Indian Army, AGIF has taken an initiative to provide financial support in terms of Educational loan to all Army personnel for continuous education of their children. Eligibility condition, application process, documents required and other details are mentioned in this article.
Details of the Education Loan at a Glance :-
Upper limit – Rs 10,00,000/-
Interest rate – 7% p.a.
Effective roi – 3.5 to 3.8%.
Duration – Max 5 years or six months before retirement (whichever is earlier)
Repayment mode – EMI (ECS mandate to begin with, later through CDA(O) / PAO(OR).
Following options available for availing education loan:- Fresh applicant Applying for follow-up/top up loan. For refinancing an existing loan availed from Banks/NBFC.
ELIGIBILITY CONDITIONS FOR GRANT OF EDUCATION LOAN TO ARMY PERSONNEL
Indian Army serving personnel with following may apply for education loan :-
(a) Serving Personnel ( Re-employed are not eligible).
(b) Wards of Serving Personnel.
(c) Dependent Sister.
2. Loan can be taken for Govt Recognised Colleges/Universities/Institutions for under Graduate/Post Graduate/ Professional Studies/Course.
3. Quantum of loan is based on repaying capacity, residual service and fee structure schedule of College/Universities/Institutions.
4. Loan will be disbursed in one installment in case the total fees is equal or more than Rs 10 lakhs.
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5. Loan is admissible for higher education in India as well as abroad.
6. In case of retirement/release/invalidment of the member before repayment of the loan, the outstanding amount together with due interest is to be refunded by the borrower well in time failing which, it would be recovered in one lump sum out of his survival/retirement benefits etc with interest.
7. In the event of death while in service, the outstanding balance thereon would be recovered from the survival benefits, admissible to Next of Kin.
8. In case of deputation, outstanding balance of loan must be refunded to ELS before going on deputation.
INSTRUCTIONS FOR SUBMISSION OF APPLICATION FORM (TO BE DETACHED AND SUBMITTED BY APPLICANT)
Instructions/Guidelines for Filling
- Application to be filled in BLOCK CAPITALS.
- If being handwritten, please use black ball point pen for filling
- Tick boxes where applicable.
- Attach relevant documents wherever indicated.
- All serials to be filled. Application likely to be rejected if left blank.
- Filled application form to be sent by registered post to AGs BRANCH EDUCATION LOAN SEC, ROOM No 17B, WEST BLOCK III, RK PURAM, NEW DELHI-110066
- The application form is to be clearly filled in single copy after ensuring eligibility for loan as per rules. Cross out all the words which are not applicable.
- Officer should mentioned their earlier SS/MS personnel numbers and Old Army No must be filled by all SC/SL Officers & JCOs. In case the old Army No is left vacant the application will be returned back.
- Maximum permissible Education Loan is Rs 10 lakh only.
- The application is required to be countersigned by CO/OC Unit/Director concerned (If posted in IHQ of MoD (Army).
- EMI once fixed will not be changed.
- Commissioning to Officer from JCOs/OR. On commissioning to Officer from JCOs/OR, Education Loan Sec will be intimated for updation of record.
- The term OC unit denotes OC of an independent self accounting unit only and not a sub unit Commander of a Major Unit.
- The rate of interest will be 7% per annum.
- Mode of Disbursement. Through NEFT. Payment will be made only on receipt of a cancelled cheque alongwith complete Bank address, Account Number, IFS Code and MICR Code.
- Payment/Deduction of EMI. The EMI for repayment of the principal and interest on loan once fixed will not be altered. Till mandate for deduction of EMI through CDA(O)/ PAO(OR) is not received from the Government, EMIs will be deducted through ECS mandate. Applicant to submit ECS mandate form from his/her salary bankers along with six signed crossed blank cheques in favour of ACWF (ELS) leaving the amount and dates blank.
- Documents to be enclosed alongwith Application Form. All the documents will be enclosed as per check list.
- Application form should be forwarded under unit covering letter.
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CHECKLIST OF DOCUMENTS TO BE SUBMITTED ALONGWITH THE APPLICATION
| Ser No | Documents Required for Education Loan | |
| Self attested copy of PAN Card of Applicant | ||
| Self attested copy of AADHAR Card of Applicant | ||
| Self attested copy of AADHAR Card of Ward | ||
| Self attested copy of Residence Proof if other than AADHAR Card | ||
| Copy of Part II order of Ward | ||
| Self attested copies of mark sheets from class XII onwards of wards | ||
| Self attested copy of latest pay slip | ||
| Self attested copy of Admission Letter of College/University/ Institution where admission is being sought | ||
| Copy of letter showing Breakdown of Fee/ Expenditure where admission being sought | ||
| Documents evidencing duration of course of commencement thereof, viz. Prospectus or Certificate from the competent authority of the Institution | ||
| If applying for Concurrent Loan, (give details of previous loan taken over for other child/ward) | ||
| If applying for Subsequent/Top-up loan for same ward (give details of previous loan) | ||
| If applying for Foreclosure of Edn Loan from Banks/NBFC (give full details of bankers, loan amount, EMI and current balance alongwith copy of loan agreement/loan sanction letter) | ||
| Copy of CIBIL Score (not older than 03 months) | ||
| Six post dated crossed cheques duly signed by account holder in favour of “Army Central Welfare Fund (Education Loan Section)”. (Leave the date and bank amount blank). | ||
| NACH mandate form duly signed by the indl concerned. (The signatures should match with DSP Acct) |
For details kindly read the pdf copy of the notification mentioned below :-