Ready loan for education – No anxiety!
In India, only 13 to 14 individuals out of every 100 completing their school education get the opportunity to join colleges for further education!
Considering that finance non-availability should not prevent to continue education, many banks have started giving education loans. It is reported that India charges the lowest interest rate for education loan among other countries in the world.
Eligibility for education
loan
- School education up to +2 or equivalent
- Admission letter (for graduation or post-graduation) from the authorised college after entrance test or on merit
- If the admission is not through entrance test& based on marks obtained, a minimum of 50% should have been scored (40% for S.C. & S. T.).
- Even if the seat has been procured through management quota with above eligibilities, banks offer education loans.
Courses for which education loans are available
Arts, Science, Commerce, Law, Medical, dental, engineering, computer, and management,
(Graduation & post-graduation and Chartered Accountancy)
Courses offered by IIT, IIM,& XLRI and foreign colleges & Universities.
Loan amount?
Up to Rs.10 Lakhs for education within the country
Up to Rs. 20 Lakhs for education in a foreign country
There is an element known as ’margin’ for getting education
loan. There are no margin charges for loans upto Rs. 4 Lakhs. For loans above
Rs. 4 lakhs, margin will be charged at the rate of 5% for domestic and 15% for
foreign courses.
Loans for other expenses
Loans are available for all l incidental expenses incurred through the entire course such as education fees, exam fees, purchase of books, library fees, hostel fees, conveyance expense, purchase of gadgets, and lab expenses.
Documents required
- Qualification certificate & Mark Sheet for 12th Standard
- Identity proof with photograph
- Proof of residence
- College admission letter
- Year-wise particulars of fees from the college
- Parents’ income certificate
- Details of security given (if required)
Is Security required?
For loans upto Rs. 4 Lakhs, no security is required. For loans
above Rs. 4lakhs & below Rs.7.5Lakhs, guarantee from a person for the
equivalent amount is required. For loans above Rs. 7.5 Lakhs, collateral
security should be given to the bank fur a equivalent amount by way of
property. NSS bonds or o insurance policies of an equivalent amount
can be given as security to the bank.
Interest Rate
This varies from bank to bank. Usually, it is 11%.
Time (repayment)
It starts 1 year after the education loan or 6months after joining a job, whichever is earlier. The repayment will be n EMI basis. As per the new laws, loans upto Rs. 78.5 lakhs can be repaid in 10 years and for loans above Rs. 7.5Lakhs, it can be repaid within 15 years.
The repayment starts after completion of education. However, if it is possible, it is advisable to pay at least the interest in the start itself as it would save a considerable amount of interest.
Even though the regulations are fair, there are some occasions when banks are reported to harass the students. Hence, the banks should better approach with a sacrificial aspect and lift the deserving cases for upliftment Similarly ,the students on their part, should strive for successful completion of their education and should commence repayment on regular basis for a bright future.
