EDUCATION LOAN FACILITIES
Scheme:
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- Most of the public sector banks offer education loan of Rs.10 lakh to Rs.20 lakh at variable interest rates.
- Rs.10 lakh is sanctioned for the those students who undertake professional degree/researches in India.
- Rs.20 lakh is given to foreign-bound students.
Eligibility criteria:
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- Students should be Indian National.
- They have secured admission to professional/technical courses in India or abroad through prescribed Tests on merit.
- Loan is available at undergraduate/postgraduate levels.
- Loan is also given to students who undertake professional courses, such as Engineering, Medical, Agriculture,
Veterinary, Law, Dental, Management, Computer etc. conducted by reputed institutions.
- Students seeking admission in job-oriented professional/technical, MCA, MBA, MS offered by reputed universities.
- Loan applications are generally disposed of within a perid of 15-30 days under priority sector lending.
- No specific age limit is prescribed by the banks for the students taking loan.
Coverage:
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- Loans cover
(a) fee payable to college/school/hostel
(b) Examination/Library/Laboratory fee,
(c) Purchase of books/equipments/instruments/uniforms,
(d) Caution deposit, building fund/refundable deposit supported by respective bills/receipts subject to 10% of
the tuition fee,
(e) Travel expenses/passage money,
(f) purchase of computers essential for completion of the course, Insurance premiums, and
(g) any other expenses required for study in India or abroad.
Security:
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- Upto Rs.4 lakh no security and Upto Rs.7.5 lakh third party guarantee is needed.
- The security can be in the form of land/building/Govt. securities/Public Sector Bonds/Units of UTI, NSC,
KVP, Life policy, gold, shares/mutual fund/debentures, bank deposits etc.
Repayment:
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- The loan is given upto course period and can be paid after getting the job in one year or 6 months.
- The loan has to be repaid in 5-7 years after commencement of the repayment.
- If in given time the course is not completed, extension of a period of two years is granted.
- Top-ups loans can be considered by the banks for those pursuing further studies within the overall eligibility
limit subject to taking required security.
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