Education Loan
Management students are among the top choices for most of the banks. Technology students from the country’s premier institutions can also get student loans from Banks and Medical and engineering college students.Banks don’t provide loans for students with a bachelor’s/master’s in Arts . Also, for courses where employment prospects are less (as per Bank’s own evaluation), loans are sanctioned on the basis of the parents’ income.Loan for Studies in India Most of the Public Sector Banks in India have categorized Student Loans in two categories. For Studies in India , Students can borrow up to Rs 4 lakh without providing any security or margin. A loan amount of Rs 4 lakhs to Rs 7.5 lakhs can be availed against a third-party guarantee. This loan comes with a five percent margin (what this means is that you will get five percent less the amount sanctioned as loan; you will have to put together the rest of the money). The third-party guarantee can come from an uncle, neighbor or friend standing guarantee for the full amount.Overseas study loans : Amounts worth Rs 7 lakhs and above are usually sanctioned against fixed deposits, NSC certificates, property worth the loan amount and a margin amount of 15 percent (what this means, again, is that you will get 15 percent less the amount sanctioned as loan; you will have to put together the rest of the money). Also, if a loan below Rs 4 lakhs comes at x rate of interest, the loan over Rs 4 lakhs is usually charged one percent higher interest. The Reserve Bank of India prescribes the specifics (amount, rate, repayment period) of education loans and the government provides a two per cent subsidy on these loans to the banks.Documents required for applying a Loan All students are required to submit mark sheets of last qualifying examination, poof of admission scholarship, schedule of expenses for the specified course, his/her bank account statement for the last six months, an income tax assessment order for the previous two years, a brief statement of assets and liabilities, of the co-borrower, which is usually the parent or guardian and proof of income, if any.Some banks require all or any of the following documents as pre sanction documents: To furnish the following documents along with the completed application form. Relevant information would relate to the guardian and the student both, when the loan is jointly taken. 1. Mark sheet of last qualifying examination for school and graduate studies in India 2. Proof of admission to the course 3. Schedule of expenses for the course 4. Copies of letter confirming scholarship, etc. 5. Copies of foreign exchange permit, if applicable. 6. 2 passport size photographs 7. Statement of Bank account for the last six months of borrower. 8. Income tax assessment order not more than 2 years old 9. Brief statement of assets and liabilities of borrower. 10. If you are not an existing bank customer you would also need to establish your identity and give proof of residence. Eligibility for getting a loan: The applicant should be an India National The applicant must have secured admission to professional/ technical courses through Entrance Test/ Selection process Secured admission to foreign university/ Institution Banks are offering Education Loans in India Most of the Private Sector banks, Foreign Banks and Public Sector Banks in India are providing Student Loans. The main banks which have flexible Education loan schemes. The Government of India has launched a scheme to provide full interest subsidy during the period of moratorium i.e., Course Period plus one year or six months after getting job, whichever is earlier, on loans taken by students belonging to Economically Weaker Sections from scheduled banks under the Educational Loan scheme of the Indian Banks’ Association, for pursuing any of the approved courses of studies in technical and professional streams, from recognised institutions in India.
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