Central Government facilitates education loan through 27 nationalized banks to help students for their education.
Each bank has its own eligibility criteria, interest rates and repayment options. The education loan can be used for any level of education including school, graduation, post graduation and doctorate.
Some banks may have some age criteria. For e.g., age should be between 16 and 28
Loan Amount Generally upto Rs. 15 lakhs for studies in India and upto Rs. 25 lakhs for studies abroad
EDUCATION LOANS FROM NATIONLIZED BANKS
How and when should you start paying the loan You don’t have to pay the loan until you complete the course. After your course, you will get grace period to find a job which may be between 6 to 12 months. After that the actual repayment of the loan begins.
Simple Interest is charged and kept in a separate account till the course is completed. The student has the option to repay or not to repay the interest till the course is completed. After the grace period is over, the interest is transferred and credited to the Principal loan amount and from that time the interest becomes compounded interest.
Full interest subsidy will be provided during pause period (moratorium) on loans for students whose parental income from all sources is less than Rs.4.5 lakh a year
Interest Rate: The interest rate for the education loan is between 12% and 15% depending on the bank and the course you choose.
Details:For loans up to 4 Lakhs security is not required. Documents have to be signed both by student and parent/ guardian. For loans of above Rs. 4 lakhs but below Rs. 7.50 lakhs, in addition to the documents, third party guarantee has to be signed. Loans above Rs. 7.50 Lakhs require you to provide security documents to the Bank. The security documents can be National Savings Certificates (NSC), insurance policies (surrender value), Kisan Vikas Patra, bonds, bank deposits, government securities, shares (if the bank accepts it), vehicle, house, land, property, gold etc. The security should be some form of investment you surrender to the bank. If you don’t repay the loan the bank can sell the security and recover the loan amount. For loans above 4 Lakhs, the bank may ask either third party guarantor or security or both. If you don’t pay, the bank has the right to recover the loan amount from the guarantor or else they can take legal action against the guarantor.
Even if you cannot give financial security/regular income you are eligible for education loan. The education loan is given based on your educational performance. You should make sure that the loan is paid on time without any issue. The educational loan scheme aims at providing financial assistance on reasonable terms to:
- . The meritorious students to pursue higher/ professional/ technical education.
- Proof of your course admission / scholarship details
- Schedule of the fees and expenses
- The certificate and mark sheet of your last qualifying examination.
- Last 6-12 months bank statement/ Income tax statement of past years
- Document related to proof of income, asset and liabilities etc.
- If you don’t have bank account you should give the identity proof /proof of
Details for Dena Bank
Dena Vidyalaxmi Ed. Loan Repayable upto 3 years Interest rate 13.50%
Amount Sanctioned 75-80% of college fee.