D-61

Agreement for Educational Loans

Special
Adhesive
Stamp as

on
Agreeme
nt
This Deed of Agreement made on this ...............day of ............................(month) in the
year................between
Mr./Ms......................................................................................aged
about
...........years*
son/wife/daughter
of
Mr............................................................................residing
at
.....................................................................................................................................................................................
..................................................... hereinafter referred to as the Student *and/represented by Mr./Ms.
............................................................................................................, the *father/mother and guardian
/*
legal
guardian
of
the
minor
student,
aged
about
.....................years
residing
at
...................................................................................................................................... hereinafter referred to
as the Parent/Guardian Joint-Borrower of the one part and the Indian Bank, a body corporate constituted under
the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 carrying on the business of banking
and having its Corporate Office at 254-260,AVVAI SHANMUGAM SALAI,ROYAPETTAH,CHENNAI-600 014,hereinafter
called the Bank which term shall mean and include its successors and assigns of the other part.
Whereas
the
Student
desires
and
intends
to
prosecute
higher
studies
at
.....................................................................................................................................................................................
..................................(Name and full address of the Institution - hereinafter referred to as the institution)
in (Country name) and for that purpose has sought/secured an admission for the course of
.............................................................................................................at the institution and is in need of financial
assistance from the Bank and has, therefore,* jointly with the Parent/Guardian Joint Borrower applied to the Bank
for educational loan by his/her/their application dated..for a loan of Rs.........................(in words
Rupees............................................................................only) so as to enable the Student to
pay the tuition fees, costs of books, maintenance and other charges during the period of the course as stated in
detail in the application.
And whereas the Bank has expressed its willingness to afford such assistance by way of loan to the
extent
of
Rs........................(in
words
Rupees..............................................................................
...................................................................................................................only) upon and subject to the terms and
conditions hereinafter expressed and contained.
Now it is hereby agreed and declared as follows:
1.
The Student agrees that the course for which financial assistance is sought for should be covered under
the scheme and conducted by colleges/universities approved by Government/ Bank and the period of study
should not ordinarily exceed ................. (years/months) and the course should be one with good employment
prospects.
2.
The Student further declares that upon completion of the course, the candidate is assured of a regular
assignment/employment in government/semi government/public sector/ leading private sector undertaking. (This
clause is applicable only in case of loans to computer courses with placement assurance)
3.
The bank agrees to grant to the *Student/jointly to the Student and the Parent/Guardian Joint Borrower a
*loan/non-operative overdraft upto a maximum of Rs ............................... (in words rupees
.................................................................................only)
4.
The grant of such loan is at the banks sole discretion and the bank reserves the right to withhold or
discontinue the loan after sanction/part disbursal thereof for any reason which it considers just and sufficient and
the bank shall be the sole and final judge of such justness and sufficiency.

5. The disbursement of the loan/overdraft will be made as follows:

i.
An amount equivalent to tuition fees will be paid in whole or in installments directly to the institution
where the student proposes to undergo or is undergoing his/her study, as and when the whole or each installment
falls due for payment.
ii.
Such part of the loan as is towards purchase of books necessary for the prosecution of studies or the
course undertaken will be paid to the Student from time to time on condition that he produces the relative receipts
evidencing purchase of the books to the bank within a reasonable time from the receipt of the relative part of the
loan; and
iii.
Any other amount towards any other expenses, agreed to be financed by the bank, will be paid
time as may be decided by the bank.

at such

6.
The student *and the Parent/Guardian Joint Borrower further agree(s) that the year-wise ceiling on
disbursement will be restricted to the proportionate loan limit sanctioned.
7.1*
The Student *and the Parent/Guardian Joint Borrower agree(s) to repay the educational loan under nonequated *monthly/quarterly/half-yearly installments scheme (under this scheme apart from installment towards
principal, interest is payable as and when debited and/or charged) as stipulated in the Schedule I hereunto
attached and provided that in case of default in payment of any one installment or any part thereof or any other
irregularity on the part of the Borrower(s), the entire balance then outstanding with interest, costs, commissions
and charges shall, if the bank so chooses, at once become due and payable.
7.2*
The Student *and the Parent/Guardian Joint Borrower agree(s) to repay the educational loan under
equated *monthly/quarterly/half yearly installments scheme as stipulated in the Schedule II hereunto attached and
provided that in case of default in payment of any one installment or any part thereof or any other irregularity on
the part of the Borrower(s), the entire balance then outstanding with interest, costs, commissions and charges
shall, if the bank so chooses, at once become due and payable. However, for the convenience of the borrower(s),
Equated Monthly Installment (EMI) including interest component is arrived at Rs................... The EMI will have to
be paid in the manner specified in Schedule II of this agreement until the entire loan and the interest is fully
repaid. In case the amount of loan availed/disbursed is less than Rs. ......................, then the amount of
installment payable shall be reduced pro-rata. Wherever specifically permitted, interest for the holiday period shall
be added with the principal amount and EMI will be calculated for the remaining repayment period of the loan.
The borrower(s) further agree(s) that in case of floating rate of interest, the bank has the option to reduce or
increase the amount of EMI or extend the repayment period consequent upon changes in the banks Base
Rate/Spread/Tenor Premium
8.
The Student *and the Parent/Guardian Joint Borrower agree(s) to repay the educational loan as
stipulated in clause 7(a)/7(b) above after the holiday period of .................. months/years (Fill in here the
appropriate holiday period, that is course period plus 6/12 months as the case may be) from the date of first
disbursal of the loan amount or immediately after the student starts earning after completion of the course either
by way of salary, stipend, fees, commission or other compensation,
whichever is earlier. The borrowers liability to the bank will be extinguished only when the outstanding
in the loan account including interest becomes NIL, on payment of residual amount, if any.
9.
The Student *and the Parent/Guardian Joint Borrower shall pay a floating rate of interest at the rate of
........... (spread) % per annum over the Banks Base Rate (BR) plus Tenor Premium of..per cent
per annum (The Current Base Rate being .% the effective rate of interest shall be...% per annum) on
daily balance with ..rests, subject to a minimum of ...................% per an....................................... rests,
such interest being added to the balance outstanding on the last working day of every

