Why do we seek education loan
We all know that the education system is commercialized to maximum extent. Just after completion of school studies students feel much difficulty in continuing their higher education in want of huge amount of money. To help such students who want to pursue higher studies in engineering, medical, law and other colleges will be given loan which we call as educational loan. All nationalized banks have this educational loan. The interest rates of all bank over this education loan will be same but the securities or documentation to get this loan may vary from bank to bank. The loan amount may be utilized for purchasing books, college fees or hostel fees etc which will purely support his studies.
Eligibility criteria for getting educational loan in Indian Bank
1. The student must be a Indian citizen.
2. The student must take admission in technical or professional courses from any university in India or abroad.
3. The student must appeared in the entrance examination.
Other terms and condition for educational loan in Indian Bank
1. The maximum limit for educational loan to pursue studies in India is Rs 10 lakhs and for abroad Rs 20 lakhs. The loan amount may be increased to 5 lakhs more in case of meritorious studies.
2. The bank charge no processing fee for sanctioning educational loan upto 4 lakhs. Above 4 lakhs, the bank charges processing fee of 5% and 15% for India and abroad respectively.
3. The loan has to be refunded within 5-7 yrs of commencement of the repayment of loan. The repayment of the loan will begin from the after one year of the completion of study or six months after getting employment whichever is earlier.
4. Upto 4 lakhs no security will be required by the bank but from 4 lakhs to 7.5 lakhs security from parents and third party guarantee is required for sanctioning of loan. Beyond 7.5 lakhs apart from parents obligations a security worth equal to the amount should be submitted to the bank.
>Note: The interest rate of educational loan is subject to the orders of Reserve bank of India from time to time. For latest interest rate please visit the website of Indian bank
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