What Are The Documents Required For Education Loan?

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What Are The Documents Required For Education Loan
Documents required for Education Loan

  • KYC documents.
  • Bank Statement / Pass Book of last 6 months.
  • Optional – Guarantor Form.
  • Copy of admission letter of the Institute along with fees schedule.
  • Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses.

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Which bank is best for education loan?

List of Educational Loans

Bank Student Loan Interest for Indian Universities Student Loan Interest to Study Abroad
Axis Bank 13.70% 13.70%
Bank of Baroda 7.70% 8.35%
Bank of India 9.05% 9.05%
Canara Bank 8.50% 8.50%

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What is the process of education loan in Nepal?

Step 3: Do the necessary paperwork – 1. Find the cosigner: Students must have a trustworthy co-signer to apply for an education loan in Nepal. Cosigning is a responsible commitment. If the borrower fails to pay the loan then the cosigner is legally obliged to pay the education loan.2.

  • 3. Submit the necessary documents:
  • As the supportive documents required for the education loan varies among banks as per their own rules and regulations, so it is always advised to check the list of the documents required with the respective bank and/or visit the nearest branch for further information.
  • Generally, Commercial Banks of Nepal require the following documents for loan processing.
  1. Duly filled loan application form.
  2. Original education certificates/mark sheets.
  3. Proof of admission to the course or offer letter.
  4. Schedule of expenses for the course.
  5. Net worth statement of parents as applicable.
  6. Income statement or cash flow details of the cosigner.
  7. Copies of citizenship/passport of the students and their parents/guardian/guarantor along with pp sized photographs.
  8. Bank (deposit & loan) account statement of 6 months time interval.
  9. Details regarding the assets and liabilities of parents.

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Which bank provide education loan easily?

Education Loan

A loan given out to parents of an Indian national/residing student for schooling at a recognized institute. This loans covers other expenses such as purchase of books and computer/laptop required for education. Loan Amount: Rs.4 lakhs

This education loan is specifically designed Indian students pursuing graduation, post-graduation, or any other professional courses in India. To avail this loan, the student should have secured admission in the course. Loan Amount: Maximum Rs.125 lakhs Maximum Tenure: 10-15 years

An education loan scheme given for MBA, MCA, MS, and other notified courses that help with job creation. To avail this education loan in India, the student must have secured admission to the notified institute and course. Loan Amount: Maximum Rs.150 lakhs Maximum Tenure: 10-15 years

This student education loan is given to Indian nationals who have secured admission into premier educational institutions in India. The loan amount depends on the categorization of the institute. Loan Amount: Up to Rs.80 lakhs Maximum Tenure: 10-15 years

A loan designed for students pursuing technical courses. Any Indian national who has secured admission in a course run by Industrial Training Institutes or National Skill Qualification Framework., etc shall be covered by skill loan. Loan Amount: Rs.1.50 lakhs Maximum Tenure: Up to 7 years

Vidya Lakshmi is a first of its kind portal for students seeking Education Loan. This portal has been developed under the guidance of Department of Financial Services

A student can apply for an education loan and get loan subsidy by checking his eligibility under few government subsidy schemes.

This study loan is offered to resident Indians who must have secured admission in the institute and should be employed during the course of study. Loan Amount: Maximum of Rs.20 lakhs Maximum Tenure: 10-15 years

A study loan given for executive development programmes abroad. The student must have secured admission in the university and be employed while applying & during the course of study. Loan Amount: Up to Rs.80 lakhs

A loan that helps provide a meritorious student in the Delhi the opportunity to pursue higher education with the financial support from the banking system, within reasonable terms and conditions. Loan Amount: Maximum Rs.10 lakhs Maximum Tenure: 15 years

