Before
giving the loan, banks study the viability of the borrower (that is you,
right?) based on personal discussions with the student, family’s assets and
annual income, the course and reputation of the institute.
In
most banks for loans up to Rs. 4 lakhs, no collateral or margin is required and
the interest rate will not exceed the Prime Lending Rates (PLR).
For
loans above Rs. 4 lakhs, the interest rate will be PLR plus 1%. PLR is a term
used to refer the interest rate of the bank and it may vary with each bank.
Some
banks offer lower rates to female students or those from specified
universities.
Security
to the loan depends on the amount. Security is some form of investment (i.e.
house property, bank deposits, etc) that is surrendered to the bank while taking
the loan. Security is not needed for loan amounts up to Rs. 4 lakhs.
Instead
of security, some banks may ask for a third party guarantee (guarantor) for
higher loan amounts.
You
don’t need to repay the loan while studying. The repayment starts once you
finish the course or start working.
The
repayment cannot be delayed for years after the completion of your course. The
loan is to be repaid over a period of 5 to 7 years with provision of grace
period of one year after completion of studies.
Note: These details may change from
time to time. So it is best to get the right information directly from the Student Loans in India.
Eligibility
·
The eligibility criteria of the bank to obtain
an educational loan from any bank of India:
·
The student who is seeking for educational loan
should be of Indian nationality.
·
The student should have secured admission in a
foreign university.
Source : http://www.idpindiablog.com/2011/06/education-loan-what-how-who/
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