Indian Bank Education Loan
A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.
IBA’s new guidelines
- Education loan Eligibility: Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MBBS,MCA, MBA, MS, etc offered by reputed universities.
- Eligible Expenses for education loan:Fees payable, accommodation charges, exam and library fees, reasonable expenses for books and equipment including computer, travelling expenses abroad and other reasonable expenses required to complete course.
- Quantum of finance:Rs. 10 lakh for study in India and Rs. 30 lakh for study abroad. Banks may consider lending higher amount in special cases at their discretion.
- Security: (a) up to Rs. 4 lakh- No security, parents to be joint borrower
(b) between 4-7.5 lakhs- along with parents collateral security in form of third party guarantee
(C) Above 7.5 lakhs- Parents to be joint borrowers+tangible collateral security of suitable value required.
- Moratorium period for repayment:Course period + 1 year or 6 months after getting job, whichever is earlier
- Margin money:Nil for loan up to Rs. 4 lakh. 5 percent and 15 percent respectively for study in India and abroad on loan above Rs. 4 lakhs.
- Tenure of loan: 10 and 15 years for loan up to Rs 7.5 lakhs and above respectively.
- Interest paid by the students on educational loan in financial year is eligible for income-tax exemption u/s 80 E of IT Act for 8 years.