Education loan or student loan is a form of monetary assistance availed by students to meet the expenses associated with their studies. The student loan includes expenses related to school fees, post-secondary education or cost associated to higher education. Bank of Baroda offers various education loans at attractive interest rates with repayment tenure of up to 15 years. No collateral needs to be provided for education loans of up to Rs.40.00 lakh for the identified premier institutes. Maximum Education Loan limit is Rs.125.00 lakh for study in India and Rs.150.00 lakh for study abroad. Opting for an education loan reduces the strain on existing savings and eliminates the need to liquidate the existing investments. The interest on an education loan is eligible for a tax rebate under Section 80 E of the Income Tax Act 1961 To apply for education loan online one needs to visit the bank’s website The student applying for the education loan must be a resident of India. He/she must have confirmed admission in recognized educational institutes in India or abroad. For study in India one can get Education Loan up to – Rs.125.00 lakh For study abroad one can get Education Loan up to – Rs.150.00 lakh Starting from BRLLR+0.25 % for study in India & BRLLR+1.75% for study abroad. For Current ROI kindly visit our page. The education loan can be paid using any online channel like net banking, mobile banking etc. The Borrower will have also a choice to pay the Education loan by visiting the nearby branch. Co-applicant should normally be parent(s)/guardian of the student borrower. In case of a married person, joint borrower can be either spouse or the parent(s)/parents-in-law as a co-applicant for Education Loan.

: Education Loan
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Can I get education loan without parents?

Etc. Students pursuing full-time courses need to have a co-applicant who can be either parent/guardian or spouse/parent-in-law (in case of married candidates). The co-applicant must have a regular income source. A strong academic record facilitates speedy loan approval.
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Can I get education loan easily?

Easily available: Education loans are widely and easily available. In fact, they are a priority product in all banks as per the RBI’s guidelines. Varied loan amounts: Banks can offer loans anywhere between Rs.2 lakh and Rs.
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Can I get 100% education loan?

Benefits of Education Loan without Collateral 50 lakh of loan can be availed by the student without pledging any security. Loan can be availed before admission. EMIs not required to be paid in the moratorium period.100% finance provided for high studies.
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Which bank has cheapest education loan?

Central Bank of India provides education loans to students to study in India and abroad with interest rates starting from 6.85%. The bank also offers concession rates for female students. Students can get generous loan amounts that help them cover all the expenses related to the courses. Interest Rates (p.a.)
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Can education loan be rejected?

Education loan rejection due to Poor CIBIL Score: – To those who have applied for any kind of loan previously, CIBIL score may not be an alien subject. The Credit Bureau of India Ltd, or as it famously called CIBIL is the major governing body that examines every loan applicant’s credit score.

  • This is done so in order to determine an applicant’s worthiness to receive any particular loan.
  • When it comes to education loans, most lenders have very strict policies regarding the CIBIL scores of both, education loan applicants, as well as their co-applicants.
  • A CIBIL score lower than 600 is one of the reasons behind an education loan rejection in a majority of the cases.

In order to know whether you qualify for an abroad education loan with your current CIBIL score, get in touch with the financial team of WeMakeScholars at the earliest. Let us move on to understand the next factor which invites an education loan rejection.
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How much bank loan can I get for education?

In India – a maximum of ₹10 lakh. Abroad – a maximum of ₹20 lakh.
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What is a normal student loan amount?

Average Student Loan Debt Statistics Among borrowers with outstanding student debt, the median debt amount in 2021 was between $20,000 and $24,999. In 2020, bachelor’s degree earners from public and private nonprofit four-year schools who graduated with student debt had an average debt of $28,400.
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How much does a student loan cost?

How has the coronavirus affected student loan interest rates? – When the coronavirus hit in March 2020 and the Federal Reserve Board cut interest rates, student loan rates plummeted. Federal student loan rates were at their lowest point in years, and borrowers could take out private student loans or refinance existing loans with rock-bottom rates as well.

Also, federal student loan interest is waived until the ongoing litigation concerning student loan forgiveness is resolved or through June 30, 2023. However, as the economy recovers from the pandemic, the Fed has been regularly raising rates — five times so far in 2022. These rate increases drive higher interest rates across sectors.

Federal student loan interest rates are up more than a percentage point for the 2022-23 school year, and private student loan rates are also starting to rise again. Rates will likely continue to rise as 2022 progresses.
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Is education loan free of interest?

The interest rates will be floating for entire period of loan – Education Loan Portal mean rate of interest 9.37%.