financial/calendar.(Mention here month/quarter/half year/year as the case may be) and the said
interest, if unpaid, will become part of the amount advanced and bear interest at the same rate.
i. Such interest shall be charged on *simple / compound basis during the holiday period.
ii. Wherever the student *and the Parent/Guardian Joint Borrower opted for repayment of the interest
during the holiday period, it shall be repaid as and when charged.
iii. After the holiday period, the interest shall be charged on compound basis that is the interest being
added to the balance outstanding on the last working day of every calendar .....................and the said
interest if unpaid, will become part of the amount advanced under this agreement and bear interest at
the same rate.
iv. The Student *and the Parent/Guardian Joint Borrower agree(s) that the Bank is entitled to
charge a higher rate of interest than the rate stated above or overdue interest in case of efault
in payment of dues/not adhering to any of the covenants contained herein and in the sanction
letter. Borrower(s) shall be deemed to have notice of change in the rate of interest whenever
the changes in the Banks BR/Spread/Tenor Premium are displayed/notified at by the branch/
published in newspaper/ made through entry of interest charged in the pass Book /statement of
accounts sent to the borrower(s). Individual notice regarding the change of interest is waived
by the Student *and the Parent/Guardian Joint Borrower.
10.
The Student/Parent/Guardian Joint Borrower further agree(s) to take out a life insurance policy for the
face value of not less than the loan amount in Students name and undertake(s) to remit the periodical insurance
premium on the policy and produce the copy of the receipts to the bank then and there and assign the policy in
banks favour. (Delete this clause if not applicable)
11.
The bank may change the number of installments and determine the quantum thereof or allow the
repayment to be made in any other manner in such a way that in no circumstances the loan would extend beyond
...................... years unless the bank in its own discretion decides otherwise. In case the Student has to leave the
course for any reason attributable to his default, negligence, misbehavior then the entire outstanding of the loan
together with interest and other costs shall become payable immediately. Notwithstanding anything contained
herein the Student/Parent/Guardian Joint Borrower agree(s) that the whole advance shall become forthwith due
and payable by the Student/Parent/ Guardian Joint Borrower to the bank if any *one/two/three consecutive
installments and/or interest are remaining unpaid on the due date for the payment thereof.
12.
The borrower(s) shall abide by the terms and conditions of the sanction of the loan to him/her/ them,
including the terms and conditions as mentioned in the sanction letter which forms part of this agreement, and
also to the rules for such loans which are now in force and also those which may be altered, revised, amended,
added from time to time by the Bank/ The Reserve Bank of India/ Central Government/ State Government. The
borrower(s) shall be deemed to have received notice of change in the terms and conditions whenever the
changes are displayed/notified by the Bank in the notice board kept in the branch premises and/or published in
newspaper. Individual notice regarding the changes in the terms and conditions is expressly waived by the
borrower(s). The borrower(s) also agree(s) that the Bank shall also be entitled to transfer the loan account to any
of the branches of the Bank after giving due notice to the borrower(s).
13.
When there is a default by the borrower(s) in repayment of loan installment and/or servicing of interest
beyond ninety days or any other period stipulated by Bank under the directives of RBI, all borrowal accounts of
the borrower(s) shall be categorised as Non-Performing Asset (NPA). Such categorisation entails disqualification
of the borrower(s) from seeking
i. additional/adhoc credit facilities
ii.waiver of overdue interest charges
iii.softening recovery measures by the Bank, etc
14.
The Student *and the Parent/Guardian Joint Borrower hereby agree(s) and consent(s) to the bank for the
disclosure of all or any such
i. information and data relating to the borrower(s)

ii. information or data relating to the borrower(s) obligations in any credit facility granted/to be
granted by the bank and availed by the borrower(s) and
iii. default if any, committed by the borrower(s) in discharge of their obligations as the Bank may
deem appropriate and necessary, to disclose and furnish to Credit Information Bureau (India)
Ltd., and any other agency authorised by Reserve Bank of India in this behalf.
15.

