GOVT. OF WEST BENGAL

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1 WEST BENGAL MINORITIES DEVELOPMENT & FINANCE CORPORATION Amber, DD-27E, Sector-I, Salt Lake City, Kolkata-64 STANDARD OPERATING PROCEDURE (SOP) FOR EDUCATION LOAN MINORITY AFFAIRS & MADRASAH EDUCATION DEPARTMENT GOVT. OF WEST BENGAL

2 Contents 1. Introduction Objectives Procedure of Education Loan Categories of Loan Applicants Fresh Application Introduction Eligibility Criteria Documents Required Procedure for Fresh Application Post Application Procedure Renewal Application Introduction Eligibility Criteria Documents Required Procedure for Enhancement of Loan Application No Due Certificate (NDC) Scheduling of Quarterly Instalments and Calculation Methodology Appendices Appendix Appendix Appendix Appendix Appendix Appendix Appendix Page 2

3 1. Introduction Education loans are monetary help provided to domicile youths who are domicile of West Bengal and are pursuing higher studies in professional and technical fields of study. The students should be pursuing their studies in a private or a government college. The loans are provided by the corporation with interest rates that are comparatively, lesser than those imposed by banks and other financial institutions. For very poor students, the rate of interest is as low as 3% at a reducing balance rate. 2. Objectives The objectives of education loan are: To provide financial support to minority students to pursue higher studies in professional and technical fields of study To provide financial assistance to minorities who cannot afford loans from financial institutions at exorbitant rates. 3. Procedure of Education Loan 3.1 Categories of Loan Applicants There are three categories of loan viz. Fresh Application, Renewal Application and Enhancement Application. The details are as follows: Introduction Fresh Application It is applicable to students who are applying for the loan for the first time. There are further two subtypes of fresh applications viz. within and outside the territory of India. 1. Abroad Studentswho are domicile of West Bengal and are pursuing their studies abroad or wish to pursue their studies abroad are eligible. 2. India Students are domicile of West Bengal and wish to pursue their studies in India are eligible Eligibility Criteria 1. The candidate must have obtained at least 50% marks in last examination (for Indian candidates). 2. The candidate must have obtained at least 65% marks in last examination (for students outside India). 3. The age of the candidate must be within 16 to 32 years as on 1 st January of the year of the application. Income Criteria Page 3

4 SL. NO. 1. CATEGORY Both Male & Female 2. Male 3. Female ANNUAL FAMILY INCOME RURAL URBAN ADMISSIBLE RATE OF INTEREST Up to Rs. 98,000 Up to Rs. 1,20,000 3% per annum From Rs. 98,001 to Rs. 6,00,000 From 98,001 to Rs. 6,00,000 From Rs. 1,20,000 to Rs. 6,00,000 From Rs. 1,03,000 to Rs. 6,00,000 8% per annum 5% per annum Documents Required The following should be attached together with the hard copy of the filled-up application form for the fresh applicants: 1. Admit card and mark sheet of Madhyamik/Secondary examination 2. Mark sheet of Higher Secondary examination 3. Income certificate issued by PradhanCouncellor/ Sabhapati/ any gazetted officer 4. Fee structure of current educational institute. 5. Last examination certificate (if any). 6. Guardian s and candidate s ID proof. 7. Rank card for Entrance Exam (if any). 8. Bank pass book with photograph or Permanent Account Number (PAN) Card issued by the Income Tax Department or Passport or Certificate of Identity having photo of such student issued by a head master or principal of the school under official seal of the school or Driving License issued by the Licensing Authority under the Motor Vehicles Act, 1988 (59 of 1988). 9. Joint account pass book copy and 22 blank cheques with signatures of the joint account holders have to be submitted for repayment purposes in the future. 10. Post Dated Cheques (PDC): A total of 22 PDCs are taken from the candidate for the repayment purpose. This procedure of repayment will start after six months of completion of the course or on getting any gainful employment whichever is earlier. The candidate will required to keep sufficient funds in the account before the PDCs are sent through the bank. A penalty will be charged to the candidate is case of cheque dishonour. The cheques will be sent quarterly (every three months) Procedure for Fresh Application The candidate is required to log on to and fill up the fields on the portal as shown in the following samples. S: (P.T.O) Page 4