SBI STUDENT LOAN SCHEME
Loan Limit EBR CRP Effective Interest Rate Rate Type
Upto Rs 7.5 Lakhs 8.55% 2.00% 10.55% Floating
Concession 0.50% concession in interest for girl students
Above Rs 7.5 Lacs 8.55% 2.00% 10.55% Floating
Concession 0.50% concession in interest for girl students
0.50% concession for students availing of SBI Rinn Raksha or any other existing policy assigned in favour of our Bank

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SBI SCHOLAR LOAN SCHEME (Including TAKEOVER and PART-TIME COURSES for select institutes) List EBR CRP Business Strategy Discount Effective Interest Rate Rate Type AA All IITs 8.55% 0.00% (-) 0.60% 7.95% (With or without co-borrower) Floating Other institutes 8.55% 0.05% (-) 0.60% 8.00% (With or without co-borrower) Floating A All IITs 8.55% 0.00 (-) 0.60% 7.95% Floating Other institutes 8.55% 0.50% (-) 0.60% 8.45% Floating B All NITs 8.55% 0.50% (-) 0.60% 8.45% Floating Other institutes 8.55% 1.00% (-) 0.60% 8.95% Floating C All NITs 8.55% 0.50% (-) 0.60% 8.45% Floating Other institutes 8.55% 1.50% (-) 0.60% 9.45% Floating

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SBI SKILL LOAN SCHEME Loan Limit EBR CRP Effective Interest Rate Rate Type Upto Rs 1.5 Lacs 8.55% 1.50% 10.05% Floating Concession No Further Concession

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SBI GLOBAL ED-VANTAGE SCHEME Loan Limit EBR CRP Effective Interest Rate Rate Type Above Rs.7.50 lacs & Upto Rs 1.5 Cr 8.55% 2.00% 10.55% Floating Concession 0.50% concession for students availing of SBI Rinn Raksha or any other existing life policy assigned in favour of our Bank Further Concession 0.50% concession for girl students

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SBI TAKEOVER EDUCATION LOANS SCHEME (Under Student Loan & Global Ed-Vantage Scheme) Loan Limit EBR CRP Effective Interest Rate Rate Type Above Rs 10 lacs & Upto Rs 1.5 Cr 8.55% 2.00% 10.55% Floating Concession 0.50% concession for students availing of SBI Rinn Raksha or any other existing life insurance policy assigned in favour of our Bank Further Concession 0.50% concession for girl students

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SHAURYA EDUCATION LOAN (For wards of Defence & Indian Coast Guard ) Loan Limit EBR CRP Effective Interest Rate Rate Type Upto 7.50 lakhs 8.55% 2.00% 10.55% Floating Concession 0.50% concession for girl students Above Rs.7.50 Lakhs & Upto Rs.1.50 Cr In case of Secured Loan 8.55% 2.00% 10.55% Floating In case of Unsecured Loan 8.55% 2.00% 11.15% Floating Concession 0.50% concession for girl students 0.50% concession for students availing of SBI Rinn Raksha or any other existing life insurance policy assigned in favour of our Bank

Last Updated On : Tuesday, 15-11-2022 What Are The Documents Required For Education Loan
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Can I get education loan without property?

What is Education Loan Without Collateral? – Education loan without collateral or non collateral education loan is taken without putting any collateral as a gaurantee to the lender. That means applicant can take loan without any security such as house, land or anything.

Students can take upto 50 Lakhs for their education. In this article, we will cover all aboiut non collateral loan like eligibility criteria, process and some other factors on why lenders may have been rejecting the loan application form, also the entire information needed before applying for an education loan for abroad studies without collateral.

Also Read: Collateral Education Loan for Abroad Studies You can also watch the 3rd episode of the LoanFlix series which is on the same subject and is embedded below for your ease.
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Can I get education loan in 10days?

Basic Criteria for Educational Loan One of the most vital questions that you may wonder about is the amount of the educational loan. In general, you can get up to 4 lakhs of educational loan for higher studies without any collateral. Under education loan scheme, you can get a maximum of 15 lakhs for studies in India and more 25 lakhs for abroad studies.

  • When you take education loan up to 4 lakhs, only the student and the parent have to sign the document and no collateral are necessary.
  • However, if your loan amount is between 4 lakhs and 7.5 lakhs, you will have to provide third party guarantee to the bank.
  • If the loan is above 7.5 lakhs, you will have to furnish the bank with collateral documents.

These are documents of any securities like NSC which the bank can sell to recover the amount if you fail to pay. How to apply for an educational loan for higher studies? In order to apply for an educational loan, you will have to prepare a number of documents beforehand.

