Lack of finances should not get in the way of a bright student who wants to pursue knowledge. The whole idea of education loans rests on this principle. Here is what you could do to obtain one and make your dreams come true
Since 2001, India has seen a sharp rise in the number of banks providing loans to students. There is no longer any need to shelve your plans for studying in India or abroad if you are a deserving student. You need to be enrolled in a university of repute or one that is sanctioned by the UGC/All India Council of Technical Education or any government institute. Loans usually depend on the chosen course, reputation of the institute, family assets and past academic record.
A Comprehensive Educational Loan Scheme has been framed by the University Grants Commission in association with the Reserve Bank of India. Under this scheme, a deserving candidate
- May get up to Rs. 7.5 lakhs as loan for studying in India and Rs. 15 lakhs for studying abroad.
- Will not have to pay interests exceeding Prime Lending Rate for loans up to Rs. 4 lakh. For loans beyond Rs. 4 lakhs, the student will have to pay PLR plus one percent. Banks will not ask for collateral or guarantee either for loans up to 4 lakhs.
- Can repay the loan over a span of 5 to 7 years with a grace period of one year after the completion of studies.
Once you decide to apply for bank loans in India, here are a few points you should note:
- Make sure to choose a bank near your campus
- Documents to be submitted
- Attested mark sheet of last qualifying examination for school and graduate studies in India.Proof of admission to the course.
- Schedule of expenses for the course.
- Copies of letter confirming scholarship, etc.
- Copies of foreign exchange permit, if applicable.
- 2 passport size photographs.
- Statement of Bank account of the last six months.
- Income tax assessment order not more than 2 years old.
- Brief statement of assets and liabilities of borrower.
- If you are not an existing bank customer, you would also need to establish your identity and give proof of residence.
- Copies of passport, air tickets, in case of admission to foreign university.
State Bank of India offers loans for college and hostel fees. It also pays for other expenses like buying books and other necessary items. Travel expenses and maximum of Rs. 50,000 for buying a two wheeler are also included in this loan. Therefore, if you think that money is the only factor that is coming between you and your future then explore these opportunities. A lot of information on specific banks and their loan policies is available on the internet. The options are all there, all you need to do is stay informed. All the best!