Puys, I believe its high time that I share this info with you. Abt the Educational loan , I did a lot of research adn identified that students can avail loan with complete interest subsidy (Provided their family income is less than 4.5 lakhs …
Puys,
I believe its high time that I share this info with you. Abt the Educational loan , I did a lot of research adn identified that students can avail loan with complete interest subsidy (Provided their family income is less than 4.5 lakhs - Its not community or caste specific). The Central goverment has directed the banks to take necessary steps to implement the scheme with imeediate effect. The scheme is termed "Central scheme for complete interest subsidy for economically weaker students". But we have a problem, the Goverment has made this public only on 25th May.
PIB Press Release. PIB Press Release
So its hardly 15 days. So we must take immediate steps so as to avail this.
check whether your college will come under this scheme.if yes,then try to get
Please check the follwing llinks...
::: Professional Councils-Inside H E - University Grants Commission ::: ::: Professional Councils-Inside H E - University Grants Commission :::
I am trying my level best to get the information. Because its hight time that we share the information we have. So I kindly request you folks to go through the links and post info on so as to how we avail the loan.
If you or parents or relatives or friends whomsoever it may be, please try to contact them and get the information. More importantly please share it in this thread only, so that all of us get befitted.
lets share whatever info you have so that we can get clear picture about this loan availability
PS: Courtesy by Sreeni(PG ID :12179
MODS: If you keep this thread sticky,it would help ppl immensely.
Puys,
I believe its high time that I share this info with you. Abt the Educational loan , I did a lot of research adn identified that students can avail loan with complete interest subsidy (Provided their family income is less than 4.5 lakhs - Its not community or caste specific). The Central goverment has directed the banks to take necessary steps to implement the scheme with imeediate effect. The scheme is termed "Central scheme for complete interest subsidy for economically weaker students". But we have a problem, the Goverment has made this public only on 25th May.
PIB Press Release. PIB Press Release
So its hardly 15 days. So we must take immediate steps so as to avail this.
check whether your college will come under this scheme.if yes,then try to get
Please check the follwing llinks...
::: Professional Councils-Inside H E - University Grants Commission ::: ::: Professional Councils-Inside H E - University Grants Commission :::
I am trying my level best to get the information. Because its hight time that we share the information we have. So I kindly request you folks to go through the links and post info on so as to how we avail the loan.
If you or parents or relatives or friends whomsoever it may be, please try to contact them and get the information. More importantly please share it in this thread only, so that all of us get befitted.
lets share whatever info you have so that we can get clear picture about this loan availability
PS: Courtesy by Sreeni(PG ID :12179
MODS: If you keep this thread sticky,it would help ppl immensely.
Great info buddy...but then why are all the banks still quoting standard interest rates... I went just the day before..then also there wass no news on this...so may be even this initiative is just cursory...may be the banks have a final say....
The reason is that RBI hasn't provided nationalize banks any guidelines till now......My friends have shown the RBI's new policy from the net to the banks but the bank manager told them that RBI hasn't provided them any guidelines or official orders till now.....so it'll take time to pass on....hope that we'll get the benefits from this new policy.....
Note:
The first paragraph of the Press Release page says that "there would be no interest Only for the moratorium period of the education loan." Please understand that it is NOT an Interest Free Loan. The students will pay the interest on the outstanding amount when the moratorium period ends.
Moratorium period: The period during which you do not have to make repayments. Usually it is :
Course Period + 6 months (if you get a job) OR Course Period +1 year (if you don't get a job)
The first paragraph of the Press Release page says that "there would be no interest Only for the moratorium period of the education loan." Please understand that it is NOT an Interest Free Loan. The students will pay the interest on the outstanding amount when the moratorium period ends.
Moratorium period: The period during which you do not have to make repayments. Usually it is :
Course Period + 6 months (if you get a job) OR Course Period +1 year (if you don't get a job)
Scheme to provide full interest subsidy during the period of moratorium on loans taken by students belonging to economically weaker sections from scheduled banks under the Educational Loan Scheme of the Indian Banks' Association, for pursuing any of the approved courses of studies in technical and professional streams, from recognized institutions in India - in short "Scheme of Interest Subsidy on Educational Loans from scheduled banks for professional education of students from economically weaker
sections"
Dude where is the list of colleges that come under this scheme??
hi does welingkar come under this scheme for pgdm also which banks should be approached
Note:
The first paragraph of the Press Release page says that "there would be no interest Only for the moratorium period of the education loan." Please understand that it is NOT an Interest Free Loan. The students will pay the interest on the outstanding amount when the moratorium period ends.
Moratorium period: The period during which you do not have to make repayments. Usually it is :
Course Period + 6 months (if you get a job) OR Course Period +1 year (if you don't get a job)
Hi ,
Yes its a fact. Because as of now there are only two options available for loans. 1. You can take up the loan and pay the interest during the course of study. 2. You take up the loan, dont pay the interest during the course of study . But the interest amount that we are supposed to pay during study period (2 Years incase of MBA) will be added to the Principle amount (Say 5Lak + 90,000 (Interest for two years)). SO when we start repaying the amount (Principle is around 6 Lakhs). So from the above scheme the govenrment will pay the interest for moratorium period. When we start repaying , our priciple will only bethe amount that we borrowed from the bank.
Regards
Sreeni
Any inputs , please share in this thread folks....
Regards
Sreeni
Regards
Sreeni
Hi
today I enquired in SBI bank For education Loan.
But they said u have only 2 options
1] pay ur interst monthly
2] pay interst + basic loan amount after ur PG
When I asked about this PIB notification. HE said "We dont know".
is there any other process to apply this loan to get subsidy on loan inerest?