The Student *and the Parent/Guardian Joint Borrower further agree(s) and consent(s) that
i. Credit Information Bureau (India) Ltd., and any other agency so authorised may use, process
information and data disclosed by the bank in the manner as deemed fit by them and
ii. Credit Information Bureau (India) Ltd., and any other agency so authorised may furnish for
consideration, the processed information and data or products thereof prepared by them, to
Banks / Financial institutions and other credit grantors or registered users, as may be specified
by RBI in this behalf.

the said

16.
In consideration of the bank granting such loan, the Student *and Parent/Guardian Joint Borrower
agree(s) and undertake(s) as below:
i.

The Student/Parent/Guardian Joint Borrower shall not, without the prior permission of the Bank,
obtain any loan or other such financial accommodation as would involve repayment thereof and
in case where such loan or other financial accommodation has been availed of by the
Student/Parent/Guardian Joint Borrower after the availment of the loan hereunder, the
Student/Parent/Guardian Joint Borrower shall immediately notify to the Bank about the same.
Upon
receipt of such notification, the Bank may at the time of granting such permission decide whether
to
continue the loan arrangement and, if so, to what extent thereof.
ii.

The Student is ordinarily not expected to take up employment during the course of his studies
without the prior permission of the Bank. Where, however, he wishes to take up a job during the
course of his studies he should inform the bank about the same and should produce a certificate
from the institution that such employment will not interfere with his studies. Full particulars about he
nature of the employment, the working hours, salary and other relevant matters should be advised to the
bank immediately. Upon receiving such intimation the bank may consider whether to continue the loan
arrangement and, if so, to what extent thereof.
iii.
Should there be any change in the Students financial condition from what was stated in the
application to the bank for financial assistance, which is likely to affect the banks decision to
continue the finance, the same shall be notified to the bank and thereupon the bank may decide whether
to continue the loan arrangement and, if so, to what extent thereof.
iv.
The Student shall not enter into any pecuniary obligation or financial liability during the currency
of the
loan without the prior permission of the bank.
v.
The Student is expected to take up the studies seriously and shall work hard and try his best to
maintain a good academic record and shall intimate to the bank the results of periodical tests/
examinations conducted by the institution. The Student shall submit to the bank the progress report
of the study course as and when released by the institution. The Student shall not participate in
any unlawful activity which will debar him from prosecuting his studies and shall follow all the rules and
regulations for the time in force and maintain such dignity and decorum as is expected of the Student by
the institution. If the performance of the Student is not satisfactory or if he fails in any one of the
examinations conducted by the institution or if any adverse report in respect of the
progress/conduct of the Student comes to banks knowledge,
the bank will be at liberty to recall the
loan amount and the Student and/or the Parent/Guardian Joint Borrower shall be liable to repay
immediately the outstanding due together with interest and other costs.

vi.
The Student shall not, without the prior consent of the bank, change the course of his studies,
place of study or the institution as stated in his application.
vii.
The Student shall during the currency of the loan keep the bank informed from time to time of any
change of address on account of his being on vacation, study leave, study tour or his being
required to stay away from the station.
viii.
Every month the Student shall, wherever possible report to the Manager of the branch, if any, of
the bank, at the place where he is undergoing studies for discussing any matter of interest or any
difficulties.
ix.
After completion of the course of his studies, it will be the responsibility of the Student to
secure a gainful employment and immediately upon securing such employment inform the bank
giving full particulars of such employment and the income there from. The Student agrees to
assign his/her future income towards repayment of the loan till the loan is completely adjusted.
x.
In case the Student has undertaken the higher studies in India and intends to go abroad
for further studies or for taking up a job, he/she shall intimate to the bank immediately and
thereupon the bank may decide whether the loan has to be repaid in full before the Student
leaves the country or whether to allow the loan to be continued on revised terms and
conditions.
(Delete this clause in case the loan is given for studies at foreign countries)
Schedule I
Repayment schedule for loans repayable in Non-EMI system:
Repayable in ................. *monthly/quarterly/half-yearly installments ( *with/without holiday period of
............. months) commencing from ................................................. Interest is payable as and when
debited.
Schedule II
Repayment schedule for loans repayable in Equated Monthly Installment (EMI) system:
Repayable in ................. equated *monthly/quarterly/half-yearly installments (*with/without holiday
period of ............. months) commencing from .................................................

Signature of the *Student (or) *Father/Mother and guardian /

*legal guardian for the minor student

Signature of the *Father/Mother and guardian /

*legal guardian as Joint Borrower

For Indian Bank,

Authorised Signatory

Note : i. * Strike out whichever is not applicable

ii. Document not to be attested