatively easy to read
between the lines and understand the real meaning behind these complex business phrases.

Information on Home Loans

Buying a home is dream for many people. Owing to the rising price of properties, it has almost become impossible for an
average earning person to buy a home on a lump sum payment. Therefore the concept of home loan has come in trend.
There are plethora of housing finance companies and equal number of banks that offer home loans these days.

Home Loan Process

Owning a home gives a feeling of stability in life. However, with the steep rising prices of property in India, buying a house
at a go is not a very easy task. However, this process has been made considerably easy by the home loans being granted
by the umpteen numbers of Housing Finance companies and nationalized and private banks in the country.

Types of Home Loans

The dream of buying one’s own home is not an impossible task in India-thanks to the burgeoning housing finance market
in the country. There are umpteen numbers of banks and HFCs in the country which have come up with attractive home
loan plans in the country.

Need for Home Loans

Few decades back, buying a home was not a very easy task as there were hardly any lenders available to loan the ever
increasing astronomical lump sum of money. However, with time, the rising property prices and the burgeoning housing
finance market in the country, made the phenomenon of the home loans easy and the dream of buying a home possible.

Vidya Vardhini Scheme

Purpose:
Pursuit of studies In India and abroad

Approved Courses:
Graduate and post-graduate courses in engineering, computertechnology, medicine etc.All
vocational courses/job oriented diploma courses, recognised by govt and universities.Similar
courses pursued in universities abroad. Full time post graduate research in any of the aforesaid
subjects.

Eligibility:
Should be a citzen of India. For vocational training courses and job oriented course age of the
individual should be between 15-28 years,and 18-30 in case of post graduate courses and/or
studies abroad.The applicant should have a good academic record. For studies abroad, the
candidate should have secured admission in a particular university after having appeared in the
specific entrance examinations. The applicant should have secured a minimum of 50% marks
in the major subject.In case of SC/STcandidates eligibility norms may be relaxed.

Amount of loan:
The loan could vary depending on the specific subject requirement.For studies abroad Rs15
lakhs.For studies in India Rs 7.5lakhs

Margin
Upto Rs 4lakhs -nil
For Studies in India- 5%
For studies abroad-15%

Repayment
Within 15 years from the first dateof disbursement, including moratorium period

Contact :
Delhi Tel: 3312654, 3311557
Bangalore Tel: 2212485, 2271130
Chennai Tel: 8270041, 8276143
Hyderabad Tel: 3315263, 3324487
Kolkata Tel: 2481973, 2485703
Mumbai Tel: 2023020

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 Central Bank
Finance for Education

Cent Vidyarthi Scheme

Purpose: Aims at bringing Education within the reach of students and help them improve their
prospects in life.

Courses Approved

For pursuing Graduate/Post-Graduate, Management/Job-oriented courses, Professional

Courses of recognised Universities / reputed Institutes, Computer courses conducted by NIIT,
APTECH, CMC, C-DAC with duration of one year and more.

For pursuing Post-Graduate course in Science, Technology, Medicine, Engineering,

Management courses, Law, Accountancy leading to Master's degree or Post-Graduate Diploma
in recognised University abroad.

Should have consistent good academic record in previous

Eligibility: examinations with marks over 60 % in 10th.& 12th or first grade in
other cases.
(For SC/ST Second class will be sufficient).
Amount of Loan: India Upto Rs.7.50 lakh
Abroad Upto Rs.15 lakh
Margin: Up to Rs.4 lakh No Margin
Over Rs.4 lakh - In India 5%
Studies Abroad 15%
( Relaxation of loans upto Rs.50,000/-for SC/ST )
Rate of interest: Upto Rs.4 lakh PLR
Above Rs.4 lakh PLR + 1%

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 Dena Bank
Dena Vidya Laxmi Education Loan Scheme

Courses approved

a. Studies in India :

• School education including plus 2 stage.

• Graduation courses : BA, B.COM., B.Sc.,etc.
• Post Graduation courses : Masters & PhD.
• Professional courses : Engineering, Medical, Agriculture, Veterinary, Law, Dental,
Management, Computer etc.
• Computer certificate courses of reputed institutes accredited to Dept. of Electronics or
institutes affiliated to university.
• Courses like ICWA, CA, CFA etc
• Courses conducted by IIM, IISc, IIT, XLRI NIFT etc.
• Courses offered in India by reputed foreign universities.
• Evening courses of approved institiutes.
• Other courses leading to diploma/ degree etc. conducted by colleges
Universities approved by UGC/ Govt/AICTE/ AIBMS/ICMR etc.
• Courses offered by National Institutes and other reputed private institutions. [Banks
may have the system of appraising other institution courses depending on future
prospects/recognition by user institiutions.]

b. Studies abroad :

• Graduation: For job oriented professional technical courses offered by reputed

universities.
• Post graduation: MCA, MBA, MS, etc.
• Courses conducted by CIMA- Loanon, CPA in USA etc.

Eligibility: The student should be:

• An Indian National
• Have secured admission to professional/ technical courses through Entrance Test
/Selection process.
• Secured admission to foreign university/Institutions.

Amount of loan: Need based finance subject to repaying capacity of the parents/students with
margin and the following ceilings.

• Studies in India - Maximum Rs.7.50 lacs.

• Studies abroad - Maximum Rs.15 lacs.

