It is college admission time and be it students who are going in for professional courses or those opting for arts and science programmes, their demand for education loans is also increasing every year.
Education loans are used for paying tuition fees, purchasing books, boarding fees, and others.
“When a student wants a loan of Rs. 4 lakh, he need not produce any document as security. When he needs between Rs. 4 lakh and Rs. 7 lakh, there should be a guarantor.
If the requirement is for loan of more than Rs. 7 lakh, the student should produce security.
The loan repayment period includes six months of moratorium so that the student is able to start repaying after getting a job.
Further, interest subsidy is provided by the Union Government from 2009 to students to those opting professional courses, for loans less than Rs. 5 lakh and has got admission on merit.
Last financial year, banks in Coimbatore district disbursed Rs. 180 crore as education loan to 6,000 students. This year, the amount is expected to be higher, said an official at Coimbatore District Lead Bank.
According to an official of Corporation Bank, the loan is sanctioned within two weeks if all the required documents are attached. The interest rate differs, depending on the loan amount.
The demand is more from students who go for professional courses. Last year, 60 per cent of the loan amount disbursed was for professional courses.
Every year, banks organise camps to create awareness among students on education loans. With the plus two results just announced, such camps will be organised this year too, the official from the Lead Bank says.
S. Deepthi, a first year college student, says that she is studying with the help of educational loan from a private bank.
She says: “For every semester, Rs. 36,000 is credited in my father’s account. But, I should get a certificate with fee structure each time from the college. And, the bank takes about a month to credit the amount in the account. So, my father has to pay the fees before the deadline in the college.”
Education loans are used for paying tuition fees, purchasing books, boarding fees, and others.
“When a student wants a loan of Rs. 4 lakh, he need not produce any document as security. When he needs between Rs. 4 lakh and Rs. 7 lakh, there should be a guarantor.
If the requirement is for loan of more than Rs. 7 lakh, the student should produce security.
The loan repayment period includes six months of moratorium so that the student is able to start repaying after getting a job.
Further, interest subsidy is provided by the Union Government from 2009 to students to those opting professional courses, for loans less than Rs. 5 lakh and has got admission on merit.
Last financial year, banks in Coimbatore district disbursed Rs. 180 crore as education loan to 6,000 students. This year, the amount is expected to be higher, said an official at Coimbatore District Lead Bank.
According to an official of Corporation Bank, the loan is sanctioned within two weeks if all the required documents are attached. The interest rate differs, depending on the loan amount.
The demand is more from students who go for professional courses. Last year, 60 per cent of the loan amount disbursed was for professional courses.
Every year, banks organise camps to create awareness among students on education loans. With the plus two results just announced, such camps will be organised this year too, the official from the Lead Bank says.
S. Deepthi, a first year college student, says that she is studying with the help of educational loan from a private bank.
She says: “For every semester, Rs. 36,000 is credited in my father’s account. But, I should get a certificate with fee structure each time from the college. And, the bank takes about a month to credit the amount in the account. So, my father has to pay the fees before the deadline in the college.”