1) Loan is provided conjointly to the applicant and his/her guardian.
2) There is an agreement that future earnings of the student will contribute to loan repayment.
3) No collateral is required if the loan amount is less than INR. 4 lakh.
4) For loan sum between INR. 4 lakh and INR 7.5 lakh, guarantee from a bank-approved third party may be required. To avoid this, the borrower can offer security of palpable assets (covering the loan amount) in its stead.
5) If the loan amount is more than INR. 7.5 lakhs, the security worth the same is required as collateral.