Banking on the system

Updated on: Monday, July 05, 2010

Did you know that the government has framed a Comprehensive Education Loan Scheme to ensure that no deserving student in the country is deprived of higher education for want of finances? This scheme covers all sorts of different courses including professional.

So how can you avail of this loan?
First you have to be an Indian national in the age group of 16-26, with a good academic record. Your parent/guardian should have a regular source of income so that they are able to repay the loan if the need arises. The institute you have applied to must be a recognised one. Minors are not eligible for educational loans, as banks assess the individual’s repaying capacity while disbursing the loan.

You need to have a guarantor for the education loan. If you fail or are incapable of repaying the loan, your guarantor will have to clear the debt.

The Comprehensive Education Loan Scheme in a nutshell
* The scheme envisages loans up to Rs.7.5 lakh for studies in India and up to Rs. 15 lakh for studies abroad.

* For loans up to Rs.4 lakh you require no collateral. The interest rate is not to exceed the Prime Lending Rates (PLR).

* For loans above Rs.4 lakh the interest rate will not exceed PLR plus 1 per cent.

* Loans are to be repaid over a period of 5 to 7 years with a provision of a grace period of one year after you complete your
studies.

And the amount?

You could get a maximum of Rs.10 lakh for courses in India and Rs.20 lakh for courses abroad. Some banks (mostly cooperative banks) give 100 per cent of the expenses including fees, living expenses, laptops etc. The loan could also depend on the job prospects of the course applied for.

So, funding your education dreams is just a loan away!

Loan Benefactors
Here is a list of banks that provide
education loans

* Allahabad Bank
* State Bank of India
* Andhra Bank
* State Bank of Bikaner and
* Bank of Baroda Jaipur
* Bank of India
* State Bank of Hyderabad
* Bank of Maharashtra
* State Bank of Indore
* Canara Bank
* State Bank of Mysore
* Central Bank of India
* State Bank of Saurashatra
* Corporation Bank
* State Bank of Travancore
* Dena Bank
* Syndicate Bank
* Indian Bank
* Uco Bank
* Indian Overseas Bank
* Union Bank of India
* Oriental bank of Commerce
* United Bank of India
* Panjab and Sindh Bank
* Vijaya Bank
* Panjab National Bank w Federal Bank
Limited

Banking on the system

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