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8 Finally, the candidate has to submit the form and note down the registration ID for further use. The candidate is required to take a print out of the application form Post Application Procedure Papers to be submitted during counselling by Head Office I. Agreement Paper This document is an agreement that needs to be made between the candidate and the guardian. This agreement entails that payment of principal amount in twenty instalments, the loan amount being asked for and the reason for applying for such loan needs to be agreed upon in writing by the candidate as well as his/her guardian. A sample document has been attached in Appendix 1. Signatures of the candidate and the guardian need to be done on every page of the document. This document needs to be submitted in a Rs. 10 stamp paper for studies in India and Rs. 100 stamp paper for studies in abroad. II. Letter of Guarantee This document needs to be read and approved upon by a guarantor who must be a salaried employee of a Central or State government or a semi-central or State Page 8

9 government corporation or organisation. The age limit of the guarantor needs to be 53 years. After approving of all instructions mentioned in the Letter of Guarantee, the employer (The head of the Office/Appointing Authority of the Guarantor) needs to verify that that guarantor is rightfully employed in his/her government or semi-government corporation or organisation, with his/her signature. A sample of this document has been attached in Appendix 2.This document needs to be submitted in a Rs. 10 stamp paper for studies in India and Rs. 100 stamp paper for studies in abroad. III. Declaration Copy This document needs to be filled in by the candidate declaring that all details in his/her application form are correct and genuine. This document needs to be provided through a Notary or an Affidavit by a First Class Magistrate. A sample of this document has been attached in Appendix 3. This document needs to be submitted in a Rs. 10 stamp paper for studies in India and Rs. 100 stamp paper for studies in abroad. A sample of the declaration copy of an abroad student has been attached in Appendix 4. IV. SignatureVerification Form This document should consist of a verification conducted by the Branch Manager of the bank where the candidate possesses a joint savings bank A/C with the guardian. There is a need to produce two copies of the filled up Signature Verification Form, one being that of the candidate and the other being that of the guardian.this verification pertains to the genuineness of the signatures of the joint bank A/C holders. Signatures of the joint A/C holders need to be given on the separate respective forms. A sample of this document has been attached in Appendix 5. V. Promissory Note/Money Receipt This document consists of two Revenue Stamps that need to be collected by the candidate from the area Post Office priced at Re. 1.The candidate and the guardian need to sign across the Revenue Stamps on both sides, i.e. Promissory Note and Money Receipt. The fields contained in this document need not be filled up by the candidate or the guardian. A sample of this document has been attached in Appendix 6. Page 9

10 Introduction Renewal Application The renewal application of the educational loan should be done in an offline mode by approaching the corporation Eligibility Criteria The criteria for this loan will be based on the criteria of the fresh application done before Documents Required The following documents should be enclosed for renewal application. 1. Xerox copy of the sanctioned letter (a sample has been attached in Appendix 7). 2. Current year bona fide certificate. 3. Previous year mark sheet copy (last semester). 4. Application to the Managing Director of the corporation for release of renewal amount Procedure for Enhancement of Loan Application If anyone is unsatisfied by the sanctioned amount, then he/she should give an application to the Managing Director of the corporation to enhance the amount of the loan. The decision will be, ultimately, taken by the higher authority after proper enquiry and verification. After submitting the necessary legal documents, if the application is approved and accorded by the corporate authority, a sanction letter for the enhancement of the loan will be issued to the candidate. 4. No Due Certificate (NDC) After completing all the repayment and other charges, if any, (e.g. penalty for dishonour cheque or interest) candidates may give an application to the Managing Director to get the NDC. Documents to be submitted for NDC I. An Application to the Managing Director. II. All the Xerox copies of the money received (if any installment, pay offline). III. All the Xerox copies of the bank statement/pass book (if the instalments are paid from bank). IV. Sanction letter s Xerox copy. Page 10