  1. The process goes as follows: Once you have determined to study at an institution and completed the process of admission, then you will have to concentrate on taking out an educational loan.
  2. Here are the documents which you should keep ready: You will have to provide a proof of admission to the selected recognized institution.

Proof of your consistently high academic performance along with the last mark sheet will need to be produced. The cut-off marks generally differ from general students to reserved students. You need to produce a schedule of fees. Depending on the amount that you are applying for, you will need to produce income statement, statement of assets and liabilities etc.

  1. If you are going to study abroad, you need to produce your passport with a valid visa also.
  2. Your education loan will cover a number of things in addition to your tuition fees.
  3. These include hostel fees, exam fees, library fees, purchasing books, travel and other expenses for educational projects.
  4. After all the documents have been submitted and verified, you will have to appear for an interview.

It is best to know as much as possible about the course and the institutions that you have chosen. It takes around 15 days for an educational loan to be sanctioned. Once it has been sanctioned, you will get a promissory note which you will have to sign.

In most cases, banks pay the institution directly and or to you. You should check the repayment clause. In most cases, repayment starts six months after the end of the course or as soon as you get a job – whichever comes earlier. Interest rates on educational loans depend on a number of factors. In general, they vary between 10% and 15% rates of interest.

You can claim tax deduction on the interest of the education loan. However, no deduction can be claimed on the principal. : Basic Criteria for Educational Loan
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Can I get education loan without salary slip?

Education loan: How to get education loan without any collateral Getty Images The bank may ask you to deposit margin money and seek third-party guarantee in some cases. To get a from a, you generally have to pledge such as house property, fixed deposits, shares, bond, etc., to take the loan. This is done so that in case you default on the loan, lenders can recover it by selling the pledged security.

The security pledged against a loan is termed as collateral. However, you can get an without pledging any security. The Credit Guarantee Fund for Education Loans (CGFEL) provides a guarantee for education loan dispersed by banks under the Model Education Loan Scheme of Indian Banks’ Association (IBA).

Under this scheme, you can get a collateral-free loan amount for up to Rs 7.5 lakh without providing any third-party guarantee. There is no margin requirement if you apply for a loan within this limit through a scheduled commercial under the CGFSEL scheme.

  1. It means that the bank can finance up to 100 percent of the loan, if the loan is up to the limit of Rs 7.5 lakh.
  2. Under the CGFEL scheme you can get a loan up to Rs 10 lakh for study in India and up to Rs 20 lakh for studying abroad.
  3. But, if you take a loan of more than Rs 7.5 lakh, the bank may ask for collateral for the loan amount.
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The bank may also ask you to deposit margin money and seek third-party guarantee. Gaurav Aggarwal, Director & Head of Secured Loans, Paisabazaar.com said that normally lenders require third-party guarantee or tangible collateral as security, depending on the loan amount.

He said, “You do not have to provide collateral and present a third-party guarantee for a loan up to Rs 7.5 lakh under the CGFSEL scheme.” Do all banks provide collateral-free education loan benefit? IBA has formulated the ‘Model Education Loan Scheme’ to financially support meritorious students for pursuing higher education in India and abroad.

The guidelines issued by IBA for the CGFSEL educational loan scheme is generally followed by banks. However, the banks may vary in providing loans under the scheme as per their own internal rules. Aggarwal said that some banks do provide collateral-free loan option to students looking to pursue higher education from premier institutes.

  • However, it’s the bank’s sole discretion to waive off third-party guarantee or tangible collateral security requirement.
  • He further explains, for instance, for loan up to Rs 4 lakh, lenders only require parents/guardians as joint borrower(s).
  • But, lenders can ask for suitable third-party guarantee for loan amount in the range of Rs 4 lakh to Rs 7.5 lakh, besides having parents/guardian as a joint borrower.

However, “You will be required to provide tangible collateral security if the loan amount is more than Rs 7.5 lakh, along with the assignment of future income of the student for payment of instalments,” he added Can you get a collateral-free loan above Rs 7.5 lakh? However, if your education loan requirement is more than Rs 7.5 lakh or even more than Rs 10 lakh, you can reach out to other lenders to get a collateral-free loan.

