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Some details on educational loan - 20-Jun-2011
Aiming at providing monetary assistance to the financially weak, students' educational loan scheme is in practice. Money should not be a hindrance to students aspirations. Even the downtrodden should be able to pursue higher education.
All the students who are ready to pursue higher education can avail educational loans. Those wanting to get educational loan should select a college, which is duly recognized by the Anna University and also should pick a course certified by the varsity.
Educational loans can be sought to pursue Under Graduation, Post graduation, or any other technical course. Students can also seek loan for higher studies abroad.
Certain colleges have tie up with particular banks. In that case, if you select a college, which has a tie up with the bank from which you are seeking loan, it is easier to avail the loan.
Once you apply for the loan, the bank demands certain documents, which you will have to provide without fail. The supportive documents will be closely verified by the bank officials. Then the bank officials will indulge in a direct discussion with the students and his family. Income and asset of the student's father/ guardian will be crosschecked while processing the loan papers.
RATE OF INTEREST: If the student seeks for a loan lesser than Rs 4lakhs, then the rate of interest would be minimum. If the loan amount is going to be more than Rs4lakhs, then there would be an additional levy of 1% of the amount along with the minimum interest rate. However this rate of interest differs with various banks. Certain banks which provide girl students with concessions in interest rates.
LOAN SECURITY: Security is not necessary for loan amount upto Rs4lakhs. Pledging of security for the loan depends on the amount the student seeks. Documents of assets such as house can be pledged as loan security. Documents regarding the assets have to be handed over to the bank, at the time of procurement of loan.
LOAN REPAYMENT: Loan repayment becomes functional only after the completion of the course. But some banks collect the interest for the loan rendered, even before the student completes his course.
The student is expected to repay the loan once he gets a job or sometimes within a year after the course completion. But in no case the student can dodge the repayment period beyond an year. The entire loan amount has to be repaid within 5 to 7 years.
