All About Education Loan
Loan for Studies in India –
Most of the public sector banks have categorized the Education Loan in two categories:
1) Students can borrow a loan amount of Rs 4 lakhs without providing any asset as collateral to the bank.
2) Students can borrow a loan amount ranging between Rs 4 lakhs to Rs 7.5 lakhs can be availed against a third-party guarantee.
A third-party guarantee can be in the form of an uncle, neighbor, or friend.
Overseas study loans:
- Amounts worth Rs 7 lakhs and above can be easily sanctioned against NSC certificates, fixed deposits.
- You can get a margin loan amount of 15 %.
- If a loan below of Rs 4 lakhs comes at X rate of Interest, the loan of over rs 4 lakhs is usually charged a 1 % interest rate.
- RBI specifies the loan amount, interest rate on student loans and govt provide a 2 % subsidy to the banks on these loans.
An important point to Note:
Indian Bank Association has recently formed a working group to address the issues of education finance and the rising rate of the interest rate.
- The group has submitted its searches to the RBI and its suggestions to make it mandatory for parents, guardian,s and students to act as co-borrowers making them liable for repayments.
Repayment: Course period + 1 year or 6 months after getting the job, whichever is earlier.
Leading Education Loan Providers
- SBI Education Loan
- HDFC Education Loan
- CREDILA Education Loan
- AXIS Bank Education Loan
- ICICI Bank Education Loan
- Bank Of India Star Education Loan
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