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RBI guidelines on student loans

To apply for an education loan, a student; * Must be an Indian citizen * Must have cleared the selection process and obtained admission for any study program in a reputed foreign university.

To apply for an education loan, a student;

Must be an Indian citizen

Must have cleared the selection process and obtained admission for any study program in a reputed foreign university.

Courses

A student must secure admission to a graduate or post-graduate study program like the MCA, MBA, MS or a professional or technical course in any discipline, including courses conducted by international professional bodies like the CIMA (London) or CPA (USA); or even an employment oriented course to upgrade skills from a recognized international school.

Management, hospitality, healthcare and IT enjoy an edge while universities in US, Canada, UK, Australia and New Zealand are popular destinations.

Age

There is no minimum age restriction but students are usually above 16 years and have completed either the Senior Secondary course (SSC) or grade 10 or the Higher Secondary Course (HSC) or grade 12. There is no upper age limit.

Maximum loan

The maximum study loan is for Rs 20 lakh ($40,000) subject to the repayment capacity of the parents and student.

Repayment on the loan starts one year after the completion of the course or six months after getting a job, whichever is earlier and the loan must be cleared within five to seven years.

However, to ease the interest burden, a parent/ guardian may choose to pay the interest during the moratorium period and avail of an interest rate concession.

Collateral

For a foreign study loan above Rs 4 lakh ($ 8,000) parents or the guardian become joint borrowers. The bank may also insist on a third party guarantee, suitable collateral security like fixed deposits, national savings certificates, mortgages and an assignment of future income of the student for payment of instalments.

Margin Money

There is no margin money required for a study loan up to Rs. 4 lakh.

For a foreign education loan of over Rs 4 lakh, the student or guardian pays 15% of the loan amount. This amount need not be paid up-front. It may be put up as and when disbursements are made by the bank year to year on a pro-rata basis.

This amount would include the value of any scholarship acquired by the student. For instance, if a student needs a loan amount of Rs 15,00,000 ($30,000) and has received a scholarship worth $10,000 then the margin money requirement would be covered by the proof of the scholarship.

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sharadhapatel
Need education loan of 17lakhs for diploma(level7)in newzealand.I need help plz rply that which bank give loan for diploma
18 July 2014


Mohankumar
Require student study loan of Rs.4 lac for my daughter. pl enlighten on this. thks
16 June 2014


braingainmag.com
braingainmag.com does not provide student loans. Please contact your local banking authority for further information and process. Thanks.
16 June 2014


Karanbir Singh
I want education loan on further study in canada
12 June 2014


kranthi
can I get an educational loan on agricultural lands and on plots to do ms
29 May 2014


Raj Shekhar
I desire fo foreign study for MBBS. Do i deserve any student loan for my course?
25 May 2014


Subham Malakar
I am 19 year old, I had got 1st div in my class 10 boards.And this year I have cracked a entrance exam at the same time I have got admission in the institute.So will I get education loan
21 May 2014


princeley reynold dmello
I am 17 years two months, My bassein catholic coop bank is not giving me educational load for my further studies in my name for I being a minor. They insist to take loan on my parents name. Pls advice how to take loan and who should be contacted or intervene to clear my loan in my own name
12 May 2014


braingainmag.com
Princeley reynold dmello - you must be at least 18 years old in order to clear a loan in your own name. Your bank will be able to provide you with the details.
13 May 2014


ranjan kumar
please contact for education loan immediately
29 April 2014


ASHOK NILLAY
Sir, My monthly salary is Rs 17000/- and I have already having a house loan of Rs 300000/-. Now, I need Education Loan of Rs 1000000 for my Daughter for her B.Tech. Pls suggest me can I get a loan for her. She had completed her Class X with 10CGPa and she is supposed to get above 90% in her H.S exam.
14 April 2014


