Rubique

Schemes Available for Education Loan

Investing in yourself starts with investing in your education.

The Indian Government with the Reserve Bank of India and Indian Banker's Association has a Comprehensive

Educational Loan Scheme so you can pursue higher studies without having to worry about funds.

The scheme provides loans up to: INR 10 lakhs for studying in India INR 20 lakhs for studying abroad to deserving candidates.

To opt for a loan you must have a Co-Applicant who can repay the loan in case the student fails to do so. This could be your parents, sibling or spouse.

About the scheme

Some options available to go for an education loan:

Loan Amount Requirements / Rate of Interest

Less than INR 4 lakhs No collateral is required and the interest cannot be more than the Primary Lending Rate

Over INR 4 lakhs The interest rate cannot exceed the Primary Lending Rate by more than 1% and you will need a third party guarantor

Over INR 7.5 lakhs Bank will most likely ask for a collateral and you will need a third party guarantor

While you can avail loan tenure of up to 5 to 7 years, the repayment period starts only after the completion of your course which varies from 6 months to a year.

Sometimes you also get a provision of 1 year for the repayment.

While repaying your education loan, you are also eligible for tax deduction of up to INR 40,000 per year. This deduction is not applicable for all courses, and can only be for a period of eight years after you start repaying the loan.

Repayment

The rate of interest charged for an education loan depends on the amount as well as the college or university.

The rate generally varies from 11.75% to 14.75% but if you get admission in one of the premiere institutions like IIM or IIT, the banks will usually reduce the interest by 25 base points.

Some public sector banks also provide a reduced interest rate for female students.

Interest Rates

Most banks have the following criteria for giving an education loan.

Should be an Indian National

Have secured an admission to professional/technical courses in India or abroad through Entrance Test/Merit based selection process

Good academic career

The student should not have outstanding education loan from any other Institution

Eligibility

Fee payable to College/School/Hostel

Fee of Examination/Library/Laboratory

Purchase of books/equipment/instruments/uniforms

Caution deposit/building fund/refundable deposit supported by Institution bills/receipts

Travel expenses/passage money for studies abroad

Purchase of computers if essential for completion of the course

Insurance cover for the student

Expenses banks consider for sanctioning loan amount

Though this amount might not be sufficient, especially while studying abroad, you can consider a part-time job within campus or nearby.

It will help you earn money for extra expenses while preparing you for your future endeavors. You could also apply for a scholarship with the loan.

In today's competitive world, it's extremely important to have the edge of higher education as it helps you step up in your chosen career. Compare interest rates and Apply for an Education Loan at Rubique, to aid your dreams and build a strong foundation for your bright future.

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