Education Loans
Overview
Banks give educational loans to deserving students who are unable to pursue further
studies due to the lack of financial support. Loans are given to students pursuing
graduation, post-graduation and professional courses from institutes approved by
the state and central government as well as foreign universities that are eligible
for a loan.
Eligibility
- Should be a citizen of India
- For vocational training courses and job oriented course age of the individual
should be between 15-28 years, and 18-30 years in case of post graduate courses and/or
studies abroad.
- The applicant should have a good academic record.
- For studies abroad, the candidate should have secured admission in a particular
university after having appeared in the specific entrance examinations.
- The applicant should have secured a minimum of 50% marks.
- In case of SC/ST candidates eligibility norms may be relaxed.
Process
Individuals can visit a bank branch to apply for loans or they can even apply online
and get a loan sanctioned. Usually, banks study the financial viability of the borrower
based on personal discussions with the student, family's assets and annual income,
the nature of the course and reputation of the institute etc. In most banks for
loans up to Rs. 4 lakhs no collateral or margin is required and the interest rate
will not exceed the Prime Lending Rates (PLR). Repayment of the loan usually doesn't
begin till one has finished their studies with a grace period of one year after
the completion of studies. The mode of repayment differs for each bank and the form
of loan taken.
