Education Loans

RBI  Education Loans
A Comprehensive educational loan scheme was framed with the consultation of Government of India with Reserve bank of India and Indian bankers association. This scheme can avail a loan of up to 7.5 lacs in India and upto 15 lacs for abroad studies. These figures are not stable in nature for banks. State bank of India is availing an upper limit of 20 lacs and in recent day. Indian bank has upgraded its maximum limit to 15 lacs for education in India and 25 lacs for abroad studies. All the details given below will change time to time and students are advised to get right information from  the banks concerned.

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 Indian national
  • The student should have secured admission to professional / technical courses through entrance test / selection process
  • The student should have secured admission to foreign university / institution
  • Take a peek into other important points of consideration that the comprebecsive educational loans:

Margin

  • If the course cost is up to 4 lacs , nil for both studies in India and abroad. IF the course cost is above 4 lacs, 5% for inland studies and 15% for studies abroad.

Rate of Interest 

  • The rate of interest is 10.75%  up to INR 4 lacs and it does not exceed the Prime Lending Rates (PLR). For a loan above INR 4 lacs, the interest rate is 11.75% and it will not exceed PLR plus 1 percent. However, the rate of interest is subject to changes as per the specifications of RBI or the concerned bank.

Credit delivery

  • You can avail the loan from the branch nearest to the place of your permanent domicile.

 Repayment :
Loans re repayable in 5 to 7 years. Repayment of both principal and interest will start after one year after completion of the course or six months after getting employment, whichever is earlier. Interest will be charged on simple basis during the period of study / moratorium period. At the commencement of repayment, the accrued interest is added to the principal amount and Equated Monthly Installments (EMIs) fixed on total outstanding amount. After commencement of repayment, the benefit of simple interest would be discontinued.

Processing fee
Most of the Indian banks do not charge any processing fee or up front charges. The State Bank of India accepts a deposit of INR  5000 for education loan for studies abroad, which is adjusted in the margin money.

Documents:

  • You need to keep the following documents in place before applying for an educational loan:
  • Mark sheets of the last qualifying examination for school and graduate studies is India.
  • Proof of admission to the course. Scheduling of expenses to the course.
  • Copies of letter confirming the scholarship.
  • Copies of foreign exchange permit, if applicable.
  • Two passport size photographs.
  • Bank statement for the last six months of the borrower.
  • Income tax assessment order not more than two years.
  • Brief statements of assets and liabilities of the borrower.
  • If you are not an existing bank customer you would need to establish your identity and give proof of residence.


Contact Details :
Reserve Bank of India, Central Office,
Shaheed Bhagat Singh Road,
Mumbai - 400001
Website : www.rbi.org.in