Education loan

__________________________________________________________________

Objective of the Education loan Scheme

__________________________________________________________________

The Education loan scheme aims at providing financial assistance on reasonable terms:

• To the poor and needy to undertake basic education.
• To the meritorious students to pursue higher/professional/technical education.

__________________________________________________________________

Eligibility Criteria of Education loan scheme

____________________________________________________________________________

Courses Eligible :

a. Studies in India

• School education including plus 2 stage
• Normal Graduation Courses - B.A., B.Com., B.Sc., Microbiology, etc.
• Post Graduation Course: Masters Courses, Ph.D., etc.
• Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental,
• Management (including Hotel Management), Computer/ Information Technology, Journalism & Mass Communication, etc.
• Courses like: ICWA, CA, CFA, etc.
• Computer Certificate Courses of reputed Institutes accredited to Department of Electronics or Institutes affiliated to University.
• Courses conducted in India by reputed Foreign Universities.
• Evening courses of approved institutes.
• Courses leading to diploma / degree etc. conducted by the Colleges/ Universities approved by UGC / Govt./ AICTE / AIBMS / ICMR etc

b. Studies abrod

• Graduation: For job oriented professional / technical courses offered by reputed Universities.
• Post Graduation: MCA, MBA, MS, etc.
• Courses conducted by CIMA London, CPA in USA etc

__________________________________________________________________

Quantum of Loan:

__________________________________________________________________

Need based finance subject to repaying capacity of the parents/ students with following ceilings:

• Studies in India: Maximum Rs 7.50 lacs
• Studies abroad: Maximum Rs.15.00 lacs

__________________________________________________________________

Documents Required

____________________________________________________________________________

The following documents are required by almost every bank or financial institution:

• ID Proof
• Documents for proof of age/date of birth
• Proof of residential address.
• Signature Proof.
• Agreement with the student.
• Guarantee of father/guardian
• Guarantee of 3rd party.

__________________________________________________________________

Loan repayment option

__________________________________________________________________

The repayment options vary from bank to bank. But it is worth to ensure the repayment plans accordingly before agreeing to the loan. Maximum loan tenure varies according to the plan of repayment opted. The interest rate & EMI depends on the tenure and amount of the loan. But in general Repayment holiday/ postponement is course period (for the loan) + 1 year or 6 months after getting job, whichever is earlier.

____________________________________________________________________________

Process

____________________________________________________________________________

Application can be done directly to the Banks for student loans. Online student loan forms are available with most of the banks. The major steps involving the disbursal of education loans can be summarized as:

• Apply for the Loan complete with all documents required by the bank.
• Verification of the documents furnished, age proof, residence proof and other formalities.
• Credit Appraisal for deciding if the applicant is legitimate for the loan.
• Disbursal of the loan.