Adhil Shetty, CEO, BankBazaar.com said, “Non-banking financial companies (NBFCs) and private lenders can provide you collateral-free loans for a higher amount, but these collateral-free loans are sanctioned at a slightly higher as compared to education loan taken with collateral.” Process to apply for an education loan Before applying for a collateral-free education loan, you must know that the student is the main borrower of the education loan and parent, spouse or sibling can be the co-applicant., Banks generally ask for co-applicant details when you apply for a collateral free loan.

Not only this, banks also ask for the income documents such as salary slips or income-tax returns (ITR) of the co-applicant before sanctioning the education loan. As per the Reserve Bank of India (RBI) guidelines, there are no restrictions on the upper age limit, but some banks may have it as per their own internal rules and regulations.

  • To apply for the loan, you should be an Indian citizen, having secured an admission into a college/university recognised by a competent authority (NAAC/NBA accredited Institutions/programmes or Institutions of National Importance or Central Funded Technical Institutions (CFTIs)) in India or abroad.
  • The lender will ask for the admission letter of the college/university with the fee structure of the course for which you have applied for the education loan.

Apart from this, lenders may also require documents such as Class X, XII and graduation (if applicable) mark sheets. When your loan application is accepted by the lender, then the lender disburses the amount directly to the college as per the given fees structure.

All students taking education loan under the CGFSEL educational loan scheme also get one-year moratorium for repayment after completion of studies. Basically, lenders can give a relaxation of about one-year time to start re-paying the loan after you complete your education.

Shetty said that the tax deduction benefit under Section 80E of Income Tax Act for interest paid on education loans is available only when you have taken the loan from a financial institution operating under the Banking Regulation Act, 1949 or an eligible trust/institution as per the prescribed rule. “So, when applying for a collateral-free loan of more than Rs 7.5 lakh from non-qualified institutions, you may miss out on the tax deduction benefit under Section 80E of the Income Tax Act,” he said.

Generally, repayment period of education loan is 15 years. However, you should try to repay the loan amount at the earliest as tax-saving deduction benefit is available for up to 8 years only.

( Originally published on Sep 18, 2019 ) (Your on estate planning, inheritance, will and more.) Download to get Daily Market Updates & Live Business News. : Education loan: How to get education loan without any collateral
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Can I get education loan on my salary?

4. Income Amount – The income of your co-applicant doesn’t matter for a collateralized loan from government banks. However, as with private lenders (except international lenders), the income of a co-applicant is of great importance as they are required to initially pay the accrued interest during the moratorium period.
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What is the minimum age for education loan?

There is no specific restriction regarding the age of a student in order to be eligible for an education loan. Age of joint applicant / co-borrower / guarantor should be minimum 21 years at the time of loan origination and maximum age at the time of loan maturity can be 70 years.
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What is proof of income for education loan?

Education Loan Documents for Co-Applicant/ Financial Co-Applicant/ Guarantor – II. Co-applicant/Guarantor:

Proof of Identity (Any one): Proof of Residence/ Address (Any one): 2 passport-size photographs A/C statement for last 1 year in case of any previous loan from other Banks/Lenders

III. Income Proof for Salaried Co-applicant/ Guarantor :

Salary Slip or Salary Certificate Copy of Form 16 and IT Returns acknowledged by IT Dept. Bank account statement for last 6 months (of Salary Account)

IV. Income Proof for Self-employed Co-applicant/ Guarantor:

Business address proof (If applicable) IT Returns acknowledged by IT Dept., TDS Certificate (Form 16A, if applicable) Bank account statement for last 6 months

V. Property /Other Security Documents VI. Vidya Lakshmi Portal Details VII. Cheque

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What are the rules for education loan in India?

April 28, 2001 RPCD.PLNFS.BC.NO.83/06.12.05/2000-01 The Chairman/Managing Director All scheduled commercial banks Dear Sir Educational Loan Scheme The Finance Minister in a meeting with the Chief Executives of the public sector banks on 13 June 2000 had highlighted the role of commercial banks in facilitating pursuit of higher education by poor, but meritorious students. In pursuance thereof the Indian Banks’ Association constituted a Study Group under the chairmanship of Shri R.J.Kamath, Chairman and Managing Director of Canara Bank to examine the issue in detail. Based on the recommendations of the Study Group, a comprehensive model educational loan scheme was prepared by the Indian Banks’ Association for adoption by all banks. The Scheme aims at providing financial support from the banking system to deserving/meritorious students for pursuing higher education in India and abroad.The scheme was announced in the Union Budget for 2001-2002 and discussed in the meeting the Finance Minister had with the Chief Executives of banks on 7 April 2001.2. Government of India, Ministry of Finance, Department of Economic Affairs has considered and decided to accept the Model Scheme prepared by IBA for implementation, subject to the following modifications :

