It's now possible to study anywhere and pursue the course of your choice with the help of education loan.
Gone are the days when some students despite scoring well could not take admission in the colleges of their choice because of high fees. Now education loan is easily available and students can get admission in any of the recognised universities. Education loan is a boon for the students of India. Whether they wish to study in India or abroad, they can get the education loan.Education loans are processed quickly. It takes hardly a week for a student to get the loan.
How to get an education loan?
Each bank has a list of approved universities and courses for which it can give education loan. In order to procure an education loan the student must have successfully completed class XII. A student can get an education loan by approaching the nearest bank to his parent's residential area. Assistant manager Prabhat Kumar Tiwari from IDBI bank said, "A student can get an education loan up to 10 lakh if he/she wishes to study in India and up to 20 lakh if he/she wishes to study abroad. If the student wishes to study in India then he can take a loan up to Rs 4 lakh without collateral securities and in case it is more than Rs 4 lakh, collateral securities have to be given to the bank. Similarly a student can get a loan of up to Rs 7.5 lakh without collateral securities if he wishes to study abroad. Courses like MBA, MCA B.Tech, PHD, CA, fashion designing etc. are covered in education loan."
Proofs required for loan
The student needs to show admission confirmation from the college to the bank. "The student also has to show the schedule of charges like institute fee, hostel charges if any, etc. They have to give entire description of all the fees charged by the university," said Prabhat.
The terms and conditions laid down by the Indian Bank's Association are not strict. Rather they have made things easy for the students. An official from Punjab National Bank said, "The financial condition of the parents or the guarantor is taken into consideration. The student also has to produce the registration number or the letter from the college stating that he has got admission. The student also needs to mention if the university takes yearly, quarterly or six monthly fees."
Repayment of education loan
Normally the banks charge minimum rate of interest on education loan. Prabhat says, "Once the loan is sanctioned student can repay the loan either when he gets a job or after six months of getting the job. If the student does not get job within one year of finishing the college then he is exempted for one year which is called moratorium period."
So go ahead, give wings to your dreams and do not let money hinder your success.
Fees that comes under loan
• Complete education fee
• Library fee
• Study material and books
• Hostel charges
• Travel expenses