|
| |
Educational Loan
pursuing higher education in
India or abroad
Main
Article page |
Beauty articles
|
Health page |
Computers|
Diseases |
Education |
Entertainment |
Family
Business |Fitness|
Fruits and Vegetables
|
Jobs |
General |
Personality|
Technology
|
Tourism |
Sports
Biography Page|
Heroes & Incredible peoples
|
Inventions
|
Useful Tips
Education Main Page |
Edu.after 10th | Online study |
Scholarships |
Edu.Courses |
Edu.Loans
Government of India in consultation with
Reserve Bank of India (RBI) and Indian Banker's Association (IBA) has
framed a Comprehensive Educational Loan Scheme to ensure that no
deserving student in the Country is deprived of higher education for
want of finances. The new scheme covers all type of courses including
professional courses in schools and colleges in India and abroad.
The Salient features of the scheme are as under:
The scheme envisages loans up to Rs.7.5 lakh for studies in India and up
to Rs. 15 lakh for studies abroad.
For loans up to Rs. 4 lakh no collateral or margin is required and the
interest rate is not to exceed the Prime Lending Rates (PLR). For loans
above Rs. 4 lakh the interest rate will not exceed PLR plus 1 percent.
The loans are to be repaid over a period of 5 to 7 years with provision
of grace period of one year after completion of studies
Tax Benefit
Repayment of an education loan is deductible under section 80E of the
Income Tax Act. The yearly limit for deduction is Rs. 40,000 (for both
the principal and the interest). Only loans taken for higher education -
fulltime studies in any graduate or post-graduate, professional, and
pure and applied science courses - may claim deduction. The deduction
will be available for a maximum of eight years starting from the day you
start repaying.
Equitable Access to quality higher education has been a concern of the
University Grants Commission. To this purpose the Commission, besides
encouraging colleges and universities to provide for liberal financial
support to the meritorious but needy students, has also been
instrumental in educational loan scheme. The Reserve Bank of India (RBI)
has issued guidelines in this regard to all commercial banks. A large
number of banks have already launched educational loan schemes. Provided
below are links to the respective website of individual banks offering
such facilities.
Disclaimer: Since the rules, regulations, eligibility
conditions, repayments and interests rates etc are revised by the banks
from time to time in keeping pace with the changing capital market
conditions, students and parents are advised to thoroughly check the
terms and conditions of educational loan scheme on offer at the time of
application.
Various banks give educational loans to Indian Nationals to pursue
their studies in Indian & Abroad. The terms and conditions and the rate
of interest varies among Banks. The following are the terms used by
State Bank of India to give Educational Loans.
Eligible Courses
All
courses having employment prospects are eligible.
-
Graduation
courses/ Post graduation courses/ Professional courses
-
Other
courses approved by UGC/Government/AICTE etc.
Expenses considered for loan
-
Fees payable to
college/school/hostel
-
Examination/Library/Laboratory fees
-
Purchase of
Books/Equipment/Instruments/Uniforms
-
Caution
Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees
for the entire course)
-
Travel
Expenses/Passage money for studies abroad
-
Purchase of
computers considered necessary for completion of course
-
Cost of a
Two-wheeler upto Rs. 50,000/-
Any
other expenses required to complete the course like study tours, project
work etc.
Amount
of Loan
-
For studies in
India, maximum Rs. 10 lacs
-
Studies abroad,
maximum Rs. 20 lacs
Interest
Rates
w.e.f. 29.06.2009 (SBAR 11.75%)
SBI
Student Loan Scheme
|
Loan
Amount |
Rate of
Interest |
|
Loans upto
Rs. 4.00 Lacs |
0.50% below
SBAR i.e. 11.25% p.a. |
|
Loans above
Rs. 4.00 Lacs and
upto Rs.
7.50 Lacs |
1.00% above
SBAR i.e. 12.75% p.a. |
|
Loans above
Rs. 7.50 Lacs |
At SBAR i.e.
11.75% p.a. |
An
Interest Rate concession of 0.50% to Girl Student availing Student Loans
Processing Fees
-
No processing
fee/ upfront charges
-
Deposit of Rs.
5000/- for education loan for studies abroad which will be adjusted
in the margin mone
Repayment Tenure
Repayment will commence one year after completion of course or 6 months
after securing a job, whichever is earlier.
|
Place of
Study |
Loan
Amount |
Repayment
Period
in Years |
|
Studies in India |
Rs. 10.0
lacs |
5-7 |
|
Studies
Abroad |
Rs. 20.0
lacs |
5-7 |
Security
|
Amount |
For loans
upto Rs. 10.00 lacs for Studies in India and upto Rs. 20.00 lacs for
studies abroad |
|
Upto Rs. 4
lacs |
No Security |
|
Above Rs. 4
lacs to Rs. 7.50 lacs |
Collateral
security in the form of suitable third party guarantee. The bank
may, at its discretion, in exceptional cases, weive third party
guarantee if satisfied with the net-worth/means of parent/s who
would be executing the documents as "joint borrower". |
|
Above Rs.
7.50 lacs. |
Tangible
collateral security of suitable value, along with the assignment
of future income of the student for payment of installments. |
All
loans should be secured by parent(s)/guardian of the student borrower.
In case of married person, co-obligator can be either spouse or the
parent(s)/ parents-in-law
Margin
-
For loans up to
Rs.4.0 lacs : No Margin
-
For loans above
Rs.4.0 lacs:
-
Studies in India: 5%
-
Studies
Abroad: 15%
Documentation Required
-
Completed
Education Loan Application Form.
-
Mark sheets of
last qualifying examination
-
Proof of
admission scholarship, studentship etc
-
Schedule of
expenses for the specified course
-
2 passport size
photographs
-
Borrower's Bank
account statement for the last six months
-
Income tax
assessment order, of last 2 years
-
Brief statement
of assets and liabilities, of the Co-borrower
-
Proof of Income
(i.e. Salary slips/ Form 16 etc
-
Click
List of Banks in India
Articles:
| |
|