The condition of minimum qualifying marks in the last examination may be dropped.No margin may be insisted upon for loans upto Rs.4 lakh. However, for loans of higher amounts, the margin requirement may be 5% for inland studies and 15% for studies abroad.No security may be insisted upon for loans upto Rs.4 lakh. However, for loans above this amount, collateral security of suitable value or co-obligation of parents/guardians/third party alongwith the assignment of future income of the student for payment of instalments may be obtained. Loans upto Rs.4 lakh may be advanced at interest rate not exceeding PLR of the bank. Above Rs.4 lakh, the interest rate may be PLR + 1%.

3. We accordingly, forward herewith a copy of the model scheme prepared by IBA for implementation by banks after effecting the modifications indicated at to of para 2 above, at the earliest so that its benefits are available to students from this academic session itself.4.

  • It is clarified that this Scheme is separate and in addition to and not in supersession of the scheme earlier circulated by RBI under Supreme Court orders vide our circular RPCD.SP.BC.10/09.07.01/99-2000 dated 31 st July 1999 issued to public sector banks.5.
  • Please acknowledge receipt.
  • Yours faithfully General Manager Encl : As above A MODEL EDUCATIONAL LOAN SCHEME 1.
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INTRODUCTION: Education is central to the Human Resources Development and empowerment in any country. National and State level policies are framed to ensure that this basic need of the population is met through appropriate public and private sector initiatives.

While government endeavour to provide primary education to all on a universal basis, higher education is progressively moving into the domain of private sector. With a gradual reduction in government subsidies higher education is getting more and more costly and hence the need for institutional funding in this area.

The scope of education has widened both in India and abroad covering new courses in diversified areas. Development of human capital is a national priority and it should be the endeavour of all that no deserving student is denied opportunity to pursue higher education for want of financial support.

  • Loans for education should be seen as an investment for economic development and prosperity.
  • Nowledge and information would be the driving force for economic growth in the coming years.
  • The Hon’ble Finance Minister in a meeting with the Chief Executives of the Public Sector Banks on 13th June 2000 had highlighted the role of commercial banks in facilitating pursuit of higher education by poor, but meritorious students.

He also expressed the need to have a comprehensive educational loan scheme prepared that could be adopted by all banks. Accordingly, a study group under the Chairmanship of Shri R J Kamath, Chairman and Managing Director, Canara Bank was constituted to examine the issue in detail.

  1. This model scheme has been prepared based on the recommendations contained in the report submitted by the group in August 2000.2.
  2. OBJECTIVES OF THE SCHEME : The Educational Loan Scheme outlined below aims at providing financial support from the banking system to deserving/ meritorious students for pursuing higher education in India and abroad.

The main emphasis is that every meritorious student though poor is provided with an opportunity to pursue education with the financial support from the banking system with affordable terms and conditions. No deserving student is denied an opportunity to pursue higher education for want of financial support.

  • In short, the scheme aims at providing financial assistance on reasonable terms: * to the poor and needy to undertake basic education.
  • To the meritorious students to pursue higher/ professional/ technical education.3.
  • APPLICABILITY OF THE SCHEME: The scheme detailed below could be adopted by all Commercial Banks.

The scheme provides broad guidelines to the banks for operationalising the educational loan scheme and the implementing bank will have the discretion to make changes suiting to the convenience of the students/ parents to make it more customer friendly.

  1. The scheme details are as under : 4.
  2. ELIGIBILITY CRITERIA : 4.1 Courses eligible a.
  3. Studies in India: * School education including plus 2 stage.
  4. Graduation courses : BA, B.Com., B.Sc., etc.
  5. Post Graduation courses : Masters & Phd.
  6. Professional courses : Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.

* Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to university. * Courses like ICWA, CA, CFA etc. * Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc. * Courses offered in India by reputed foreign universities.

