Educational Loans

MBA CAT 2022
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HI ALL! *HOPE EVERYONE’S HAPPY/GEARED UP WITH THE RESULTS THIS YEAR. ITS TIME NOW TO STEP UP INTO OUR RESPECTIVE DREAM BSCHOOLS(or BSchools left by Default with no other option… :: ) CONCOMITTANT WITH A TENSION OF ARRANGING FUNDS. * *THIS …

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HI ALL!
HOPE EVERYONE'S HAPPY/GEARED UP WITH THE RESULTS THIS YEAR. ITS TIME NOW TO STEP UP INTO OUR RESPECTIVE DREAM BSCHOOLS(or BSchools left by Default with no other option.. ) CONCOMITTANT WITH A TENSION OF ARRANGING FUNDS.
THIS THREAD IS OPEN TO EVERYONE WHO CAN CONTRIBUTE WITH HIS/HER KNOWLEDGE ABT EDU LOANS AND ITS PROCEDURES, TO THE THREAD.
chillll...
aspirehigh(er)
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i thought ppl wud respond

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HI ALL!
HOPE EVERYONE'S HAPPY/GEARED UP WITH THE RESULTS THIS YEAR. ITS TIME NOW TO STEP UP INTO OUR RESPECTIVE DREAM BSCHOOLS(or BSchools left by Default with no other option.. ) CONCOMITTANT WITH A TENSION OF ARRANGING FUNDS.
THIS THREAD IS OPEN TO EVERYONE WHO CAN CONTRIBUTE WITH HIS/HER KNOWLEDGE ABT EDU LOANS AND ITS PROCEDURES, TO THE THREAD.
chillll...
aspirehigh(er)


first of all go to banks which have tie up with the institute-tht helps

upto 4 lacs-no margin/no security-intrest rate 9-12%
4-7.5 lacs-third party gurantee req-intrest rate a bit higher

above 7.5 lacs-security in form of property/insurance/fd etc req

max limits: indian stud-7.5lacs
international:15 lacs
docs req

proof of id/adress/income docs/bank statmnt 6 months/photo/property docs.

turnaround time-15-30 days

key points:

all on the santioning manager-if hes good n like u-no probs

if nt-thn hell make life hell

as per rbi directive these rules apply-if banks insist of security for amts less thn 7.5lacs-remind thm of the rbi directive n approach senior managmnt.

at the end of the days its a tough job
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hey guys any idea tht if i take a educational loan of lets say 7 lacs sanctioned---thn can i later opt for only 5 lacs n tell bank i dont need the last 1-2 installments???

do thy allow this?

and is part repayment allowed?

last one::does the third party guranter have to visit the brach in person to sign the documents?

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hey guys any idea tht if i take a educational loan of lets say 7 lacs sanctioned---thn can i later opt for only 5 lacs n tell bank i dont need the last 1-2 installments???

do thy allow this?

and is part repayment allowed?

last one::does the third party guranter have to visit the brach in person to sign the documents?


hi

if a loan is sanctioned for 7 lacs, it is set to be disbursed upto that level. however, if the disbursee is interested in freezng the loan to 5 lacs, the sanction of 2 lacs has to b rescinded n in other words, the procedure is called as a ForeClosure. There are ofcourse some charges for preclosure (but depends on bank to bank)

And btw, YES! A guarantor HAS TO BE THERE to sign the documents to formally disclose his acceptance of the guarantee. Again, depends on bank to bank...as some banks may provide a facility of an officer coming to the guarantor for the completion of formalities.
But, for nationalized banks...: BHOOL JAO!


(NB: Subject to reconfirmation n updation frm a professional)

hope tht helps,
aspirehigh(er)
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Hey Thats really nice thread
I wish if it can be clarified that on what amount the loan is granted
is it the tution fees
the living expenses
essentilas like NOTE PAD (Bevereages )

and last is it a norm to grant loans on management quota seats

ATB

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hi

if a loan is sanctioned for 7 lacs, it is set to be disbursed upto that level. however, if the disbursee is interested in freezng the loan to 5 lacs, the sanction of 2 lacs has to b rescinded n in other words, the procedure is called as a ForeClosure. There are ofcourse some charges for preclosure (but depends on bank to bank)

And btw, YES! A guarantor HAS TO BE THERE to sign the documents to formally disclose his acceptance of the guarantee. Again, depends on bank to bank...as some banks may provide a facility of an officer coming to the guarantor for the completion of formalities.
But, for nationalized banks...: BHOOL JAO!


