STUDENT EDUCATION LOAN
Citizens in India show that the Indian Nation Loan Scholarship Scheme which operated from 1963 would make the extra waste on expenditure for the reason of 'limiting', which means only the people who really need to borrow would apply the student loan for the future education. Because of this, most Indian students would be more careful to choose their jobs in order to pay back the balance due.
The Indian government has launched a portal, Vidya Lakshmi, for students seeking educational loans and five banks including SBI, IDBI Bank and Bank of India have integrated their system with the portal. Vidya Lakshmi was launched on the occasion of Independence Day i.e. 15 August 2015 for the benefit of students seeking educational loans. Vidya Lakshmi was developed under three departments of India i.e. Department of Financial Services, Department of Higher Education and Indian Banks Association (IBA).Vidya Lakshmi Portal has been developed under the Pradhan Mantri Vidya Lakshmi Karyakram and announced by the Honourable Finance Minister Shri Arun Jaitley in the budget speech of FY 2015-16. As on August 15, 2020 , 37 banks have registered on the Vidya Lakshmi Portal and offering 137 loan schemes
To bridge the constraint of increasing institutional fees, NSDL e-Governance in India launched Vidyasaarathi portal to help students seeking scholarship for studies in India or overseas.
A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other types of loans in the fact that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in school. It also differs in many countries in the strict laws regulating renegotiating and bankruptcy. This article highlights the differences of the student loan system in several major countries.
Students can avail of loans for the following courses. Undergraduate degrees/diplomas and special courses. Postgraduate degrees/diplomas and special courses. PhDs and Doctoral Programmes.
How to get an Education Loan?
Quality education is crucial to creating a successful life for a student. However, with increasing college fees every year, it becomes difficult for a student to have a quality education. Education in India, especially in premier educational institutions, is quite expensive. And in many cases, even if a student is qualified to get admission purely on merit, it becomes difficult to study in such institutions due to financial constraint. Cost of education in India is anywhere between Rs.5 lakhs and Rs.12 lakhs for undergraduate engineering courses. For medical courses in India, the fees can rise up to 50 lakhs in private colleges. Business schools in India charge more than Rs.10 lakhs. In abroad, cost of higher education is much higher. Again, fees in private colleges are always more than the government colleges. Under such circumstances, students look for education loans in India. With so many banks offering education loans, it is also very confusing for parents and students to choose the best one.
Some banks provides loan to students for study purposes they are as follows
1.SBI - SBI STUDENT LOAN SCHEME
Loan Limit 3 Year MCLR Spread Effective Interest Rate Rate Type
Upto Rs 7.5 Lacs 6.65% 2.00% 8.65% Floating
Concession 0.50% concession in interest for girl students
Above Rs 7.5 Lacs 6.65% 2.00% 8.65% Floating
Concession 0.50% concession in interest for girl students
0.50% concession for students availing of SBI Rinn Raksha or any other existing policy assigned in favour of our Bank( source sbi.co.in)
2.HDFC-Indian resident, between 16 and 35 years of age
Co-applicant is mandatory for all full-time programs – co-applicant could be parent/guardian, or spouse/parent in law
Student should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection process
Approved courses leading to graduate/ post graduate degree and P G diplomas conducted by recognized colleges/ universities recognized by UGC/ Government/ AICTE/ AIBMS/ ICMR etc. Loan amount
Get up to ₹ 30 lakhs as an education loan
Avail loans of up to ₹ 7.5 lakh without collateral
Interest rates
Get preferential rates for top ranked colleges and universities
Tenure
Loan repayment tenor up-to 15 years
“Moratorium” shall mean (1) Course Period + 1 year or 6 months after getting Job, whichever is earlier; (2) as stipulated by Bank (as mentioned in the Schedule Cum Key Fact sheet) .
“Principal Moratorium” shall mean a Moratorium granted only for repayment of the principal amount of the Loan.
“Interest Moratorium” shall mean a Moratorium granted for repayment of the principal
amount of the Loan as well as payment of the interest payable on the Loan. (Source hdfcbank.com)
3. Axis - Education Loan
Axis Bank brings you Education Loans for studies both in India and abroad starting from Rs. 50,000 at attractive interest rates. With an Axis Bank Education Loan you can enjoy a host of benefits such as simple documentation, quick loan disbursal, tax benefit u/s 80(E), long repayment tenure, etc. Find out more about the features and benefits of Student Loan in India, below. Minimum loan amount is 50,000 rs ( sources axisbank.com)
4- Bank of baroda-Bank of Baroda Education Loan
Bank of Baroda offers various education loans at attractive interest rates with a repayment tenure of up to 15 years. No collateral needs to be provided for loans of up to Rs.4 lakh. Under Section 80E of the Income Tax Act, tax benefits are also provided for the interest that is paid. You can take an education loan for school education, college education, and post-graduation courses.
Bank of Baroda Education Loan Interest Rates 2020
Scheme Interest Rates
Baroda Vidya 9.85%
Baroda Gyan 9.00%
Baroda Education Loan to Students of Premier Institutions (For Studies in India) 7.85% - 8.85%
Baroda Scholar 8.50% - 9.15%
The maximum loan amount that will be provided will depend on the type of loan that has been availed. You can contact Bank of Baroda to check the maximum loan amount that will be provided. Sources ( bank bazaar.com)
These and many other banks provides educational loans to students to persue their higher education. Some more banks which provide such facilities punjab national Bank, TJSB, Union Bank etc.