Education loan eligibility
Eligibility of a student
- Student should be an Indian national.
- Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance test / Merit based selection process after completion of HSC [10 plus2 or equivalent].
- Should have secured at least 60% marks [55% for student belonging to SC/ST category] in the previous qualifying examination.
- Person already in gainful employment not eligible for loan under the scheme except for pursuing evening course covered under the scheme of approved Institute.
Expenses considered for loan
- Fee payable to college/university/academy/institution.
- Examination/laboratory /library fee.
- Purchase of books/uniforms/equipment’s or instruments
- Travel Expenses/insurance or passage money for studies abroad.
- Purchase of computer/laptop/notepad at reasonable cost.
- Insurance premium.
- Any other expenses required to complete the course like – study tours, project work, thesis etc.
Quantum of Finance
- Studies in India – Maximum upto INR 10 Lakh
- Studies Abroad – Maximum upto INR 20 Lakh
Margin
- Upto INR 4 Lakh – Nil
- Above INR 4 Lakh - INDIA – 5% || Abroad – 15%
Security
- Up to Rs. 4.00 Lakh : Co-obligation of Parent/s, Grand Parent/s ( if parents are deceased). No other security.
- Above Rs. 4.00 Lakh & up to Rs. 7.50 Lakh : Co obligation of Parent/s Grand Parent/s (if parents are deceased) together with collateral in the form of suitable third party guarantee.
- Above Rs. 7.50 Lakh : Co-obligation of Parents/Grand Parents ( if Parents are deceased) together with tangible collateral security along with the assignment of future income of the student for payment of instalments. The loan to be fully secured after maintaining prescribed margin on respective securities.
Repayment
Repayment of the loan will be in equated monthly instalments (EMI’s) for period as under :
- For Loan upto INR 7.5 Lakh - 10 years
- For Loan above INR 7.5 Lakh - 15 years
Upfront or Processing Fee
For abroad studies: Depends on bank to bank .1 % with minimum of INR 2000 to INR 10,000/-(refundable on availment of loan amount)
Below are the important links of some of the Nationalised and Financial service non-banking sectors, offers Education Loans for Foreign Studies :
| Andhra Bank | http://www.andhrabank- india.com/english/loans1.asp |
| Bank of Baroda | http://www.bankofbaroda.com/pfs/eduloans.asp |
| Bank of India | http://www.bankofindia.com/Home/productsservices/eduloans.asp |
| Canara Bank | http://www.canarabank.com/English/Scripts/CanEduLoan.aspx |
| Dena Bank | http://www.denabank.com/denaEdulLoan.jsp |
| State Bank of India | https://www.sbi.co.in/user.htm?action=sbiEdulLoan |
| Union Bank of India | http://www.unionbankofindia.co.in/personal_retail_education.aspx |
| Bank of Maharastra | http://ucoeduloan.ucobank.com/ucoonlineform.aspx |
| Avanse Financial Services | http://www.avanse.com/ | Vijaya Bank | http://vijayabank.com/vijaya/vijaya/internet-en/menus/loans-advances/retail-lending-schemes/educational-loans.html |
| State Bank of Patliala | http://www.sbp.co.in/ |