This blog post is for my friends who are searching for loan for studies abroad.I hope this post helps them.
Education loans are term loans offered to deserving students pursuing higher education either in India or abroad. All employment generating courses are eligible for education loans.
Eligible Courses: Graduation/ Post graduation/Professional course in any stream Any other course approved by Government.
Maximum Amount of Student Education Loans:The amount of educational loans varies in different banks. Generally the maximum educational loans granted is Rs. 10 lacs for studying in India and a maximum of Rs. 20 Lakhs for studying abroad.
Expenses Of Education Loans:Banks and other institutions may have different criteria for selecting as to what constitutes the education expenses. A few common expenses covered under education loans are as follows :
Tuition fee payable to college/school
Purchase of books/equipment/uniform
Cost of two wheeler (Optional) Repayment of the loans can be done by Equated Monthly Installments EMI. It generally commences after one year of the completion of course or six months after securing the job. The time period can vary depending on the policies of individual banks.
Interest on Education Loans:The interest on education loans varies from bank to bank and also the prevailing market rate. The rate of interest can increase or decrease with respect to the amount of loans required.
Process Of Obtaining Education Loans:Education loans forms are available at bank premises. Online forms are also available for ease of the clients. Generally no processing fee is charged. A deposit can however required sometimes, which is adjusted later on.
Documents Required for Education Loans:
Completed Education Loans Application Form
Original mark sheets of last qualifying examination
Proof of admission scholarship, studentship etc
Prospectus of the institute containing schedule of expenses for the specified course
Passport size photographs
Borrower's Bank account statement for the last six months
In case the borrower in an income tax payee, Income tax assessment order, of last 2 years
Brief statement of assets and liabilities, of the Co-borrower , if any
Proof of Income (i.e. Salary slips/ Form 16 etc) , if any
List of Some of Public/Private Sector Banks Providing Education Loans:
Allahabad Bank - Allahabad Educational Scheme
Bank of Baroda - Baroda Gyan
State Bank of India - Expenses For Education
United Bank of India - Education Expenses Covered
Bank of India - Star Education Scheme
Oriental Bank of Commerce - Education in India
Indian Bank - Convenient Study
UCO Bank - Pursuing Higher Education
Dena Bank - Dena Vidya Laxmi Loan Scheme
HSBC Bank - Comprehensive Education Coverage
State Bank of Bikaner & Jaipur - IBA Model Scheme For Education
PNB Bank - Vidyalakshyapurti
Maharashtra Bank - Loan Amount For Study