In past, the educational loans are only for the postgraduates and for the higher studies in the foreign countries. However, the condition in these days has changed and so most of the banks are offering the education loans for almost all the courses like pg, diplomas, graduation and intermediate. The government based banks as the Bank of Baroda is offering the loans even for the nursery courses too.
Do we get what we need of Education Loans?
The loan that is required for the course we are doing is given by the banks for example, if a course costs Rs.50,000 the bank offers only that amount as a loan but not more than that. Some of the points are considered while sanctioning the loan. They are as follows:
-Â Â Â Â Â Â Â Â Â The fee paid for the college/ hostel/ school.
-Â Â Â Â Â Â Â Â Â The exam, library and the laboratory fee.
-Â Â Â Â Â Â Â Â Â For the purchase of the books and uniform.
-Â Â Â Â Â Â Â Â Â For building fund or depository which is refundable.
-Â Â Â Â Â Â Â Â Â Travelling charges for the foreign studies.
-Â Â Â Â Â Â Â Â Â The cost of the computer if necessary for the course.
-Â Â Â Â Â Â Â Â Â Besides these, for the project works, purchase of the two-wheeler, and in total 7 to 10 lakhs is offered as the loan for the Indian studies and the maximum of Rs 20 lakhs is given for the foreign studies. However, the loan amount is directly paid to the college in the form of cheque.
Concessions of Education Loans
Most of the banks are offering Â½ to 1% of the concession on the interest to the girls and in case if the interest is paid from the next month onwards, the interest will be 1% concession.