You have got the skills and talent but lack of funds to pursue your ambition of studying abroad. |
In an endeavor to grant privilege to all meritorious students to pursue their ambition of studying abroad, most large commercial banks have increased their educational loan portfolio.
To be eligible for loan, you should be an Indian resident having secured admission in any of the bank's list of approved course or universities.
The quantum and terms of loans vary from bank to bank. Currently, they lend up to a maximum of Rs 20 lakhs for studying abroad. It covers typically: * Tuition fees payable to college/school; * Examination /library /hostel charges; * Travel expenses; * Purchase of books /equipment /uniform; * Cost of two-wheelers (optional). Repayment is in the form of equated monthly installments (EMIs) which commences one year after the course or six months after the graduate has got a job, whichever is earlier. |
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The tenure can be from 3-8 years. Most banks do not require any margin up to Rs 4 lakh and, beyond that, 15 per cent margins are charged.
SECURITY: Usually for loans up to Rs. 4 lakhs, no collateral security is required.
For loans ranging from Rs. 4 lakhs to Rs. 7.50 lakhs, collateral in the form of a satisfactory third party guarantee is required.
For loans above Rs. 7.50 lakhs, collateral security of suitable value or co-obligation of parents/guardian/third party guarantee along with the assignment of future income of the student for the payment of installments may be obtained.
Security can be in the form of : * Government Securities/ public sector bonds * Land/building * Units of UTI, NSC, KVP, LIC policy, gold, shares/debentures, * Bank deposit in the name of the student, parent/guardian or any other third party with suitable margin. Generally, the interest charged is tied to the Prime Lending Rate (PLR). This rate is applicable for certain amounts of loans. If it is higher than this...