An education loan is a form of financial support from any bank or financial institution to be used for a student’s higher education. Availability of an education loan at the appropriate time will help millions of students to achieve their dreams.
Several institutes/ colleges have reached agreement with various banks and loans are available for the benefit of prospective students. For studies abroad one can get loans up to Rs.7.5 lakh to Rs.15 lakh.
Before giving the loan, banks study the viability of the borrower based on personal discussions with the student, family's assets and annual income, the nature of the course and reputation of the institute. Most banks do not required security or any collateral for loan upto 4 Lacs and the interest rate will not exceed the Prime Lending Rates (PLR). For loans above Rs. 4 lakh the interest rate will be PLR plus 1 percent. PLR is a term used to refer the interest rate of the bank and it may vary with each bank (the interest rates or bank rules might change any time). Some banks offer lower rates to women students or those from specified institutions. Security to the loan depends on the amount. Security is some form of investment (i.e bank deposits, house property etc) that are 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.
*The information is true at the time of publishing.
*The interest rates or bank rules might change anytime.
|
.jpg)