(NB: Subject to reconfirmation n updation frm a professional)

hope tht helps,
aspirehigh(er)


hey buddy thnks so much for the effort.

n ya edu loans cover all expenses including lodging etc too.

guranter agar outstation rehta ho toh how do thy expect him to come down to sign in the bank---cant i just take the form n get it signed by him(sign it myself actually ).....do thy ask for the guranter to actuaslly come down in person n meet the bank manageer n sign or just get it signed thts it.....
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check out the sbi scholar scheme.... one of the best on offer in the market i guess.....

find attached...

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check out the sbi scholar scheme.... one of the best on offer in the market i guess.....

find attached...

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thanx rohan!

i hope the attatchment is updated and the latest! however, the scholar loan is as can i get pertains to the meritorious students who get into instt's like IIT's & IIM's alongwith a few top notches.

GUYS, DOES ANYONE KNOWS ABOUT ANY POSSIBLE PROBLEM ONE CAN FACE WHILE AVAILING A EDU LOAN OF LOWER RUNG INSTT'S (like NIT's, Mats, IIF, IMS-Indore etc.).

Moreover, we again need to reconfirm what I've heard; i.e. Educational loans DONOT COVER POCKET EXPENSES which excluding hostel/mess, comes up to nearly 40-50k in any average city.

any feedbacks??
aspirehigh(er)
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thanx rohan!

i hope the attatchment is updated and the latest! however, the scholar loan is as can i get pertains to the meritorious students who get into instt's like IIT's & IIM's alongwith a few top notches.

GUYS, DOES ANYONE KNOWS ABOUT ANY POSSIBLE PROBLEM ONE CAN FACE WHILE AVAILING A EDU LOAN OF LOWER RUNG INSTT'S (like NIT's, Mats, IIF, IMS-Indore etc.).

Moreover, we again need to reconfirm what I've heard; i.e. Educational loans DONOT COVER POCKET EXPENSES which excluding hostel/mess, comes up to nearly 40-50k in any average city.

any feedbacks??
aspirehigh(er)


if u had read just 3 posts before- u woudnt have had this question.

boss edu loans conver evrythg and anythng related to ur course includinh hostel and mess charges...why it even covers airfare for travell to n fro to ur institute..... thr r some things money cant buy(like ur gf's valentine's gift)....for evrythng else there is an educational loan
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Read this.. This will clear many doubts:

1. QUANTUM OF FINANCE:

Need based finance subject to repaying capacity of the parents/ students with margin and the following ceilings.

- Studies in India - Maximum Rs.7.50 lacs.
- Studies abroad - Maximum Rs.15 lacs


2. MARGIN :

Upto Rs 4 lacs Nil
Above Rs. 4 lacs : Studies in India 5%
Studies Abroad 15%

- Scholarship/ assistantship to be included in margin.
- Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.

3. SECURITY :


Upto Rs 4 lacs No security

Above Rs.4 lacs and upto R.s.7.5 lakhs Collateral in the form of a suitable third party guarantee. The bank may, at its discretion, waive third party guarantee if satisfied with the net-worth / means of parent who would be executing the document as "joint borrower".

Above Rs.7.5 lakhs Collateral security of suitable value or suitable third party guarantee along with the assignment of future income of the student for payment of instalments.

Note:-

* The loan documents should be executed by both the student and the parent/ guardian as joint-borrower.

* The security can be in the form of land/ building/ Govt. securities/ Public Sector Bonds/ Units of UTI, NSC, KVP, LIC policy, gold, shares/ debentures, bank deposit in the name of student/ parent/ guardian or any other third party with suitable margin.

* Wherever the land/ building is already mortgaged, the unencumbered portion can be taken as security on II charge basis provided it covers the required loan amount.

* In case the loan is given for purchase of computer the same to be hypothecated to the Bank.

Banks who wish to support highly meritorious/ deserving students without security may delegate such powers to a fairly higher level authority.


4. RATE OF INTEREST :


Upto Rs 4 lacs BPLR (This is Prime Lendig Rate)
Above Rs. 4 lacs BPLR + 1%

*Simple interest to be charged during the Repayment holiday/ Moratorium period.

* Penal interest @ 2% be charged for above Rs.4 lacs for the overdue amount and overdue period.

5. APPRAISAL / SANCTION/ DISBURSEMENT :

* In the normal course, while appraising the loan the future income prospects of the student will be looked into. However, where required, the means of parent / guardian could also be taken into account to evaluate re-payment capability.
* The loan to be sanctioned as per delegation of powers preferably by the Branch nearest to the place of domicile.
* No application for educational loan received should be rejected without the concurrence of the next higher authority.
* The loan to be disbursed in stages as per the requirement/ demand directly to the Institutions/ Vendors of books/ equipments/ instruments to the extent possible.

