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The procedure to apply for an educational loan
Posted on: 27/Mar/2019 3:22:51 PM
Due to their highly inadequate financial situation (of their parents), many of the +2 school students are compelled to give up the chances of pursuing their preferred higher study and join other courses which are not so desired!
In this respect, educational loans are extended with the due consideration that students with skill and talent must not be denied the opportunities to pursue their education just because of their poor economic status!
Nowadays, one does not need to visit the banks to obtain educational loans as was done earlier! There is an exclusive website portal for this purpose – the central government’s ‘Vidyalakshmi Portal’. One can directly apply to this website.
The students can choose any one of the banks in their neighbourhood and apply. The status of the application can also be accessed here. Even if there are other loans taken in the student’s family, they will not affect the sanction of this educational loan.
Educational loans are being offered to all the courses approved by the University Grants Commission (UGC). There are 3 types of loan extended – up to Rs. 4 Lakhs, between Rs. 4 Lakhs and Rs. 7.5 Lakhs, and above Rs. 7.5 Lakhs.
For loans above Rs. 7.5 Lakhs, a mortgage would be required for the extent of loan applied. For educational loans of above Rs. 4 Lakhs, user-share charges of 5% have to be paid.
The students who avail the educational loan need to repay either during their studies are till 1 year after completion of the course. The government will pay the interest amount as a subsidy. However, the students will have to start paying monthly installments of the loan either 1 year after completion of the course or 6 months after securing a job.
Even the students who secured admission under the Management Quota can avail educational loans. However, there will be no interest subsidy payment.
For loans up to Rs. 7 lakhs, they need to be repaid over a period of 4 to 10 years. The excess amount of loan can be repaid for up to 15 years.
The students can apply for the loan to cover the additional expenses such as hostel, laboratory, equipment/gadgets, uniform, a personal computer or a laptop as well.
In order to avail educational loan, it is mandatory to furnish the details of PAN card, Aadhar Card, Address Proof, and Income Tax status certificate. So, it is advisable for the +2 students to use their summer vacation period to apply as per the required procedure to get these cards/documents/certificates.
Once the students join their courses, they can attach this joining proof along with the other required documents.
In case the application for an educational loan gets rejected without any valid reason, the student can complain to the concerned bank branch manager in the 1st phase. The applications can be rejected only with valid reasons. As per the Rules and Regulations, the loan has to be processed and paid within 30 days or a valid explanation has to be given in case of rejection.
