Avanse Education loans aims at providing financial support to deserving / meritorious students for pursuing higher education in India and abroad. To know more visit : http://www.avanse.com/avanse-education-loans/

1. Everything you need to know about
the educational loan in India
Education loan

2. It was just a month back when Reserve Bank Governor Raghuram Rajan
while answering queries about educational loans explained the role of
central bank in improving the quality of student loans. Despite high level of
defaults in repayment of loans taken by students to pursue higher
education the governor empathises with the students while informing the
media about the various issues and loops in the system of student loans
disbursed. Cases of students defaulting on loan payments prompted
Indian Bankers Association to review the education loan scheme. We
explore what this means for students.

3. Education loan Eligibility :
Loans to Indian nationals for pursuing approved courses leading to
graduate/postgraduate degree and PG diplomas conducted by colleges/
universities recognized by UGC/Govt./AICTE/AIBMS/ICMR etc. Reputed
professional and technical courses are also considered.
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.

4. Quantum of finance:
Rs. 10 lakh for study in India and Rs. 20 lakh for study abroad. Banks may
consider lending higher amount in special cases at their discretion.
Security:
• Upto Rs. 4 lakh – No security, but in this case parents needs to be a
joint borrower
• Between 4-7.5 lakhs- along with parents collateral security in form of
third party guarantee
• Above 7.5 lakhs- Parents to be joint borrowers + tangible collateral
security of suitable value required.

5. 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. Also in cases where your loan
amount is higher than 20 Lakhs to study abroad the percentage is calculated
in a margin of the required amount where the bank sets a ratio.

6. Tenure of loan:
10 and 15 years for loan up to Rs 7.5 lakhs and above respectively.
Under section 80 (e) of the Indian income tax act, a person can exempt the
amount paid against the interest of the education loan – either for self or for
his/her spouse or children – for eight years from the year(s) he starts to repay
the loan or for the duration the loan is in effect, whichever is more.
Source : http://www.wemakescholars.com/blog/educational-loan-india-concerns/

8. Read more on Education Loan : http://www.avanse.com/avanse-education-loans/
Thank you !!!