• Nowadays all banks are providing loan facility to the students in order to encourage more and more students to take up higher education despite of their financial shortcomings.
• Many banks have come up with various educational loan schemes that students can benefit from.
• To facilitate its students, the University is providing them assistance to avail educational loans.
•  Students can avail loan from any bank. However, For the benefit of prospective students of LPU, the University has tie-ups and has signed MOUs with the following premier banks of India

• Central Bank of India
• HDFC Bank
• Punjab National Bank
• Oriental Bank of Commerce
• The requirements for availing the loan facility will be as per the requirements and the norms of the respective banks.
•  The University will provide the requisite offer letter or alike document as required by the concerned bank for loan purposes, as and if deem appropriate.
• However, the students and their parents/guardians will be personally responsible for obtaining sanction and repayment of the sanctioned loan and all kinds of liabilities and consequences arising thereof, if any. The University will not be liable and responsible in this regard. 

Procedure for Acquiring Bank Loan Assistance

The Students who want to apply for Educational Loan from any Bank need an offer letter from the University. The University will provide the requisite offer letter or alike document as required by the concerned bank for loan purposes, as and if deem appropriate.
All the desiring students who want to a Loan letter (offer letter) need to follow the following steps:

• Download, print and fill the Application Form for Loan Letter form.
  Click Here to Download
  Or
  The Application Form for Loan Letter form can be taken from the University Campus or the Designated Camp Offices or the Admission Offices Across India
  Or
  The students who have taken admission in 2010, can mail their Name and AID to studentloanassistance@lpu.co.in and they will receive a copy of the form on their email- id.
• Submit the duly filled and signed copy  of the form to the University Campus :
  In Person to theStudent Loan Assistance Cell in the University Campus or at the Designated Camp Offices
  Or
  By Post /Courier to the
  Student Loan Assistance Cell,
  Lovely Professional University,
  Jalandhar-Delhi G.T. Road (NH-1),
  Phagwara, Punjab (INDIA) - 144402
  Or
  By Email: Send a scanned copy of the duly filled and signed form to studentloanassistance@lpu.co.in
  Or
  By Fax: at +91-1824-506111

On receiving the duly filled and signed document the University shall process the application and will revert back to the student as soon as possible.

Application Form for Loan Letter Click Here to Download

Student Loan Assistance

Student Loan Assistance Cell,
Lovely Professional University
Phone: +91-1824-500852
Email: studentloanassistance@lpu.co.in

Banks with which LPU has MOUs

Click on the Bank Name below to view the Guidelines for obtaining Educational Loan from that bank:

• CENTRAL BANK OF INDIA

	Criteria Guideline Eligibility All courses offered by Lovely Professional University, Phagwarha Amount of Loan Need based subject  to maximum of Rs.10.00 lacs Margin (For studies in India) Upto Rs.4.00 lacs – NIL Above Rs.4.00 lacs – 5% Interest as per Type of borrower Type of borrower Normal IIT/IIM Male BPLR -2 ie 10% BPLR -2.50 ie 9.50% Female BPLR -2.50 ie 9.50% BPLR -3 ie 9% Special Concession to SC/ST/Minority Community BPLR -2.50% ie 9.50% BPLR -3 ie 9% Incentive 1% interest concession, if interest is serviced during study period when repayment holiday is specified for interest/repayment. IT will be given at the end of the financial year, i.e. 31st March. Interest is calculated at simple basis during Repayment Holiday/Moratorium Period Repayment Repayment to commence 12 months after completion of studies or 6 months after securing job whichever is earlier. Maximum repayment period allowed -5 to 7 years. The accrued interest during the repayment holiday period shall be added to the principal and repayment in Equated Monthly Installments (EMI) shall be fixed. Security Upto Rs.4.00 lacs – co- obligation of parents/ guardians/parent in law/spouse Above Rs.4.00 lacs – collaterals in the form of an acceptable third party Guarantee in addition to co obligation of parents/guardian/parent in law/spouse. Disbursement The loan shall be disbursed in stages as per the requirement / demand directly to the institution Other terms & conditions All other terms & conditions shall be as per Bank’s “Cent Vidyarthi” scheme. Note: All the above mentioned requirements and details are subject to change as per the discretion of the concerned bank.

