Who would the borrower be - the student and/or the parents/relatives?
1. Full-time course: Borrower should be the parents/relatives of the student
2. Part-time course: Student borrower or co-borrower with parents/relatives
Will SBM finance all the expenses?
Yes, SBM provides up to 100% financing for the studies and will cover expenses such as fees and accommodation (subject to supporting documentation). In specific cases, SBM will also finance expenses of accommodation, transport etc where university expenses are free but these related expenses are not.
What is the 5-year moratorium on capital repayment?
For the first 5 years the customer will repay only interest on any amounts disbursed easing the cash outflow.
On what would moratorium period [interest repayment only] of up to 5 years depend?
The moratorium period would depend on the duration of the study. In addition to the period of study, 6 months supplementary moratorium would be offered to cater for the time until the student finds a job (total maximum moratorium period is 5 years).
Until which age can the loan amount be repaid?
SBM Achiever offers the customer the flexibility to repay the loan up to the retirement age or where the customer has proven regular income up to 65 years of age.
Can the parent give the child a credit card?
SBM Achiever offers the customer the possibility to give the child a free supplementary credit card [no Membership Fee for the First Year] if the customer is an existing SBM credit card holder or wishes to apply for a credit card.
What do we mean by loan will be disbursed in tranches?
For example: If a customer takes a loan of Rs300,000 for a period of 3 years and for each year of study he needs to pay the university Rs100,000. In the first year SBM will give him Rs100,000, in the second year another Rs100,000 and in the third year the last sum of Rs100,000.
How does the customer pay less interest when the loan is disbursed in tranches?
Taking the above mentioned example into account, in the first year only Rs100, 000 is disbursed. Interest is therefore only payable on the disbursed amount, i.e. Rs100, 000 rather than on the whole loan amount of Rs300, 000.
What are the flexible security options?
1. For loans of up to Rs200,000, 1 or 2 personal guarantors
2. Loans above Rs200,000 require tangible security such as a mortgage on assets
How does the Early Repayment Fee waiver benefit the customer?
An early repayment fee is charged to customers repaying their loan earlier than initially agreed. The Bank may claim a fee calculated on the residual lifetime of the loan, as normally stipulated in the agreement/offer letter. By waiving this fee, parents will be encouraged to repay the loan with the help of their child when he/she is employed after the study period.
Who will benefit from the training with SBM?
Terms & Conditions:
Stage of 3-months period will be offered to loans approved to the first 10 students
Applicable to both local students and those going for studies abroad. (Students going for overseas studies shall complete their training either before their studies, during their vacation or at the end of their studies. However, it should be pointed out that SBM will not bear any air fare or any other related costs)
Training facility will be provided to students enrolled on programmes in-line with the Banks line of business and available career prospects
To qualify for this promotional offer, the loan approved / to be disbursed should be above Rs 100,000
Remuneration during the training shall be as the Banks Trainee scheme.
