Schemes Available for Education Loan- Rubique

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Schemes Available for Education Loan
Rubique
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Investing in yourself starts with investing in
your education. The Indian Government with the
Reserve Bank of India and Indian Banker's
Association has a Comprehensive Educational Loan
Scheme so you can pursue higher studies without
having to worry about funds.
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About the scheme

• The scheme provides loans up to
• INR 10 lakhs for studying in India
• INR 20 lakhs for studying abroad
• to deserving candidates.
• To opt for a loan you must have a Co-Applicant
  who can repay the loan in case the student fails
  to do so. This could be your parents, sibling or
  spouse.

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Some options available to go for an education
loan
Loan Amount Requirements / Rate of Interest
Less than INR 4 lakhs No collateral is required and the interest cannot be more than the Primary Lending Rate
Over INR 4 lakhs The interest rate cannot exceed the Primary Lending Rate by more than 1 and you will need a third party guarantor
Over INR 7.5 lakhs Bank will most likely ask for a collateral and you will need a third party guarantor
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Repayment
While you can avail loan tenure of up to 5 to 7
years, the repayment period starts only after the
completion of your course which varies from 6
months to a year. Sometimes you also get a
provision of 1 year for the repayment. While
repaying your education loan, you are also
eligible for tax deduction of up to INR 40,000
per year. This deduction is not applicable for
all courses, and can only be for a period of
eight years after you start repaying the loan.
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Interest Rates
The rate of interest charged for an education
loan depends on the amount as well as the college
or university. The rate generally varies from
11.75 to 14.75 but if you get admission in one
of the premiere institutions like IIM or IIT, the
banks will usually reduce the interest by 25 base
points. Some public sector banks also provide a
reduced interest rate for female students.
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Eligibility

• Most banks have the following criteria for giving
  an education loan.
• Should be an Indian National
• Have secured an admission to professional/technica
  l courses in India or abroad through Entrance
  Test/Merit based selection process
• Good academic career
• The student should not have outstanding education
  loan from any other Institution

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Expenses banks consider for sanctioning loan
amount

• Fee payable to College/School/Hostel
• Fee of Examination/Library/Laboratory
• Purchase of books/equipment/instruments/uniforms
• Caution deposit/building fund/refundable deposit
  supported by Institution bills/receipts
• Travel expenses/passage money for studies abroad
• Purchase of computers if essential for completion
  of the course
• Insurance cover for the student

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Though this amount might not be sufficient,
especially while studying abroad, you can
consider a part-time job within campus or nearby.
It will help you earn money for extra expenses
while preparing you for your future endeavors.
You could also apply for a scholarship with the
loan. In today's competitive world, it's
extremely important to have the edge of higher
education as it helps you step up in your chosen
career. Compare interest rates and Apply for an
Education Loan at Rubique, to aid your dreams and
build a strong foundation for your bright future.
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Thank You