Prince
o.k sir. At that time my financial condition wasnt good so I didnt pay. will i get subsidy or not ?
22 March 2014


braingainmag.com
Hi Prince - Yes, you will have to pay interest.
03 March 2014


Prince
Year in which I taken loan is May 2011
28 February 2014


Prince
Hello sir. I got education loan of 8 lac rs in bank of baroda. FIrst year I paid interest and i got all the interest under subsidy scheme. next year, I didnt pay interest, will I get interest ? bank person said you have to pay interest otherwise you will not get. please answer me.
28 February 2014


braingainmag.com
Hi! Please also see our article http://www.braingainmag.com/guidelines-for-indian-student-loans.htm which has further updated tips on guidelines for applying for an education loan. This will answer your questions on applications. Good luck!
19 February 2014


INDRAJEET KUMAR
i want to apply for loan again during my study period for further studies. can anybody tell me is it possible to apply again for further from same branch.
18 February 2014


abhinav sharma
I didnot take any loan in first two year but after that we need loan for further studies so can we get loan for next twoyears
28 December 2013


BrainGain
Hi everyone! Thank you for all your comments! Please also see our article http://www.braingainmag.com/guidelines-for-indian-student-loans.htm which has further updated tips on guidelines for applying for an education loan. Good luck!
29 November 2013


Joel
03 October 2013


Saaurabh Agrawal
My education loan k rules pata karne hai.Pls mere ko education rules k bare mai mere ko mail kare ya by post rules ki information de.
29 November 2013


abhijith
Dear sir, My sister had taken an education loan for her MBA studies on 28-08-2008 of 2.4 lakhs,and at the time of her studies we had paid come intrest amount approximate amount of 50000.after that we cant pay any amount due to some problems,she had completed her MBA after 2 years,and seeking job,but when the time of signing the paper for load they told the loan repayment time period is 7 years and i know from news last year budjet it had changed to 11 years,also bank had collected our land tax paper from her but they didnt collect any paper from other students, sorry not from her also they told they need a guaranter also and his land tax paper also for a 2.4 lakhs they had collected more that 1 crore valued land propery paper.sir this this is the main issue that we got a revenue recover
29 September 2013


gopi.Mamillapalli
sir how much can a bank give a loan for an international student studying mbbs in philippines without any collateral security
28 September 2013


pradeep kumar
Dear sir im students of mba 3rd semester i have got 51% marks in my graduation &in mba 1st & 2nd semester i have got 67% marks can i took the opportunity of educational loan .please reply immediately im waiting for your answer
26 September 2013


neeraj
i have applied in a course in newzealand in queens academic group . course name- diploma in electroics and communication engineering in L-7 May i get loan from bank
09 September 2013


Varun reddy
I have taken student loan of 9 lakhs from UBI in 2011 Dose the intrest effect from the date of loan issued or from the date of course completion
04 September 2013


vani
can i take education loan with agricultural land as collateral
23 August 2013


Arunasri
Are the students studying MBBS in a reputed China medical university like "China Medical University (CMU) eligible for getting study loans as per R.Bank guidelines? If so please convey Bank name & other details
08 August 2013


anil mathur
kiya without sicurity education loan mil jata h
25 July 2013


muhsin
oti wanna study in Australia. .3 year diploma course in petrolleium and gas engineering, , please tell me about the loan limits and procedures
13 July 2013


SANDEEP SINGH NANGLU
i want for M.Engg. in canada so please guide me for the loan
11 July 2013


shekhar kumar
I required loan
04 July 2013


Sakshi Gupta
I took an education loan of rs 2,42,000/-, when i m doing B.Tech. but now my B.tech has been completed and now I will take admission in M.Tech and also want to take education loan for my M.Tech. Can I take an Education loan of rs 3lakh??
02 June 2013


Ramesh M
I have taken educational loan from Bank of Baroda in Tamilnadu (Rs.3,52,000)and I donot know whether I will be charged with interest for the above mentioned amount but the bank is demanding around 12% interest from me I need to know whether the interest amount I am charged with is true or not. Please help me to know what is the original interest amount charged for (Rs.3,52,000)
30 May 2013


kavita kumari pandey
i have taken a educ. loan from sbi (rs.400000) for my daughter.the sanc. date is 10/07/2011. but i have not paid the interest till now.do the interest of this period be paid by the parents?
29 May 2013


Mukul
15 May 2013


devendra pradhan
please tell me rules of nursing education loans and what conditions pay it.
28 October 2012


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