Banks To Give Education Loans On The Basis Of Placement Records

What is an Education loan?

A student loan is a type of loan customized to help students pay for school or college education fees such as tuition, books and supplies, and living expenses.

Features of education loan

• Apply in both for studying in India as well as in foreign countries.
• Minimum of 10 lakhs to a maximum of 15 lakhs in case of higher studies in India, for studying the limit is 20 lakhs.
• Female students who are applying can get discounts and lower interest rates.
• Loan less than 4 lakhs does not require security.
• Students need not repay the loan immediately. They can repay after completing their course and within the repayment tenure from the course completion date.

Eligibility

• Students must be Indian.
• Admission letter from the school or college
• Good academic records
• Stable source of income.

All about Education Loans

The better the college the more chance of loan approval. Unsecured Lending has seen sharp changes in non-repayment. Thus, banks have tightened their parameters for these loans through their qualitative measures. 

The college may enjoy government recognition, but if the placement record is poor, how do you expect a student to get a job and repay?” a statement by the country’s largest lender State Bank of India. The government rules do not allow banks to demand security for education loans up to 4 lakh, a measure to ensure funds are easily available to needy students.

So far Indian banks have sanctioned Rs 34,192 Crores towards Education  Loans. Banks have now decided to look at the placement records of the colleges to be joined. This is because banks have seen the background of education loan that there is no security deposit borrower don’t pay loans on time and for that Indian Bank Association has not responded on that issue.

Apply for Education Loan

The annual premium is paid by the students or by the co-applicants. Generally, the premiums are very moderate. “In case the loan turns defective, there is some restricted loan amount which can be recovered by abandoning that policy,” explained an official with Bank of Baroda.

Banks are also watching to reorganize education loans that have gone unpleasant. Indian Bank is exploring the option of giving the one-year rest to students for reimbursement towards their loans. Generally, banks give an amount meanwhile period of six months from the period a student completes his course. Banks have found that most loans turned severe in cases where students are unable to find jobs.

Leading Education Loan Providers

1. SBI Education Loan
2. HDFC Education Loan
3. CREDILA Education Loan
4. AXIS Bank Education Loan
5. Private Bank Education Loan
6. Bank Of India Star Education Loan

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