The education loan would be provided by banks to those students who have obtained admission to career-oriented courses e.g. medicine, engineering, management etc., either at the graduate or post-graduate level.
Now a days, education is no longer all about merit and performance. It has become very expensive to pursue education from best institutions.
Medical education is another field which is quite expensive, due to which students find it difficult to pursue medical studies. Now with the help of banks students can avail loan for medical studies easily.
There are several banks which provide financial assistance to medical aspirants.
Also Read: Insights on Education Loan and Tax
SBI Education Loan:
This bank provides loan up to an amount of Rs 10 lakh to Rs 30 lakh for students who wish to study abroad. The interest rate is 3.5% for Rs 4 lakh above and an interest of 2% above the stated based rate, for loan amount of Rs 7 lakhs. Repayment tenure ranges from 10 to 12 years. Parents / guardians can be co-borrowers or they can be collateral security in the form of suitable third party guarantee. The loan bears tuition fees, examination, library, laboratory fees, travel expenses, expenses for study material like books and even cost of two wheeler upto Rs 50,000/-.
IDBI Bank Education Loan:
This bank provides loan upto Rs 10 lakh. The bank puts no loan margin up to an amount of Rs. 4 lakhs but for applying loan above Rs 4 lakh, 5% is applied to the total expenditure on the course, if a student studies in India. For students studying abroad, the loan may differ. The students taking the loan from this bank have to repay the loan amount after getting a job or within a year after the completion of the course.
HDFC Bank Student Loan:
The bank provides education loans upto Rs. 10 lakh and unsecured lending upto Rs. 7.5 lakh. For applying for a loan above Rs 7.5 lakh, the bank provides a wide range of bank approved collateral securities like Residential Property, HDFC Bank Fixed Deposit, LIC, NSC or a KVP policy. The maximum repayment tenure of the loan is upto 15 years after getting a job or within a year after the completion of the course.
Punjab National Bank Education Loan:
The bank provides education loans upto Rs. 10 lakh. Repayment period for loans upto Rs.7.50 lakh is 10 years and for loans above Rs.7.50 lakh is upto 15 years.
Bank of Baroda Education Loan:
Bank of Baroda provides educational loans for medical students under the scheme Baroda Gyan upto Rs 10 lakhs. The loan margin of 5% is provided for an loan amount above Rs.4 lakhs, and above Rs 4 lakh it is 15%. The students who wish to study abroad can avail a loan upto Rs 20 lakhs. There is no need of collateral or security for loan upto Rs 4 lakhs. For loan above 7.5 lakh, a tangible collateral security equal to 100% of the loan amount, along with assignment of future income of the students is required. The loan has to be repaid in 120 maximum installments for loan amount upto Rs 7.50 lakhs and in 180 maximum installments for loan amount above Rs 7.50 lakhs.