Educational Loan -II
By US Singh *
The trouble with unemployment is that the minute you wake up in the morning you’re on the job.
—Slappy White
Central Bank : Aims at bringing education within the reach of students and help them improve their prospects in life, Central Bank extends educational loan to the deserving students under its Finance for Education (Cent Vidyarthi Scheme).
This educational loan is meant for pursuing graduate/post-graduate, management/job oriented courses, professional courses of recognised universities/reputed institutes, computer courses conducted by NIIT, APTECH, CMC, C-DAC with duration of one year or more as well as postgraduate courses in Science, Technology, Medicine, Engineering, Management, Law, Accountancy leading to Master’s degree or post-graduate diploma in recognised University abroad.
The candidate should have a consistent good academic record in previous examinations with marks over 60 percent in 10th and 12th or first grade in other cases. For applicants belonging to SC/ST category, second class will be sufficient.
The loan amount that can be availed for studies in India is upto Rs 7.50 lakhs and upto Rs 15 lakhs for studies abroad. For loan amount upto Rs 4 lakhs, no margin would be required. However, for amount over Rs 4 lakhs, the required margin is 5 percent in India and 15 percent for studies abroad. Nonetheless, relaxation of loans upto Rs 50,000 is there for the SC/ST candidates.
The rate of loan interest payable is PLR for amount upto Rs 4 lakhs and PLR + 1 percent for above Rs 4 lakhs.
Bank of Rajasthan : To deserving students with good academic records who have selected for pursuing higher studies of their choice, the Bank of Rajasthan offers loan amount upto to a maximum of Rs 1,50,00 in India and upto Rs 3,00, 000 for overseas.
The applicants should submit their marksheet, proof of admission and proof of cost of the course being pursued.
Normally, it takes a fortnight to process the loan.
The interest rate payable on loan amount taken for study in India as well as overseas same at 12.75 percent per annum on loan amount upto Rs 25,000, 14 percent per annum for amount Rs 25,000 to Rs 2,00,000 and 16 percent per annum for above Rs 2,00,000.
The tenure of the loan is till the completion of the course and repayment within 3 to 5 years or earlier.
Catholic Syrian Bank : Candidates wanting to avail educational loan from Catholic Syrian Bank should have attained at least 21 years of age and have 60 percent marks throughout. They also need to show admission approval.
Maximum loan amount that can be granted for studies in India is upto Rs 5,00,000 and also upto Rs 5,00,000 for studies overseas.
Academic records and admission approval should be submitted at the time of applying for the loan, the process of which takes around one week.
Interest rate payable is 14 percent per annum for amount upto Rs 2,00,000 and 16 percent per annum for amount above Rs 2,00,000 for studies both in India and overseas. However, in case of overseas, collateral would be needed if the loan amount is above Rs 25,000 and third party guarantee would also be required.
The tenure of the loan is upto 40 months and repayment has to start after 3 months of completion of the course or the date of joining of job, whichever is earlier.
Development Credit Bank Ltd : For studies in India, a maximum amount of Rs 5,00,000 for study in India and 75 percent of the course fee can be availed as educational loan from Development Credit Bank Ltd.
The candidates should submit their mark sheets, income proof of guardian, evidence for selection to the courses, copy of ration card and details of the admissible expenses. The loan process normally takes one week and the payable interest rate in India as well as for overseas study is 13.5 percent per annum for amount upto Rs 2,00,000 and 15.5 percent per annum for amount above Rs 2,00,000. However, in case of overseas studies, collateral and third party guarantee are required for availing the benefit.
The tenure of loan is 3 to 5 years in India and maximum of 4 years for study abroad. Repayment is after 6 months of completion of the course.
Bank of Maharashtra : This another bank which has been trying to promote education through extension of loan benefit to the deserving students for studies.
The maximum loan amount for study in India is upto Rs 2,00,000 and upto Rs 7,50,000 for study overseas. The interest rate payable is 13.75 percent per annum, whether it is for studies in India or overseas. But collateral and third party guarantee would be required in case of overseas studies.
Applicants should have secured admission in school/college/institute and submit their pass certificate of previous school/university/institute.
The required for processing the loan is a fortnight and the tenure of the loan is maximum of 5 years.
* Human Capital, e-mail: hucapital@gmail.com