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.
Third party guarantee can be in the form of uncle, neighbor or any 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 are usually charged 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.
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 interest rate.
- The group has submitted its searches to the RBI and its suggestions to make it mandatory for parents, guardian and students to act as co borrowers making them liable for repayments.
Repayment: Course period + 1 year or 6 months after getting 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
- IDBI Education Loan
- Bank Of India Star Education Loan
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