Margin :

Inland (studies in India)

Upto Rs. 4 lacs : Nil
Above Rs. 4 lacs : Studies in India : 5%

Studies Abroad : 15%

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Punjab National Bank

Vidya Lakshyapurti Education Loan Scheme

Purpose

PNB's Education Loan Scheme is designed to provide better educational opportunities to bright
and needy students and brings within their reach all types of education
(general,professional,technical and vocational courses).

The scheme enables all types of needy students (viz.students of plus 2 stage,graduation
courses, post graduation courses, Masters & Ph.Ds, professional, technical , engineering,
medical, veternary, law, dental, management, computer, vocational courses, courses like
ICWA,CA,CFA, courses conducted by IIM,IIT,IISc,NIFT, courses offered in India by reputed
foreign universities and all other types of courses offered by Govt./Semi-Govt/private institutions
in order to meet the costs for their studies in India and abroad. Such courses would include
regular, part time and correspondence courses. The costs include admission fees, books &
stationery, instruments required for the course, monthly fees, examination fees,insurance
premium for policy on life of the borrowing student,caution deposit/building fund/refundable
deposit supported by bills/receipts, expenses like study tours/project work/thesis etc. required
to complete the course, boarding and lodging expenses, and travel expenses/passage money
including air fare for joining the course abroad.

Eligibility

1) Indian nationals, in the age group of 16-40 years.For part time computer courses, applicants
in the age group of 16-45 years are eligible. Applicants whose guardians have been appointed
by the court, should not be less than 21 years; such students should have already passed
atleast one public examination.

2) Students who have scored pass marks in their last qualifying examination and have secured
admission in the courses mentioned above.

3) The parents/guardian should have regular source of income to the extent that they are able
to repay the loan in case of need/unforeseen circumstances.There is no stipulation of ceiling on
annual income of the parents/guardians.

4) Employed persons intending to better their prospects can also avail loan for improving their
educational qualifications and/or receive training in modern technology in India/ abroad
provided the education/training received by them in India/abroad affords prospects for their
better employment.For such persons, 'NO OBJECTION CERTIFICATE' from their employers is
a pre-requisite.

Amount of Loan

This is co-related to expenses involved in taking up the course and the expected earnings after
qualifying, subject to a maximum of:

For studies in India: Rs. 7.50 lacs

For studies abroad Rs.15.00 lacs

In case of part time computer courses, the extent of loan should not exceed Rs. 50,000/- per
annum or fee fixed by the particular institutution (as per prospectus less concession,if any),
whichever is less.

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Car loans
If you want to buy a car but haven't saved enough money to pay cash upfront, you might decide to
get a car loan.

If you buy a car from a car yard, the car dealer might offer to arrange the finance for you, but you
don't have to get the loan through the car dealer. They may charge a higher rate of interest than
other places. It's often cheaper to get a loan from your bank or credit union.

Interest rates and related fees and charges for loans can vary a lot so make sure you shop around
for your car loan. Remember that you don't have to accept the finance offered by the dealers - you
are free to shop around for finance and doing this often ensures that you get the best deal to suit
your particular circumstances.

It's well worth taking the time to compare the terms of loans and interest rates offered by different
financial institutions to get the best possible deal.

Only commit yourself to what you can comfortably repay.

Before you sign up for a loan, make sure you understand:

• The type of loan on offer

• All fees and interest rates, including insurance requirements
• The monthly repayments and interest dates, and
• The total amount you'll have to pay by the end of the loan period

The Australian Securities Investment Commission's Financial Information Delivered Online (FIDO)
(new window) website has some excellent car loan tips for you.

What will I need to budget for?

You've found your dream car. You're happy with the price tag... but wait... there's more!

The advertised price of a car is just the beginning. You need to budget for other compulsory
expenses you'll incur, including:

• Car registration (new window) including mandatory third party insurance

• Government stamp duty (new window) and transfer fees (new window)
• The dealer's delivery charge (for new car buyers only)
• The number plate fee (only in certain circumstances)

Make sure you will have enough money to cover all of these expenses.

You may also have to budget for optional extras like extended warranty, or a mechanical inspection
by the RACV (new window) or Victorian Automobile Chamber of Commerce (new window).

Don't forget to factor in day-to-day running costs into your budget. These may include:

• Insurance (new window) additional to what you paid as part of your car registration
fee, which will cover damage to and caused by your car . Keep in mind that
insurance can be costly and remember to include this cost in your budget
• Fuel, regular services, spare parts and repairs - remember that some cars have a
reputation for reliability, but they may cost more to service

What if I can't make the repayments?

If you fail to repay the loan, your security deposit will most likely become the property of the
lender. If the car itself is the security, it can be repossessed and sold for less than what you owe on
it. You can end up owing and paying money on a car you no longer own!

If you're having trouble paying back the loan, it's important that you talk to the finance company as
soon as possible to work out a mutually acceptable arrangement. Don't bury your head in the sand
about it! Work out a way to manage your debt. See the 'Saving & spending' pages for more
information on managing your debt.

What are my rights and responsibilities?

Credit providers must tell you what your rights and responsibilities are under the Consumer Credit
Code (new window). They must include all relevant information including interest rates, fees and
commissions in a written contract. Read this thoroughly then ask questions to establish exactly
what you are liable for.