| Getting through some of the top-notch colleges in the | | | | Scheduling of expenses to the course. |
| UK has never been rare in India. Students apply in the | | | | Copies of letter confirming the scholarship. |
| UK universities as they get a range of opportunities, | | | | Copies of foreign exchange permit, if applicable. |
| besides a high degree of specialization and | | | | Two passport size photographs. |
| standardization. But, several bright ones get left out of | | | | Bank statement for the last six months of the |
| the race because they can’t afford it. Despair no | | | | borrower. |
| more if you can’t source the funds yourself. There | | | | Income tax assessment order not more than two |
| are several other ways to get there: sponsorship, | | | | years. |
| education loans and scholarships. | | | | Brief statements of assets and liabilities of the |
| Getting an education loan sanctioned from a bank is | | | | borrower. |
| not difficult today. That’s why, a degree from | | | | If you are not an existing bank customer you would |
| abroad is not confined to the kith and kin of the | | | | need to establish your identity and give proof of |
| nawabs. So, if you thought that going abroad was a | | | | residence. |
| Mission Impossible, then you are in for a pleasant | | | | Margin |
| surprise. With generous aid schemes and loans the | | | | If the course cost is up to 4 lakhs, nil for both studies in |
| number of students going abroad is also rising | | | | India and abroad. If the course cost is above 4 lakhs, |
| exponentially. | | | | 5% for inland studies and 15% for studies abroad. |
| An education loan is a form of financial support from | | | | Security |
| any bank or financial institution that enable a student | | | | Banks have the following security/collateral security |
| for Study in UK. A comprehensive educational loan | | | | requirements for granting loans to students. However, |
| scheme was framed with the consultation of | | | | the requirements differ from bank to bank. Loan up to |
| Government of India with reserve bank of India and | | | | INR 4 lakhs.No collateral security. Loan above INR 4 |
| Indian bankers association. Availability of the education | | | | lakhs and up to INR 7.5 lakhs. Security in the form of |
| loan, at the appropriate time will help millions of | | | | Satisfactory third party guarantee.Loan above INR 7.5 |
| deserving bright young Indians to achieve their dreams | | | | lakhs.(a) Collateral security of suitable |
| come true. All graduation, post-graduation and | | | | (b) Co-obligation of parents/guardians/third Party along |
| professional courses from foreign universities are | | | | with assignment of future Income of the student for |
| eligible for a loan. One can get loans up to Rs.15 lakh | | | | payment of Installments. |
| for studies abroad. These figures are not stable in | | | | Rate of interest |
| nature for banks. State bank of India is availing an | | | | The rate of interest is 10.75 % up to INR 4 lakhs and it |
| upper limit of 20 lakhs and in recent days. Indian bank | | | | does not exceed the Prime Lending Rates (PLR). For |
| has upgraded its maximum limit to 15 lakhs for | | | | a loan above INR 4 lakhs, the interest rate is 11.75 % |
| education in India and 25 lakhs for abroad studies. | | | | and it will not exceed PLR plus 1 percent. However, the |
| Before giving the loan, banks study the viability of the | | | | rate of interest is subject to changes as per the |
| borrower based on personal discussions with the | | | | specifications of RBI or the concerned bank. |
| student, family's assets and annual income, the nature | | | | Repayment holiday |
| of the course and reputation of the institute. In most | | | | Loans are repayable in 5 to 7 years. Repayment of |
| banks for loans up to Rs. 4 lakh no collateral or margin | | | | both principal and interest will start after one year after |
| is required and the interest rate will not exceed the | | | | completion of the course or six months after getting |
| Prime Lending Rates (PLR). For loans above Rs. 4 lakh | | | | employment, whichever is earlier. Interest will be |
| the interest rate will be PLR plus 1 percent. PLR is a | | | | charged on simple basis during the period of study / |
| term used to refer the interest rate of the bank and it | | | | moratorium period. At the commencement of |
| may vary with each bank. Some banks offer lower | | | | repayment, the accrued interest is added to the |
| rates to women students or those from specified | | | | principal amount and Equated Monthly Installments |
| institutions. Security to the loan depends on the | | | | (EMIs) fixed on total outstanding amount. After |
| amount. Security is some form of investment (i.e. bank | | | | commencement of repayment, the benefit of simple |
| deposits, house property etc) that is surrendered to | | | | interest would be discontinued. |
| the bank while taking the loan. Security is not needed | | | | Processing fee |
| for loan amounts up to Rs. 4 lakes. Instead of security, | | | | Most of the Indian banks do not charge any |
| some bank may ask for a third party guarantee | | | | processing fee or upfront charges. The State Bank of |
| (guarantor) for higher loan amounts. There is no need | | | | India accepts a deposit of INR 5000 for education loan |
| to repay the loan while studying. The repayment starts | | | | for studies abroad, which is adjusted in the margin |
| after you have finished the course or started working. | | | | money. |
| The repayment cannot be delayed for years after the | | | | Credit delivery |
| completion of course. The loans are to be repaid over | | | | You can avail the loan from the branch nearest to the |
| a period of 5 to 7 years with provision of grace period | | | | place of your permanent domicile. |
| of one year after completion of studies. | | | | Disbursement |
| All the details given below will change time to time and | | | | The loan is sanctioned as per delegation of powers |
| students are advised to get right information from the | | | | preferably by the branch nearest to the place of |
| banks concerned. | | | | domicile. No application for educational loan received is |
| Eligibility | | | | rejected without the concurrence of the next higher |
| The eligibility criteria of the bank to obtain an | | | | authority. |
| educational loan from any bank of India: - | | | | The loan is disbursed in stages as per the requirement |
| The student who is seeking for educational loan should | | | | demand directly to the institutions/vendors of books |
| be Indian national | | | | equipments/ instruments to the extent possible. |
| The student should have secured admission to foreign | | | | Follow up |
| university/institution | | | | The bank from which you have availed the loan can |
| Take a peek into other important points of | | | | contact the college/university authorities to send your |
| consideration that the comprehensive educational | | | | progress reports, at regular intervals. |
| loans: - | | | | Capability Certificate |
| Salient Features | | | | If you are going abroad to study, some of the foreign |
| The loan would cover fee payable to: | | | | universities require you to submit a certificate from |
| (However this may vary from bank to bank) | | | | your bankers about the sponsor's solvency/financial |
| Institution Fee | | | | capability with a view to ensure that your sponsors |
| Hostel Fee | | | | are capable of meeting the expenses till completion of |
| Examination Fee | | | | studies. Accordingly branches can also issue the |
| Library and Laboratory Fee | | | | capability certificate. For this financial and other |
| Purchases of Books | | | | supporting documents may be obtained from you, if |
| Equipment and Instruments | | | | required. |
| Caution or Refundable Deposit | | | | Finally, you need to hit on the right bank with the right |
| Travel Expenses | | | | educational loan scheme to suit your needs. |
| Documents | | | | Parameters to weigh the alternatives are many; as in, |
| You need to keep the following documents in place | | | | whether the bank provides loan for the course you |
| before applying for an educational loan: | | | | are opting for and if yes, then up to what extent, the |
| Mark sheets of the last qualifying examination for | | | | margin and security requirements, the rate of interest, |
| school and graduate studies in India. | | | | proximity of bank to your residence, et al. The |
| Proof of admission to the course. | | | | discretion is yours after a through analysis. |