Students perusing Higher Education don’t have to struggle hard anymore to finance their Studies as now many Banks in India are providing student loans. Not only loans, private foreign banks also seem to be interested in funding students, enthusiastic enough to announce scholarships for bright and deserving students.
With expensive professional education becoming mandatory for people across the country, a student loan seems the most effective way to tide over these expenses. Most students expect to land high salaries at the end of their professional training and are likely to be in a position to repay these loans over a period of time.
The State Bank of India (SBI), a major financier in the segment of education loans, has started the facility to help students get loans smoothly. All that the students need to do is to fill up application forms on the SBI website, giving details about the course they want to pursue and the branch from which they would like to procure it.
A candidate, who applies for a program with prospects of employment, can apply for the loan. Whether you apply for a graduate, professional or postgraduate program or any other course sanctioned by UGC or the government, you will be considered eligible for the loan.
Expenses taken into account:
- The SBI education loan covers school, college or hostel fees as well as cost for buying books and other necessary items.
- Apart from the library, exam or library fees, even caution deposit, refundable deposit and building fund are considered for the loan.
- Other expenses, which are mandatory for completing the course, travel expense as well as a maximum cost of Rd 50,000 for buying a 2 wheeler, are taken into account.
No security is required for a loan amounting up to Rs 4 lacs. A borrower should present a 3rd party as guarantee for a loan amount above Rs 4 lacs. However, on SBI discretion, this clause of 3rd party guarantee may be waived off in certain cases. If you borrow a loan amount above Rs 7.5 lacs, you need to offer a material collateral security and assign the future income of the student for paying installments. The guardians or parents of a borrowing student should secure an education loan. If the borrower is married, his or her spouse, parents-in-law or parents can act as the co-obligator.
The borrower can begin repaying 6 months after getting job or one year after the course is completed, whichever happens earlier. The loan can be repaid in a period of 5 to 7 years.
If you need some extra information visit: http://www.sbi.co.in.