What is the eligibility for getting education loans?

The applicant should be a student of an institution or college that is recognised by All-India Council for Technical Education. The salary or property assets of the applicant?s parents is not a criteria for grant of education loans. While applying for the loan the student should submit proof of his/her identity and residence address. A copy of the the admission letter from the educational institution, where he/she has applied to should also be produced, along with he college or university?s fee payment schedule and the mark sheet of the last examination the student has taken. If the student submits all the necessary papers, he/she should get education loan in a day itself.

What is the maximum limit for grant of education loans?

Loans upto Rs 10 lakh is provided to students who want to pursue education in colleges and universities in the country. For those applying to foreign universities we provide loans upto Rs 20 lakh. No security deposit is required for loans upto Rs 4 lakh. For loans between Rs 4 lakh and Rs 7.5 lakh, we need a third party who will furnish the guarantee bond and indirectly take up the onus of repaying the loan in case the student fails to do so. For loans above Rs 7.5 lakh, the student has to file a 100 per cent collateral security which is in the form of fixed assets. The rate of interest on education loan is 11.25 per cent. But in case the student?s parents or guarantor pay the interest amount every month from the time the loan has been given, the student will get a rebate of one per cent on the interest rate.

Till what time is the student expected to pay back his education loan ?

The student has to sign a moratorium wherein the maximum period allowed is the tenure of his education, plus one year. If the student gets a job immediately after completion of the course, the loan has to be repaid immediately.

Savvy Soumya