Presently pursuing a professional or a scientific education in India as well as in abroad becomes expensive and unreasonable for a common people. To overcome the hurdle faced by many parents, the education loan is given to the students.
The education loan is given to those who have enrolled in an institute for a career oriented course such as medical, engineering, management etc., at graduate or post graduate level. The support of education loan drives students desire of achieving greater heights in the respect of themselves as well as for the nation. Education loan is the right finance support at right time which indirectly leads to the success of students in academics. Moreover, an education loan removes the financial obstacles from students life and allow them to expand their base of knowledge. Knowledge is the supreme power and its above everything. According to education loan, the students get enrolled to the course and no capable students should face any difficulty in pursuing their academics or dream due to the lack of money.
1. A student should belong to an Indian national and should be of the age between 16 to 35 years. The student pursuing for masters course or the graduation and PG diplomas.
2. Confirmation of admission in a college or university recognized by Govt. or AICTE etc., such as Management, Engineering, Architecture and hospitality, Agriculture, Medical, Fine arts and design, Pure science/BA/MA/B.Com/ M.Com, Some special skill training of technical courses such as aviation as well as non-technical courses such as air-hostess are sometimes included too.
3. If you have taken a loan which is more than Rs. 7.5 Lakh then you need to give a collateral security as asked by the bank or finance providing agency.
4. A co-applicant is necessary for all full time programs. Co-applicant could be anyone as mentioned are Parent/ Guardian or Spouse (if married) / Parent-in-law (if married).
With the aid of education loan, this has given the power to students to live their dream. Now the following are the things which en education loan is covering:
1. Education loan include accommodation charges.
2. This loan covers 100% tuition fees.
3. Exam and library fees.
4. Travelling expense to abroad
5. Books and equipments including computer.
6. Other expense are also included which require to complete education.
Bank will approve education loan application within 15 working days from the date of submission of loan application if it is complete in all respects such as filled with all personal, education details etc.
The education loan amount is provided after taking into account the required funds or fee schedule as assessed by the bank directly to the educational institution, equipment required vendor of books etc.
Know the education loan amounts which can be disbursed to the students are below mentioned:
a. Rs. 20 lakh for study abroad.
b. Rs. 10 lakh for those students who wants to study in India.
1.If someone apply for loan amount Upto Rs. 4 lakh No security required, but in this case parents needs to be a joint borrower.
2. If someone applies for loan amount between 4 to 7.5 lakhs along with parents collateral security in form of third party guarantees.
3. If someone apply for loan amount above 7.5 lakhs Parents to be joint borrowers and tangible collateral security of suitable value required for further processing.
4. Documents are to be submitted as the security depends upon the quantum of loan amount sanctioned by the financing agency or the bank.
a. Residential property ( apartment/house/ flat)
b. Fixed deposit.
c. Life insurance.
d. Non- Agriculture land.
One year or six months after getting job, whichever is earlier.
1. Upto 4 lakhs - Nil
2. Education loan above 4 lakh studies in India- 5%.
3. Education loan for study in abroad -15%.
4. Education loan upto 7.5 lakhs is eligible for the credit guarantee cover.
The education loan is initially started to give aid to meritorious students to pursue higher education. However, as the time passed, rules got diluted and now the loans are sanctioned to those who got admission either in technical or professional courses irrespective of the marks.
So, it indirectly viewed as the increasing financial assistance to the students, not to be repaid. Indeed education loan is a boon to meritorious students. The loans schemes which are existing in India are generally are very liberal. However loan defaulters are increasing, the students are not able to get a job within the one year after completion of their course. In other hand if the students are able to get job but are not sufficient to ensure repayments Now the Indian bank association has issued the stringent guidelines against education loan. The students got admission by merit based is only eligible for education loan. The students who got admission in highly rated institution will eligible for education loan. Thus reducing the non performing asset of the banks.
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