ELIGIBILITY

Courses Eligible

  • Graduation Course : B.A , B.Com, B.Sc, B.BA
  • Post Graduation Courses : Masters & PhD, MBA, etc.
  • Professional Courses : Engineering, Medical, Agriculture,Veterinary, Law. Computer certificate courses of reputed institute, Professional Courses conducted by Middlesex Joint Venture in Mauritius

Students’ eligibility

  • Should be Mauritian National
  • Should not be above 30 years old
  • In case of minor loan should be in the name of parents.
  • In other cases the loan will be sanctioned to the student along with his parent (mother and / or father).
  • Should have secured admission to above mentioned professional / technical course in Mauritius through Entrance Test / Merit
  • Based Selection process.
  • The deduction for the loan installments and interests should not exceed 60% of the Gross Income of the parents. This calculation will determine the limit of the loan.
  • The parents should be in permanent employment of Government / Para-statal bodies/ Reputed Private Company.
  • In case of self-employed / business must be in the related field for at least -2- years. Last -2- year’s income with income tax return to be produced.

Coverage expenses

  • Fee payable to college / Institution / University / School / Hostel
  • Examination / Library/ Laboratory Fee
  • Hostel fee / Charges
  • Purchase of Books/ equipment/instruments / uniforms

Caution deposit, Building Fund / refundable deposit supported by institution bills / receipts subject to condition that the amount does not exceed 10 % of the total fee of the entire course.

  • Purchase of Personal computer / Laptop – essential for completion of the course.
    Insurance premium for the student borrower.
  • Any other expense required to complete the course.- like study tours, project works thesis etc

Age

  • Maximum 30 years for the student.
  • In case of applicant being minor the loan will be in the name of parents/otherwise jointly with parents.

Limit

Need based finance subject to repayment capacity of parents / students with margin and ceiling, based on the expected income to be generated after completion of the course (as per general assessment to be made by the branch.). Maximum Rs.800,000.- with the following segregation:

  • Graduation (Non-Technical) : Maximum Rs.400,000.
  • Graduation (Technical and Other Post Graduate and Professional Courses: Maximum Rs.800,000.-

Scholarship / assistantship, if any, will be deducted from loan amount for arriving at the limit.

MARGIN

  • Up to Rs 400,000.- 5%
  • Above Rs 400,000 – 10 %

Margin may be brought in on a year to year basis as and when disbursements are made on a pro rate basis.

Rate of Interest

  • Up to Rs 400,000- 0.50% above PLR
  • Above Rs 400,000 – 0.75% above PLR
  • Simple interest to be charged at monthly rests during the repayment holidays / moratorium period. Penal interest at 2% on overdue amount.
  • The accrued interest during the repayment holiday period to be added to the principal and the repayment in Equated Monthly Installments to be fixed.
  • Borrower will have the option of servicing the interest during the moratorium period.

REPAYMENT

The loan is repayable in 5 years after the moratorium period. However the total loan along with moratorium should not exceed -10- years.

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, Territory Head may at his discretion consider such extensions.

In case of such extensions, moratorium period would be got extended accordingly

Moratorium

Course period + 1 year, or 6 months after getting the job whichever is earlier.

Processing Fee

 NIL

SECURITY

  • Loan Agreement
  • Letter of Undertaking to repay the loan
  • Salary pledge letter of parents in suitable cases and co-obligation of parents
  • First Rank fixed charge on an immovable property worth at least twice the amount of loan,
  • or Lien on Deposits with 5 % Margin, or
  • Assignment of Life policies with surrender value covering 100 % of limit and further 5 % margin.or
  • Letter of comfort from other Banks in suitable cases as per discretion of the Bank.
  • The student concerned should be suitably insured and the insurance policy be kept alive during the currency of the loan.

OTHER CONDITIONS

  • The loan amount shall be reduced to the extent of any Aid / Scholarship
  • The charges relating to registration of documents / search and valuation of the property should be borne by the Borrowers.
  • MCIB to be obtained in all cases as per local norms.
  • Bank may stop further disbursement and recall the advance in case of non-payment of instalment / interest and unsatisfactory performance of the student in his studies.

In case of minors with no surviving parents, loan will be granted to guardian appointed by the court.

  • Property should generally be in the names of the parent of the borrower, however in the event of property standing in the names of close relative / third party; third party guarantee should also be obtained. Usufruct owners’ intervention, if any, in the fixed charge document be ensured to safeguard the bank’s interest.
  • Fixed Charge documents to be vetted by Bank’s Advocate.