6. REPAYMENT:

Repayment holiday/Moratorium Course period + 1 year or 6 months after getting job, whichever is earlier.

The loan to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course.

* The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Instalments (EMI) fixed.
* 1% interest concession may be provided for loanees if the interest is serviced during the study period when repayment holiday is specified for interest/ repayment under the scheme.

7. FOLLOW UP:

Banks to contact college/ university authorities to send the progress report at regular intervals in respect of students who have availed loans.

8. PROCESSING CHARGES :

No processing/ upfront charges may be collected on educational loans.


9. CAPABILITY CERTIFICATE:
Banks can also issue the capability certificate for students going abroad for higher studies. For this financial and other supporting documents may be obtained from applicant, if required.

(Some of the foreign universities require the students to submit a certificate from their bankers about the sponsors' solvency/ financial capability, with a view to ensure that the sponsors of the students going abroad for higher studies are capable of meeting the expenses till completion of studies.)

10. OTHER CONDITIONS:

No due certificate need not be insisted upon as a pre-condition for considering educational loan. However, banks may obtain a declaration/ an affidavit confirming that no loans are availed from other banks.

Loan applications have to be disposed of within a period of 15 days to 1 month, but not exceeding the time norms stipulated for disposing of loan applications under priority sector lending.

In order to bring flexibility in terms like eligibility, margin, security norms, banks may consider relaxation in the norms on a case to case basis delegating the powers to a fairly higher level authority.

================================================

Make sure there r no hidden charges... banks charge Disbursement fees.. n this differs frm Bank to Bank.. It can come out to b a hefty sum at the end of 2 yrs.... So take an informed decision..

~Lass

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thanx a lot folks for all the info but this link should b more active coz this must b a big problem for many students. i read that scholar scheme of SBI. i have made it to irma & their prospectus mentions that loans will b available from SBI at lower interest rates but SBI doesn't mention IRMA in their list. will there b a different scene?

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if up2 4 Lacs is that good, can i take 2 loans of 4Lacs each from 2 diff banks if i need 8L ?

and how does the bank verify whatz the actual need? I mean one can inflate the extra-curricular costs, right ?

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no u can do neither.

two loans-not allowed.

expenses-as per college expense sheet.

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what bout personal expenses?

laptop, living expeses, phone charges, etc etc

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what bout personal expenses?

laptop, living expeses, phone charges, etc etc


See regarding lap-top.. i went to SBI n those blokes told me to submit a letter frm college saying that a laptop is a must... Also Im needed to submit a quotation regarding the same frm a local lap-top vendor... n these bankwalas will issue a cheque in that vendor's name..Got that... arey no money is going to tuch ur palms..

n dear dear..do u intend to say that u wanna call ur gf...n for that u want bank ppl to assist u... 😃 😃

See every expense you show has to be there in the Expense sheet sent by college on their letterhead... Anyways u can put some amt under column "MISCELLANOUS"... n then justify it..

Hope this solves ur query... Any other feel free to ask...

~Lass 😃
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What if someone has taken a educational loan for his/her graduation and then again needs loan for post-grad?? Because while pursuing post-grad, one can't repay the earlier loan so will the graduation loan lending banks wait for him/her? And how will s/he get further loan for post-grad?

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as both my mom and my dad are in banking industryy....so atleast am havin dt much advantage to escape those documenation part..those certis needed..!! had a load while doin my grad too..bas dts alli know..nthin else..so was a cakewalk 4 me..!! thanx dad..:)

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Hey everybody,
Regarding loans.. I think it is best to wait for the final results and the offer letters to arrive. Most institutes have some kind of tie-up with some bank... and it is most prudent to take loan from that bank as it is much easier to get sanctioned. You might also recieve a letter from a bank along with your offer letter. Infact, some banks actively collect info regarding people joining premier institutes and send them letters separately. They actively market their educational loans. If you get into an IIM, then you don't even have to think about it at all. You will recieve letters from 3-4 banks. Infact they will visit your campus unofficially and give presentations to you. Ideally you should join up and bargain for a rate below 9%. Paperwork will take 10 minutes. No guarantee required. They will also be willing to fund your laptop and mess charges. Besides this, a provision for pocket money can also be made. But you will have to pay the first installment yourself which will be later refunded to you. I am not much aware about other colleges..
I hope this helps,
Regards,
Bhabesh
IIM-K