Appropriate Loan Amount – Education Loan

All About Education Loan

Loan for Studies in India – Education Loan

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.

Apply For Education Loan

Overseas study loans:

  1. Amounts worth Rs 7 lakhs and above can be easily sanctioned against NSC certificates, fixed deposits.
  2. You can get a margin loan amount of 15 %.
  3. 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.
  4. 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.

  1. 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

  1. SBI Education Loan
  2. HDFC Education Loan
  3. CREDILA Education Loan
  4. AXIS Bank Education Loan
  5. ICICI Bank Education Loan
  6. Bank Of India Star Education Loan

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