Education Loan for Studying Abroad

[Kalyan]

Education Loan for Studying Abroad

Now many banks provide education loan for studying abroad.

Generally all the banks will ask for this minimum eligibility

• Should be an Indian National.
• Secured first class and wish for admissions in Professional / Technical / Other Courses of various studies.
• Secured admission to foreign University Institutions.
• Any Student who has attained the age of 18 years or Parent of the Student can avail the loan.
• Graduation: For Job oriented Professional / Technical courses offered by reputed universities.
• Post Graduation: MCA , MBA , MS, etc.
• Courses conducted by CIMA-London, CPA in USA etc.
• Should have completed previous qualifying examination.
• Person already in gainful employment are not eligible for loan under the scheme except for pursuing evening course covered under the scheme of approved institute.
• Correspondence courses / computer part time /certificate courses are not eligible for finance under the scheme.
• Some banks put age limit of the Student - 18 to 35 Years (For Studies in Abroad)

Generally these expenses are covered under education loan

• Fee payable to College / School / Hostel.
• Examination / Library / Laboratory fee.
• Purchase of Books / Equipments / Instruments / Uniforms.
• Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts.
• Travel expenses / passage money for studies abroad.
• Purchase of computers - essential for completion of the course.
• Any other expense required to complete the course - like study tours , project work, thesis etc.
Quantum of Finance Upto Rs.20 Lakhs.

Margin

• Upto Rs. 4.00 Lakhs - Nil.
• Above Rs.4.00 Lakhs - Study Abroad - 15%.

Security

• Upto Rs. 4.00 Lakhs - No Security
• Above Rs.4.00 Lakhs upto 7.50 Lakhs Suitable Third Party Guarantee
• Above Rs. 7.50 Lakhs and upto Rs. 15.00 Lakhs - 100% collateral in any of the form of Immovable property / NSC / Units of UTI / LIC policy / RBI Bonds or any transferable Government securities.

Rate of Interest

Rate of Interest ranges from 9% to 14% depending on PLR(Prime Lending rate)

Disbursement

The loan will be disbursed in staged as per the requirement / Demand directly to the institutions / Vendors of books / Equipments / Instruments.

Sanction/Disbursement

All usual documents as per Bank's Rule should be obtained. The Loan to be disbursed in stages as per the requirement / demand directly to the institutions / vendors of books / equipments / instruments to the extent possible.
Repayment

• Holiday / Moratorium Period: Course Period + 6 months after completion of the course. If the student got employed within 6 months after completion of the course, the repayment should start immediately after the expiry of one month from the date of employment.

• Maximum Repayment period of Loan: The loan to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course

Interest Payment

Payable at monthly rests from the date of availment of loan. A separate Letter of undertaking is to be obtained from the Parent / Guarantor that the monthly interest will be paid from the income of the Parent / Guarantor.