• HDFC BANK

	Institute Name Lovely Professional University Loan Amount Maximum of Rs.15 lacs Margin NIL upto 4 lacs 5% for loans above Rs.4 lacs Security Collateral to be taken if loan amount is exceeding 7.5 Lacs i.e. Property or FD Students not meeting the HDFC Bank credit criteria may also be required to furnish additional security as acceptable to HDFC Bank. Interest A special rate 13% p.a. Moratorium The course period during which co-applicant will service simple interest only ( for Management courses only) Repayment to start immediately for Tier -3/ part time courses. Repayment period The borrower will have the choice of repayment in 12,24 or 36 Equal Monthly Installments after Moratorium The loan tenor will be based on the employment of the co-applicant and at the sole discretion of HDFC Bank. EMI /Lac/Month 12 Months 24 Months 36 Months Rs.8932/- Rs.4754/- Rs.3369/- Processing Charges NIL Co-borrower Mandatory – Parent/Blood Relations / Spouse and the income documents of the co-applicant will be of primary consideration and must meet the required HDFC bank policy List of Documents required: From Student: Completely Filled Application Form One self attested photograph, attested across the photo and the app. Form Confirmed Admission Letter Fee structure from the LPU Mark sheets of 10th /12th/ graduation / latest qualification acquired. KYC Document Address Proof Identity Proof Signature Verification Proof From Co applicants (If salaried): Application Form – Completely filled. One photograph signed across half on photo and balance half on the form. Salary slips for last 3 month Bank Statementfor last 6 months, if HDFC Bank A/c holder, not required. KYC Document Address Proof Identity Proof Signature Verification Proof From Co applicant ( If self Employed)  ITR for last three years, CA certified. Balance Sheet & P& L statement, all CA certified Bank Statement for last 6 months, if HDFC Bank A/c holder, not required KYC Documents Address Proof Identity Proof Signature Proof All the documents are to be self attested. Note: All the above mentioned requirements and details are subject to change as per the discretion of the concerned bank.

• PUNJAB NATIONAL BANK

	Eligibility Should be an Indian National. Secured admission to Professional / Technical courses through Entrance Test / Selection process Courses eligible Professional courses: engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, Etc. Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to university Post Graduation courses: Masters & Ph.D.  Expenses considered for loan Fee payable to College / School / Hostel Examination / Library / Laboratory fee Purchase of books / equipments / instruments / uniforms.Secured admission to foreign University / Institutions. 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. Insurance premium for student borrower .Any other expense required to complete the course - like study tours, project work, thesis, etc  Quantum of Finance Need based finance, subject to repaying capacity of the parents / students with margin and the following ceilings :- For studies in India: Maximum Rs.10 lacs. Margin Upto Rs.4.00 lacs: Nil. Above Rs.4.00 lacs: 5% Security Upto Rs.4.00 lacs:  No Security. Above Rs 4 lacs and Upto Rs 7.5 lacs: 3rd party guarantee acceptable to the Bank. Above Rs 7.5 lacs: Collateral Security of Suitable value or suitable 3rd party guarantee. Miscellaneous The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares / Debentures, Bank Deposit in the name of the student parent / guardian or any other third party with suitable Margin. The document should be executed by both the student and the parent/guardian.  Rate of Interest Repayable in less than 03 yrs Repayable in 03 years or above BPLR -0.50% (ie 11.00%) BPLR +.25% (ie 11.75%) BPLR -1.00 +.50% TP ( ie 11.00%) BPLR -.25% +.50% TP (ie 11.75%)   (BPLR as on date is 11.50%) Rebate of 0.5% in rate of interest to women beneficiaries w.e.f. 08.03.2009 Repayment Course period +1 year or 6 months after getting job, whichever is earlier The Principal and interest is to be repaid in 5-7 years after commencement of repayment. 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. Insurance Life Insurance policy on the students availing Educational Loan ay be taken ( at the option of the student Borrower) from the approved Co. ( Presently Kotak Mahindra Old Mutual Life Insurance Co.) in terms of guidelines issued in this respect Follow up tracking Banks to contact college/university authorities to send the progress report to the bank at regular intervals in respect of students who have availed loans. Processing charges / upfront fee No Processing/upfront charges collected on education loans for studies in India. Documentation Charges As prescribed from time to time be recovered ( Presently Rs.300/- upto Rs.4 lac and Rs.500/ above Rs.4 Lac ) Minimum Age There is no specific restriction with regard to the age of the students to be eligible for education. Check List While applying for the loan, the borrower is required to furnish the following information/papers: Loan application on Bank's format. Passport size photograph Proof of Address (Permanent) / ID Proof. Proof of Age. Proof of having secured pass marks in last qualifying examination. Letter of admission in professional, technical or vocational courses. Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc. are mentioned. Details of Assets & Liabilities of parents. Any other document/information, depending upon the case and purpose of the loan. (The above CHECKLIST is only illustrative, not exhaustive. For details, please contact our nearest Branch Office). Note: All the above mentioned requirements and details are subject to change as per the discretion of the concerned bank.

