Financial Assistance – Through Bank Loans

(Bank Loans can make your Dreams come true)

Studying abroad in top universities can be expensive and if you are not eligible for scholarships then you can think of the option of a bank loan. A comprehensive educational loan scheme has been established by the Government of India in association with Reserve Bank of India and Indian bankers association. Educational Loan can help you in pursuing the course of your choice in the best overseas university. Loans are a very simple way to finance education abroad and easy to secure and also hassle free. The cost of education can be borne by the loan from a nationalized bank and leading private banks.

The good part is that the rate of interest of the loan is lower than commercial rate. Loan repayment starts 6 months after course completion. Most students repay their education loan easily with 2 years after working abroad.

With the help of this scheme students can avail Bank loans upto 15 to 20 Lac. for higher studies depending upon the banks terms & conditions

The Bank loan covers the expenses of :

1) College university fees
2) Living Expenses
3) Examination/ Library/ Laboratory Fees
4) Expenses of Books, equipments, uniform etc.
5) Caution Deposits, Refundable Deposits
6) Any other expenses required to complete the course like study tours, project work etc.


Criteria for getting Educational Loans

All Banks have different criteria and terms & conditions for repayment and educational loans.

Some of the basic are:

Eligiblity 

To obtain a bank loan from India a student should be an Indian national & should have the admission letter from a recognized college, University institution abroad for a professional / Technical course and should be aged between 16 to 35 years.


Documentation Required 
Each bank has its own set of requirements but in General

1) Proof of Admission
2) Proof of Income
3) Mark sheets of last qualifying examination for school and graduate studies completed in India.
4) Details of scheduled expenses during the course.
5) Any letter of scholarships.
6) Two Passport Size photographs
7) Income tax assessment for last 2 years
8) Bank statements for the last 6 months of borrower
9) Statement of assets & liabilities of the borrower.
10) Proof of Residence if not an existing Bank customer


Quantum of Loan – The Quantum of finance under the scheme of Reserve bank is capped 10 lacs for studies in India and 20 lacs for studies abroad which covers tuition fees, living expenses, Cost of bank etc.

Margin - No margin for education loans upto 4 lacs & for loans above 4 lacs 15% margin for higher studies abroad.

Security – Different banks have different requirements but
>> Upto 4 lacs no security
>> Above 4 lacs upto 7.50 lacs suitable third party Gurantee
>> Above Rs 7.50 lacs upto 20 lacs

100% collateral in any of the form of immovable prospering/ NSC/ units of UTI/ LIC Policy/ RBI Bonds or any Transferable Government securities.

However Rate of Interest is subject to changes as per the specification of RBI of the concerned bank

Repayment 
Holiday/ Moratorium Period – Course Period +6 months after completing the course if student gets employed within 1 year after completion of the course the repayment should start immediately after the expiry of the month from the date of employment.

Maximum Repayment period of loan & generally the loan have to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time extension of time of completion of course may be permitted for a maximum period of 2 years.

Disbursement
The loans will be disbursed in stages as per the requirement/ Demand directly to the institutions/ vendors of books/ equipments/ instruments.

All documents as per bank rule should be given. eg fees invoice, equipment invoice, etc.

Follow up 
Bank can contact college university authorities to send the program report at regular intervals in respect of students who have availed loans. 

Capability Certificate
Capability certificate for students going abroad for higher studies are also issued on production of financial other supporting documents

Contact us for full guidance & assistance.