Term Loan for the purpose of meeting the educational expenses..
- Any course conducted by or approved by Kabul University or any other university in Afghanistan.
- Any degree / diploma / post graduation / research course recognized by the Government of Afghanistan
- Any course conducted by those Universities/Institutes in abroad which are recognized by the respective governments in abroad.
- Correspondence courses are not eligible to be covered, even though they are conducted by the universities and recognized by the Government of Afghanistan.
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Should be an Afghan national.
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Secured admission to the approved courses.
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No minimum qualifying marks
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Minors : granted to parents / guardians of minors
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Students who are majors : loans may be granted with their parents/guardians as joint borrowers. (Documents must be executed by both).
- Fee payable to the college / Institute / hostel
- Examination / Library / Laboratory fee
- Purchase of books, equipments, instruments, uniforms.
- Caution deposit / building fund / refundable deposit supported by institution bills / receipts.
- Travel expenses / Passage money for studies abroad.
- Purchase of computers – essential for completion of the course.
- Any other expense required to complete the course – like study tour, project work, thesis, etc..
A credit rating exercise shall be carried out in respect each proposal for educational loan.( as per the Internal Credit Rating system at the end of this Manual).
In case the credit rating awarded is below “B+”, no educational loan shall be considered.
Need based finance subject to the repayment capacity of the parents / students with margin upto the following ceilings:
- Studies in Afghanistan : Max. Af.1 million.
- Studies abroad : Max. Af.5 million.
To be announced from time to time by the bank as per duration of deposits and prevalent rate as per period shall be binding for the entire period of contract.
The interest on deposits is calculated on quarterly compounding basis and is payable half yearly on reinvestment scheme and for simple FD, simple interest is calculated on annual basis and can be paid quarterly or six monthly .
Studies in Afghanistan - Nil
Studies abroad - 20%
- Scholarship / assistantship to be included in the margin.
- Margin may be brought in on year to year to basis as and when disbursements are made on a pro-rata basis.
- Collateral security (land and building) equal to 150% of the loan amount
Co-obligation of parent/ guardian - Third party guarantee with the assignment of future income of the student for payment of installments. An agreement to secure this assignment is to be taken.
- In case the loan is given for purchase of computer the same to be hypothecated to the bank.
- Tentatively 10% for the loans upto Af.One million
- Tentatively 12% for the loans above Af.One million
- Simple interest to be charged at monthly rest during the repayment holiday / moratorium period.
- Compound interest to be charged at monthly rest once the repayment holiday / moratorium period is over.
- Penal interest @ 2 % on overdue amount to be charged.
- No processing / upfront charges should be Collected on educational loans.
- The loan to be disbursed in stages as per the requirement / demand directly to the institutions / vendors of books / instruments, etc. to the extent possible.
- For the first year of study, at times institutions insist that the students pay the fees immediately on admission. As a special case, such payment, if made at the time of seeking admission, will be reimbursed to the students/parents against obtaining necessary proof of payment. It has to be ensured that no undue advantage is taken on this count. The expenditure incurred by the applicant for earlier years however shall not be considered for reimbursement.
- For overseas courses, after the student’s admission is confirmed by University, expenses relating to 1st semester / year will be considered for reimbursement if the University demands so.
- In case the student loanee is not in a position to secure lodging or boarding facilities with the Educational Institutions, he/she may be allowed to make his/her own arrangement with the consent of the institution if required, at a reasonable cost, which may be directly paid to the concerned establishment after verifying bonafides of the same.
- Repayment Holiday / Moratorium :
Course period + 1 year or 6 months after getting job,
whichever is earlier. - The loan is repayable in –5- years after the above period. If the student is not able to complete the course within the scheduled time extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course.
- The accrued interest during the repayment holiday period to be added to the principal and repayment in EMI to be fixed.
- Bank to contact college/university/Institute authorities to send the progress report at regular intervals in respect of students who have availed loans.