EDUCATION LOANS ARE NOW VERY EASY! YOU CAN ALSO AVAIL IT. Planning to study abroad? One Source Overseas in Association with some nationalized banks has lined up an entire basket of tailor-made services. We'll show you the best way to fund your overseas education, the convenient way to carry foreign exchange and the easiest way to travel abroad. Expenses considered for loan:
Repayment Tenure:
Documentation Required For Student
For Co borrower
Eligible courses All Graduation / Post graduation / Professional courses having employment prospects are eligible for loan. Fees payable to college/School/Hostel. Examination / Library / Laboratory fees. Purchase of Books / Equipment / Instruments. Caution Deposit / Building Fund / Refundable Deposit. Travel Expenses / Passage money for studies abroad. Purchase of computers considered necessary for completion of course. Expenses considered for loan Any other expenses required to complete the course like study tours, project work etc. are also eligible. If you’re studying in Australia (or anywhere else for that mater), the maximum amount of money you can borrow from a participating bank is Rs 20 Lac with a 15% margin. The State Bank of and the State Banks of Hyderabad, Saurashtra and Travancore all follow the suggested maximum loan value and margin. The Allahabad Bank, the Bank of Baroda and the Andhra Bank have also adopted this loan value maximum and margin for students who will study abroad. The other banks that have adapted the same suggested loan value and margin for students who wish to go abroad to study include but are not limited to the following: the Indian Bank, the Maharashtra Bank, the Corporation Bank, the Punjab National Bank, the UCO Bank, the Union Bank of , and the Syndicate Bank. The State Bank of Bikaner and Jaipur, the Central Bank of India, and the Punjab and Sind Bank has set the maximum at Rs 15 Lac with a 15% margin. The maximum loan amount indicated, however, is not necessarily equivalent to the actual amount of money that the bank will lend you. It depends on your projected expenses and the bank’s own lending guidelines. Expenses that may be considered in loan approval include tuition fees, accommodation costs, travel expenses, academic expenses (required for course completion), cost of computer/uniforms/books/equipment, insurance, deposits, and other pertinent costs. Whatever the loan value, co-obligation of your parents/guardian/spouse is required. For loans no greater than Rs 4 Lac, no collateral and guarantor are required. Beyond that up to Rs 7.5 Lac, a guarantee from a third-party is necessary. For loans greater than Rs 7.5 Lac, collateral is required; furthermore, you will be required to accomplish an agreement designating a portion of your future income for loan repayment purposes. Processing Fee The banks have the freedom to set their processing fees. Only loans for studying in are exempted from processing fees as per the terms of the government’s Educational Loan Scheme. Interest Rates Interest rates for loans procured under the Educational Loan Scheme vary depending on the amount of money borrowed. Specifically, educational loans of Rs 4 Lac and below are to be levied an annual interest rate equivalent to the bank’s applicable BPLR or Benchmark Prime Lending Rate. Educational loans greater than Rs 4 Lac, on the other hand, are to be charged an interest rate equivalent to the sum of the BPLR plus 1%. The State Bank of India levies floating per-annum interest rates on educational loans. Loans Rs 4 Lac and below have a per-annum rate of 0.5% below the SBI Advance Rate (SBAR) – the bank’s benchmark lending rate. Loans above Rs 4 Lac up to Rs 7.5 Lac have a per-annum interest rate of SBAR plus 1%. Loans above Rs 7.5 Lac, however, are levied an annual interest rate equivalent to the SBAR. The State Bank of Indore also levies a floating annual rate on educational loans. Loans above Rs 4 Lac up to Rs 7.5 Lac are levied a rate equivalent to the BPLR. Loans below Rs 4 Lac have an interest rate of 1.5% below the BPLR, whilst loans above Rs 7.5 Lac have an interest rate of 1% below the BPLR. The State Bank of Patiala also has a floating annual rate for educational loans. Loans Rs 4 Lac and below have an interest rate of 1.75% below BPLR, whilst loans above Rs 4 Lac have an interest rate equivalent to BPLR. Other banks’ floating rates (non-exhaustive list)
Some banks, however, have fixed interest rates. For instance, the State Bank of Bikaner and Jaipur charges a fixed rate of 11.25% per annum on loans Rs 4 Lac and below and 12.25% per annum on loans above Rs 4 Lac. The State Bank of charges 12.50% p.a. on loans Rs 4 Lac and below and 13.25% p.a. for the rest – although it does give a special rate of 11.75% for educational loans taken out by students who are enrolled in select/leading institutions. The Union Bank of India charges male students a fixed rate of 11.75% for loans up to Rs 4 Lac, 12.5% for loans above Rs 4 Lac to Rs 7.5 Lac and 12% for loans above Rs 7.5 Lac; female students, on the other hand, are charged 11.25%, 12% and 11.5% on educational loans, respectively. Final Word If you are determined to study in Australia, then immediately contact your bank for their educational loan schemes. However, be sure to compare interest rates and repayment terms to ensure that you will get the best possible deal. Indian students who wish to study in have a lot of funding options. All you have to do, really, is to sift through these options in order to find the best one for you. Educational Trust's that provide scholarship for students
|