Any one of the members had got such loan?
loooking forward to ur replies.:shocked:
how will we come to know when r the banks gonna get any info regarding this and what about those who have already taken loans for this year..ppl like me who r gonna pay interest rate of 10% if we r not included..and the press release is dated 27 aug 2009. and still no banks have got info regarding this.. Is it all bcos we live in INDIA
pdayma Sayshow will we come to know when r the banks gonna get any info regarding this and what about those who have already taken loans for this year..ppl like me who r gonna pay interest rate of 10% if we r not included..and the press release is dated 27 aug 2009. and still no banks have got info regarding this.. Is it all bcos we live in INDIA
My friend.... The moratorium is only for the period of your course and the scheme has no bearing on the rate of Interest. So you alone wont be paying 10 % 😃
Moreover, it usually takes time for the schemes to get implemented. As and when that would happen, you would definitely find it in the newspapers since the banks would like to highlight it to attract more students.
Hi puys..
Just have a small doubt regarding life insurance premium which is covered for the loan amount that we take in PSUs..what is the amount of premium that we need to pay from our pocket..or as the case may be deducted from the disbursed amount...
If I take a loan of 8 lakhs..what would be the premium amount...thanks in advnace
repeated post..sorry..
My friend.... The moratorium is only for the period of your course and the scheme has no bearing on the rate of Interest. So you alone wont be paying 10 % 😃
Moreover, it usually takes time for the schemes to get implemented. As and when that would happen, you would definitely find it in the newspapers since the banks would like to highlight it to attract more students.
so nobody in PG had got such loan or what ?
The article came out in 2009..... still it hasn't been implemented in any of the banks ?
Hi puys..
Just have a small doubt regarding life insurance premium which is covered for the loan amount that we take in PSUs..what is the amount of premium that we need to pay from our pocket..or as the case may be deducted from the disbursed amount...
If I take a loan of 8 lakhs..what would be the premium amount...thanks in advnace
Well mostly, if you visit any Bank for your Education Loan query, they would easily let you know the amount of premium you would have to pay. I can quote an example though. One of my friends took a loan of 5.00 Lacs and his premium (one time, I guess) was Rs. 3446/-
@gvijayakumarg: I can say that there is no such scheme in the Education Loan in one of the Nationalized banks from personal sources which means that most probably it hasn't been implemented in any of the banks.
@ Everyone It has been said in the Press Release that the Scheme has been approved. That though does not necessarily mean that the same has been implemented at the Cabinet level. Maybe that is why no Bank has been giving any info on this.
I'm not sure why there is such a hullabaloo over the so-called latest press release.
Let me explain.
1. I passed my MBA in 2008, so before the press release came about.
2. Although I did not take a bank loan, enough of my friends did, and I also went through their loan statements.
3. I also studied the loan deals provided by different banks - around 7-8 of them.
The basic structure of the loan, as it was then, is detailed as below:
1. Repayment period started immediately (i.e. if it was a 15 year loan, the 15 year period started immediately on taking the loan)
2. Accumulation of interest did not start immediately. It started whenever you wanted it to start after your course ended, upto a max of 6 months. After 6 months, it would start compulsorily.
3. You could start paying back the principal immediately, whether your course started or not.
Now, note this:
1. In your repayment EMI, you are not just paying interest. You are paying back a part of the principal amount that you have taken as loan, and also the interest accumulated on that.
2. Interest is levied only on the outstanding principal amount left in your loan.
3. As you go ahead in time, the interest part reduces, and the principal part increases.
4. If you have paid back some amount of principal during your course, interest will not be levied on the same.
Now, the pertinent sections of the release we are talking about in this thread:
1. The press release is only for those people who come under the economically weaker category. This is the section of the population earning less than 4.5 LPA. This means not the person but the family. So if the total family earnings are less than Rs. 37,500/- per month, they come under the economically weaker section.
My response: Fair point. However, educational loans already provide such amenities mentioned in the release, as I have described above.
2. It states that the scheme will be valid to the student only once.
My response: Educational loans, again, provide such amenities to all students whenever they take an educational loan. Again, I am not sure whether taking an educational loan is allowed more than once - for graduation and then again for post graduation. If I am correct, the original loan is rejigged to account for the PG.
3. The basic aspect of the release is that the interest during the moratorium period will be paid by the government. By moratorium, they have defined as the period of the course plus some period above it.
My response: As per the loans taken by my friends, interest was anyways not levied during the same period. What is the government then going to subsidize? (Oops. Pl. check the edit PS below.)
Regards,
Grondmaster
Edit PS: I just went through the details on some bank websites, they have started levying interest during the moratorium period as well. I guess this is what the government is subsidizing. However, no bank is mentioning it right now. - Gronde
so what u grondmaster say is that,no such loan had been offered to anybody.... then in that case,we got to look for normal loan itself ....
thanks for the detailed write-up and appreciate your patience in writing such essays man 😃
Someone please explain this in terms of pure number. What differences will take place? And anyone who does it should have gone through the details.
Person X takes a loan of 10 lakhs for a time period of 10 years at an interest rate of 10% (lets assume), what happens if he takes the loan under
a) Present Private Banking Education System
b) The New Education Scheme that is supposed to come up soon
Lets Us know the Differences.
Someone please explain this in terms of pure number. What differences will take place? And anyone who does it should have gone through the details.
Person X takes a loan of 10 lakhs for a time period of 10 years at an interest rate of 10% (lets assume), what happens if he takes the loan under
a) Present Private Banking Education System
b) The New Education Scheme that is supposed to come up soon
Lets Us know the Differences.
Education Loan EMI Calculator : Rupee Times
Regards,
Grondmaster