Students can avail the Loan facility from any public sector or private sector banks.
Different banks have different norms & policies but in general:
- Maximum loan amount can be 15 Lakh Rs.
- No Guarantee or collateral security required for loan upto 5 lakh Rs.
- Repayments will start after 1 year of course completion or 6 months of a job (whichever is earlier).
- Avail of tax rebates for the interest on an education loan under Section 80-E of the Income Tax-Act 1961.
- The student loan will be disbursed in full or in suitable installments taking into account the requirement of funds and/or fee schedule assessed by the Bank directly to the educational institution.