Higher Education and Education Loans
Students need to take up career oriented and skill enhancing based courses based on their aptitude, learned skills and interest areas. But there is a big hurdle in pursuing their dreams. Finance. Majority of our youths belong to families whose limited family income comes in the way of higher education and they settle for general courses and that too which perhaps might not be the best choice for them. The consequence of this is that the critical Human Resource, Time and Knowledge Capital is not being optimally utilised.
To address this issue the Indian Banking Association has initiated the IBA Model Education Loan Scheme, following the advice of RBI and Ministry of HRD as a social welfare mechanism, and has come up with the provision of educational loans, which as per the provisions of the IBA norms is provided to meritorious students who wish to pursue their dream Professional/ Technical courses in Top Tier NAAC/ NBA accredited program/courses/Institute of National Importance/institutes which have approval of respective regulatory body. This scheme is extended to Students having parental income up to Rs. 4.5 lakhs per annum. This scheme is available to students who have passed HS exams or Degree Finals or are appearing in these examinations.
Students enrolled in professional/ technical courses only from NAAC accredited institutions or professional/ technical programmes accredited by NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs). Those Professional Institutions/programmes, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body viz, approval of Medical Council of India for Medical courses, Nursing Council of India for Nursing courses, Bar Council of India for Law etc.
Edu loan is available for pursuing various Under-Graduate and Post-Graduate courses like Bachelors or Master degree. It is also available for pursuing Diploma courses under Skilling category.
Generally students getting admissions into Institutions of National Importance like IITs, NITs, IIMs, IISc and top tier Private Institutions are provided with such support in Campus during admission process. While for other Colleges/ Universities such loans are extended under and processed like general cases.
For Loans upto 4 lakhs of Rupees, only parent co-application is required and no third party guarantee or collateral security is sought by the banks. Some National Banks like SBI, UCO banks offer the same scheme upto 7.5 lakhs. These conditions are subject to individual banks and discretion of the Bank Managers based on individual merits. Education loans are available to student for study aboard too.
Students seeking education loans, must have taken admission provisionally or otherwise in the programs/ courses under merit and must be an Indian Citizen.
Under the Scheme, the interest payable on the Educational Loan for the moratorium period i.e., Course Period plus one year as will be borne by the Government of India. After the period of moratorium, the interest on the outstanding loan amount shall be paid by the student, in accordance with the provisions of the existing Model Educational Loan Scheme of Banks and as may be amended from time to time.
Under the IBA Scheme, 1% interest concession is provided for the loanees if the interest is serviced during the period when repayment holiday is specified for interest/repayment under the scheme. This 1% interest concession would be extended under the Central Scheme of lnterest Subsidy, provided the Government of India disburses interest subsidy claims to the Banks on half-yearly or yearly basis.
Documents required for processing of education loans are generally the followings: Marksheet of previous qualifying examination, Proof of admission to the course, Proof of Income, Schedule Of Expenses for the course, as given by institution, ITAO / IT Return (latest) if IT Payee, PAN cards of student and Parents - Undertaking letter in the absence of PAN & Aadhaar and any other document as the Bank may demand based on individual cases where guarantee or collateral security is required.
No deserving student should for want of finance should give up their dreams of pursuing top end professional/ technical or other degree courses and must upskill, upgrade and update themselves everyday at every given opportunity and leave no stone unturned in their quest to build successful careers for themselves and start contributing to the growth and development of our State and Nation as whole. Making informed career decision is the key. Best wishes and God bless you with all success.
Students or parents, social organizations etc seeking any information about educational loan schemes may contact the author, Mr. Veeru Singh Sokhi, who has helped many students achieve their desired objectives by providing them crucial information regarding education loan assistance provided by IBA. and also helping all in processing edu loans
Mr. Veeru Singh Sokhi,
University of California Certified Career Counsellor,
Green Belt in Career Counselling from Univariety,
MBA, UGC-NET & UPSC - CDS Cleared, Diploma in Modern Applied Psychology,
Founder Global Career Counselling and Student Welfare Center, part of NEEV NGO,
Mobile no: 7002126299 (WhatsApp),