Education Loan is a term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.
Common Features
- Repayment period of upto 15 years after Course Period + 12 months of repayment holiday*
- Security
- Upto Rs. 7.5 Lacs:Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
- Above Rs. 7.5 Lacs:Parent/ Guardian as co-borrower and tangible collateral security
- Margin
- Up to Rs 4 Lacs - Nil
- Above Rs 4 Lacs - 5% for studies in India, 15% for studies in abroad
- Repayment will commence one year after completion of course.
- Loan to be repaid in 15 years after the commencement of repayment
- In case second loan is availed for higher studies later, to repay the combined loan amount in 15 years after completion of second course
- EMI Generation
- The accrued interest during the moratorium period and course period is added to the principle and repayment is fixed in Equated Monthly Installments (EMI).
- If full interest is serviced before the commencement of repayment; EMI is fixed based on principle amount only.
Indian Bank's Association has issued Model Education Scheme. Click on the link below: