As per the Indian Banks’ Association (IBA) Model Scheme, the undergraduate, postgraduate and PG diploma courses which are approved and conducted by the colleges or universities recognized by the bodies like UGC, AICTE and ICMR are eligible for education loan.
Non-professional courses that are recognized are also covered under the Model Education Loan Scheme. The complaints received by the government regarding education loans are taken up by the respective banks for corrective action.
In the year 2016-17, 2608 complaints were received out of which 2497 were disposed of. The government has launched a web-based portal known as Vidya Lakshmi Portal for easy processing and disbursal of education loans. Candidates can apply for loans and track the loan applications online on this portal.
As per the RBI guidelines, all the education loans up to Rs 4 lakh are collateral free. The government has also launched a Credit Guarantee Fund Scheme for Education Loans (CGFSEL) under which collateral-free loans are given up to Rs 7.5 lakh.
According to IBA Model Scheme, the limit for education loan in India is Rs.10 lakh and for Rs.20 lakh for abroad studies. However, banks may consider the course for which loan has been applied for, reputation and placement history of the education institute while imposing a limit on the education loan. See SBI Education loan
Banks may consider higher quantum of loans depending upon the course applied for.
For any query, candidates are requested to check the official website .
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