• ORIENTAL BANK OF COMMERCE

	Purpose : For higher education(after schooling). Items eligible for Finance:- Admission fee/Monthly fee/Examination fee, Books, Stationery & equipments, Air fare for joining the course abroad, Boarding & lodging expenses of hostel/boarding houses, where charges are standardized and paid to the Management of the Boarding House. Any other expenses required to complete the course like study tours, project work, thesis etc. Eligibility: Indian nationals not above 45 years of age those who secured admission in a recognized course of an approved university (AICTE approved institutions) OR institutes recognized by a statutory body. Amount of Loan: Education in India - Max. Rs.10.00 lacs. Education Abroad - Max. Rs.20.00 lacs. Security: For Loans up to Rs.4.00 lac No Collateral Security Co-obligation of parents/guardian is must. For Loans above 4 lacs and up to Rs.7.50 lacs No Collateral Security required, Co-obligation of parents/guardian is must One satisfactory third party guarantee Above Rs.7.50 lacs Co-obligation of parents/guardian is obligatory. Mortgage of immovable property or any other tangible security like pledge of NSC/UTI/LIC (Surrender Value)/Bonds/ Banks deposits (Except under tax saving scheme) etc. . having value at least equal to 100% of loan. Extension of charge on property already mortgaged with our Bank,subject to adequate residual value of security. Margin: Up to 4 lacs - NIL Above 4 lacs for education in India - 5% Education Abroad - 15% Concession on Rate of Interest : Simple Interest shall be charged during study &moratorium period. The concession of 1% in rate of interest to be allowed, if interest is serviced regularly during the study &moratorium period. This concession shall be allowed after expiry of moratorium. Education Loan Scheme Rate of Interest: w.e.f. 01.07.2010 For Loan up to Rs. 4.00 Lacs BR + 2.75%= 10.75 % per annum  For Loan above Rs. 4.00 Lacs BR + 3.50% =11.50 % per annum Education Loan to Serving Professionals / Executives and Defense Personnel for Part-time courses BR + 5.25%= 13.25% Education Loan Scheme for Rural / Semi-urban Populace BR +4.75%= 12.75% Concession in rate of interest of 1% for education loans to students of IIT’s & IIM's can be permitted for loans up to 4.00 lacs. Concession in rate of interest of 0.50% for women beneficiaries/ SC/ ST/ physically challenged students can be permitted over the normal rate. Concession of 1% in rate of interest is to be allowed during the study/moratorium only if the interest is served during the period regularly.  After the completion of study and expiring of moratorium period, normal rate of interest shall be applied on compounding basis till the total repayment of loan. Total concessions in rate of interest are subject to floor rate of 10.50% for boys. However, the girl students can be permitted concessions below the floor rate but not below Base Rate. Simple rate of interest shall be charged on monthly basis during moratorium period (study period + Grace period) Special Rate: 0.50% concession to women beneficiaries, SC/ST s and disabled students. Process Fee: Up to 4 lacs - Rs. 100/-. Above 4 lacs for education in India - Rs. 500/- Education Abroad - Rs. 1000/- Repayment: Within 84 EMIs commencing 12 months after course or 6 months after getting the job, whichever is earlier. Insurance: Free Personal Accident Insurance up to Rs.20 lac.

Banks constantly offering educational loans to LPU students

Following is the list of banks that have been constantly offering educational loans to LPU students:

Some of the above mentioned banks also have their counters at LPU during admissions.

Banks in India providing Educational Loans

Following are some of the premier banks of India that are providing educational loans. Click on the banks to know the details.

Note:
The Hon’ble Supreme Court of India in case of Civil Appeal no. 2056 of 1999 dated 24th September, 2001 titled as “Bharathidasan University and another Vs All India Council for Technical Education and others”; has held that “Running /conducting courses and programmes in technology courses by University –prior approval of the All India Council for Technical Education (AICTE)-is not necessary –Definition of “Technical institution” under AICTE Act does not include university. AICTE is not intended to be authority either superior to or supervise and control the universities – Regulation 4 compelling university to seek and obtain prior approval of AICTE before starting any new department or course or programme in technical education are void.”
Click here to view the full text of the judgment

The abovesaid judgment of the Supreme Court of India, thus invalidates the criteria of AICTE approval prescribed by certain banks for the purpose of sanction of educational loans to the students of a University and other purposes in relation to a University. Such a requirement, hence, must be done away with.

Requisition of approval of AICTE, in case of a university, is entirely in the violation of aforesaid judgment of the Hon’ble Supreme Court of India and may tantamount, to contempt of Court.