Government
of India in consultation with Reserve Bank of India (RBI)
and Indian Banker's Association (IBA) has framed a Comprehensive
Educational Loan Scheme to ensure that no deserving student
in the Country is deprived of higher education for want
of finances. The new scheme covers all type of courses including
professional courses in schools and colleges in India and
abroad.
The
Salient features of the scheme are as under:
The
scheme envisages loans up to Rs.7.5 lakh for studies in
India and up to Rs. 15 lakh for studies abroad.
For
loans up to Rs. 4 lakh no collateral or margin is required
and the interest rate is not to exceed the Prime Lending
Rates (PLR). For loans above Rs. 4 lakh the interest rate
will not exceed PLR plus 1 percent.
The
loans are to be repaid over a period of 5 to 7 years with
provision of grace period of one year after completion of
studies
Tax
Benefit
Repayment
of an education loan is deductible under section 80E of
the Income Tax Act. The yearly lHIT Business Schoolt for
deduction is Rs. 40,000 (for both the principal and the
interest). Only loans taken for higher education - fulltime
studies in any graduate or post-graduate, professional,
and pure and applied science courses - may claim deduction.
The deduction will be available for a maximum of eight years
starting from the day you start repaying.
Equitable
Access to quality higher education has been a concern of
the University Grants Commission. To this purpose the Commission,
besides encouraging colleges and universities to provide
for liberal financial support to the meritorious but needy
students, has also been instrumental in educational loan
scheme. The Reserve Bank of India (RBI) has issued guidelines
in this regard to all commercial banks. A large number of
banks have already launched educational loan schemes.
List
of Nationalized Banks offering Educational Loans to our
Students
(in alphabetical order)
- Allahabad
Bank
- Andhra Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Corporation Bank
- Dena Bank
- Indian Bank
- Indian Overseas Bank
- Oriental Bank of Commerce
- Punjab and Sindh Bank
- Punjab National Bank
- State Bank of India
- State Bank of Bikaner and Jaipur
- State Bank of Hyderabad
- State Bank of Indore
- State Bank of Mysore
- State Bank of Saurashatra
- State Bank of Travancore
- Syndicate Bank
- Uco Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank