The
Chief Executives,
All Banks/DFIs
Dear
Sirs/Madam,
Extension
in Repayment Period of Consumer Loans Intended for Educational
Purposes
Please
refer to the Prudential Regulations issued vide BPD Circular
No.35 dated 28th October, 2003.
2.
It is clarified that the maximum tenure of personal loans
(5 years) as stipulated in R-26 of the Prudential Regulations
for Consumer Financing may be extended to 7 years for loans/advances
given for educational purposes only, provided that disbursement
of such loans shall directly be made by the bank/DFI to
the educational institution, and the borrower shall not
be allowed to utilize/withdraw cash directly from the bank/DFI
under this head for any other purpose."
3. All other instructions on the subject shall, however,
remain unchanged.
4.
Please acknowledge receipt.
