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Bank Loan for Education::
Many of the banks are now providing Educational loans to the students for pursuing higher education in India or in Abroad too..There are many courses included as eligible for educational loans.The more details are given below..
The best career option you go for,the higher the fee is.On one side,there is strong desire towards best career giving courses on the other hand the fee structure is making the students to step backward.Finally they adjust to chose any of the course available to them according to their financial status . In spite of having intelligence and brilliance many of the students are adjusting with the available course in their budget.
Eligible courses for Educational Loans:
There are many courses available in our country from many institutes and colleges.In the context of granting educational loans,National Government and Indian Bankers Association together decided some eligible courses for the loans to sanction. According to this,University Grants Commission(UGC), National Government,All India Council for Technical Education (AICTE) , Indian Council of Medical Research (ICMR) and many of the Bachelor degrees available from certified Universities,Post Graduation, Post graduate diploma courses.Including this, professional courses like Charted Accountancy, Company Secretary,, ICWA courses etc..Students seeking admission in institutes like IIT, IIM, NIT and many other National Institutes can get this Educational Loans. High-lite is that the most desired course i.e Pilot course seeking students can also get Educational Loan,the exception is that the coaching giving institute should be aided by the director general of civil aviation.
Merit and brilliant students eligible to study in abroad institutes can also get Educational Loans.Universities with job oriented, professional,technical courses,MBA,MCA, MS and many other courses seeking students can get Educational Loans.
Vocational Courses in our Country:
There are many vocational coursed available in our country for professional jobs. Vocational courses are short term courses.Not only long term Bachelor degree PG courses,the Educational loans are granted for many of the profession oriented vocational courses that lasts for two to three months. For this type of course, a separate project was made in the name of ” Model Education Loan for Vocational Education and Training”. To get loans in this section,the courses should be from National Skill Development Corporation and from other Government Profession Educational institutes etc..According to this the students can get loans to do Vocational courses in ITI,Polytechnic courses etc.. The amount of Loan sanction will be based on the time of the Course. The Vocational Courses loan is like this:
For 3 months course::Rs.10,000/-
For 3 to 6 months course:: Rs.25,000/-
For 1 year course::Rs.50,000/-
For courses more than 1 year::Rs.1.5 lacks
Maximum amount of Loan
Education Loan for the National Institute admission seeking students is up to 10 lack rupees.
For the Abroad Studies the maximum educational loan is 20 lacks.The Government has exactly fixed the amount of Martin Money(the amount of money that student have to pay them self).Up to 4 lacks there would be no Martin Money.But if the loan is beyond this amount,then for National Institutes the Martin money is 5 percent and for abroad studies its 15 percent.
Amount of Loan Sanction Details::
The Loan is based only on the Government decided Fee only.In the matter of sanctioning the amount of Educational Loan the Government and the Bankers association has taken some decisions.The Loan sanction amount will be equal to the amount of Tuition fee only. If the student takes admission in Management quota too, the loan will be sanctioned according to the government decided fee only.
Percentage of Interest::
At present the interest percentage is from 10.5 to 13.0 percent yearly.The Interest rate is based on their personal security rules of banks.For Female students the Interest rate is nearly 1 percent less.
- To sanction loan,the students have to submit some security properties. For up to 4 lacks loan, there is no need for security, parents agreement signature will be enough to get this loan.
- For loans between 4 laks to 7.5 laks,including parents security signature, a third party guarantee is necessary.
- For loans above 7.5 laks, parents agreement security signature along with the security property papers(collator) is very necessary.
In 2009,the government had relieved the stress of Interest by introducing the CSIS Scheme.The CSIS Scheme(Central Sector Interest Subside) was started from 2009-10 academic year. According to this Scheme,the Interest rate will not be added calculated during the time of Course.
The loan Repayment process is like this: The students can pay back the loan after 1 year of the Course completion. The loan may be paid back after 6 months after getting job.The loan is to be repaid monthly in installments.The banks are providing the facility of Repayment holiday or Moratorium to lessen the candidates from more stress.In case the students fail to complete the course in the exact duration,the candidates will be given a repayment holiday of 2 more years.
Academic Track Record
In the process of sanctioning the Educational loans,the bankers are focusing on the academic track record of the applicants. Some of the banks are giving loans basing on the particular percentage. Generally 60 percent is the least pass percentage for some bankers to sanction loans. Not only this, the banks are frequently knowing the track record of the students percentage in the Institutes after sanctioning loans. So,its necessary for the students to maintain their Record after taking loan too..
Amount of Loan is based on following factors:
- The amount of Loan sanctioned is including the following fee:
- Tuition Fee
- Library/Laboratory/Examination Fee
- Books,Uniforms,amount required to buy any equipment’s like computers etc,,
- Amount required for Study tours,Project works etc,,
- For Abroad studying studies,the students may get the loan including travelling expenditure.The amount will be given direct to the institutes.
- If the students have already paid the fee,the loan amount will be given directly to the students basing on the correct proofs and paid receipts of fee payment for the particular institute.
Papers needed to apply for Educational Loans:
The students should have the Admission Letter from the particular institute they are going to join including the details of total fee structures like tuition fee,study tour fee, library fee etc,,
- Certificates that prove your age is also needed.
- Educational certificates up to the previous level studies(xerox of the certificates) are necessary.
- Parents/Co-applicants/Security assured candidates Income certificate is to be attached.
- Valuation certificate related to the Collator Security is necessary.
- For Abroad study seeking candidates, pass port,visa,Admission letter,travel expenditure related xerox copy papers are to be submitted.
Now days,the branch we choose to apply is also to be checked. Because,the students have to apply at a particular branch in their native area or branch in the area of the College/institute only.
Time for this entire process
The students have to start early for the process of applying to the loan.The loan processing will take 15 to 20 days. So the students have to apply for the loan with their admission letter as early as possible.If all the papers are submitted correctly and if there are no errors in their submission papers, the loan will be sanctioned within 15 days.
Best of Luck for all the students those who are starting towards their career..
Source from Sakshi Paper