Approved courses, P G Diploma eligible for education loan

By: | Published: April 3, 2017 11:54 AM

As per the Indian Banks’ Association (IBA) Model Scheme, approved courses leading to graduate/ post graduate degree and P G Diploma conducted by colleges/ universities recognized by the University Grants Commission, the All India Council for Technical Education, the Indian Council of Medical Research, etc. are eligible for education loan.

All education loans up to Rs 4 lakh are collateral free as per RBI guidelines.

As per the Indian Banks’ Association (IBA) Model Scheme, approved courses leading to graduate/ post graduate degree and P G Diploma conducted by colleges/ universities recognized by the University Grants Commission, the All India Council for Technical Education, the Indian Council of Medical Research, etc. are eligible for education loan.

The Model Education Loan Scheme covers recognized non-professional courses. Complaints regarding educational loans, as and when received by the government, are taken up with banks concerned for corrective action. As informed by public sector banks, during 2016-17 (up to December, 2016), 2608 complaints related to education loans were received, out of which 2497 were disposed off. In order to facilitate easy processing and disbursal of loans, the government has launched a web-based portal namely, Vidya Lakshmi Portal. Students can view, apply and track education loan applications online by accessing the portal.

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All education loans up to Rs 4 lakh are collateral free as per RBI guidelines. Further, the Government of India has launched a Credit Guarantee Fund Scheme for Education Loans (CGFSEL) wherein collateral-free loans are given up to Rs 7.5 lakh.

As per the IBA Model Scheme, the education loan limit is Rs 10 lakh for studies in India and Rs 20 lakh for abroad studies. However, banks may consider stream-wise/ institution-wise cap on the education loan amount by taking into account reputation and placement history of the education institution concerned. Banks may consider higher quantum of loans on course to course basis.

(This was stated by Santosh Kumar Gangwar, Minister of State in the Ministry of Finance, in a written reply to a question in Lok Sabha recently.)

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