1. Loans to parents of students pursuing professional degree courses of education like Engineer, Medicine etc. on the basis of the repaying capacity of parents.
i) Beneficiary
Parents of the student pursuing professional degree courses in a recognized educational institution of education like Engineer, Technological, Medicines, Law, Architecture and different management courses etc. and who are residents of the area of operation of the concerned DCCB Sonepat bank branches, shall be eligible to borrower loan under this scheme after enrolling themselves as associate member of the Bank.
ii) Purpose of loan
The loan shall be utilized for meeting out the expenses on books, admission and monthly fees, hostel expenditure and other educational related expenses.
iii) Eligibility
Parents of such students shall be eligible to borrow loan upto Rs.5.00 lacs. The student shall also give their consent and an undertaking to repay this loan.
iv) Disbursement of loan
The disbursement of loan shall be made in the following manner:-
The disbursement of loan shall be made in installments annually/semester-wise for which the parents will have to submit the necessary documents from the college/Institution showing the annual/semester charges which include hostel, annual fee, tuition fee, admission fee etc. This payment will be released directly to the college/Institution after obtaining necessary authority from the loanee parents. The remaining amount of the loan of the installment, if any, shall be given/disbursed to the parents in cash.
v) Security
The loan shall be secured by personal sureties of two persons who have means double to the amount of loan and undertaking to repay the loan by the parents and the students/postdated cheques.
vi) Rate of interest
Currently interest @ 12% p.a. shall be charged which shall be subject to change in pursuance to the Directives on Interest Rates on Advances by RBI/NABARD. In case of female students the rate of interest shall be 11% p.a. In the event of default or infringement of any term and condition of sanction, a penal interest @ 3% p.a. over and above the normal shall be charged on the amount and for the period during which the default subsists.
vii) Repayment period
The loan shall be repayable within a period of four years after the completion of the course by the student. It shall be recovered in equated suitable installments comprising the principal and interest accrued thereon.
viii) Documentation
The DCCB Sonepat branches shall obtain the requisite documents i.e. Agreement-deed, Demand and Time Promissory Notes, Letter of Continuity/acceptance and an undertaking from the student.
This scheme shall be implemented by the Branches of the DDCB BANK after formal notification of Govt. under Cooperative Societies Act, 1984.