Hi Urvija,

Loan for  Higher Education  in India:

Maximum Loan Amount : Rs.10.00 Lacs.

Margin :

Upto Rs. 4.00 lacs :- NIL

Above Rs. 4.00 lacs :- 5%

Suppose you want to take A loan of 3 lahs then you have to give your own 15, 000 an drest bank will give. This is what margin means.

Student Eligiblity :

• The applicant should be an Indian national.
• Applicant should be around 16-26 years of age or any other range specified by the bank.
• Applicant should have a good academic track record.
• Applicant must have secured admission to professional/technical courses, through entrance test/ merit based selection process
• Applicant should have parents or guardians with stable source of income.

Coverage of expenses:

• Fee payable to college / Institution / University.
• Examination / Library / Laboratory Fee.
• Fee and other charges payable to hostel.
• Purchase of books / equipments / instruments.
• Personal Computers / Laptops wherever required.
• Caution deposit / building fund / refundable deposit supported by institution bills / receipts.
• Any other expenses required to complete the course - like study tours, project works, thesis, etc.

Courses Eligible:

• All Graduation courses.
• All Post Graduation courses & Doctorate courses.
• Professional Courses viz. Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, Ayurved, Homeopathy, Physiotherapy, Hotel Management, Hospital Management, Interior Designing, Architecture, Event Management, Mass Communication, Fashion Technology, etc.
• Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to Universities.
• Courses like C.A, ICWA, CFA, CS, etc.
• Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.
• Regular Degree/ Diploma courses like Aeronautical, pilot training,
  shipping etc., approved by Director General of Civil Aviation/shipping.
• Other courses leading to diploma / degree etc. conducted by 
  colleges/universities approved by UGC/Govt./ AICTE/ AIBMS/ ICMR etc.
• Courses offered in India by reputed foreign Universities.
• Evening courses of institutes approved by State/Central/Govt./UGC/AICTE/AIBMS/ICMR/ICAR.
• Courses offered by National Institutes and other reputed private institutions. The College/Institute must have been approved by the State/Central Govt./UGC/AICTE, etc.

Repayment Holiday / Moratorium Period:

• Course period + 1 year or 6 months after getting job, whichever is earlier.

Security:

• Upto Rs.4 lacs : No security
• Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable third
  party guarantee alognwith assignment of future income.
• Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan
  amount along with assignment of future income

collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan

Rate of Interest :

• Simple interest to be charged at monthly rests during the repayment holiday / moratorium period.
• 1% interest concession is provided if interest debited during repayment holiday is serviced.

Repayment Holiday is course period + 1 year or 6 months after getting job, whichever is earlier.

• Most banks provide 1% Concession in rate of interest to loans for girl student.
• Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds Rs.4.00 lacs.

Dear Aspirant,

Just to add, some banks ask to pay interest right from day one after giving loan.

Education Loan industry has not been very good in India and banks are very cautious in giving the loan and therefore the eligibility terms as given by Surabhi are strictly followed and a  guarantor is always demanded by the banks.

Best wishes