11 5. Scheduling of Quarterly Instalments and Calculation Methodology A quarter is a period of three months out of a total of twelve months in one year. The quarterly instalments can be scheduled based on the amount of quarters within which the candidate will be paying the Equated Quarterly Instalments (EQI). Based on the sample of the sanction letter attached in Appendix 7, the number of quarters is twenty, thus making the time period within which the EQI will be paid will be five years. The quarterly payments of the principal amount, along with the interest amount, have been given in Tables 1, 2 and 3. Based on the sample of the sanction letter attached in Appendix 7, the following calculation have been made of the respective loan amounts sanctioned. The principal loan amount is Rs. 16, 00,000/- and the period to pay back the loan is in twenty quarterly instalments, i.e. five years starting from January Table.1- Calculation of Loan Amount to be paid in Each Quarter: Principal Amount (In Rs.) Divided by 5 (because there are five years within which the loan needs to be paid)(in Rs.) Amount to be paid in Each Year (In Rs.) Loan Amount Divided by 4 (because there are four quarters in a year)(in Rs.) Loan Amount to be paid in Each Quarter (In Rs.) 16,00,000 16,00,000/5 3,20,000 3,20,000/4 80,000 Table.2- Calculation of Interest Amount to be paid in Each Quarter: Principal Amount Rate of Interest Total Interest Amount needed to be paid over Five Years (In Rs.) Interest Amount to be paid Each Year (out of five years) (In Rs.) Interest Amount to be paid Each Quarter of a year (out of four quarters in one year) (In Rs.) 3% 16,00,000*3/100 = 48,000 48,000/5 = 9,600 9,600/4 = 2,400 16,00,000 5% 16,00,000*5/100 = 80,000 80,000/5 = 16,000 16,000/4 = 4,000 8% 16,00,000*8/100 = 1,28,000 1,28,000/5 = 25,600 25,600/4 = 6,400 Page 11

12 Table.3- Calculation of Total Amount to be paid in Each Quarter: Sl. No. Rate of Interest 1 3% 2 5% 3 8% Year Loan Amount to be paid in each Quarter(every three months) (In Rs.) Annual Family Income Criteria (In Rs.) 80, ,400 = 82,400 1,000 to 1,20,000 Can be Applied by Male and Female 80, ,000 = 84,000 1,20,001 to 6,00,000 Female 80, ,400 = 86,400 1,20,001 to 6,00,000 Male Page 12

13 6. Appendices 6.1 Appendix 1 Page 13

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17 6.2 Appendix 2 Page 17

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22 6.3 Appendix 3 Page 22

23 6.4 Appendix 4 REPLICA Rs 100 non judicial stamp paper BEFORE THE LD. COURT OF JUDICIAL MAGISTRATE (1 st Class), KOLKATA A F F I D A V I T I, , Son of Late , aged about year by faith Islam, residing at 3FA, Natun Nagar Apt. (NayaBasti), B.B.T. Road, P.s. Maheshtala, District 24 Parganas ( South), Kolkata , west Bengal, do hereby solemnly affirm and declare as follows:- 1) That I am a citizen of India by birth and permanent resident of above noted address. 2) That an education loan has yet to be granted in favor of my daughter DISHA AYUB, now he has been studying DHAKA NATIONAL MEDICAL COLLEGE, BANGLADESH, for MBBS as a Bachelor Degree Candidate tough in English from January, 2019 for the purpose of better Education a sum Rs ( ) only as loan ( Education Loan). 3) That I hereby declare that after completion of his Course of 5(Five) years of MBBS Degree (Bachelor of Medicine, Bachelor of Surgery). I will repay the loan amount installment EQI after six months from the date of February, 2024, Rs. ( ) Only quarterly in 20 (Twenty) installment i.e. within five years from February, 2024 to December, I will bound to repay the loan amount Rs. X20 installment total of Rupees ( ) only and application with ----% interest charge per annum. P.T.O. Page 23

24 (2) 4) That if in future I neglect or unable to pay the bill loan amount of Rs ( ) only within stipulated period then the W.B.M.D.F.C. Authority may take legal action against me in future. 5) That all the statements of this affidavit are true to the best of my knowledge. Page 24

25 6.5 Appendix 5 Page 25

26 6.6 Appendix 6 (Signature should be done across the Revenue Stamp) Page 26

27 (Signature should be done across the Revenue Stamp) Page 27

28 6.7 Appendix 7 Page 28

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Name of Examination Year and month in which. Examination was held. Serial No. in Merit list. 1. The holder of this card, Shri/Smti/Kumari

Name of Examination Year and month in which. Examination was held. Serial No. in Merit list. 1. The holder of this card, Shri/Smti/Kumari D:\Higher~1\HighL.pm5 page No. 27 No.... ANNEXURE - II LAST DATE OF SUBMISSION OF FORMS 10-8-2012 ENTITLEMENT CARD GOVERNMENT OF INDIA MINISTRY OF HUMAN RESOURCE DEVELOPMENT DEPARTMENT OF HIGHER EDUCATION