* Evening courses of approved institutes. * Other courses leading to diploma/ degree etc. conducted by colleges/ universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc. * Courses offered by National Institutes and other reputed private institutions. Banks may have the system of appraising other institution courses depending on future prospects/ recognition by user institutions.b.

Studies abroad :- * Graduation : For job oriented professional/ technical courses offered by reputed universities. * Post graduation : MCA, MBA, MS, etc. * Courses conducted by CIMA- London, CPA in USA etc.4.2 Student eligibility : * Should be an Indian National * Secured admission to professional/ technical courses through Entrance Test/ Selection process.

  1. Secured admission to foreign university/ Institutions.
  2. Should have scored minimum 60% (50% for SC/STs) in the qualifying examination for admission to graduation courses.4.3 Expenses considered for loan : * Fee payable to college/ school/ hostel.
  3. Examination/ Library/ Laboratory fee.
  4. Purchase of books/ equipments/ instruments/ uniforms.

* Caution deposit/ building fund/ refundable deposit supported by Institution bills/ receipts. * Travel expenses/ passage money for studies abroad. * Purchase of computers – essential for completion of the course. * Any other expense required to complete the course – like study tours, project work, thesis, etc.5.

Upto Rs.2 lacs : Nil
Above Rs.2 lacs : Studies in India : 15%
: Studies Abroad : 25%

Scholarship/ assistantship to be included in margin. – Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.7. SECURITY :

Upto Rs.2 lacs : No security
Above Rs.2 lacs : Collateral security equal to 100% of the loan amount or guarantee of third person known to bank for 100% of the loan amount.

Note:- * The document should be executed by both the student and the parent/ guardian. * The security can be in the form of land/ building/ Govt. securities/ Public Sector Bonds/ Units of UTI, NSC, KVP, LIC policy, gold, shares/ debentures, bank deposit in the name of student/ parent/ guardian or any other third party with suitable margin.

* Wherever the land/ building is already mortgaged, the unencumbered portion can be taken as security on II charge basis provided it covers the required loan amount. * In case the loan is given for purchase of computer the same to be hypothecated to the Bank. Banks who wish to support highly meritorious/ deserving students without security may delegate such powers to a fairly higher level authority.8.

RATE OF INTEREST :

Upto Rs.2 lacs : PLR
Above Rs.2 lacs : PLR + 1%

The interest to be debited quarterly/ half yearly on simple basis during the Repayment holiday/ Moratorium period. * Penal interest @ 2% be charged for above Rs.2 lacs for the overdue amount and overdue period.9. SANCTION/ DISBURSEMENT : * The loan to be sanctioned as per delegation of powers preferably by the Branch nearest to the place of domicile.

Repayment holiday/Moratorium : Course period + 1 year or 6 months after getting job, whichever is earlier.

The loan to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course. * The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Instalments (EMI) fixed. * 1-2% interest concession may be provided for loanees if the interest is serviced during the study period when repayment holiday is specified for interest/ repayment under the scheme.11. FOLLOW UP: Banks to contact college/ university authorities to send the progress report at regular intervals in respect of students who have availed loans.12. PROCESSING CHARGES : No processing/ upfront charges may be collected on educational loans.13. CAPABILITY CERTIFICATE : Banks can also issue the capability certificate for students going abroad for higher studies. For this financial and other supporting documents may be obtained from applicant, if required. (Some of the foreign universities require the students to submit a certificate from their bankers about the sponsors’ solvency/ financial capability, with a view to ensure that the sponsors of the students going abroad for higher studies are capable of meeting the expenses till completion of studies.) 14. OTHER CONDITIONS: No due certificate need not be insisted upon as a pre-condition for considering educational loan. However, banks may obtain a declaration/ an affidavit confirming that no loans are availed from other banks. Loan applications have to be disposed of within a period of 15 days to 1 month, but not exceeding the time norms stipulated for disposing of loan applications under priority sector lending. In order to bring flexibility in terms like eligibility, margin, security norms, banks may consider relaxation in the norms on a case to case basis delegating the powers to a fairly higher level authority.

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Can I get education loan without ITR?

ITR is mandatory for co-applicants. If the co-applicant is self-employed, they should provide the related bank statements to Auxilo at the time of applying for an unsecured education loan.
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