|PRODUCT INFORMATION : Catalytic
|Loan Product Name
||Higher Education Loan (HEL)
|Brief Description :
||This loan product is exclusively designed for the deprived children of poor women in underserved areas who have no ability to bear the expenses for education or access loans for this purpose from other organizations/financial institutions like banks.
|Target Clients :
- Students who are studying in class eleven and above.
- Students who are enrolled in technical, vocational and certification courses which includes pre-university college, diploma, bachelors, vocational and certification courses.
|Criteria of a client :
- The above mentioned students whose mother should be a BJS clients for at least for one year with good credit history.
- Between 18-58 years old
- Should have a income generating activity
- Household income should not be more than ₹1,00,000 & ₹1,20,000 per annum in rural and urban areas respectively.
- Total indebtedness should not exceed ₹1,00,000
- Main Borrower : Mother
- Co –Borrower : Student
- Guarantor : Father or any other adult family member if available.
- Session fees
- Private tuition fees
- Examination fees
- Teaching materials and equipment viz. books, computer etc.
- Hostel & boarding accommodation
- Miscellaneous expenses
|Lending Methodology :
||Individual (through Group)
|Loan Ceiling :
|Subsequent increase amount :
||Maximum ₹3,000 from previous loan amount, depends on evaluation marks)
|Interest & Fees :
||Rate of Interest
||20% p.a. on reducing balance
||1% on loan amount
||0.80% on loan amount
||18% on processing fees
|Mode of Repayment :
||Weekly/Fortnightly/monthly as per borrower choice