Education Loans for Students
Even though there is a lot of talent, they are giving up admission because they cannot pay the fees in lakhs of rupees. Banks education loans stand by such people! In the background of the commencement of the admission process in engineering and other courses for the academic year 2024-2025.
Special article on students….
At present, if you want to join the convenor’s quota at the state level, there is a fee of Rs 60 thousand to more than. Up to Rs 1 lakh per semester in nationally renowned institutes IITs; In NITs, the fee is Rs 65 thousand to Rs 70 thousand per semester. Regarding management education, the fee for MBA program in IIMs, the leading B-school of the country, is more than Rs 20 lakhs.
Even for conventional degree courses in a reputed college, fess up to Rs 50 thousand have to be paid. Foreign education costs an average of Rs 50 lakh per year. Banks are helping the students who are struggling to pay the fees in lakhs. students who supported in their higher education by giving grants.
Qualifications
Banks qualify only those students who have cleared the entrance test and secured a sent in the convener’s quota for the education loan application. Especially the public sector banks give priority in granting education loan to those who have merit in the entrance. Many private banks also provide an opportunity to apply for education loans to those who have got admission in banks grant loans according to their internal procedures.
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Identification is mandatory
Banks follow certain rules for sanctioning education loans. Only colleges and courses recognized by AICTE, UGC and Education Department are considered for sanctioning education loans. Only students who are admitted to courses in recognized institutes are eligible to apply for education loan.
Even for foreign education
Candidates of foreign education are also eligible for admission. The students who get admission in the institutes of the country are getting a maximum of Rs 10 lakhs. Similarly, those who get admission in foreign institutes are sectioned a maximum of Rs 20 lakh.
Three slabs
- Banks are implementing a three-slab system for sanctioning education loans.
- In slab-1….Rs 4 lakhs loan amount is fixed. Students do not have to give any guarantee for loan sanction in this slab.
- In slab-2, the loan amount is allocated from Rs 4 lakh to Rs 7.5 lakh. For this, parents’ guarantee and third party guarantee document should be given.
- In slab-3, there is a loan amount of more than Rs 7.5 lakhs. If you want to apply for this, you have to show collateral security (estate documents) for this amount.
Margin money
Students are required to deposit some amount of the loan amount they have applied for as margin money. No margin money required up to Rs 4 lakh. But if it exceeds Rs 4 lakhs, the students studying in the home country have to provide 5% margin money and foreign education students have to provide 15% margin money.
Loan…for these expenses
Course Tuition Fees, Hostel Fees, Examination/Library/Laboratory Fees, Travel Expenses for Foreign Education, Cost of Purchases of Books, Uniform, Other Academic Related Equipment, Purchase of Computer, Study Tours, Project Works, Caution Deposit Charged by Institutes, Building Fund, Education loans are sanctioned for expenses related to refundable deposits.
Exception for top institutes
As per the Indian Banks Association rules-although there are specific rules on sanctioning the maximum loan amount, banks are given the discretionary power to increase the maximum loan amount if students get admission in prestigious institutes. For example, in famous institutes like IIMs and IITs, the fees are more than Rs 10lakhs. Those admitted in such institutes are likely to be given relaxation in the maximum loan amount.
Continuous review
Banks that have sanctioned education loans pay them directly to the respective institutes in installments. If the students have paid the fees themselves in the first stage, then the first stage fee will be given to the student based on the relevant receipts. Reviewing the academic performance of the students in the previous year. Based on this, the
In the case of repayment holiday decision is taken on the rest of the loan repayments.
Repayment of education loan, banks are providing flexibility in the name of repayment holiday. The loan can be repaid in installments after one year of course completion or after getting a job. In this way, the loan can be paid of 15 years. 0.5 percent to 1 percent concession in interest rates for female students.
Full understanding
Students who wish to purse higher education through education loans should take several precautions. First of all, the rules and interest rates of the respective banks should be clarified. Apart from this, you should know about the repayment procedure. Similarly, they should speak about the recognition of AICTE< UGC and other regulatory bodies to the institute where their admission has been finalized.
Documents to be attached to the application
- Xerox copies of admission certificate, academic qualification certificates; Income verification of parents; Details of parents’ income status; Bank account statement; Residence verification; Third party income verification; Authorization letters from institutes regarding course fee.
- Website for details: www.iba.org.in
Vidya Lakshmi Portal
For the convenience of students applying for education loans, the central government is implementing a single window system. A special portal called Vidya Lakshmi has been made available so that students do not have to go around banks. Candidates can apply online through the Common Educational Loan Application Form by logging into this portal. It is possible to apply to a maximum of three banks. The applications of the candidates who have applied online will be sent to the mentioned banks first. At the next stage, if the respective banks examine the application and are satisfied, they will send the details of which branch to contact and which documents to carry to the students. Vidyalakshmi Portal acts as a liaison between students and banks in the matter of education loans.
Website for complete details: www.vidyalakshmi.co.in